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Residual_Income_the_Overlooked_Resource_in_Pay per click
| Residual Income, the Overlooked Resource in Pay-per-click
Pay-per-click advertising is a quick, powerful, effective way to
market products for affiliate programs. New advertisers to the
medium are often stunned at how quick and effective it is. (I
myself remember making over $1500 profit the first month I tried
my hand at it, and that was back when I didn’t know what I was
doing)
The pay-per-click method is simple and straightforward. Place an
ad to show on Google or some other pay-per-click search engine.
Customers click on it. It brings them to a page where they can
make the purchase.
It’s a wham! Bam! atmosphere that’s sharp and direct, but
sometimes those of us who use the pay-per-click market get into
the same mindset and overlook perfectly profitable products
simply because they don’t pay out as much right away.
I’m talking about the power of residual income, and any time you
find an affiliate program that pays ‘residually’ or mentions the
words ‘lifetime customer’, you should take notice.
Here’s an example. Suppose you find two web-hosting providers,
each of which has an affiliate program. Web host #1 offers an
immediate payout of $90 per sale to you for anyone who buys
their service. Sounds pretty good; it’s a high payout and you
think you can get a good conversion rate on any ads you run for
their services.
Web host #2, on the other hand, pays out only $10 per sale, but
offers $10 per month residually for the lifetime of the customer.
Oftentimes, those of us who play the pay-per-click game get so
in the mindset of ‘quick money’ that we tend to dismiss those
affiliate programs that have lower payouts without really
considering what may be offered.
Which of the two web-hosting services has the better payout
overall? We know that web host #1 pays out $90 per sale. That’s
‘quick money’, right away, and a lot of the time it’s easy to
think “a bird in the hand…”
But suppose a customer buys web-hosting services from company
#2. Presumably, if he is pleased with the service, he’ll stay
with it for a very long time, possibly the rest of his life. So
even though the initial payout is only $10, the potential return
of this one sale is $10 per month, for the rest of the
customer’s life! I think that kind of payout deserves a second
look.
So which service is the better to promote? The answer, of
course, is both of them. Depending on how well each service
converts to sales, and what the click-through rate is on your
ads, either or both of the above services could be wrong for you
to promote. But either or both could be very profitable.
The moral: Don’t dismiss low-paying payouts out of hand,
especially if there is residual income involved.
About the author:
Daniel Brough is the founder of AdWord Wizards, a free mentoring
program designed to teach anyone how to profit from
pay-per-click search engines. Want to start a profitable AdWords
campaign in less than 30 minutes? Come to
http://www.adwordwizard.com and sign up for this free program.
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