Affiliate Marketing – 6 Things To Beware

When it comes to making money online, Affiliate Marketing is one of the most exciting business opportunities you could get into. There are not many ways in which you can actually start a business of your own without investing any serious money. It sounds too good to be true, so maybe we’d better take a closer look.

Affiliate programs are free to join, but you still need to approach the idea of Affiliate Marketing with caution as it is not as simple as it sounds. It has been well publicised that over 95% of beginning online marketers fail to make any money, or even make a loss, so let’s examine the factors in Affiliate Marketing that may contribute to your success or failure.

Demand
It stands to reason that it is much easier to make money with affiliate programs when you are selling products for which there is a demand. You might find a wonderful affiliate program that pays 70% commission on sales of its $500 thingumajig, but if nobody wants them, you’re not going to make a single cent.

Research the markets. Find out what people are looking for in the search engines, what products are selling in other affiliate programs etc. On what type of products are people spending their money right now? If a market is big enough, there’s room for you to grab your share of the profit.

Narrow Niches versus Broad Niches
A broad niche is going to be too competitive for you to make money in right away. Large corporations such as Amazon can do this because they are known world-wide and have huge advertising budgets.

Taking a single broad niche such as Internet Marketing can be ineffective due to the huge competition. Instead, specialise in a particular area of Internet Marketing such as List-Building.
Even then, you might still have difficulty competing with the thousands of marketers out there.

Having said that, Internet Marketing (or Making Money Online), along with Weight-loss, Health and Relationships, is an “evergreen” niche that has a huge market.

Your own Website
Get yourself some hosting and one or more domain names. Install WordPress to set up a blog because they are very search-engine friendly, easy to customize, easy to monetize and very easy to add content.

Write a review of the product you want to promote in your chosen affiliate program, driving your readers to the sales page via your affiliate link. People love reviews and are not generally put off from buying even if you point out one or two faults or quirks. In fact, they love the honesty and as long as the fault is not something that will kill the product stone dead, they will still buy it.

Personally I have also found that reviews of terrible products also help, because you can then go on to recommend an alternative. As you have been so honest about the first product, your readers are more likely to accept your recommendation.

Keep In Control
When you get started, you will find that it can take time for traffic to your site to build up, especially if you rely solely on the search engines (which I wouldn’t recommend). Eventually you might consider using paid keyword ads (eg Google AdSense) or other pay-per-click program. If you don’t keep a keen eye on this, it can end up costing you a lot of money for no return. Never spend more money than you can afford to lose. There’s nothing wrong with re-investing any profit that you have made back into promotion, but don’t blow your life savings.

To keep costs down, invest your personal time instead by putting some effort into free marketing methods such as Article Marketing.

Keep Your Eggs Safe
Have you heard the phrase “Do not put all your eggs in one basket”? It means you should spread your risk. It’s all very well developing a business that earns you $50,000 per year, but what happens when that business fails? You’ve lost all your income. So expand an diversify. One of the advantages of online marketing is that so much can be automated and easily duplicated. Once you have one income stream set up, build another, and another and so on. If you have 10 income streams bringing in $5,000 each, you will still have 9 of them if one fails.

Once you have seen how the system works, you can duplicate it with a different product, perhaps in a different niche. Get enough of them ticking over and you can start concentrating on how to improve them by experimenting with different techniques.

Be Businesslike
Work as if you have a business. Although a lot of your online business can be automated, there is no business that runs completely on automatic. You need to put in some effort, just as if you set up your own bricks-and-mortar shop or purchased a franchise. Even if you are doing it part-time, don’t expect it to work well if you don’t put in the effort.

You might see all the hype about rich marketers who spend their days on the beach or their yacht, but in reality, most of them spend a lot of time working on their businesses. You might be able to run your business from home on your own, but as things get bigger, you could end up like the experts. They have offices and staff and payrolls to process. They really are running a full-blown business.

So there you have it. A number of things to consider when you decide to become an Affiliate Marketer.

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October 26, 2011  Tags: ,   Posted in: Affiliate Marketing

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