Do you have any idea what the single biggest obstacle to making money online is ? It is not bad luck, lack of money or even lack of information. It is information overload. As strange as it may sound at first, it's this very thing that is largely responsible for hindering so many people in their attempt to become succesful online.
Making money online has huge advantages :
- Minimal start up costs
- Decide your own hours
- Open 24/7/365
- Your target market is the whole world
- Automatic order processing
- Automatic Payments
- Product is delivered instantly if you sell eBooks or downloadable digital products such as software
- No rent
- No Staff
- No Stock (unless you sell physical goods)
- No outstanding debts as customer pays online immediately with purchase
- You can create automated income on autopilot
- You can create passive income
- You can make money while you sleep
If you are from the 'older generation' , remember the days when the man from the insurance company would come and sit in your kitchen and try to sell you insurance ? When he sold you some, his boss -- The insurance company-- would pay the salesman say, 10% commission. That is affiliate marketing the old fashioned way. I guess you could also call it commission marketing because that's what it is; somebody gets paid commission for selling somebody else's product. The insurance company is the affiliate merchant, or vendor, and the salesman is the affiliate as he gets commission from a sale.
Now the same analogy this scenario on the internet: the insurance company has a website that sells insurance. The salesman has a website that tells you the pros and cons of the insurance and here and there on his website he puts a link that, when you click on it, gives you the chance to buy insurance. If you buy via that link, the insurance company will pay the salesman commission.
So in this case you are the salesman who will be selling for other companies, and every time you sell something, the company will pay you commission. You are the affiliate ( the one who receives the commission) and the insurance company that will pay you is called the merchant or the vendor. All you need to do is put the same affiliate links on your website that refer to the insurance company's website , and you get paid when somebody buys via that link.
Everything else is automated. Commission ranges from 1% to 75%. Physical products usually pay between 1% to 25% commission, but some digital products mostly can pay up to 50% commmission or even more such from www.clickbank.com , www.amazon.com , www.cj.com , etc.
I will explain later for more detail about clickbank, amazon , cj , etc
A merchant is an online retailer with a website where you can buy products or services.
An Affiliate or online publisher is the person who drives visitors to the merchant's website and gets paid commission when customers buy something by clicking on the link that is on the affiliate's website. An affiliate drives buyers to the merchant's sites and gets paid for it. The merchant pays the affiliate commission only when a sale is made. The affiliate will sell your product or services for a commission. Affiliates are other Internet marketers or other website owners.
Affiliate networks are automated websites on which merchants can put their name to say they are looking for affiliates to drive traffic to their websites. You , as an affiliate, go to the affiliate network to grab an affiliate link to put on your website. The affiliate network pays you your commission. All you need to do is stick a link on your site and drive traffic; all the rest is done automatically for you.
Affiliate marketing is the whole automated set up to do with affiliates, merchants and affiliate networks.
One you are into affiliate marketing you will never look at a website the same way again. You will constantly look for links on the top of your browser. You will constantly look for new ideas. A lot of people search for "top 10 digital cameras" or "best flat TV" or "review video software". Years ago I used to believe the reviews on websites. Unfortunately, reality has taught me that some websites don't publish honest, impartial reviews. They will award top prizes to the company with the affiliate link that pays them the most money.
All the "buy" buttons will be an affiliate link. The first "buy" button might take you to the Amazon store; the second "buy" button might take you to a computer store. So if the website owner earns a lot more from the Amazon link, he might put that first even if it doesn't merit the win.
Some review websites do give honest opinions. But be cautious with what you buy and what you believe on the web.
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| Here's an example's of an affiliate link that you might see in the browser |
In the amazon.com affiliate , at the address browser bar, you will see my amazon storeid/tracking id greatdeal05be-20 and linkid 342747.... And if someone buy from my storeid/tracking id , amazon.com will pay me based on my storeid/tracking id.
Storeid will generate when you sign up as amazon.com affiliate marketer/publisher. Or any other affiliate program.
So the website owner (in this case the one with the website showing all the buy button ) is the insurance guy, or affiliate , sitting at your table who earns commission. The website that you navigate to (in this example amazon.com) when you click the 'add to cart' and 'buy' button is the merchant who pays the commission to the affiliate.
As an Internet marketer you can become an affiliate and sell other people's products but it is even better to have your own product and let other people sell it for you. All you need to do is become a merchant (by asking people to sell your products).
There is one big problem with affiliate marketing and the clue is in the name : marketing . The affiliate network does not help you with that. Getting a site stacked with affiliate links is easy but getting visitors to your site is a lot more difficult. It's the marketing of your site that is going to be the hardest.
Being affiliate has the following advantages:
- No license fees needed.
- No need to create your own products as you will sell other people's products
- There is no contract to sign with anybody
- You can log onto your work anywhere in the world
- You can make money while you sleep (after you have put in some hard work)
- You can sell in any country, worldwide
- You can sell in any niche
- You never ever ahve to ship orders
- You never ever need to worry about stock taking, over stocking or surplus stock
- You never need a customer service email or telephone number
- You never need large start-up capital to begin trading
- You never need a Payment Processing Gateway ( a bank that charges your customer's card)
- You don't need employees
- You have no production costs to worry about
- You never have to leave your house
- You can choose your working hours
- You can be your own boss
- Very easy to get started
- You can start up a business that can grow 200% or more each year, which is almost impossible to achieve in a business outside the web
- You never have to go to the bank to pay in cheques ,as it's all is done electronically
- You never have to chase late payments as everything is paid in advance
- There are no cash flow problems (if you manage your money correctly) as you receive your money immediately
- No refund worries , everything is automated
- Easy to scale up
source : 463 ways to make money from home by Christine Clayfield
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