One of the most important shifts that Internet Marketing has offered to my mentality, is the Passive Income (sometimes called Repetitive Income) way of thinking.
Being a professional for many years, I always thought that:
$500 now is much much better than $20 every month. I couldn’t be more wrong!
What I have learned with internet marketing is that passive income is one of the best ways to build wealth and at the same time be able to handle costs effectively.
Most of the expenses a company or an individual has are repetitive. From house bills, electricity, water, cellphone to web hosting, domains, advertising etc. are repetitive.
Getting a lot of money has its benefits like paying some bills or investing in something. At the same time and I don’t know about you, when I find my self with a good amount of money, I miraculously remember that expensive gadget that I never really needed but wanted oh-so-bad!
Passive income can provide you with the certainty you need in order for you to make an investment, for example hiring someone and being certain that you will be able to pay him/her no matter what. Let’s not forget our goal. It’s not only to build “wealth” but also to live a life with less stress and more creativity.
One of the main reasons that I was able to make that shift on my mind was because I tried it and saw how well it worked. A client of mine had a brilliant idea but wasn’t able to pay me what I needed so since I was very fond of his idea and niche, I offered him a much better price but at the same time, required a percentage of his sales. The outcome was that his product was indeed awesome and the work that we both put into it, paid up. I am certain that my job had such high standards because I saw the project as a “child” and not something that I had to do in order to get paid and therefore I paid attention to the closest detail. I am still making money from that project, every month.
The same thing applies to affiliate marketing also. There are products being sold (mostly services) that pay their affiliates a good percentage of their customers’ monthly fee to you in order for affiliate marketers to promote their products. Since their service is paid and requires a monthly fee, they have the means to do that and stay profitable.
There are many benefits to the company offering repetitive income to marketeers who promote their products, and to you also and the most important are the following:
- The company knows that you won’t just put a link pointing their product and just leave it there, they are certain that you will try to explain to them how beneficial their service is and how becoming a member will benefit them and save them time and money. And that’s a huge tool to their branding arsenal.
- You know that from a sale you just did once, you will be paid for as long as the person you referred, stays with that service. And that’s a huge motivation for you to build much better content and drive more people to the company’s website.
One amazing example of a company offering passive income to its affiliates is Aweber that pays 30% of what their customers pay. Aweber is an email management and sending service and since their pricing is tiered, the better the customers you refer to Aweber do, the more money you will make. Just imagine what an amazing revenue model this is for you and how much effort you would put in order not only to just make a sale but at the same time to educate the people that you refer to Aweber as customers.
Enough with this example though, since the goal is not to tell you about Aweber but to make you think about passive income. And that’s only the tip of the iceberg. I am sure you can think other amazing ways that it can benefit you.
What say you?