6 Pillars of Profit:
# 5 – Production
For beginners, or “newbies”, there’s no easier, simpler or faster method of generating income than with Affiliate Marketing.
What does “Affiliate Marketing” mean?
Affiliate Marketing, according to Google Dictionary means, “a marketing arrangement by which an online retailer pays a commission to an external website (or individual) for traffic or sales generated from its referrals.”
Now I want to make it simpler, much simpler;
Affiliates, (also known as associates), are people, exactly like you and me, who advertise and promote products and services we do not own, did not create, do not stock or manufacture and don’t ship or offer customer service.
If and when someone purchases that product or service, as a result of our promotion or “marketing” efforts, the product or service company will pay a commission.
So, promote and sell, the result = money in your pocket.
The simplicity of this makes it very attractive for newbies! You only need to promote, and the company does all the rest; product delivery, product returns, collection of funds through some payment system, customer satisfaction and service.
Affiliate marketing commissions can range from a small 3% to 100%. It depends upon the company controlling the product, the stock and manufacturing.
The higher commissions generally are paid to increase the connections and contacts of the company. They want to increase their exposure, scope or market share by increasing their email and customer list.
Many major companies, like Amazon.com have Affiliate programs and will pay you a commission when a product is sold. These commissions are sometimes low and you will find you need to promote and sell a lot, in order to make a decent return in commissions. Most commissions from companies like these range from 2-10% on average.
On the other hand, promoting digital products, like e-books, private label rights (PLR), SAAS (Software as a service) and computer programs, will have higher commissions due to no physical inventory and no shipping costs.
What are some of the benefits of participating in an affiliate program?
1. You don’t have to create your own product.
2. You can piggy-back on the creativity and work of someone else and you don’t have to stock it!
3. You don’t have to collect money from the sales of these products. This is always handled by the Affiliate Marketing Company.
4. There’s little or no up-front costs to start. Many affiliate programs are free to join and many have free training included.
5. You can participate part-time. You can work in your spare time, at home, on vacation and at a local coffee shop. You choose the time and hours according to your schedule and lifestyle.
6. It gives you the opportunity to build a generous re-occurring or passive income. This is money you make when you are sleeping, working, or on vacation.
Taking control of your own future and developing ways to improve your lifestyle and the lives of your family members is a wonderful joy and blessing.