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The Elegance of the Snowball Effect

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Earlier today, I jokingly sent out a tweet that said, “You want to know something fun about passive income? The later I sleep in in the morning, the more money I make in my sleep.” Although I was somewhat joking, it’s very true.

I make a lot of money through passive affiliate commissions. In fact, I’ve now gone for over a year without working a job and I make far more money today than I did a year ago as an active duty soldier in the United States Army.

Sweet Dreams are Made of This…

It probably sounds like I’m bragging, but I sleep in almost every day. I am, in the truest sense of the word, living the dream. Although I’m only 27 years old, I feel like I’m already retired. I spend my days riding my bike, tinkering on my computer on some web projects that I’m trying to create, or crawling on the floor with Emma, my 3-year-old daughter, playing like we’re lions. I’m the daddy lion and she’s the baby lion and when another animal comes around we roar as loud as we can to scare them away. She’s got the cutest roar in the world. Guaranteed.

As a side note, it doesn’t matter how big or bad you are, when you’re little girl wants to play lions, you get on the floor and start crawling around. I wouldn’t trade it for anything in the world.

The Snowball Effect

The Passive Income Gravy Train

A couple years ago, I discovered a WordPress Themes Club called Elegant Themes. When I did, I signed up for their affiliate program which pays 50% for each sale delivered to their site. At that time, they were charging just less than $20. I think was something like $19.95 which meant that I would get a commission of $9.98 for each sale…recurring annually. I promoted them very little back then even though it was an amazing value. As such, I made about 4 or 5 sales per month. The profit from that was hardly enough for me to really care.

However, some time ago, they changed their price to $39 which is still a phenomenal deal considering that you get access to close to 80 themes that you can use on unlimited websites. That means that I was now making $19.50 per sale. Wammy!

When they did that, I began promoting them more aggressively with banners and text ads on the site here. As a result, not only did my commissions go up, but so also did my monthly sales. They went up a lot. Double Wammy!

More sales and more money per sales. That’s a formula for success.

So now I’m getting excited because pretty soon, we’ll hit the one year mark since the price change. That means that I’ll start getting the recurring commissions on the increased number of sales at the increased price. Triple Wammy!

It doesn’t get much better than that. I’m living the dream, friends.

Thoughts, comments or observations?

I remember spending hours staring at popular websites trying to figure out why they were successful. I remember writing notes down about the observations that I made.

So today, I’ve not defined any specific tips or created a list of ways that you can apply this to your own online work. That’s up to you. Stop by the comments below and share any ideas that you came up with from reading about my experience with this affiliate program.

Share your Opinion

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17 Vibrant Comments

We would love to hear yours!


  1. July 30, 2012

    Ella Turgeon said:

    Hi Nicolas, Congrats on your success with affiliate marketing! I love the way social media has opened doors for so many people to make money doing what they love, while living their life. Great article!


    • July 31, 2012

      Nicholas Cardot said:

      Thanks, Ella. The online world really has opened up doors to amazing opportunities for a lot of people. It takes time, and careful planning, but it picks up momentum as you stick with it and life just gets better and better. Thanks so much for jumping into the conversation here.


  2. July 31, 2012

    Julie said:

    That is awesome! I am going to check into those themes. I use Genesis right now but always up for a change :)


    • July 31, 2012

      Nicholas Cardot said:

      I love the themes myself, but please don’t think that I was trying to push them for the sale in this article. I was just using them as an example of effective affiliate marketing and how amazing it can be to have programs like that working for you around the clock on your blog…even while you’re sleeping.


  3. July 31, 2012

    Danette said:

    Nicholas, this is definitely the dream that everyone would love to capture–passive income. I certainly have not mastered this one, but am sticking with you to learn how! Thanks for the info.


    • July 31, 2012

      Nicholas Cardot said:

      I haven’t mastered it either. I’m still learning new tips and tricks all the time, but holy cow is it ever a fun journey. Stick with me, and I’ll stick with you. We’ll make it to the top together. :-)


  4. August 2, 2012

    Justin said:

    Wow… this is the first time I have been to sitesketch101. I have to say what a beautiful website design you have I am envious. I hope I get on the gravy train soon!!


  5. August 3, 2012

    Rasmus said:

    I think it’s a thin line. Once you get an audience and realize that you can make money recommending stuff to them, great responsibility follows.

    On my own blog I only have a few affiliate links for products that I use and no advertising blocks at all. Could I get more money out of my audience? Sure I could, but it all comes down to that I don’t want to recommend I’m not using myself.

    In one example… I’m giving away a free ebook on my blog in order to get people to sign up for my newsletter. In it I recommend several products that I use myself and include affiliate links but that’s it.

    So I feel the problem comes once you learn that your blog can also be a business in itself. Because then you will strive to optimize the earnings of this business (and maybe start recommending stuff you don’t know just because they have a great affiliate program).


    • August 6, 2012

      Nicholas Cardot said:

      I agree. I see a lot of marketers who in my opinion are taking advantage of their followers. I wrote a post a few weeks ago, in fact, where I apologized to my readers for sending out an e-mail that wasn’t in keeping with that responsibility that you’re talking about. It’s easy to get caught up with the idea of making a quick buck, but if you do that people will always see right through you.


  6. August 5, 2012

    Dhruv Bhagat said:

    That’s really great news !!!!
    I always wanted to promote some products so that they pay me for some sales. I started with DreamHost Web Hosting. I wrote some things about them. But still, I am unable to create a sale. Then, I started to put banner on my site.. I am not making any income from affiliates..
    I am happy for you that you are living your life as a KING size.. All the BEST !! :)


    • August 8, 2012

      Nicholas Cardot said:

      I found that the key is really being able to target a specific target audience. For example, I sell a lot of elegant themes from people who find the site searching for things related to WordPress. That group of people comes to the site specifically looking for WordPress related plug-ins and themes. So when I’m able to present them with a discount theme club, they are more apt to participate. So, on your website you need to ask yourself, “What is my audience looking for? What will help them most?” Once I figured that out, my sales began to increase.


  7. August 6, 2012

    JamesW said:

    Great blog post Nicholas, right now I focused my advertising revenue on buysellads.
    The marketplace is huge and people recognize the value of advertising on my blog.
    I stopped affiliate links just to test how is this going to work.

    I wish you more earnings and tanks for sharing the info.


    • August 8, 2012

      Nicholas Cardot said:

      I used buy sell ads also in the past, but I found that they just don’t compare to a well targeted product placement. I make more some days with Elegant Themes, Gravity Forms, and others than I could reasonably charge for an ad that is highly rated based on the number of impressions that you deliver. I don’t compete with those numbers because they can’t pay me enough per impression to justify me going away from my affiliates. It’s like a 4 to 1 ratio.


  8. August 7, 2012

    katherin said:

    very happy to read your success through affiliate marketing.
    Good luck for your future success,thanks for sharing.