One major factor which often leads to failure of most newbie affiliate marketers with residual income opportunities, is the inability to carry out a thorough comparative analysis of the profitability of affiliate opportunities as determined by relevant factors with greater emphasis on the compensation plans of these affiliate opportunities.
Where such analysis is carried out, it is usually on a cursory basis with wrong decisions eventually being taken. Remember the popular computer parlance, “Garbage In, Garbage Out”
To be done correctly, any analysis should comprise 2 major factors.
 Quantitative Analysis
 Other nonquantitative and sometimes subjective factors.
I carry out below an analysis of the compensation plans of 3 popular residual income opportunities basically as it applies to the first year of entry of the affiliate.
Why Comparative Analysis for the first year of entry of the affiliate?
Because this is the very crucial stage at which most internet marketing newbies fail.
A success beyond this turn around point (breakeven point), in most cases, usually result into internet marketing success.
Quantitative Analysis
I present a summary of the analysis in the form of chart presentations and follow below with the tables, assumptions and workings utilized to arrive at these conclusions.
==> Residual Income Opportunities – Line Chart
==> Residual Income Opportunities – Column Chart
Residual Income Opportunities  Perpetual 20, Trafficwave And GDI
A Comparison Of An Affiliate's Initial ProfitabilityGDI  TrafficWave  Perpetual 20  

Monthly Subscription  $10  $17.95  $29.95  
Commission Rate For The First 3 Direct Referrals  !st Referral (Monthly Residual) = $1 2nd Referral (Monthly Residual) = $1 3rd Referral (Monthly Residual) = $1  1st Referral (FastTrackBonus) = $17.95 (Monthly Residual) = $ 6 2nd Referral (FastTrack Bonus) = $17.95 (Monthly Residual) = $ 6 3rd Referral (FastTrack Bonus) = $17.95 (Monthly Residual) = $ 6  !st Referral (Monthly Residual) = $20 2nd Referral (Monthly Residual) = $0 3rd Referral (Monthly Residual) = $20  
Commission Rate For Direct Referrals Nos. 410  (Monthly Residual) = $1  (FastTrackBonus) = 17.95 (Monthly Residual) = $0.75  $1.00  (Monthly Residual) = $20  For Perpetual, the monthly residual for the 4th referral goes to the sponsor of the affiliate while $20 accrues for subsequent referrals(From 5th referral upwards) Trafficwave operates a maximum 3x10 forced matrix and so all subsequent referrals after 3 fall too the next level. etc 
Commission Rate For The 20 Indirect Referrals  (Monthly Residual) = $1  (Monthly Residual) = $0.75  $1.00  (Monthly Residual) = $20  
Direct Commissions Amount in Month 1 With 1 Paid Sign Up  $1  $17.95 + $6=$23.95  $20  
Direct Commissions Amount in Month 2 With 2 Paid Sign Ups  $1 + $1 = $2  $17.95 + $6 + $6 = $29.95  $20 + $0 = $20  For Perpetual 20, note that no income is earned on the 2nd direct referral as it passesup to the affiliate's sponsor. 
Direct Commissions Amount in Month 3 With 3 Paid Sign Ups  $1 + $1 + $1 = $3  $17.95 + $6 + $6 + $6 = $35.95  $20 + $0 + $20 = $40  
Total Direct Expenditure/Subscription For the first 3 months & 3 Direct Paid Signups  $30  $53.85  $89.85  
Total Direct Income For the first 3 months With 3 Paid Signups  $6  $89.85  $80  
Net Direct Income/(Loss) For the first 3 months (WithTotal Of 3 Paid Signups)  $6  $30 = ($24)  $89.85  $53.85 = $36  $80  $89.85 = ($9.85)  
Direct Expenditure/Subscription For Months 46 To Gain 7 Additional Direct Paid Signups(Total Paid Signups = 10)  $30  $53.85  $89.85  
Direct Income/Commission For Months 46 To Gain 7 Additional Direct Paid Signups(Total Paid Signups = 10)  $5 + $7 + $10 = $22  $55.90 + $57.90 + $78.85 = $192.65  $60 + $100 + $160 = $320  For Perpetual 20, note that referral no 4 is passed up by the affiliate to his sponsor and so no income results 
Net Direct Income/(Loss) For Months 46 to Gain Additional 7 Paid Signups(Total = 10 Paid Signups)  $22  $30 = ($8)  $192.65  $53.85 = $138.80  $320$89.85=$230.15  
Net Direct Income/(Loss) For Months 16 (With Total Of 10 Referrals)  ($24) + ($8) = ($32)  $36 + $138.80 = $174.80  ($9.85) + $230.15 = $220.3  
Direct Expenditure/Subscription For Months 712 To Gain 20 Indirect Referrals (Total Paid Signups= 30)  $60  $107.70  $179.70  
Direct Income/Commission For Months 712 To Gain 20 Indirect Paid Signups(Total Paid Signups = 30)  $10 + $10 + $20 + $20 +$20 + $30 = $110  $25 + 25 + $35 + $35 + $35 + $45 = $200  $160 + $160 + $160 + 160 + $160 + $360 = $1160  For perpetual 20, eash of the affilate's referral passesup his 2nd and 4th referrals while he retains the 1st and 3rd. Hence, only the 2nd of the 2 indirect referrals within this analysis accrues income to the affiliate. 
Net Direct Income/(Loss) For Months 712 (With Total Of 30 Referrals)  $50  92.3  $980.30  
Net Direct Income/(Loss) For Months 112 (With Total Of 30 Referrals)  ($24) + ($8) + $50 = $18  $36 + $138.80 + $92.30 = $267.10  ($9.85) + $230.15 + $980.30 = $1200.60 
Some Underlying Assumptions
To keep things simple but not unrealistic, especially given the early stage of entry of the affiliate into the residual income opportunity, i have assumed the following :
 The affiliate’s referrals have not yet begun to recruit their own referrals in the first 6 months.

The GDI affiliate has not yet begun to earn Weekly Volume Bonus within the 12 months under consideration, as it is unlikely that at that stage of his entry, he will be able to refer 5 or more paying members within a week, to qualify him for this.
 The GDI affiliate does not directly or indirectly recruit any premium members within his downline in the period of the analysis and he does not become a premium member himself.
 3 paying referrals will be gotten within the first 3 months for all the residual income opportunities, at an average rate of 1 per month.
 For simplicity, I have assumed that the retention rate is 100% i.e. all paid referrals remain paid members throughout the period under consideration.
 I have concentrated on only the income accruing at the early stage of entry into the residual income opportunities(first 12 months), as that is the crucial stage and the stage anyone aspiring to venture into any of the residual income business opportunities need to be very careful about.
 I have assumed it takes another 3 months after the initial first 3 months to get 7 additional direct referrals, bringing total referrals to 10 by month 6.
 For a balanced picture, i relaxed the “ban” on the affiliate’s referrals recruiting their own referrals, from month 7( for the next 6 months), by assuming the affiliate’s 10 referrals now bring in 2 referrals each within months 712(i.e. total referrals at end of month 12 = 30 referrals).
On the other hand, i have from month 7, held constant, the accumulation of new direct referrals for the affiliate.
This is to enable us see the impact indirect referrals have on the profitability for the various residual income opportunities.
 I have assumed the recruiting of 2 direct referrals each in months 4 and 5 and 3 direct referrals in month 6.
 I have assumed the recruiting of 1 indirect referral each in months 9 and 12 by each of the affiliate’s referrals.
 For Trafficwave, commissions earned on indirect referrals ranges from $0.75 to $1, but i have used $1 in the calculations, for simplicity.
Other nonquantitative and sometimes subjective factors

Ease of getting signups for each business.
This can be influenced by the amount of funds to invest. GDI has an edge here. It is natural to expect that new signups will prefer less investment when testing out the waters.
Another influencing factor can be the niche, as some profitable niches attract signups faster.
Another factor can be the perceived profitability of the compensation plan.
 Usefulness of the Products and/or Services provided, to the affiliate.
How useful are the products and/or services provided, to you the affiliate? Some products and/or services are almost essential that you may still need to buy them elsewhere even if you are not subscribed to the company. Naturally, such situation will encourage more signups for the affiliate opportunity.
Trafficwave has an edge here, in that you need an autoresponder for internet business success. It is a tool you literally need to use on a daily basis, if you are running your internet business correctly. You need to build a list, noting the saying “the money is in the list”.
You also need to correspond with subscribers on your list.Regarding GDI, domain name is an essential, but only one domain can suffice for most marketers and you don’t go buying domains on a daily/weekly/monthly basis. You mostly renew annually.
Web Hosting is essential and mostly paid monthly. but the comment below on competitors may apply.
For Perpetual 20, how important is the training provided? How marketable and profitable are the products offered to affiliates for resell?

How essential is the Product and/or Service of the company that you will be marketing, to the general public?
Is it in a very lucrative niche for example? This will determine the ease of making sales and hence the perceived marketability of the product/service by prospective signups.

What is the retention rate of subscribers?
As this will improve the returns of the affiliate, he naturally should be interested in evaluating this factor amongst the competing residual income opportunities.
 What is your Risk Appetite?
Some people are risk averse while others are risk takers. It is a common law that high risk begets high returns (ceteris paribus – all things being equal). Some marketers will take the risk of investing larger sums and risk waiting a little longer, to reap higher returns.

What is your financial capacity?
No matter your risk appetite, you can only invest what is available to you. Those affiliates with smaller cash reserves, should therefore concentrate on the residual income opportunity with lower cash investment, irrespective of the return, as long as it eventually turns out positive.
 How knowledgeable and experienced are you in internet marketing?
Some affiliate marketing businesses are more complicated to run than others. It is rational to expect that a newbie internet marketer will go for a residual income business opportunity that is very simple to operate. Therefore, income considerations should not be the sole deciding factor. What is the use of projected income that never materializes?
Other “Neutral” Factors
I note that various leadership bonuses and volume bonuses are likely to come into play sometime after the time period analyzed by the study above and must be taken into consideration in a further analysis of the comparative profitability or otherwise of these residual business opportunities, beyond the time period of study.
Other factors like “available alternatives”, that should come into play is not harped on here because it is virtually common to all the business opportunities since they all have credible competitors.
Another factor which i have also assumed neutral is “expenditure to promote”, with the thought that it may come to more or less the same for all the residual income business opportunities.
If these factors are not held constant, they certainly must be taken account of also, as crucial factors.
Residual Income Opportunities  Perpetual 20, Trafficwave And GDI
A Comparison Of An Affiliate's Initial Profitability  Monthly Net Income CalculationGDI  Trafficwave  Perpetual 20  

Net Direct Income/(Loss) For Month 1 (With Total Of 1 Paid Signup)  ($9)  $6  ($9.95)  
Net Direct Income/(Loss) For Month 2 (With Total Of 2 Paid Signups)  ($17)  $18  ($19.90)  For Perpetual 20, note that no income is earned on the 2nd direct referral as it passesup to the affiliate's sponsor. 
Net Direct Income/(Loss) For Month 3 (With Total Of 3 Paid Signups)  ($24)  $36  ($9.85)  
Net Direct Income/(Loss) For Month 4 (With Total Of 5 Paid Signups)  ($29)  $73.95  $20.2  For Perpetual 20, note that no income is earned on the 4th direct referral as it passesup to the affiliate's sponsor. 
Net Direct Income/(Loss) For Month 5 (With Total Of 7 Paid Signups)  ($32)  $113.9  $90.25  
Net Direct Income/(Loss) For Month 6 (With Total Of 10 Paid Signups)  ($32)  $174.8  $220.3  
Net Direct + Indirect Income/(Loss) For Month 7 (With Total Of 10 Paid Signups)  ($32)  $181.85  $350.35  
Net Direct + Indirect Income/(Loss) For Month 8 (With Total Of 10 Paid Signups)  ($32)  $188.90  $480.40  
Net Direct + Indirect Income/(Loss) For Month 9 (With Total Of 20 Paid Signups)  ($22)  $205.95  $610.45  For perpetual 20, each of the affiliate's referral passesup his 2nd and 4th referrals while he retains the 1st and 3rd. Hence, only the 2nd of the 2 indirect referrals within this analysis accrues income to the affiliate. 
Net Direct + Indirect Income/(Loss) For Month 10 (With Total Of 20 Paid Signups)  ($12)  $223  $740.50  
Net Direct + Indirect Income/(Loss) For Month 11 (With Total Of 20 Paid Signups)  ($2)  $240.05  $870.55  
Net Direct + Indirect Income/(Loss) For Month 12 (With Total Of 30 Paid Signups)  $18  $267.10  $1200.60  For perpetual 20, each of the affiliate's referral passesup his 2nd and 4th referrals while he retains the 1st and 3rd. Hence, only the 2nd of the 2 indirect referrals within this analysis accrues income to the affiliate. 
DEDUCTIONS/INFERENCES
Please note that emphasis should be more on the trend revealed rather than the absolute figures, given that assumptions which may not completely hold true in reality have been utilized.
These assumptions are however a fair basis for a reasonable profitability model which can be used for simulation.
To make valid deductions therefore, you must thoroughly comprehend the assumptions that have been utilized in this analysis and do a simulation to suite your preferences.
 The big profit residual income opportunity is obviously Perpetual 20, with the least profit affiliate opportunity being GDI.
 The slope of Trafficwave is steeper up to month 6 because of the “Fast Start Bonus” and becomes less steep subsequently when it is assumed there are no more “Fast Start Bonuses”.
 From about the middle of Month 5, Perpetual 20 takes over from Trafficwave as the highest profit affiliate opportunity and commences a meteoric rise.
 To make any significant profit with GDI, you would need a very large number of downlines.
 With 3 signups, you breakeven with Trafficwave and do the same with 4 signups for Perpetual 20. This can be achieved at a faster pace than highlighted in this analysis, such that within 1 – 2 months, you have broken even.
NOTES/WORKINGS
GDI (Direct Income/Commission calculation – Months 46)
————————————
$3+$2 = $5
$3+$2+$2 = $7
$3+$2+$2+$3 = $10
——
$22
======
Trafficwave (Direct Income/Commission calculation – Months 46)
————————————
($17.95×2)+$18+$2 = $55.90
($17.95×2)+$18+$4 = $57.90
($17.95×3)+$18+$7 = $78.85
——–
$192.65
========
Perpetual 20 (Direct Income/Commission calculation – Months 46)
————————————
$40+$0+$20 = $60
$60+$20+$20 = $100
$100+$20+$20+$20 = $160
——
$320
=======
GDI (Indirect Income from 2nd level Referrals/Commission calculation – Months 712)
————————————
$10 = $10
$10 = $10
$10+$10 = $20
$10+$10 = $20
$10+$10 = $20
$10+$10+$10 = $30
——
$110
======
Trafficwave (Indirect Income from 2nd level Referrals/Commission calculation – Months 712)
————————————
$18+$7 =$25
$18+$7 =$25
$18+$7+$10 =$35
$18+$7+$10 =$35
$18+%7+$10 =$35
$18+$7+$10+$10 =$45
———
$200
=========
Perpetual 20 (Indirect Income from 2nd level Referrals/Commission calculation – Months 712)
————————————
$160 = $160
$160 = $160
$160+$0 = $160
$160+$0 = $160
$160+$0 = $160
$160+$0+$200 = $360
——–
$1160
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@humzayunas,
Yes indeed.
Trying to sieve out the best of the lot though.
Take care!
Very good income opportunities