“Every Breath You Take” is a song fueled by and was written in the context of obsession, jealousy, and lost love. Yet, it became a top hit because people thought it was a gentle love song. Sting wrote the song in the middle of the night in just under 30 minutes
… In 1997, P. Diddy re-popularized his own version of the song to give tribute to Notorious BIG. However, he did not ask for permission, which allowed Sting to demand 100% of the publishing royalty of the remix. The song earned an estimated amount of $20.5 million.
JUST like royalty payments in the entertainment industry we’re talking here about how residual programs can make you money, and there are two basic ways you can profit from them: Promote someone else’s program, or create your own.
THERE are several benefits to promoting someone else’s program :
- You never have to create content or maintain and update a product or service
- You never have to worry about customer support
- You don’t have to create a sales page or membership site
- All you have to do is send traffic and profit. That’s it.
NOW, many residual programs offer what may seem at first glance a very low first month commission, but don’t be fooled by this.
For example, let’s say you’re trying to decide between promoting Program X and Program Y. Both programs are converting on sales at the same rate.
Program X pays out $50 one time on a $100 sale.
Program Y pays out $15 each month on a $30 sale.
Purchasers of Program Y tend to stick for a long time, because the product is something they need for their business. In fact, the average customer retention rate is 7.2 months, which is fantastic.
With Program X, you make $50. But with Program Y, you make $108.
As you can see in the example above, if possible, you want to find out how long the customer stays with the program on average.
Software as a Service (think Cloud) tends to retain people for longer periods of time, assuming the software does what it’s supposed to. Hosting is a great example of this, because once people set up their website with a host, they tend to stick with that same host for years or for as long as there is no problem.
However, there are many information oriented membership programs that also retain members for a long time as well.
To find residual programs you might want to promote, begin by Googling, ‘affiliate residual programs’. You’ll find lists full of them – more than you can ever promote yourself.
But having your own program can be even better in some other ways, if you’re willing to put in the work.
- You can have affiliates promote it for you, making hundreds and even thousands of sales you would never get on your own
- You can make a lot more money – a LOT more money
- You can build a stable of affiliates who like and trust you, and will promote future programs for you.
You do have to create the program. And make no mistake, there is a lot of work involved.
If you’re selling software as a service, for example, then you need to have the software developed, tested, tweaked and hopefully glitch free when you launch.
If you’re selling informational memberships, you’ll need to create a membership site and add content to it on a regular basis.
And in either case you’ll need to deal with customer service, building the sites, writing the sales letters and so forth.
That said, it’s not as difficult as it sounds.
For your first membership site, keep it simple. Find a target market that’s eager for great information on their topic.
Then create a newsletter targeted to this market. Write the sales letter and newsletter as though you are speaking to just one person. Keep the price low – so low that it’s a no-brainer.
SEE? Not so hard after all.
If you’re going to do the work of bringing customers to a sales page, why not get paid for it over and over again?
IMAGINE THIS: One year from now you are earning money from not one, but twelve different residual programs. Month after month you get checks for work you did six months or even a year ago.
Sidenote – The Secret To Making A Fortune In Continuity Programs
The ‘secret’ isn’t all that secret, and yet most marketers get this wrong.
You simply have to give a much higher value than the price that subscribers pay, and two things will happen:
They will join in droves, and they will STAY and continue to pay.
It doesn’t matter if you’re charging $10 a month or $1,000 a month. Just make sure that your members are getting far more than the price they are paying.
For example, let’s say you want to build a membership on how to start an online business.
If you give your subscribers an eight week guarantee (think Clickbank) and a promise that they can start earning by the fourth week, you’re in business.
If you further promise full email support, you’ll do even better. Yes, you’ll outsource the support, and it will be well worth the cost. Many members will join just to get that live support.
Subscribers get new content each week, they have 8 weeks to get a refund, they’ll be making money in just 4 weeks, AND they have live support – do you think that might be a winner?
Absolutely. And you can use a similar model no matter what niche you’re in.
Let’s say you teach golfing. You promise that in 4 weeks they will shave 4 strokes off of their game. They have an 8 week guarantee. And sure, maybe you even throw in live support of some kind, too. Again, you’ve got a winner.
Always give far more in value than you’re charging for your membership sites, and you can’t go wrong.