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When I first start my 1st business I spend nearly in excess about $5,000 on my 1st business that I venture into. Little did I know the product I was selling was not only so general but there was no system in place to sell the product and every thing got to be done from scratch .

I had to handle the administrative support, accounting, marketing, proposals and many other documentation that was taking up most of my time when I should be only doing one thing which was marketing my business.

But all that was gone, once I was introduce Affiliate marketing. Everything was already setup for me when I first started selling affiliate products. I do not need to purchase the product upfront, no requirement for invoices and delivery was all handled by the merchant.

Also, most affiliate program has already implemented their own proven systems that you simply just need to follow in order to make money from the program. With everything in place, you can spend more time on necessary areas then waste your time on unproductive work.

Basically affiliate marketing is a means of earning income either through commission or through recurring income. It involves a business relationship that exists between a merchant and its affiliates where as much traffic has to be created to the merchant's website.

The Traffic produced will lead visitors to purchase or creating a lead for the company, this affiliate is provided with some compensation plan. The commission is either in the form of a recurring income or a percentage sales commission of the sales generated.

Most affiliate programs who offer affiliates have two ways to makes money. The 1st method would be a one time commission anywhere from 5% to 75%. There are some programs that offer fixed fees for each click through the affiliate sends to the merchant's site. Often these programs offer a low commission and it is not necessary for the visitor to buy anything for the affiliate to get a commission.

The 2nd method would be the residual income affiliate program. Here the recurring income can range from about 5% to 60% of the sales earned for all sales generated by the affiliate. In some programs they also have a 2 tier program which can further allow the affiliate to earn from introducing more affiliates under them. So this basically means that for the same amount of effort, you are paid multiple times while earning recurring income in a residual program.

Given a choice between these two methods of affiliate programs. One merchant offers a one-time commission program paying $50 for each sale. The second merchant pays $20 for every sale. The affiliate usually jumps at the offer the first merchant offers as $50 is much more than $20. However, if you think deeply, you will find that it is the second merchant that offers a more stable income for you every single month.

Whether it is a one-time commission payment or a monthly recurring commission. The marketing effects are all equal. The beautiful part about recurring commission is that it will turn into passive income once you have secured your customers and as long as your customer pay for your merchant services every month, you can continue to get paid for months or years.

So this shows that residual affiliate programs are indeed worth promoting as you get more money from this program in the long run. Though it cannot be vehemently said that a recurring income affiliate program is better for you, you should never ignore such programs.