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How To Make Money Online With High Ticket Affiliate Marketing Part 2
Welcome back...
In How To Make Money Online With High Ticket Affiliate Marketing
Part 1 we covered the "why" of Affiliate Marketing and introduced you to the
The 21 Steps To Making Money Online...
In part 2 of How To Make Money Online With High Ticket Affiliate Marketing we will take a look at "The Online Models To Making Money Online"...
But firstly lets explore the "The Online Revolution"...
The Online Revolution
You see never before in human history has so many opportunities been available to “everybody”...
It all began with the humble “website” for the first time a website enabled the masses (you and I) to have a global reach for our products and services enabling us to earn money online...
Today thanks to a small device called an iPhone anybody (that’s you and I) can reach customers worldwide with our products and services...
With an iPhone you can take a photo, a video, write an article and upload it to the internet to your own online properties or even third party properties think Facebook for example...
So you and I have a global reach for our products and services and the means of delivering that message, product or service...
Previously you would have had to have a large amount of capital (money) and other resources for example employees (human capital); in summary you would have had to be a large company to undertake such operations, but not today...
Just think about the possibilities, you and I can now compete with the multinational companies and without having their capital requirements or their overhead costs...
Furthermore we do not require a physical presence (a high street store) and we do not have to hold any stock or inventory, which further reduces our administration and logistics costs...
You don’t even need a website today...
And all you have to do to “Make Money Online” is understand and master the tools that are readily available to you
(more on this later)...
The Online Models To Making Money Online
If you have your own business, then please bear with me...
We are firstly going to explore the 3 Online Models To Making Money Online...
However you should absolutely come along for the journey, there will be plenty of actionable information and ideas for you…even on a personal basis...
If your aim is to have control over your money, time, and location then let me show you how that can be achieve with online marketing...
Now there are many ways to make money online...
However here are the main three ways; the Affiliate Marketing Model, Promoting Your Own (Digital) Product and The Licencing Model...
Affiliate Marketing Model
The Affiliate Model is where you promote other people’s products and services...
So for example a person has written a book and you advertise that book say on your website and on Facebook...
When somebody buys that book you receive a commission for the sale of the book...
Promoting and selling other people’s products and services online is a very popular method of earning money online, it has several advantages but also some disadvantages...
Advantages- You do not need to make your own product or service...
- You do not need to set up payment collection services, delivery services, returns or any customer services. The owner of the product or service takes care of all of this work for you...
- Very easy to set up and get started...
- You can work form anywhere in the world...
- Start-up costs are very low...
- Once set up running costs are very low and it essentially runs on auto pilot leaving you FREE to do what you want to do...
- Easy to scale; grow the business...
- Earns you money 24/7...
Essentially you select an affiliate product or service to promote, the book in our example and send traffic (people) to the sales page (it can be the owners website or your own) using for example Facebook advertising or Google advertisements...
When somebody buys the book you get paid a commission and the owner takes care of all the other work including writing the book, delivery of the book, any returns, collection of the payment and forwarding to you your commission...
Disadvantages- You do not own the products or services...
- You do not own the customer (more on this later)...
- You get paid only once (usually) for example the sale of the book...
- You have to keep spending money on advertising...
- Increased competition as new affiliate’s join the program pushing up advertising costs...
- The owner may not be reputable...
- The owner controls the terms so they can alter the commission at anytime...
- The products or services can be removed / stopped by the owner at any time...
- You have to constantly look for new products and services to promote (more work)...
You can see that there are a lot of disadvantages with affiliate marketing. The main problem is that you do not own the customer so you cannot make follow up sales to them...
You may have heard that it is easier to sell to an existing customer than acquire and (with the associated costs for example more advertising) sell to a new customer...
As an affiliate you typically get paid on the initial sale. This amounts to bringing in the customer to the affiliate product owner, who can then make their money on further additional sales to the customer without paying you any more commissions...
A much better idea and way of making money online is where you own the customer and can make multiple sales to them and receive the associated commissions (more on this later)...
This is how successful on-going businesses are run. They acquire a customer and bear the associate costs of bringing that customer on board, this process is referred to as the cost of acquisition...
They then make their money with repeated further sales to the same customer so that the cost of acquisition is spread over multiple sales to the same customer, utilizing what is known as the lifetime value of the customer...
The main point here is that you can only make so much money online or in any business if you solely rely on the initial sale after taking into account the cost of acquisition for example in our example advertisement costs...
No ongoing business can survive on the initial sale alone; it’s the repeat sales to a business’s existing customers that ensures the survival of any business...
A restaurant relies on its regular customers, if you buy an Apple iPhone you may buy the upgrades for example the earpieces or headphones (Apple owns “Beats Headphones” to cater for this) or perhaps an Apple Computer, Apple TV or an Apple Tablet...
It is reported that it costs several times the money to sell a product or service to a new customer (the cost of acquisition) compared to an existing customer...
Its no wonder that many affiliate online marketers find it difficult to earn money online as they are funding the initial cost of acquisition, while not benefiting from any repeat sales commissions...
BIG Lesson No 1The big money is earned by repeat sales to existing customers...As an affiliate promoting other people’s products and services you bear this cost of acquisition while the owner of the products or service makes their money with the repeat sales to their customer (remember they own the customer)...
This is why some affiliate programs pay 100% of the initial sale, because they make their money of the repeat sales after you have paid for the cost of acquisition out of the initial sale...
And never forget that the product or service can be stopped by the owner at any time, which will remove your income stream for that particular product of service...
So affiliate marketing can be the easiest way to get started in online marketing if done correctly, and many people earn very good money, work when they want to and live all over the world using the affiliate marking model...
In fact some people use this low maintenance model of earning money online to travel all over the world from one country to another, they are sometime referred to as “Digital Nomads”...
So affiliate marketing can offer an easy way of entering the world of online marketing and making money online...
Importantly you still need to master the tools that are readily available to you (more on this later)...
However remember the big drawback that you do not own the customer or the products or services that you are promoting and these can be taken away from you by the owner at anytime, leaving you without that income steam and with nothing to show for the hard work that you have put in for example setting up your website and advertising on Facebook...
Promoting Your Own (Digital) Product
In order to overcome many of the disadvantages of affiliate marketing some online marketers develop their own products and services for example they write their own book or make an information video...
The product or service can be physical or digital (can be forwarded to the customer electronically for example by email)...
Physical products have additional work for you for example sourcing, production, storage and spoilage, delivery and returns, and payment collection...
Digital products also have some additional work for example production, delivery and returns and payment collection...
In any event you are going to have to produce your product or service for example write your book, and for some products and services this can result in a substantial cost in time and logistics, designers, programmers and manufacturing...
So Promoting Your Own (Digital) Product has several advantages but also some disadvantages...
Advantages- You own the product or service...
- You determine the sale price (according to the market place)...
- You own the customer (repeat sales)...
- You are in control of the process and only you can stop or remove the product or service...
Disadvantages- You have to produce your product or service...
- You have the added cost and work of providing the product or service and the associated costs and work load of sourcing, production, storage and spoilage, delivery and returns, and payment collection...
- Markets can change and your product or service becomes for example outdated potentially leaving you with stock that cannot be sold...
You can see that by promoting your own (digital) product removes the disadvantages of straight affiliate marketing but it has its own additional problems and associated costs in money and time...
You are now running a traditional business, you may not have any employees but it is important to note your time is being spent...
So you may be “Living your Dream” but you are now trading time for money, just like a real job...
So if your goal is to "Live life on your terms and "Live Your Dream" were you decide how much money you want to enjoy in your life, while only working when, where, and how you want to from anywhere in the world" then perhaps this model of earning money online is not what you are looking for...
The Affiliate Marketing Model That Works
Making money online using affiliate marking is like any other business it requires a certain amount of up front work and some ongoing maintenance...
However affiliate online marketing comes with several advantages that other and in particular off-line business for example a corner shop do not offer and we have talked about these but they are so important that I mention them again...
Online marketing offers you a business or if you prefer a method of earning money that allows you to...
"Live life on your terms and "Live Your Dream" were you decide how much money you want to enjoy in your life, while only working when, where, and how you want to from anywhere in the world"...
No other business provides these benefits...
Here I provide an overview of the affiliate marketing system that I use...
I use the affiliate model for making money online because I like all of the advantages of affiliate marketing, however I do not like the associate disadvantages. I want to own the customer and I want to earn repeat commissions on any further sales to “My customers”...
My system involves a little more initial work, and a little more ongoing maintenance...
However the increase benefits of the increased amount of money that you make online makes the whole process (that anybody can follow) both predictable and financially rewarding allowing anybody to decide how much money you want to enjoy in your life, while only working when, where, and how you want to from anywhere in the world...
Here are the steps...- Promote related products and services in the same niche (category), become the go to place for those products and services...
- Create a FREE eBook (like this one) that will be of interest to your new and existing customers (your market place) and give it away for FREE...
- Create a squeeze page (a sales page) that your customers can go to and receive the FREE eBook...
- Exchange the eBook for their name and email address (capture the lead)...
- Use an autoresponder (an automated email system ((Aweber)) to communicate with your captured leads and importantly to build a relationship with them so you become their trusted advisor and the go to person for your niche...
- Recommend affiliate products and services that solve your customers problems within the niche...
The above method of Affiliate Marketing is a money making machine...
This bears repeating: this method of Affiliate Marketing is a money making machine...
It works every time, its repeatable (can be applied to all niches) and it can be easily scaled (the amount of money that can be earned is high)...
You can see the difference in the basic affiliate marketing model and the advanced model that I use – “I own the Client”...
Instead of forwarding the client to a third party website with my “Traffic Sources” for example my Facebook advertisements (again that I paid for)...
I forward them to my own website and capture their name and email address in exchange for a customer benefit called my eBook...
This ensure that I not only get the initial sale and the associated commission, but I can also contact the customer through emails and build a relationship with them where they value my knowledge (added value) and trust my advice...
This means that I can later market additional products and services to ”My existing clients” and receive the associated commissions on the repeat sales...
I am sure you will appreciate that this is a far more sensible and robust business strategy...
To receive the full "
How To Make Money Online With High Ticket Affiliate Marketing" Guide and discover how to earn "Big Commissions" online using Affiliate Marketing why don't you
subscribe today...
Hope this helps...
Lets talk soon...
Gary
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