Defining residual income – Residual income also known as passive income is a very common referral to income received from a source that requires very little effort in generation usually on a monthly basis. Popular examples of residual aka passive income are property leasing, stock dividends or bond interest, affiliate programme commission and royalties, of which affiliate programme income is the most popular means of earning home based residual income.

Other definitions of residual income- Please pay attention to the different definitions of residual income as there are other possible definitions for the income type. The other definition refers to the money left in your pocket after all debts have been settled for a specific month. For example clothing accounts, utility bills or mortgage installments. Should the bill, account or mortgage however be settled in full, the amount allocated towards these mentioned costs will then default to the term residual income.

World wide web as source of residual income- The immense popularity and incredibly size of the world wide web user base makes the internet one of the most lucrative home based residual income vehicles in the world. Requiring only a computer, internet and an affiliate programme structure to get your business of the ground. Start-up costs are little to none with loads of free software for business operation, initial setup and support. All these inclusions and general structure, cut business costs significantly, saving you hundred of Dollars on office and equipment rental, labour and overheads.

What is an affiliated programme exactly?- An affiliated programme pays affiliate referrers a commission on the amount of referrals to affiliate merchants‘ product or service website, normally on monthly basis.

Partners- It is essential to keep in mind that the affiliate merchant and referrer are business partners, closely resembling a real-life business partnership structure just without the all the legal requirements and red tape. The two parties have a mutually beneficial relationship. However it is imperative for merchants to respect the relationship with their network of affiliates as the slightest bit of neglect or abuse could lead to total deterioration of the affiliate network. Payments should be regular as well as fair in relation to market compensation rates. Be on the look out for con-artists and scammers as there are tons crawling around in the e-commerce industry.

Types of income on affiliate programmes- Three affiliate programme income types are available in the form of Pay Per Click, which pays referrer on the basis of merchant website traffic, Pay Per Sale, paying referrer in terms of successful purchases or sale referrals and Pay Per Lead, paying referrer for qualified or unqualified leads.

The secret- The secret to affiliate programme success lies firstly in the identification of target audience and secondly in the actual targeting of product or service user. These are the most important rules in any successful marketing strategy. If you know which specific age, race or gender group likes or requires a specific product or service the group must be tapped into.

Website information- First impression are lasting, thus you have to ensure that your affiliate website appearance and content is super user-friendly and comprehensive. Your site content should match the affiliate merchants‘ site content as far as possible or allowed.