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Getting started with your web presence? If you sell stuff on-line, or want to sell stuff on-line, you've come to the right place.
You’ve come to the right place to find more buyers for your product.
You’ve come to the right place to find great products to promote.
You’ve come to the right place to become a master of affiliate marketing.
You’ve come to the right place to discover how to create your own affiliate program.
You’ve come to the right place to discover how to make more money as an affiliate marketer.
Affiliate marketing is when a product creator allows partners, known as affiliates, to promote their product or service in exchange for a commission. This promotion accelerates the sales of the product in addition to the efforts of the product creator.
example of how affiliates work: A blogger will write a review of “My favorite
credit cards” and at the bottom they’ll say, “you can sign up for this card
you click that link and sign up, the credit card company is going to pay that
blogger an affiliate commission. Over time, that can add up to a lot of
Simply put, affiliate marketing is the fastest way for anyone to start making money on-line.
- You don’t have to create a product.
- You don’t have to create a website.
- You don’t have to create copy that sells
- You don’t have to create a shopping cart.
- You don’t have to accept online payments.
- You don’t have to ship products.
- You don’t have to worry about warranty.
- You don’t have to worry about chargebacks.
So, if affiliate marketing is so easy, why aren’t affiliate marketers killing it?
Since it is much easier to sell a product than create one worth selling, less time and resources are required to become a successful affiliate for others as opposed to creating products.
The power of a system.
A true business is a system that generates profit. To become sustainable, the system should generate that profit in the absence of the owner. Many confuse business as a person's regular occupation, profession, trade or job. When the business requires your active day-to-day interaction and involvement, you are an employee, or a self employed person.
In contrast, a business is an organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.
The safest way to start a business is to buy into a franchise. A franchise is a business system. Someone, at some time, developed an idea into a successful way to earn income. They then broke that methodology into smaller systems that are well documented so that anyone can easily learn and master the tasks. So, when you buy the franchise, you are really buying a package of tried and tested systems for generating money. Follow the system, make money. Most franchise systems do NOT allow you to change the system. They know what works – and they don’t want you to break their system. They want you to be successful – because when you succeed, they succeed.
The problem with buying a franchise? They cost big bucks. There is the initial cost of the franchise, ongoing royalties while you are in business, and an exit fee to leave if you want to sell the franchise business to someone else.
Why do people buy a franchise then? Because they work. As long as you follow the system, the franchise is almost guaranteed to make money (although there is never a guarantee). The best franchises encourage franchisees to develop their staff to run the business independent of the owners direct daily involvement.
Affiliate marketing at its core is like buying a franchise – a proven system – but without the high cost. The product creator has created a product that is generating sales. They have created a website to promote and sell that product. They have sales copy that works. They have proven successful email copy, banner ads and blog posts for promoting their product. Now, they want to increase traffic to their site to increase sales. In exchange for driving traffic to their sales page, they are willing to pay you a commission, provided you follow the rules of the system. The rules are usually quite simple – don’t damage the brand. That means no spam, in email or on the web. It can also mean some keywords cannot be used, usually their trademarked brand name or product name.
Sounds simple right? You would think so. Still most people who promote affiliate products on-line fail to make money at it. Here’s why.
But, you can make big money selling other people’s products on-line. When you do it right.
So why would you as the product creator and seller want to start an affiliate program? After all, by paying a commission, you are paying a portion of your net profit on that sale.
That’s true. But there are many benefits for starting an affiliate program that go beyond the immediate gratification of the initial sale.
First, by using affiliate marketing, you increase traffic to your web page. That improves the page rank in the search engines several ways; the traffic rating through clicks, and the backlinks. Search engine ranking is complex and uses many factors to calculate placement. Smart marketers know that increased links and traffic to their sites increases the page rank for that page.
Next, by using affiliate marketing you can generate traffic passively. That means you can start developing your next product or take that long needed time off, confident in knowing that traffic to your site will continue through your affiliates. It’s like generating sales with no effort.
A common rule of thumb in marketing states that it costs 8X as much to find a new customer than to sell to an existing customer. So by having affiliates drive traffic to your websites, you get the benefit of building your list of qualified buyers and upselling higher priced products to proven buyers.
A well executed affiliate program will not only drive traffic but increase sales, improve your site’s SEO, generate quality leads, broaden the influence and reach of your brand, and even help sell other products that are not part of your affiliate program at all.
Not to mention that if your program becomes popular with affiliates, your marketing costs basically become the cost of managing your affiliate program. After all, as long as that affiliate program is running smoothly you’ll have an army of marketers out there working on pure commission promoting your product and your brand.
Multi-Level-Marketing is a strategy used by many well established and successful businesses. In MLM the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation.
MLM has become controversial in that sales people are incentivized to not only sell product, but recruit others to sell product in their downline.
Is MLM illegal?
MLM is often confused with the pyramid scheme which is illegal in most jurisdictions.
MLM is a legitimate and successful business model that is widely used. Examples include Amway, Herbalife and Shaklee. Click here for a list of the top network marketing companies.
A pyramid scheme is a practice that recruits members via a promise of payments for enrolling others into the scheme, rather than the sale of products or services. Members join by “investing” in the program and are compensated as a percentage of the “investment” of those they recruit. Charles Ponzi was the man who started it all. In the 1920’s, Ponzi promised investors a whopping 50% return in 45 days on international postal coupons, which he never actually purchased. He earned $15 million and became a millionaire in only six months. Click here for the top 10 ponzi schemes.
Why the confusion with MLM and Pyramid schemes?
Due to the multiple levels of compensation with network marketing, MLM can be confused as a pyramid scheme. In addition, network marketing often pays out very high commission on the sale of introductory products, often 100% or more of the product price to the consumer. This practice is used to identify interested product buyers on the front end, so that higher priced, more profitable items can be sold on the back end. This same theory is used in retail sales with loss leader advertisements designed to entice buyers into the store.
What to watch out for.
When enrolling in any program, beware
of upfront fees to join a program with a commission structure that pays a percentage
of these enrollment fees where no product or service is provided with the membership. This is the classic definition of a Pyramid Scheme.