Affiliate Marketing - Not Just Selling Someone Else\’s Product
By Jo Han Mok
Perhaps you weren”t blessed with the gift to write compelling information products, craft hot selling giftware, develop “killer app” software or any of the other product creation skills that some marketers have. Maybe it’’s not in your budget to buy up a wholesale lot of designer handbags for resale. In fact, you”re totally new to Internet Marketing and you don”t know what to do or what’’s worth investing in. Congratulations! You”re the perfect candidate for affiliate marketing.
Affiliate sales are your ticket to earning a commission on the sale of goods or services provided by other people. Just as each person has unique strengths and skills, many companies can provide excellent products and services, but have a problem when it comes to marketing them. They have built the better mousetrap - but really suck at getting the word out to the general public. Rather than paying for expensive advertising campaigns, they hire an affiliate manager and create a batch of graphic advertising (called “creative”) that affiliates can use to present the product or service to the consumer.
Each affiliate has a unique link or code that identifies who drove the sale to the merchant. Affiliates are often referred to as “publishers”, since most have Web sites or blogs that contain information and content related to their offerings. These publishers choose among the many thousands of programs out there and develop a presentation aimed at “preselling” the merchant’’s wares. When a sale is made, a commission is credited to the publisher and will be paid according to the terms and conditions of the agreement between the two.
Commissions vary as to the amount paid. Some info-products that retail for $50 offer a 75% commission to the publisher. Diamond merchants typically offer 8%-12% of the sale price - but that amount can be substantial for a $5,000 diamond ring or $10,000 tennis bracelet. Some merchants pay a fixed sum for qualified leads or contacts; credit card companies and mortgage brokers are typical examples. Companies that offer memberships or services with recurring billing often give publishers a continuing commission for every paying member that is “retained”.
There are also specific affiliate programs that have unusual terms and conditions. Some merchants want qualified leads so much, they”ll actually pay up to 200% of the sale price of the product sold. Others have tiered or multilevel commission structures, where the person who bought from you will become an affiliate and earns you a small percentage of their sales, too. The number of tiers varies, but some can go as far as 4 or 5 “deep”.
The ambitious marketer can also go out and solicit affiliate arrangements with companies that don”t already have an affiliate program. Naturally, some experience and success in promoting other people’’s products can help in cases like these, but anyone with the motivation and drive can seek these out, both online and offline. All you have to do is ask.
Joint Venture arrangements between marketers and merchandisers are the ultimate in affiliate programs for Internet Marketers. By dealing directly with each other, they pool resources and customers to create a synergy of the best each has to offer. Yet another means of profiting by putting people together in this way is JV brokerage, where the middleman earns a percentage of the profits by putting together compatible partners. This can be a source of both one-time payments and recurring or “residual” income.
With all the possibilities available to the new Internet Marketer, affiliate sales are a great way to begin your online business. “Super Affiliates” can make more money in a month than most very successful job-holders make in a year - or even a lifetime, if the offer is the right one!
About The Author
Jo Han Mok is the author of the #1 international business bestseller, The E-Code.
He shares his amazing blueprint for creating million dollar internet businesses
at: http://www.InternetMillionaireBlueprints.com
