Let’s set this straight; you do not need your own product to get started online. In fact, you can start making money like literally today. Your offer can be someone else product which is well known as “affiliate product”.
As an affiliate, you are paid a commission on each sale of someone else’s products or services. This is the most popular method of making money online for most people and is actually perceived as being the ‘easy route’.
Affiliate marketing is a great model to get started, because you are saving yourself lots of hassle. You do not need to worry about product research, product creation, copy writing, split testing, sales copy writing, graphics design, affiliates recruitment, product launch, customer services, etc. These are the processes and cycles I go through every time I create a new product.
The whole process of product development, especially when you are getting started is very complicated and stressful. So, why not just promote other people’s products, which are readily available?
But affiliate marketing has its own cons too…
Well actually, it’s not quite that simple. You see, times have changed, and things are no longer as easy as they used to be.
Here’s the main problem affiliate marketers are facing today… They are not paid well enough by 99.9% of the affiliate programs online and even offline.
Most affiliate marketers would probably remember why they first got attracted to affiliate marketing. The beauty of it was that you could start making money almost instantly without having to deal with overhead, product development, customer complaints, or anything like that. You just send clicks to a website and assuming it’s a great offer, you’d get some cash.
Even if you were making a 50% commission, as long as traffic was cheap, you were often in the clear. Now major corporations got hold of pay-per-click, and other cheap channels of advertising and everything changed. The bid for the same clicks or you might call it traffic becomes competitive, which meant the cost per click kept going up.
Quality solo ads suddenly become very expensive. You could literally pay as high as $5 per click on Facebook. Things that would have cost 20 cents a click jumped up to 50 cents, then $1, then $1.50.
Let me explain…
There’s no shortage of products for you to promote, you could go to a merchant such as www.ClickBank.com right now and find hundreds of offers in almost any niche to promote as an affiliate.
The problem comes when you look at how much commission you get paid in comparison to the work plus the expenses of making that sale.
In most cases, you will get a commission on one, two or three products; these are usually the frontend and upsell offers. The products are usually priced at anywhere between $10 – $200, and as an affiliate typically you could expect a 50% commission. Meaning for each sale that is made from the traffic you send to the offer, you would be paid anywhere between $5 – $100. That may not sound too bad to get up to $100 per sale right?
Now, you think about how you got that traffic to the offer in the first place, and the cost of that traffic. Hopefully, the commission is enough to cover your traffic costs or you break even in most cases. It is no longer “quit your job and live your desired lifestyle” income and definitely not the kind of income you can build a real online business on.
This factor could be the difference between success and failure, and is VERY important to you.
Also, majority of these product merchants have high ticket offers ranging from $500 – $5,000 coaching programs which they promote to the leads you generate, and they do not share these profits with you. They only pay you commission the front-end and low cost upsells. These are some of the issues you could face with affiliate marketing.
However, affiliate marketing remains one of the best business models out there. Below are my 5 quick watch out tips when looking for affiliate products to promote or affiliate program to join:
#1. Ensure the product merchant or the company you want to promote their products or services has a very good traceable reputation and good reviews from the previous customers and other affiliates that have promoted for them.
#2. Make sure the offer has a solid sales funnel. What this simply means is that; you are not only getting paid when the leads you refer or introduce buy the front-end offers, find out if their system enables you to get paid on other upsell products and back-end offers that will be promoted to your referred prospects.
#3. You want to find out if the program has a good customer service in place; you won’t want your referred customers to be dissatisfied or got an issue with the product but there was nobody to help them out on time.
#4. You should check if the affiliate program has tools and training to help you make selling easy. You wouldn’t want to start spending money on creating affiliate banners, writing email swipes and looking for product promo videos or product images. Your time should be dedicated on promoting the product, not helping to find the missing puzzles.
#5. Look out for good affiliate commission structure, I will usually recommend from 50% commission rate. However, this is kind of subjective depending on the product price points. For example; if you are promoting a product that sells for $10,000 and you get 20% commission, that’s $2,000 in your pocket. As long as the cost of generating that sale is reasonable, and you can turn out profit, that’s fine.
I hope these 5 tips help you with your affiliate marketing business. So, let’s get out to work and start generating those fat commissions.