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Residual commission |
When joining an affiliate program, one should always look for a residual commission model, simply because the enormous potential in recruiting potential long term customers for the affiliate program. Many affiliate programs offer residual – sometimes named recurring commission – but not all are of the same nature, and sometimes the term residual is flat out misleading. |
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What does residual commission mean?
When referring a new customer to a pay per sale affiliate
program, you will always get a commission on that sale, should it occur within
the set period of time (length of cookie). With a residual commission, you will
earn a commission not only on the first sale, but on all future purchases of
that person. The referred customer will – in a matter of speaking – be yours;
earning you commissions every time he revisits the affiliate site and buys
something else.
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Full vs. Limited residual commission
Some affiliate programs claiming to offer residual commission
will decrease the commission earned, limit the products eligible for commission
or limiting the period of time the customers stays yours.
When facing a program like this, you need to look at the
details of the program to see if they are really offering residual commission,
or if they are using the term only to recruit more affiliates. If you decide on
the latter, find another affiliate program - without limitations or lower
residual commission - to join.
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