Affiliate Marketing in a Nutshell

What exactly is affiliate marketing? Affiliate marketing is the single fastest growth industry on the Internet. It’s also true that affiliate marketing is one of the fastest and most creative ways to make money and have a career on the Internet.

Simply put, affiliate marketing is selling products on a commission basis. You own a business that advertises and sells products for other companies. You may have a product of your own to begin with or not. The things that a successful affiliate marketer must have are:

1. Your website is the jumping off point of all your marketing efforts. So the first step in any successful affiliate marketing business is building a good, credible and professional looking website. You must build a user-friendly website, which will attract your prospects and motivate them to click on the links to the products and services you are promoting and make a purchase. There are companies whose business is building websites that you can hire to build one for you.

2. You must find products to sell, you must be able to determine whether there is a demand for those products and if people will actually buy them. You may either have your own original product or products that are made by others. Which ever way you go, you must believe in the products.

3. It will be necessary for you to become an adept advertiser and be able to tell whether the advertising you are paying for is producing more income for you than the advertising is costing you.

4. It is necessary that you have good mathematical skills. You will need to be able to track your sales and determine profit, as well as, see to it that your suppliers are paid in full and on time.

5. You need the full and unwavering support of your family so that you can devote the time and energy necessary to launch your affiliate marketing business.

Age-Old Question Do You Need to Have Your Own Product

Whether or not you need to have your own product to become a successful affiliate marketer is a question that has been asked and answered every few minutes since affiliate marketing came on the scene. The reason it is asked so often is because everybody has a different answer. There are those who say you absolutely MUST have your own product to get started and to succeed in affiliate marketing and then there are those who say you don’t need a product when you start or ever to be successful. So, which is it? Yes? No?

The fact of the matter is that everybody is right. Having your own product is great but it isn’t absolutely necessary. Those who have their own product can build a website around that product and add affiliate links to it. Those who don’t have their own products can still create a great website and be an affiliate marketer. Producers of products love affiliate marketers and products are not the least bit hard to find.

The thing that both those who do and those who don’t have their own product have in common is that they both must be passionate about the products they sell. You will never be successful in selling something that you aren’t interested in yourself. It takes drive and ambition to succeed at any endeavor and affiliate marketing isn’t any different. You must be passionate about a product or an idea in order to keep your drive and ambition alive and well for the long haul.

Whether you are marketing your own product or a product produced by others your success is directly related to how effective your marketing techniques are, how focused you are, how well you manage your time, and how much you believe in the product.

Making Back-End & Residual Commissions

Residual income puts money in an affiliate marketer’s pocket without any work or effort on their part. It doesn’t get any better than that. Sales of back-end products allow you to get paid for work that you do more than once. The idea here is to work smarter…not harder.

So what are back-end products? They are products/services you offer to existing customers, i.e. to people who have already bought a first product (front-end product. lead product) from you.
Most online marketers make much more money selling customers the second, third, fourth etc. product than selling their first product. The reason is that people who’ve already bought from you once are much more likely to buy again.

Strategies like back-end offers shifts the focus from the short sighted “take the money and run” strategy that is so much in use on the internet today. You’ve seen these sites all over. The focus is on getting a massive amount of traffic and then selling visitors an over-priced product that doesn’t deliver what was promised. They might make money in the short run but they will only sell to each customer once and will have to continue spending a lot of money on advertising to get new suckers to visit their site.

More successful sites focus on building a strong relationship with their customers. Your main goal shouldn’t be to just make sure your customers are somewhat satisfied…you want them to be extremely satisfied. If you deliver the goods, your customers will trust you more. If you have their trust, you can sell them anything. When you send your very satisfied customers an email offering another product that they would be interested in, they will flock to your site to buy it because they trust you. Trust is everything.

Choosing the Right Product

When you first start your online business, the first and most obvious question you will ask yourself is…what am I going to sell? Points to consider when deciding the answer to that question are:

· Is it light and easy to ship?
· Is it a digital good that is downloaded (e-book or software)?
· Is it perishable or fragile?
· Does it have to be seen and held (designer fabrics, perhaps)
· Is there enough demand to make your venture profitable?
· Does it have little competition from large online companies (niche products)?

The last two characteristics are the ones that can be hard to pin down. Here is a generally accepted method of arriving at an idea of how heavy the demand and competition is for a product.

If you have a special interest in some products that meet the above criteria, great, but don’t limit your investigation just to items you like. You are looking for a niche product with relatively good demand (enough to make it profitable), but without heavy competition.

One way to see what the demand is for products you are interested in is to look at search engines to see how frequently people search for the product you are considering.

The result of all this research should be that one or more products will fit into a niche market – products with some demand, and relatively little supply. For the best results, focus on one niche product category, and offer a wide selection. That way, you can become the best online source for that particular category. For example, instead of offering general craft supplies, offer the widest possible selection of needlepoint kits. This strategy will also allow you to rank higher in search engines because you can optimize your pages for fewer, more specific, keywords.

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Other Notable Common Affiliate Marketing Mistakes

It isn’t hard to set up a good website and start and affiliate marketing career. It isn’t hard at all to find affiliate marketing opportunities on the internet. However, it is a very simple thing to make deadly mistakes that will insure your failure to thrive at affiliate marketing.

One of the most notable affiliate marketing mistakes is to think that all you have to do is find the ones that pay the most, sign up, drive traffic to that site through your affiliate link and you’re all set right? Not exactly.

It’s great to choose an affiliate program that pays a high percentage, but that’s not most important thing to consider. It’s much more important to find a quality affiliate program that meets certain criteria. Here are three mistakes you don’t have to make:

1. You want to make sure the product is a proven seller. You don’t want to waste your time and money driving traffic to a site that doesn’t convert. Find one with a good conversion rate.

2. Make sure the site you become an affiliate for protects its affiliates, and has your best interest at heart. Look for one that provides banners, e-mails, and other tools you can use to promote the site. Also, make sure that there is only one payment option. As an affiliate marketer, you need to be sure that you will get credit for your referral. If there is more than one payment method, you can get shortchanged.

3. Do not choose an affiliate program that promotes an e-mail course. Nothing is worse than becoming an affiliate to a site that’s first goal is to capture e-mail addresses, and then tries to make the sale second. As an affiliate marketer, you need to capture e-mail addresses, then to convert that prospect into a sale. Stick with affiliate programs that aren’t focused on capturing leads because it’s simply not in your best interest. Build your own list, not someone else’s.