You can earn royalties online using a business model called affiliate marketing. Royalties are a way for creators, intellectual property owners, or landowners to earn money from their assets. To earn royalties online, you need to refer customers to products and services.
Affiliate marketing is essentially a referral based business model in which the affiliate sends customers to another company/product. Royalties are earned in the form of residual payments. Certain products carry ongoing payments for previous referrals. So affiliates can essentially earn commissions for years after the sale is made; effectively similar to royalty payments.
Recurring revenue affiliate programs offer ongoing value from memberships and software products. If they offer a large value to the customer, they will continue using them for years, potentially for a lifetime. If you refer the sale, (and the affiliate product carries an ongoing commission), you’re essentially earning a royalty payment for the referral.
Earn Royalties Online – Create An Online “Property”
Websites are essentially online real estate/property. A good resource website can attract people to products and services long after after it’s been built. YouTube channels are also used in a similar way. Once built, YouTube videos are used to attract an audience and affiliate products can be promoted as a monetisation method.
Another earning strategy can be used from online content too – advertising.
Google Adsense offers a program which can work in a similar way to royalty payments. With Adsense, you place advertising on your online content. When visitors click on your content, you earn a percentage of the advertising revenue – similar to royalty payments.
Content marketers build content online and then benefit from website traffic through their monetisation methods.
Earn Royalties Online – Multi-Tier Commissions
Another way to earn royalties online are through multi-tier affiliate commissions. A multi-tier affiliate program offers commission payments for sales made by your referrals. This means that if you build a huge team of affiliates, their sales will add towards your earnings.
It’s similar to a network marketing business in which you can benefit from the overall success of your own sales and those of your referred members.
A multi-tier commission is similar to royalty income. Even though you’re not directly making the sales yourself, your referrals have brought about the benefit.
If you’re going to build an online business, multi-tier commissions are another factor to consider when looking at the different affiliate marketing business models.
Multiple Income Methods
Within the affiliate marketing model are multiple payment methods. You can earn from one-time sales (OT), recurring commission products (subscriptions (S)) and from high ticket products (HT). See what is high ticket affiliate marketing. Creating content online can allow you to create an automated system of selling from a website or YouTube channel/social media. Over time, as your content library grows, your income does too.
Here’s a video explaining the different online earning strategies you can use just within the affiliate marketing model:
Affiliate Marketing Strategies
Content creation is one way to benefit from a royalty type of income from the internet. Over time your older content attracts sales as well as newer content you have created. This compounds to generate a passive income which is similar to royalty payments.
But this isn’t the only way to use affiliate marketing. Most affiliate marketers build an email list which works in a similar fashion as content. As more people subscribe to your email list, your online sales can grow exponentially as the number of subscribers grows.
A good affiliate product range includes multiple earning strategies: subscription products, multi-tier commissions, high ticket products and one time sales. With such a business model, your income will compound over time as your list grows. See SFM Digital Business System for more on this.
Summary
You can earn royalties online in several ways:
- Create a resource you can earn from: a website/blog or YouTube channel
- Use monetisation methods on your content: affiliate marketing or advertising (Google Adsense). Adverts on your content earn revenue passively from visitor clicks.
- Recurring income affiliate products (subscriptions) generate passive income from sales.
- Generate income from sales made by your team – when using a multi-tier program.
- A product range with built in sales team lets you earn more passively from up-sells. See SFM Digital Business System.
For more information on the various different online business models, access the free video series by clicking on the image below.
