Affiliate Marketing:
Affiliate marketing is very interesting as it’s actually similar to the last business model we looked at but with one key difference: you don’t need a product. So if you thought that creating a digital product was low risk, this is even lower risk.
How is this possible? Simple: you are selling someone else’s product. Your profits then will come instead from the commission made on that product which is much higher on the web than it is for door-to-door salesmen. To put things in perspective, you can sometimes make as much as 100% commission on a digital product. That means you actually earn more than the product creator!
So how does this work? Why would they be interested in offering you more money than themselves? As we discussed, a digital product has no COGS which means it offers 100% profit. A product creator can sell as many copies of their product as they like then and then get affiliates to sell more of their product on top of that. They might not get 100% of your sales, but those are still additional sales generating additional profits on top of what they already earned.
And the more commission they offer to you, the more people will take on their product and start promoting it. This means they can end up with a legion of people selling their products while they reap the benefits! From your perspective though it makes perfect sense too. Not only are you getting to sell a product without having to invest any time or money on creation – but you’re also able to choose a tried and tested seller.
In other words, you can pick something that you can already see is selling really well! And there’s no limit to your earnings here either: if you want more money, you simply find a more expensive product. Or maybe you end up taking on 2 or 10 affiliate products and earning from all of them!
How to Get Started In Affiliate Marketing:
So how does this actually work? To begin with, you need to find your product that you want to sell. The easiest way to do this is through an affiliate network such as JVZoo (www.jvzoo.com), Commission Junction (www.cj.com), ClickBank others. Here, you’ll then be able to find a massive list of affiliate products along with the amount they’ve sold, the commission they’re offering and their price.
You then find something that appeals to you and that fits your niche and you apply for an ‘affiliate link’. That link is basically a special URL that directs people to the page where they can buy the product while also storing a cookie on their computer to show that you sent them. If they click your link and then buy the product within a certain time frame, it is logged as your sale and you get the money. Very straightforward!
Your job then is to simply promote that affiliate link, which you can do in a number of ways. You might for instance decide to simply set up an advertising campaign using Facebook Ads or AdWords. As long as you’re paying less for the advertising than you’re earning from the sales, then this will be an effective method.
Another option is to use your own channels. If you create a large email list then you can send your affiliate link around those subscribers after you’ve built their trust. Or if you have a blog, you can promote the link that way. You can even promote the links via social media, or using ‘real world’ posters and flyers. Or how about a YouTube channel? Either way, this is a very simple and straightforward business model that lets you earn big cash without having to invest anything or take any risks yourself.
There are some very well known figures in the affiliate marketing industry which include the likes of John Chow (www.johnchow.com) who is now somewhat famous online and regularly attends talks and interviews. Other big names include Mark Link and Rae Hoffman. All these people now live incredible lifestyles enjoying passive income while they travel the world or spend more time with their families.
Affiliate Marketing Best Practices And Tips:
Now you know what affiliate marketing is and how to get started with an affiliate marketing network, the next thing to consider is how best to succeed in this space and to really start generating the kind of income you’re looking for.
One of the most important points here is to pick the right product. Of course this means that you should choose a product that is selling well and that offers large commission on an attractive price point.
But on top of that, you also need to think about how you’re going to sell that product and succeed in that niche. This is the most important part and it’s something that will help you in a ton of different online business models
actually. When selling anything, you need to look for what is known as the ‘route to market’. This essentially means the route you’re going to take to present your product to the largest number of people who may be interested in it.
If you have an eBook on flow arranging, then a route to market might be something like a blog on flowers, or maybe a magazine for brides-to-be. Most of us have a few contacts and resources we can already use. Maybe you happen to be in touch with a big blogger in the fitness niche? Maybe you happen to know the editor of a magazine? Instead of choosing a random product and then trying to build that audience from scratch, choose the subject that you already have a headstart in and then exploit those contacts and opportunities.
When you choose your product remember that you aren’t just choosing your product – you’re choosing your market, your marketing strategy and your audience! Oh and often this means going for slightly smaller niches. It’s sometimes
easier to find and connect with a group of truckers than it is to get noticed among all the different marketers going after the dating crowd. Once again, starting small and building up is often the best strategy.
Physical Products:
One last point to consider is that there are also a number of affiliate programs aimed at people who want to sell physical products. The best known of these is Amazon’s Associate Program .This lets you promote any product on Amazon for commission, potentially opening you up to a much wider audience. Bear in mind though that these sales offer much smaller commissions – typically about 3-10% of the retail price.
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