The Truth About Earning A Residual Income In An Affiliate Program
Copyright © Rahimah Sultan

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There is often confusion about what an affiliate program is and how you can actually earn residual income by using one. We are bombarded with the extremes of two views; Ads telling us that we can make large amounts of cash through these programs and Ads stating that any program offering an unlimited income is a scam. Affiliate programs are found almost everywhere, and even large companies are getting into the act. It is very important that you know the truth about using these programs to earn residual income before writing all of them off as scams.

Affiliate programs have two basic functions—to sell products for a commission and to build the program by recruiting others to do the same thing. This is free marketing for companies and it allows affiliates, the people who sign up, to earn residual income.

Once you sign up for an affiliate program, you are given a website that is coded with your affiliates ID so that every sale made on that website is credited to you for a commission. Then you have to market the site and its products in order to get people to sign up under you and those sign-ups do the same and so on down the line. It is a win-win situation for everyone involved. The company is getting an amazing amount of free advertising, while all that had to be done was to set up the program and monitor it, while the affiliates help build a team that does rest.

As there are so many people looking for a way to make a quick buck who sign up but never follow through with the program, setting up a stable and strong team is not easy. When that happens with almost every recruit, then of course you can’t really make a lot of money. The commissions on the product sales are usually rather low and you need the team members in order to be make good commissions. While it is possible to make a good income, it will take some time to do so.

Another thing about affiliate programs that scares people is its close resemblance to a pyramid scheme. Anyone who has been interested in working at home or building a business has surely heard of this. While a pyramid scheme does involve recruiting people and having those recruits sign up others from whom they make money, an affiliate program has an actual product or service to sell.

While the application of affiliate programs is simple, and you can be quite successful at building residual income, making it successful is sometimes difficult and requires work. An affiliate program that offers actual products and/or services is not a scam, and is a way to definitely earn residual income.

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