Thousands of people are becoming affiliate marketers in order to escape the 9-5 rat race and join a group of people who are making the internet their full time living. So how do they do it and what is involved?
What is affiliate marketing?
Affiliate marketing is simply selling other people’s products and earning commissions based on those sales. There is no direct selling and you never have to speak to any customers. You don’t have to touch a product or even deal with any sales queries. What the affiliate does is direct traffic or customers to the vendor who sells the product.
We are all becoming more familiar with purchasing goods online and this growing trend is what affiliate marketing is all about. Amazon has an affiliate program where affiliates sign up and promote any product on Amazon’s website. Anyone can sign up to an affiliate program in most cases and they generally promote goods and services by using a website, blog or any advertising method.
Why is affiliate marketing so good?
One of the main perks of affiliate marking is that you can earn commissions of up to 40% of a product’s value. This is because you are effectively doing the job of a shop and an advertising campaign. With a normal business there are various overheads which have to be met such at rent, rates, advertising, employees wages etc. With a online business the ‘affiliate’ does all the advertising and there are far fewer overheads since the website is effectively the ‘shopfront’ of the business. So the ‘shop’ can afford to pay the advertisers (the affiliates) a much higher rate to generate sales.
The power of leverage
The internet runs 24 hours a day, 7 days a week all year round. Unlike a bricks and mortar business it can also operate almost completely on autopilot. What this means for affiliates is that once we have put in the hours and built our websites and started our advertising campaigns, we can simply allow customers to visit our site/s and purchase products. We don’t need to be there in the process. Customers can buy products from our affiliate sites, access the information, download a product or even have delivered a physical product, all without our needing to be in the loop. We can also create many of these ‘buying cycles’ which can build on each other to create a solid dependable income over time.
Not only can we create more of these ‘online vending machines’ but we can also use paid advertising to scale up our business model. Once we find a working model which converts products we can then advertise and reach a huge potential audience. Since the systems are already in place to deliver to a potentially unlimited amount of customers, there is no buffer of red tape or physical presence needed in the sales loop which would slow it down. This is a huge advantage over a physical shop for example which has a limited amount of stock and each person must physically go through the sales till to purchase their product.
Because purchasing online has automated sales tills built in, and often automated delivery too, there is no backlog and sales are only limited by the amount of visitors you can send through the sales page. Online shops can also serve many customers simultaneously whereas physical shops are limited to a certain number of sales tills.