How $0.01 Turns Into $2178.10
Last Update: Jan 13, 2021
Making big money is always fun, and tbh, sometimes it feels a lot easier to make 1 commission of $1000 versus 1000 commissions of $1. However, as your business grows, you'll find lots of little opportunities as well, and sometimes, earning as little as a penny can make a difference over time.
I did a bit of counting pennies this weekend and discovered something interesting! Small Commissions can really add up!
I participate in a two-tier affiliate program, which means I refer someone to the program, then earn a percentage of the money they generate. So I'm not generating sales. I'm generating sellers. (This is not an MLM by the way, because I don't earn on lower teirs, and my referrals are not incentivized to recruit).
From 2020, earning commissions as low as $.01, and ranging up to just under $1, I was able to earn $2,178.
Of course, two thousand dollars is definitely not a full time income. Not even if you were making that much a month! Assuming that this trend continues though, that may be $2k in 2021, and $2k in 2022, and so on.
These "pennies" could turn into $20,000 over the next decade.
If you invest in your business right, you could then turn that $20k into articles on your website, or some kind of other tools to make your business run more efficiently. Maybe you just want to pay yourself that $20k and invest it into a stock of a company and watch it grow.
If you had invested $20k in Tesla stock just this year you'd have over $200k. If you had invested $20k into Bitcoin a couple years back, you'd be pretty well off too!
Whatever you use those pennies for, they could turn into hundreds of thousands of dollars by 2040 and beyond.
Should You Go After Small Commissions Like This?
Typically, this would not be a preferred product for me to promote. I like small commissions, but pennies are pretty freakin' small. If you are getting paid less than a dollar per item sold, you may want to change course, or rethink your strategy.
I went after this affiliate program for two reasons.
1) It was 2-tier, and recurring meaning I get paid over and over again. Have you ever heard the story of the penny doubling every day for a month? This is literally that story. I expect this $2k to grow next year.
2) This content was already up. I was able to just add affiliate links to existing content, so it wasn't like I was writing articles for hours or paying hundreds of dollars to outsource this content. I just happened to find an affiliate product which was a good fit for existing content on my website.
I've said before that Wealthy Affiliate is opening a door for you. By building a website and learning how affiliate marketing works, you'll discover more and more opportunities out there you never knew existed.
In 2020 I found $2178 within the pages of my website. I wonder what I'll discover in 2021!
Don't forget, tonight at 5PM Pacific is the launch of my new Premium Plus Class series titled Easy To Follow And Effective Article Templates. Tonight will be my "Product Review" template I use. Hope to see you there!
What's the smallest commission you've ever received?
I don't have any two-tiered systems Nathaniel, I always associate them with multilevel marketing. I know this sounds a silly question but how would you differentiate between multilevel marketing and the two-tiered system you're suggesting when researching two-tiered systems. I hope you understand this I'm not even sure I'm asking the question properly
Good morning Nathanial,
Thank you for your interesting article, I hear you regarding the pennies adding up. Pennies over a period of time can build considerably!
I have a website that I built a year or so ago and it's kind of sitting there with some content on. The website is also quite seasonal and at the moment it is currently out of season. However, sometimes a sale can be a few pounds and sometimes as low as 30p. The good thing is that it's almost making sales daily out of season and I'm not doing anything!
To be fair over a period of time these pennies and pounds mount up! I hope to have some time to actually spend on the website and develop it more for the future.
Have a great day.
That's great! Making sales from a site you forgot about it maybe a good indication that there's even more untapped potential there if you dedicated some time and effort to it.
Thank you for your reply, Nathanial, it's appreciated. I hear you regarding the website, I think there is probably good potential. I actually set it up knowing that I wouldn't have much time for the website, but hopefully, it will mature and I will have more time soon.
Wishing you all the best.
Excellent Post & Share Nathaniell - Shows big & small commissions add up and if done right they can compound over years in value.
I earned twenty cents on a Christmas purchase this year.
Not a bad start Jim! You'll remember your first $0.20 fondly when you're making $200k/year with your affiliate blog.
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Going to check out the class this week, thank you, and I am very interested in the topic,