Fast Start Businesses With Affiliate Products
The starting point of most successful type of Internet marketing business is affiliate products. What are affiliate products? These are products that other people own and that you simply promote.
These can be actual, physical products … such as bicycles, cars, homes and so on … or they can be digital Information Products … such as an eBook or a video course like this one.
How Does Affiliate Marketing Work?
When you promote affiliate products, every time you make a sale, you get a commission on that sale. In other words, when you lead a customer to the product owner’s website and that customer spends money to buy that product, you get some of that money. How much of a sales commission do you get? It all depends on the product and the terms of the affiliate agreement, but it can be anywhere from 3 to 5 percent to up to 75 percent of the sale price or even more.
Regardless of the sales commission, the more customers you lead to the seller, the more money you are going to make. This is a little bit like Multi-Layer Marketing … or M-L-M … which is something some of you may be familiar with. That’s when you sell other people’s products but you have to buy them yourself first. Examples include Amway, Mary Kay Cosmetics and tons of other business opportunities.
The difference between affiliate marketing and M-L-M is that with affiliate marketing you don’t have to buy any products yourself.
All you need to do is to lead customers to where they can buy the products themselves and you get paid. You are sort of like a middle man. Another way to think about it is that you are part of the seller’s sales team or sales force.
M-L-M is kind of an older business model and not something we are going to concern ourselves with for the purposes of this course. But I just wanted to explain how affiliate marketing is different. That’s actually one of the biggest benefits of affiliate marketing. There aren’t any upfront costs. There are no products to buy and warehouse. No inventory that you are responsible for.
How Do I Get Paid?
You don’t have to collect any money from customers or handle any actual products. You don’t have to provide customer support. You don’t need to have your own team of employees. Really, you don’t need anything except your own abilities and an internet connection and you can make a boat load of money with affiliate marketing.
Literally all you have to do is to lead customers to where they can buy the products you are promoting and you can earn up to 75 or 80 percent of the sales price in many cases. That makes affiliate marketing an excellent, highly profitable business model.
There are even a lot of Super Affiliates … these are people who have quit their full-time jobs and focus exclusively on affiliate marketing … who are making more than a million per year. It’s a great business model because of the opportunities created by the Internet. Remember that there are about 5 billion people on the planet and at least half of them … and closer to three-quarters … have access to the Internet.
Does That Mean It's a real Business?
Affiliate marketing is a real and legitimate business model that is used by more than 1.5 million people on Clickbank alone. Affiliate marketing has always been around, but it has erupted into enormous popularity because of the Internet. Why? Besides entertainment, what do most people use the Internet for? To search for products and services that they want to buy.
Now, remember that with the World Wide Web, there are no international borders. People living in Kathmandu can buy from you just as easily as people down the street. So the pool of potential customers is simply enormous. Given that there are at least 1 billion people online at any given moment … which is a conservative estimate … any product you can possibly imagine has buyers out there somewhere.