What is Affiliate Marketing?

Affiliate marketing is a method of promoting web businesses in which an affiliate is rewarded for every visitor, subscriber, customer, and (or) sale provided through his or her efforts. It is a modern variation of the practice of paying a finder's fee for the introduction of new clients to a business. Compensation may be made based on a certain value for each visit (Pay per click), registrant (Pay per lead), or a commission for each customer or sale (Pay per sale), or any combination.

Merchants like affiliate marketing because it is a "pay for performance model", meaning the merchant does not incur a marketing expense unless results are realized.

Some e-commerce sites run their own affiliate programs while other e-commerce vendors use third party services provided by intermediaries to track traffic or sales that are referred from affiliates. Some businesses owe much of their growth and success to this marketing technique, although research has shown in general the increase to be approximately 15-20% of online revenue

Thousands of people have quit their JOBS and started
earning money exclusively online. There are a lot of ways
you can do it on the Internet... such as creating your own
products, offering a service, licensing products, etc.

Many people have done it without having ANY products of
their own. This is done through affiliate income or selling
other people's products for a commission.

Here's how it can be done.

1. Don't sell anything you don't own.

This rule is listed first for a good reason. You should
never sell anything that you don't own yourself. If you
don't have enough faith in it's results to buy it yourself,
then you have no reason to sell it to others.

Think about this for a moment - if you don't own it and are
unwilling to purchase it how can you endorse the product?
How can you honestly answer questions about the product?
The answer is you can't.

Too often people are willing to jump on the bandwagon and
promote whatever the hyped product of the week is...
without stopping to think of the value of the product
itself. No matter how many other people are recommending
it, you shouldn't if you haven't bought it yourself.

2. Only offer complementary products and services.

If your web site is about sports products, then you
definitely shouldn't be offering cigarettes in another
program. It doesn't make any sense at all, and these
products defiantly do not compliment each other. You are
unlikely to sell both products to the same customer.

A good example of selling complementary products would be,
if you sell golf products, then you could sell golf
vacations, golf clubs, golf subscriptions, golf training
products, etc. All these products would entice the same
consumer. Meaning once you get the person interested in
golf to your site you increase your chances of selling them
more than one item. This would not be the case if you sold
golf clubs and gardening books.

Make sure everything you offer goes together. You should
earn multiple streams of income, but they must all be
related on the same subject.

3. Build an opt-in email list.

I can not stress enough how vital this is to your online
success.

Ask any top business person what their most valuable asset.
It isn't their products. It isn't their location. It isn't
even their employees.

The most valuable asset to any business is their customer
list. The most valuable asset to any Internet business is
the opt-in email list. Your email list IS your Internet
business.

If you don't have an email list, you don't have an Internet
business.

Offer an affiliate product...and you earn money once. Offer
a subscription to your opt-in email list and you earn money
forever (from hundreds of offers you can make to that list).

4. Concentrate on your brand.

Use your opt-in email list to build a relationship with
your subscribers. When they first subscribe, they may not
know you from Peter. So tell them about yourself. Express
your opinions.

On your first 2-3 contacts do not sell them anything. Tell
them about yourself, your experiences, stick your neck out
and tell them what you think. Let your customers get to
know you. You have to give people a reason to know, like,
and trust you.

You don't have to be the best writer on the planet. You
don't have to be just like your favorite guru. Just write
some things that are exclusively you in your emails.

Sure, some of them will get mad. Some will ask to be
removed. Some will cuss you out. Deal with it. The way I
see these people are by removing themselves from my list I
do not have to waist time on trying to sell to them. I just
move on to the people who are interested and I have a
greater chance of making money off.

If you're just like everyone else, then why should anyone
choose to buy from you?

5. Write your own endorsements and reviews.

Every affiliate program has solo ads, endorsement ads, and
classified ads available. You can use them sometimes, but
they should never become your only marketing pieces.

But on top of every ad you should have your OWN opinion of
the product. You should tell your customers in your own
words why they should buy this or that. Then use the ad
copy you were given UNDER your own statements.

The same thing goes for online newsletters. You can use
content and articles from other people, but every single
email you ever send out should have something written from
you...in your own words...at the top of it if nowhere else.
It could be just a short 'what's going on' section or an
editorial.

You don't have to be professional writer. You just have to
have opinions and be willing to stick your neck out giving
them.

6. Offer extra specials.

You don't have to do this every single time, but you should
be making special offers for your list. Why should they buy
a product from you instead of one of 1,000 other affiliates
offering it?

Give them something extra they can't get from other
affiliates!

You can tell them that if they buy affiliate product A from
you...you'll give them this special report.

All they have to do is buy the product and then email you
the receipt. You'll send them their extra bonus report
right over.

It could also be an eBook, an email consultation, a phone
consultation, an ad in your newsletter, a link on your
special links page, etc. Give them something extra special
with some of your offers and watch your checks soar. Make
sure the items you give for free are related to your
product.

7. Ask for the sale.

You have to ask for the sale. If you don't ask you will
never get. The worst they can say is "no" and all that
means is you are no worse off than you are right now. But
if you ask and they say yes you are in a much better place.

You can't be wimpy or shy. You can't just give away a lot
of content hoping someone will click on your little link
somewhere and magically decide to buy your product. You
have to tell your prospects and customers why they want and
need your product. You have to tell them what they get when
they buy.

If some subscribers get mad when you send them an offer,
help them remove themselves from your list. It's funny, but
most profitable promotions have also get the most
complaints and removes.

I've had people email me saying, "If you're just trying to
sell something online, then I don't even want your
newsletter." Guess what? Remove them. That is the end
purpose of your newsletter, any content you provide, or
anything you do online.

Remember why you started on online business - to make money
not to give out free gifts and content.


To learn more about affiliate marketing, along with some excellent tools and resources we recommend that you take a look at Affiliate ClassRoom.

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