Friday, March 5, 2010

Make money online with affiliate marketing

Buzz It

I would estimate that 3% of affiliate marketers make 97% of the money. This means that nearly everybody who starts out in affiliate marketing will never make any money. Those that figure out how to do it correctly can become very wealthy. There isn’t a lot of middle ground. Either you make it and do very well or you never make a dime.


Find a market

So one thing you need to do to be successful in affiliate marketing is to first identify a market (not a product!). Figure out what people are hungry for and then look for product to satisfy that hunger. Most people starting out do just the opposite.

How many units do you need to sell?

Once you’ve found a market and a product you need to figure out how many units you need to sell to make it worth your while. For example if your goal is to make $6000 a month and you are trying to sell $1 widgets then you will need to sell 6000 of widgets each month.
This means you have to sell 200 widgets every single day. If you have a conversion rate of 5% (5 out of 100 visitors buys) then you will need 4000 visitors to your website every day so you can make 200 sales. That a fair amount of traffic for most niches.
On the other hand if you are selling widgets for $200 then you only have to make one sale per day. If you have a conversion rate of 1% (1 out of 100 visitors buys a widget) then you will need 100 visitors to your website every day to make 1 sale.
100 visitors each day is far easier than 4000 visitors everyday.
Selling more expensive products can cut down on the amount of traffic you need.

Affiliate networks

There are many different affiliate networks and each one has great products that you can promote. Just find a market first and then look for product. I would select the network that had the products that best matched my market.

What most affiliate marketers do

The other problem with affiliate marketers is that they all do the same thing. They all put up the same banner ads and try to generate traffic with the same methods and they end up not making any money.
For example, let’s say there is $500 a day to be made in the widget market. So if you’re the only selling widgets then you should be able to make $500 a day with a single sales page banner ad.
But when 500 people start selling widgets with the same sales page and banner ad then that $500 a day is split between 500 people. The average person is going to only make $1 per day.
So to make it in affiliate marketing you need to do something to make you stand out. You need to figure out how to give more value than anyone else. This could be in the form of comprehensive product reviews. This could be in the form of the building a community where you answer peoples questions and they trust you and so they buy from you.

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1 Comment:

Alex said...

nice post!

:)) ;)) ;;) :D ;) :p :(( :) :( :X =(( :-o :-/ :-* :| 8-} :)] ~x( :-t b-( :-L x( =))

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