Affiliate marketing is a method of promotion whereby independent contractors, so to speak, are used to help publicize a product or service. Such work is carried out on a commission-only basis, so that payment is only made on a sale. These folks are traditionally known as \”affiliates;\” hence the name.
Affiliate marketing can be quite lucrative, and in theory can generate residual income, money that\’s earned from work already done. Think of all those songs on the radio.
Did you know that each time one of them is played, the musicians involved are paid? They might have first composed and performed the piece years, even decades, ago, but nowadays they are still being paid for it, every single time the song comes on the air (or is used in movies, et cetera).
That is residual income, and that is the true power of affiliate marketing. It\’s a promise that animates tens of thousands of affiliate marketers each and every year, recruiting ever more affiliates – for the way to residual incomes lies in creating one\’s own network of affiliates who \”kick up\” a percentage of their earnings to oneself.
Of course, the devil is in the details, as the old adage goes, and before signing up it is important to carefully educate oneself. Most programs require an initial purchase of some sort, and many others require that sales be on-going in order to continue receiving affiliate income. So let\’s say that Charlie has built a network of subscribers to some kind of service or other.
Each time they renew, he receives his take, his cut. But some programs will stipulate that he only actually receives his \”lifetime\” commission on the condition that he continues to generate new customers! Otherwise, his earnings on his established customers are held for him, and not usually in some third-party escrow, either.
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