Why I Love Recurring Income Programs
I want to describe to you why I love recurring income affiliate programs. It may seem obvious but there are some nuances with respect to advertising that makes them the kind of “secret sauce” in the affiliate marketing world.
To define, affiliate programs that offer recurring income means that if the affiliate gets somebody to sign up and continues paying a monthly fee, the affiliate will get a percentage of that monthly fee. You can imagine that if you have 100 people paying a monthly fee of $40 and the affiliate gets $20 each month. That’s $2000 of passive income. Think about what happens when you have 1000 people. You can easily see why this is a fantastic way to make money.
Some Negative Issues With Residual Income Programs
I’d be remiss if I did not point out some of the negative aspects of residual commission programs. The first is that they are harder to sell, all things being equal. People are often reluctant to shell out month after month which leads to the next aspect that makes it more difficult to make money in recurring income. You need to have a great service that is always expanding in order for people to justify making a month-to-month commitment. One other aspect that can be viewed as a negative is what is known as the retention rate of the members. Some members will unsubscribe and hence will stop paying the monthly fee. Retention rates vary by affiliate programs but a typical rate for a decent program is about 4 months.
What About The Good Stuff?
I mentioned before about advertising which is the reason why I love recurring commission programs so much. When you advertise using pay per click (PPC) you typically have to calculate your return on investment (ROI for each keyword. For single sale affiliate set ups, ROI is much lower than for recurring commissions. This just makes sense. But if you take the 4 month retention rate given previously, then you can almost look at the ROI as being almost 4 times that of single sale affiliate products.
But it’s a bit more complicated than that. Because recurring income programs are harder to convert, you may have to spend more in your ad spend. But that’s okay because you have that 4 month buffer. As with any PPC, the most important way to make sure that your ROI is where you want it to be is to track and revise your campaigns. Then when you latch onto a winning campaign for a recurring commission situation, you just let it run and it’s almost like having your own ATM.
What About Search Engine Optimization (SEO)?
SEO, also known as organic traffic, is the traffic that results naturally from search. When you write with certain keywords in strategic placement in your content, the search engines will index your content based on those keywords. When people enter those keywords into the search engines, if your content is in good positioning your page will appear in the results. If you have a captivating title, the visitor may click on your page.
What does this have to do with recurring income affiliate programs? If you can get this kind of traffic to convert than your ROI is much closer to the 4 times that I mentioned before. And if it converts well you have another easy source of income over time.
Which Method Should Be Used?
Essentially, you’ll want to use a combination of both. This will have you getting potential traffic from various angles. Of course, you’ll want your PPC traffic to be much more targeted than your organic traffic. There are specific techniques that can help you achieve that. That’s why I have included some free training on how to make that happen. You’ll want to learn the correct methods to do this or else you will spend money unnecessarily, and a lot of it. You will waste the money on people that have no interest in what you have to offer, clicking your ads. Learn the methods correctly and you can add to your recurring income stream effectively.