residual_income_change_your_lifeIf you’re looking to generate residual income from a business you can build in your spare time, affiliate marketing is the way to go.

While there are tons of ways to build a stable revenue stream from residual earnings, most of the legitimate business opportunities out there require substantial capital to get going.

Affiliate websites are different. You can start for free and become profitable for very little upfront investment.

Let’s take a look at why affiliate marketing works so well. If you want to better understand the basics of affiliate marketing, you may wish to read this post first.

Why Affiliate Sites Generate Residual Income

Combining Key Principles of Online Marketing

Affiliate sites work so well because they combine two basic principles of online marketing:

  1. High quality websites have the ability to generate traffic over time, for several years.
  2. Users will purchase products related to what they’re looking for.

When combined, these two points combine both the traffic and revenue stream necessary in order to have a money making website.

Affiliate sites make money on commissions, which means that there is a clear and concise path to finding a targeted revenue stream that meets your user demographic.

It doesn’t matter whether that demographic is left handed guitar players or middle aged bald men, if you can provide information they need and inform them about solutions to their problems, you’ll be able to generate residual income online.

Income Now AND In The Future

The really attractive element of affiliate marketing is the fact that it promises residual income.

This means that the work you put in today will continue to pay you dividends well into the future. It also means that the affiliate website owner’s revenue model is based on compound results that build gradually over time.

Read more about how residual income works.

It doesn’t matter if you only earn a few dollars per post per month, because if you have several thousand posts, you’re going to have a significant business!

Content that gets ranked naturally (without using black hat techniques) tends to stay ranked for years. That’s what allows you to steadily increase your traffic and your earnings over time.

Want to learn more? You can read this post for more information on earning money through internet marketing or click here to get started with a free introductory training.