Affiliate MarketingAffiliate marketing is usually the very first method adopted by those wishing to earn income online. So how come less than 2.5% of those that attempt this work from home method make $150 per month or less? What these figures clearly tell us is that this form of internet business is tougher than it first appears to be. The purpose of this article is to first explain exactly what affiliate marketing is and second to look at why so many people fail. It is a fact that if you know what to avoid your journey to success will be smoother. Put simply being an affiliate is selling items that are owned by others for a commission. No different to being a salesman, you simply knock on a number of doors, tell people what you have, how much it will cost and how they will benefit from buying it. This role is easier offline than online because offline the salesperson starts by knocking the first door and continues door by door until he calls at the last place on the street. He will work a simple funnel formula that if he knocks 100 doors, 40 people will listen to what he has to say, ten will be interested and one will buy. This system makes the salespersons life controllable; if you need two sales each day to make an income you simply knock 200 doors. Some day’s you’ll be luckier and maybe three or four people will buy – this is a bonus. Online the sales process differs because although you can expect one sale per 100 calls you have no control of the how many callers will visit your site and look at whatever you are selling. You can knock doors but it will cost you real live dollars and cents rather than just wear and tear on your shoes. The way you knock doors is by attracting people to visit your sales page using paid advertising with the major search engines. Pay per click advertising does not come cheap because there is no point in paying unless you get your ad on the first page of Google for the search term you are seeking. Preferably into one of the top three spots. Now let’s do some simple math: Assume the cost per click to get a top three position is 50 cents per click. We know that you will only get a conversion with 1% of all people that click thru. Hence it will cost you $50 per sale. What if the commission receivable is only, say, $25? Google will love you all the way bankruptcy and after that you are no longer any use to them or your family. OK, I accept that the above paragraph is scary if you are a newcomer; I toyed with excluding it but finally decided to stick by the ayecasher credo and tell it like it is. If you are not told of what can go wrong you will lose all of your capital before you get it right and that is exactly what we’re trying to avoid. There are ways that you can join the top 2.5% affiliate marketing specialists online and build a wonderful internet income. But first you have to know the system, how to grab a proportion of the big spending pay per click advertisers market share at a much lower price. Hopefully we’ll be able to show you how to select the right products to sell so that you can ignore the 90% of affiliate deals on the internet that will not pay you enough per sale to cover your costs. Affiliate marketing online is a skill that you must develop and when you do start understanding how the top 2.5% operate you too will become a member of this elite group; some of whom earn in excess of a million dollars each year.
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