Many businesses utilize some form of affiliate revenue source for products they either don't want to carry on items that have a solid track record.

There are two primary types of ebook affiliate revenue programs.

Flat Rate/Commission

The first is a traceable link that provides an accounting for all sales derived through your specific web link. The residual income is derived through a percentage or flat rate on each ebook sale. The ultimate sale is conducted through a third party site with a check or electronic transfer made when sales reach a certain threshold or they can be made monthly (depending on the ebook company). This scenario may not require any upfront costs.

Reseller

This program allows you to pick ebooks that you feel most comfortable with. You can purchase as many, or few, as you want. You can place these ebooks on your site and keep all the income derived from the sale of the ebooks. This scenario requires full payment for the resell rights to the ebook, however the return on the investment can be substantial in a well marketed website.

In either case, an investment of a website, design and placement of ebook sale and download information may be the primary elements needed to engage in ebook sales with residual income. The sales can be made through a portal site (in the flat rate/commission scenario) or through a dedicated business site (in the reseller scenario).

The strong desire for knowledge-based material combined with the phenomenal growth of ebooks makes this affiliate program a strong contender for positive residual income.

Sell Your Own Ebook

You could develop your own ebooks for sale using your individual expertise. This can provide the greatest return because you are not simply receiving royalties you get to keep all the funds that are derived from the sale of the ebook. Many business owners use their own ebooks as well as those they have purchased for resale on their business site. Others use their ebook along with an affiliation with a third party site to allow visitors to access the greatest number of ebook purchases.

No matter how you develop it, an ebook business can provide significant residual income. The fact that ebook sales are hands-free make product fulfillment something you don't have to worry about. The customer downloads the ebook once payment has been made – you simply reap the benefit.