Which is Better - Leverage or Residual Income?

prasanth1 By prasanth1, 27th Sep 2011 | Follow this author | RSS Feed
Posted in Wikinut>Guides>Web>Affiliate Schemes

This article compares between leverage income and residual income.

Which is Better - Leverage or Residual Income?

The budding online marketer is always encountered with the problem of picking the right affiliate program for his business. He has to choose between leverage and residual forms of income. If you are a budding online marketer then you will have to choose between the two types of income or a combination of both while selecting the affiliate program for your business. Both forms of income have their own advantages.

If your affiliate program supports residual income, then the finest advantage is that you are assured of a decent monthly income after a certain stage without even sponsoring new members or sub affiliates into your program. On the other hand it your program supports leverage income, then you will earn commissions on the sales generated by your sub affiliates. This is the difference between leverage income and residual income. Residual income depends upon the regular purchase or renewal of monthly subscriptions and the like. On the other hand leverage income depends upon the sales generated and on nothing else. There is no monthly subscription involved in programs characterized by leverage income in general.

The risk in choosing a leverage-based affiliate program is that you will earn commissions only upon sales generated. On the other hand the risk involved in choosing a residual-based affiliate program is that you will earn commissions only upon the renewals of subscriptions. Hence it should be said that both the types of affiliate programs have their own benefits and disadvantages. In some cases, an affiliate program encourages both leverage income and residual income.

Tags

Affiliate, Affiliate Program, Leverage Income, Online Business, Residual Income

Meet the author

author avatar prasanth1
I enjoy writing poems and articles on travel, health, business and on other niches too.

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