Time To Turn The Tables

If you build up several income streams, each turning in a decent amount of money, your lifestyle will improve and you will want to earn even more money. That’s human nature. So where do we go from there? Of course we could spend our time setting up even more income streams as before, but the more you set up, the more maintenance they will need, and the more of your time they will consume.

So the next step is to move over from being an affiliate to being a vendor. Basically get your own products together and have other affiliates selling them for you. This is the real key to making money online. Think about it – as an affiliate, you are forever seeking new buyers and sending them to the vendor’s site. The vendor makes the sale and if he’s doing it right, will add that buyer to his list. He will do that for every buyer sent by every affilate who is promoting his product. When that vendor releases a new product, he’s going to market it to his list long before the affiliates get hold of it. He gets direct sales so he has no commission to pay to affiliates and keeps all of the profits. Then it is released to the affiliates who spend their own money advertising and promoting it to get more sales. The vendor adds the new buyers to his list as before.

On top of this, the vendor gets a proportion of the profits of every sale. Let’s say for example that he pays affiliates 75% of the profits and keeps 25% for himself. Let’s also say that the profit on his product is $50, which means he keeps $12.50 from each affiliate sale.

If he made 50 direct sales (no affiliate), he would make a profit of $50 x 50 = $2500. But what if he had 100 affiliates who each made 50 sales? That’s 5000 copies sold – a total profit of $250,000. He keeps 25% of the profit, which amounts to $62,500, and the affiliates have dome all the work of selling it for him. Each of the affiliates would have made 75% of the profit on their sales, which would amount to $1,875. They are probably very happy about that – a total of $37.50 profit per sale is excellent news.

Meanwhile the vendor has earned a whole lot more and is building a list, so you can see that it is better to be the vendor than the affiliate.

Being a vendor means having your own product, and this is something that puts off a lot of people. There really is no need though. It is not difficult to write an ebook on a subject that you are familiar with. There is plenty of free information out there on the Internet, and there are existing ebooks and videos to be purchased. There are PLR products that you can modify and sell as your own. So there really is no shortage of raw material. As long as you rewrite it in your own words, add some new material that is your own idea or opinion, and remove anything that is not relevant, you can produce a sellable ebook.

Submit your ebook to Clickbank or Click2Sell and you will get an army of affiliates selling your product for you. If you produce a quality product, it’s possible that you could earn as much money form that income stream as you do from all of your other ones combined.

But don’t give up the affiliate sales streams just because you are now a vendor. They are useful streams of income, and as a vendor who is building a list, you will need more products to promote to your list. Those afiliate products will do quite nicely.

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October 25, 2011   Posted in: Affiliate Marketing

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