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Some Straight Talk on Affiliate Marketing
My wife and daughter are out of town today so I’m going to catch up on my favorite TV shows: Supergirl, The Flash, Supernatural and Legion.
I definitely love superhero shows. I grew up watching Christopher Reeve’s Superman movies and reading comics.
But when I got home, I decided to take a nap…
…and that nap turned into a good night’s sleep!
Remember, yesterday I gave you a taste of how internet marketing works. If you missed it click here so you can catch up!
I’m sure there’s one that fits your interests and complements your skills.
In reality, the internet offers you countless possibilities in business and earning. I will focus on the most proven ones.
These have been known to launch thousands of internet businesses around the world and help local brick and mortar businesses see profits early.
And today I’ll start picking 3 internet marketing (IM) models for you, starting with affiliate marketing.
This model is all about you joining forces with an online seller or retailer. For the rest of this article I will refer to them as traders.
The revenue is shared by you and the merchant.
How exactly does it work?
Well, revenue is usually generated by visitors clicking through to your landing page through an ad you’ve posted. or through purchases from customers who visited your landing page.
How you get compensated, ultimately, depends on which of the three types of affiliate marketing you choose to work with:
1. Pay Per Sale Affiliate Marketing – This allows you to earn income from sales finalized through the ads you post.
Merchants monitor your activity through these sales.
Every time they close deals from your ad, you will receive a percentage of the revenue or a fixed commission depending on the number of sales finalized. An example is ClickBank.com.
2. Pay Per Click Affiliate Marketing – This model involves linking a merchant’s website to your own website. Say a merchant pays to post their ad on your page. Every time a visitor clicks on a link that leads to your affiliate merchant’s page, you will earn a fixed amount.
3. Pay Per Lead Affiliate Marketing – In this case, you will receive ads posted on your website. When leads are generated from ads or links on your website, you get compensated.
How are payments made?
Payments are made on a prompt, weekly, bi-weekly or monthly basis. The payouts you receive are determined by the commission rate you pay your merchant affiliates.
Personally, the affiliate program Dahl Integration uses ClickBank for marketing payments. I set it up to pay us weekly.
There are several ways to receive your payments:
One is through electronic banking through payment or financial websites.
Funds can be wired to your personal or business bank account – this can also be done online or through direct bank deposits.
A regular check can be mailed to you.
Another popular way to receive payments is through PayPal.
What skills are needed to start an affiliate marketing business?
You need to know pay-per-click advertising, email marketing and copywriting.
Benefits of Affiliate Marketing:
1. Generally speaking, you don’t need to spend a lot of money to get started. Most affiliate programs are free to join although they ask you to apply.
There are premium affiliate programs where affiliates pay a licensing fee of $1,000 or more.
2. You can earn money while you sleep. Who doesn’t want to make more money in the middle of the night?
When this first happened to me I felt an enormous weight on my shoulders because the income was not always dependent on my time.
3. This is one of the easiest ways to generate income (when you compare it to creating and marketing your own products) because you reduce time to market.
When you create your own products and services you are on the hook to prove that they can be sold. This initial test campaign can cost thousands of dollars to prove the viability of your offers.
Conversely, you can promote a popular product that is already successful and skip all the trial and error and initial ‘cold-hard’ cash outlays.
Whether you are a part-time source of income or a long-term business, affiliate marketing is still one of the best ways to generate income without all the typical hassles of running a business.
4. If you’re successful, you’ll always be up to date with what’s going on in the internet marketing world. This is a great opportunity for you to find or create different products and services to feature on your website.
5. You have opportunities to work with other affiliate marketers and increase your earnings together.
Disadvantages of Affiliate Marketing
Although you can make a living with affiliate marketing, there are a couple of downsides to this model that you should be aware of.
Once you have all of this information, you can make plans to help you avoid these potentially costly problems:
1. As an affiliate, you may fall victim to shady deals and in turn, you may be accused of defrauding customers.
To make sure this doesn’t happen, you should test all your traders. Check out their products and check if their genuine deals are legitimate.
A rule of thumb is to first become a client of the merchant you plan to work with. What’s more, it’s always easier to sell a product or service you believe in, because you’re the client and can speak from your own experience with the product.
You should also read the fine print in the affiliate agreement before finalizing the deal.
2. You stop earning without prior notice. This can happen if you don’t communicate regularly with your traders.
Merchants may discontinue or discontinue products (and in some cases go out of business) without informing their affiliates so be sure to stay in touch with your merchants to avoid this issue.
Today, I reviewed the ins and outs of affiliate marketing and tomorrow I will review the opportunity that exists in online shopping centers.
Namely, eBay and Amazon.
Wait for tomorrow…
In the meantime, if you want to take the guesswork out of growing your business online, click here to get the ultimate shortcut.
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