Brokerage vs
Residual Affiliate Income

The marketer who brings customers to a company to establish a sale is called a broker. Similarly, the one who promotes goods or services of internet merchants is called an affiliate marketer.

Either a broker or an affiliate marketer needs to find merchandise that have good earning potentials. They get a percentage of the product costs when they close a deal.

These are the advantages of brokerage and residual affiliate income:

1. There is no need to own a product to sell. Because of this, there is usually no cost and selling can be done immediately.

2. A broker or affiliate marketer can promote any product and as many as he can handle.

3. Normally, there are no formal contracts to violate as brokers are not employed. They work for themselves and are not bound by the rules of employment.

3. A simple brokerage is not a business, so, there is no need for trade licensing.

4. There is also no need to worry about paying business taxes. This is totally an agreement between the Merchant-Principal and the marketer.

One challenge is the need to constantly find prospects. Another is a customer can provide profit to a broker only once. The reason being, that customers eventually make the second purchase directly from the merchant to avail possible discounts. Because of this, a broker needs many products to refer and a lot of people to promote.

It is also difficult for a broker to establish a brand because he does not own a company. Last but not the least, a broker normally works alone and cannot leverage his efforts on other brokers.

Advantages of residual affiliate income which is not present in brokerage income:

5. It is easier to find prospects since work is done at home and the marketplace is worldwide.

6. There is a choice to market few products as long as the online leads are huge enough.

7. There is a good chance to acquire repeat sales by applying back-end selling.

8. Branding is possible in this residual income opportunity system by using money making websites.

9. Leverage can be accomplished through 2-teir affiliate programs and affiliate membership sites. This is a great way of earning automatic residual income.

Being a broker is an exciting career for people who are really good with promoting goods or services. However, earning affiliate residual income is more exciting. This is the reason why many brokers embrace the residual income model and convert to affiliate marketers. For instance: A real estate broker can market lands in the internet, thereby extending his customer base.