I had mentioned some time back that the affiliate marketing income contributes to almost 75% of my online income. Well, this was the case almost six months ago and now based on the stats for the first quarter of 2011, it stands at a whopping 90%. The following is the break up of my income as of today.

90% – Affiliate or referral income
10% – Private ad sales, Paid reviews, AdSense etc combined

Out of the affiliate income, 45-50% is really passive in nature and the rest is achieved via PPC advertising. The affiliate marketing success via the passive route is the story today in this little post.

I have the records of all my online activities, incomes and expenses in an excel sheet that’s maintained since March 2008. Today, I just took a look at the top 5 income generators for me and I have the following conclusion, which can be categorized into three tips.

1. Niche products

Since this blog is about blogging and make money online tips, the best performing affiliate products were in the WordPress plugins, themes, shared hosting and forex affiliate marketing categories. Fortunately, I had written enough review posts – i.e at least one money making post every two months – that some of them dating back to 2008 is still yielding results. Even if I have forgotten those posts, the MaxBlogPress Ninja plugin and its keywords haven’t quite so.

2. Tier 2 or multi-tier income

Some of the product that I reviewed in the past had tier 2 affiliate commission and this means that over the years, some people will become your sub-affiliates and they start making money for you. This is one feature that a lot of affiliate marketers overlook because they want to make quick money out of their direct signups.

3. Commission for life and recurring commissions

Well, it cannot get any better than that. If you have endorsed a product that makes money for you on a recurring subscription basis that’s the best thing that can happen to you in terms of making passive income. There are several products out there that charge their subscribers on a monthly use basis and as an affiliate you keep getting a portion of that money without having to do anything beyond the first sign up.

The above tips are based on my true experience.

In addition, I also do proactive affiliate marketing via PPC advertising. I make it a point not to focus more than 3-4 products at any given month so that I can control and assess the effectiveness of my online campaigns. At the moment, I spent a max of $250 per month on these online campaigns and during the right course of time I plan to increase it to a significant budget figure. Today’s topic being passive income generation, I would like to stress once again on writing the right kind of review posts at the right frequency about the right products topped with a little bit of SEO.

And for beginners, please work with at most 4-5 products in your niche and at a time and max 2-3 campaigns a month.

Happy money making!

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