The Secrets of Picking a Profitable Affiliate Residual Income Opportunity | by Nick James, the Internet Business Coach

So you’ve found an affiliate program that offers recurring commissions, perhaps on a monthly basis.

But before you grab an affiliate link and start promoting this product or service to your prospects, you need to make sure you’re dealing with a quality product and a reliable affiliate program. Otherwise, you run the risk of harming your own reputation.

So, before you even think of promoting, first ask yourself these seven questions


1. Is it a good product or service?

This is one of the most important questions you need to ask yourself. And the only way you can tell for sure is by purchasing and using the product yourself.

Once you’ve done this, ask yourself if this solves your prospects’ problems. Then ask yourself if this is the type of product or service you’d recommend to your best friend.

If you wouldn’t recommend it to a friend, then definitely you shouldn’t recommend it to your subscribers and visitors.


2. Does the seller have a good reputation?

Assuming that the product or service is good, the next factor you need to look into is whether the seller has a good reputation.

This step requires doing a search in Google for the seller’s name, the product name, the seller’s website and other identifying pieces of information.

You want to make sure the seller not only has a good reputation with his customers, but also with his affiliates and business partners.


3. What’s the commission rate?

This is going to vary depending on whether you’re selling physical or digital products. It may be as low as 5% to 10% for a recurring physical product, but as high as 50% or so for digital products and membership sites.


4. What’s the price?

Once you know the commission rate, then knowing the price will tell you how much money you’ll pocket on each sale you make. But don’t just pick expensive products with high commission rates. Again, your primary goal is to choose products which solve your prospects’ problems.

5. What’s the conversion rate?

Not all sellers divulge this information (or even know it), although you’re certainly entitled to ask. If you’re unable to get this information, then look at the sales letter to determine if it’s compelling. That is, would the sales letter make you buy?


6. Does the sales process have any leaks?

You should have already purchased the product or service in order to review it. So now think about the order process – did you see any steps that might make you lose your commission or otherwise lose the sale?


  • Does the sales page have pop-up windows that promote other products?
  • Does the sales page have any links other than necessary links (which include the privacy policy, terms of service, buy button, etc)?
  • Does the seller collect email addresses on the sales page? If so, be sure to follow the autoresponder sequence to see if there are any leaks in the process that would prevent you from getting your commission.


7. Does the seller employ any member retention tactics?

Because this is a recurring commission product or service, you’ll only make money every month if your referrals remain as members. As such, as the vendor to detail the retention tactics he uses to retain members.


  • Trickling bonuses over several months. If these are good bonuses, people will stay members just so they don’t miss out on getting these valuable products.
  • Building anticipation in emails.
  • Reminding customers about the benefits of being members.

Here’s the bottom line…

Do your due diligence before picking a recurring income product or service to promote. It does take a bit of time upfront to do this research, but it will save you a lot of time and frustration in the long run. It may even save your reputation!

Internet entrepreneur Nick James has been at the forefront of Internet marketing and online product development since 2001. Nick is a full time product developer and has created several software programs, information products and membership websites during his entrepreneurial career.

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