Normal Affiliate Marketing as a Business Model
Affiliate Marketing is selling someone else’s product and getting a commission for the sale. What I mean by normal affiliate marketing is that you are getting paid a smaller commission that if you were a high ticket affiliate.
How affiliate marketing works is that the company normally has a replicated webpage (sales page) with your affiliate ID, so you dont have to design your own webpages. Also so they know which affiliate to pay for the sale. This makes it similar to Drop Shipping.
Some Affiliate Marketing programs pay to a 2nd level. Paying you if your customer refers a friend.
Unlike MLM which pays you to multiple levels and other team bonuses.
Like all Companies, Affiliate Marketing Companies also need to have the 7 Key Factors, equally strong.
The Benefits of Affiliate Marketing are:
- Affiliate marketing can be done online or off-line.
- You don’t need to have a garage full of products
- The company does the invoicing and customer support
- The company deals with product warranty issues
- The graphical adds, banners (banner adverts) are done for you.
- Low outlay normally to start
- Do it anytime from anywhere.
- You have a business that uses leverage.
Leveraging the company’s products, staff and systems.
- In many cases (depending on the product and company) you can scale up the sales funnel that is working. That is increasing the marketing budget reaching more people (online and social media marketing). Making more money in proportionally less time.
- Not Normally!! There are follow up products that you and sell to existing customers.
This quote from Pat Flynn sums up the benefits of affiliate marketing nicely; “The Beauty of Affiliate Marketing is that you don’t have to invest the time and effort to create a product to sell. You can begin as an affiliate as soon as you have a platform to sell it on.”
Disadvantages with SOME, not ALL Affiliate Marketing Companies:
- Many normal affiliate programs have low-value products. Although the percentage of the sale price may be high like 30% or 50%, the commissions are a lower dollar value per sale. Which means you need a massive number of sales to make a good living
- The CPA (Cost Per Acquisition) of a sale can be close to the commission earned on some products if a low priced product. It also depends on the platform you are selling the products on.
For instance, there is a very low return to make affiliate marketing sales on eBay or Amazon, 3% to 10%.
- You don’t get the more significant back-end sales with a lot of Affiliate companies. The company re-markets to the customers, you brought them. With some affiliate companies that is straight away. However many are after 30 or 90 days when your cookie expires.
The cookie sits on the web browser and is the software that links your affiliate ID to the customer. Meaning you miss out on the following big commissions, even though you found the customer for the company in the first place.
- Teaching yourself, you don’t get coaching and mentors with normal affiliate marketing companies. Having a coach or mentors that have done it before can save you from wasting a lot of time and money.
- Most affiliates are not profitable, as it takes a lot of time and mistakes to learn how to market effectively. Plus they normally focus on low priced products.
So when they do get a sale it is only a few bucks gross profit. And may sales, go close to the CPA (Cost Per Acquisition) of that client.
Want to Earn as You Learn?
There’s one that pays $100 to $1,000 per Sale
I call it… ‘Your Dream Business’
Of course, if you need some help, that’s what we’ve here for. Just Private Message Us at our Facebook Messenger link.
I hope when choosing to be an affiliate that these benefits and disadvantages help you choose the right affiliate marketing companies to work with.