Affiliate marketing is a very successful method of promoting and selling items in the marketplace. This commercial strategy is employed both online and offline. Companies, organizations, and individuals all use this marketing technique to promote products, services, and programs.

What is affiliate marketing? Let\’s examine a very basic model. A company has a product that it has developed and realizes that the new product will require special marketing methods to make it successful in the marketplace. The company engages affiliate marketers to promote and sell the new product. The affiliates are paid a commission when they make a sale.

This example outlines the role of the affiliate marketer. However, the experienced affiliate will only promote products that are part of an affiliate program that also involves “residual income”. This method of compensation is of benefit to all parties involved.

Affiliate Marketing utilizing 2 different compensation plans:-

Plan #1 - This plan calls for the affiliate to promote the product in the marketplace. When the sale is made, the affiliate is paid a commission. This means that after each sale, the affiliate has to find a new prospect that then can be turned into a satisfied client. To earn more money, he must start the process all over again.

Plan #2 - Residual income is what creates the difference between these 2 plans. Let me explain. The same new product that is in plan #1 can be marketed using Plan#2 as a compensation plan. The affiliate is paid a commission at the time a sale is made. And he also receives an on-going commission.
As an example, the company sells their new product outright. This product requires future servicing and maintenance. The affiliate sells the service contract to the new client when the new product is sold.The service contract is payable on a monthly basis. Each and every month the affiliate marketer is paid a commission, for as long as the contract remains in effect.

In each of these plans, the affiliate marketer is paid for his efforts. Plan#1 is simply one sale, one commission, and start all over again. Plan#2 is much more interesting, and not just for the affiliate. The
affiliate will receive more and more commissions as every month more clients are sold the new product.
The company also gains by using a commission plan with residual income as a means of compensation.
As the monthly residual commissions increase, the affiliate has more reason to continue promoting the product. This in turn helps the company as they then retain the services of successful and experienced
marketers, to further promote their product.

Affiliate marketing is a tried and proven method for the successful promotion of Internet products and services. When this marketing technique is teamed up with a proven home based business, it is a formula for success. Residual income has a definite role in making the success even better for all partners in the plan.

Bruce Fraser is an affiliate of several internet programs. Although new to the Web, he draws from his previous “careers” in the “real world”. The author spent almost 20 years in Sales/Marketing. More recently he headed up his own residential renovations contracting firm.

An examlpe of affiliate marketing involving 6 compatible streams can be seen at: http://www.brucefraser4444.com