Recurring Revenue Affiliate Programs

Recurring revenue affiliate programs are a good idea for affiliate marketers. You can make ongoing commissions from each sale you make. This is far better than one-off commissions! With products and services which offer subscriptions and memberships you can earn far more over the longer term. Ideally choose products you have purchased or value yourself. That way you know they are good products and they offer a huge amount of value.

The three main types of affiliate commissions come from one-time sales (OT), high ticket sales (HT) and from recurring revenue affiliate programs (subscriptions – S). Click on the image below for a detailed explanation on the different affiliate models. See also what is high ticket affiliate marketing.

recurring revenue affiliate programs
Stuart explains the “Six figure income triangle”- (skip to 33.13 for explanation on the different affiliate commission structures you can use).

Recurring Revenue Affiliate Programs

So why are recurring revenue affiliate programs such a good idea? With most programs you only get paid once for each sale you make as an affiliate. But with software products and memberships products you can earn a monthly commission based on the membership fee. This can add up to a growing monthly income for every sale you make. With most affiliate products, you only get paid once. So you need to keep on making sales in order to keep making money.

Here’s a few recurring revenue affiliate programs I can recommend.

You can also find these on Clickbank using CBEngine.com and looking down the left hand menu (see picture).

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Recurring Revenue Versus One Time Affiliate Payment

Let’s imagine a recurring revenue affiliate program pays you just $10 a month, for example. So a single sale makes you only $10 a month. Let’s compare this with a one time affiliate sale which makes you $40. The recurring commission doesn’t look that great in month 1. However, if you only make 10 sales a month of each product let’s look at the income produced by each example over 10 months, assuming the same sales each month are made by both:

$40 (one time)

10 x $40 = $400

10 x $40 = $400

10 x $40 = $400

10 x $40 = $400

$10 recurring (subscription sale)

10 x $10 = $100

(10 x $10) + (10 x $10) = $200

(10 x $10) x 3 months = $300

(10 x $10) x 4months = $400

Month

1

2

3

4

All Things Being Equal

As you can see, the monthly memberships take four months to catch up with the income produced by selling the one-off commission. This of course assumes the subscribers don’t drop off, which of course some will do. Attrition is natural with a membership product. Let’s see what happens after month 4.

$40 (one time)

10 x $40 = $400

10 x $40 = $400

10 x $40 = $400

10 x $40 = $400

$10 recurring (subscription sale)

(10 x $10) x 5 months = $500

(10 x $10) x 6 months = $600

(10 x $10) x 7 months = $700

(10 x $10) x 8 months = $800

Month

5

6

7

8

As you can see, by month 8 the subscription product in bringing in double what the one time sale can, all things remaining equal. Remember also that some months will be better than others. But we’re assuming no drop offs in memberships and 10 sales a month of each. Given this example, you can see the memberships are a good idea. Memberships compound over time, giving you a steady increase in income as you grow your affiliate business. With memberships, you can have a bad month and still be earning commissions. With one time sales, a bad month means you don’t make anything!

Summary

Recurring revenue affiliate programs are good to have in your inventory because your income compounds over time if you make regular sales. With one time online commissions, you need to keep making sales to keep earning. With memberships, you can earn for years from each customer. This has huge implications for your affiliate business, and over time your income can increase dramatically with subscription products and memberships which offer recurring commissions.

To learn more about the different affiliate marketing business models, checkout the free videos by clicking on the image below:

recurring revenue affiliate programs