It seems that in the affiliate marketing arena, the average commissions are 50%. Granted, there are some that pay more, even all the way up to the rare few that pay 100% commissions. But why do so many affiliates continue to settle for a one time payout for a product or service for all of their promotion efforts? This is something that has puzzled me for the longest time about affiliate marketing.
There are only so many buyers that any number of affiliates can find to buy a product or service. Just think of all that time, effort, and money you spend getting those one shot sales, and you have to keep doing it over and over again because once you stop what you’re doing, the money stops coming in.
Rather than putting all that time, effort, and money into promoting a $30 product or service to earn a one-time $15 commission, wouldn’t it be wiser to put that same effort into a product or service and earn $4.50 commissions over and over again month after month, maybe even for many years to come for making just one sale?
Look at this example. Ace is the typical affiliate marketer that is promoting a $30 anti-aging cream, and when he makes a sale, he makes a one-time $15 affiliate commission, and that’s it. Now take Cookie who is also an affiliate marketer promoting a $30 anti-aging cream, and she makes a sale, but she is paid $4.50 commission on that one sale every month for as long as that customer continues to buy that anti-aging cream to keep looking young.
Ace earned a one-time 50% commission of $15 and he has to continue to market, advertise, spend time, effort and money to find another, and more and more buyers. If Ace stops promoting the product, Ace’s income stops also. Cookie, on the other hand is earning a 15% monthly commission of $4.50 for the entire life of the customer from her one time sale. If Cookie stops promoting the product, her commissions continue to roll in month after month without any further efforts on her part. Even if Cookie’s customer only continue to buy the product for just a year, that is $54, or 360% commissions when compared to what Ace made for all of his time and efforts.
Which one is the wisest affiliate marketer? So what would you rather be be, a dumb Ace, or a smart Cookie when it comes to affiliate marketing?
Okay, by now you know I’m talking about affiliate marketing of recurring income products or services. These types of products or services usually do not pay as high commissions as the typical affiliate products and services, but you’re making more in the long run without any further effort beyond making a one-time sale. Yes, Clickbank, Commission Junction and some others now offer recurring commissions products or services, but most of them do not lend themselves well to longevity when it comes to the same people buying them over and over again.
As you may have seen, that is a problem with most memberships. The life time value of a customer is short, and many times it does not matter how good the product or services is. However services like web hosting and autoresponders do lend themselves well to recurring income because this is something that people will need and continue to use.
When it comes to products, my personal choice is in the health and beauty field for recurring commissions. People are always going to want to look good, feel good, and be pain free. When you make a one-time sale of a joint pain relief product to a customer, they will continue to buy and use that product for as many years as they continue to experience pain, and that means monthly recurring commissions for you. When you make a one-time sale of an anti-aging cream to a customer who do not want to show the signs of again, that customer will continue to buy and use that product for as long as they keep aging, and that means monthly recurring commission for you.
So, as you see, that is why I personally choose the health and beauty field when it comes to affiliate marketing for recurring income and commissions. As a matter of fact, I know of one health products prime source that has an affiliate program so good, you can make recurring monthly commissions without even making a sale, or promoting its products! Come to think of it, I know a resource that has a wagon load of affiliate programs where you can make recurring affiliate commissions month after month for years to come… without making a single sale. However, I will save all of that for another post.
If enough of you are that interested in learning of my #1 source of a affiliate program that you can earn recurring monthly income without making a single sale, you may be able to twist my arm hard enough to reveal it. We’ll see, won’t we?
At any rate, it’s time to stop being a dumb Ace, and start being a smart Cookie, and earn monthly recurring commissions for all your time, efforts, and money spent on advertising and promoting affiliate products and services. What do you think?