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Tuesday, April 6, 2010

6 Steps To Start A Profitable Affiliate Marketing Business; Part 1

While inflation continues to rise, more and more people are looking for ways to increase their income and affiliate marketing has become a popular choice.

So, how do you start a profitable affiliate marketing business?
1. Get a domain

It is true that the first thing you read about affiliate marketing business is that you don’t need to have your own website. But if you are serious into this business and you wanted a long term affiliate marketing income, you must have a website.

And a domain is like a registration of your offline business. People are going to refer your business to that. Try this:

“If you want to learn affiliate marketing, go to yourcompany.com” Imagine that 90% of the internet user said that. Your will earn so much that you will even laugh in your sleep.

And it is easy to pick your domain name, just make sure that it reflects your business and it is short and easy for your visitors to remember.

2. Hosting service
After getting your domain, you need a server to host your domain and your website contents.

Since the internet offers flexibility to fulfill your needs, you can choose free or paid hosting service each with their pros and cons. It is true that you can get hosting for free but you might face limitation in its function and the hosting company might need to install banner on your website. On the other hand you need to invest capital on paid hosting but you can have control over your website.

So, when you are choosing a hosting service, you need to look at your financial situation and your needs over your website. Then you have to look at the space and bandwidth provided by the hosting service.

If you have large files to show on your website, you will need to have a higher bandwidth and space hosting service. Generally as an affiliate marketing newbie, you might not need hosting service that provides too much space and bandwidth.

3. Website content

Quality and up to date contents are very important for the success of your affiliate marketing business. If you have spent some time researching online, you will know that both readers and spiders prefer website which has quality and up to date postings.

You have already bought the domain and hosting service, why not use it to the fullest?

Write something relevant to your business on your website. If you can’t write, you can always hire someone to help you on that. You can also hire a professional website designer to build your website. You just need to communicate clearly what you want for your affiliate marketing business.

One thing to remember is that you need to be moderate to the graphics on your website because spiders don’t recognize graphics and if you do it too much, you will also distract your visitors from your original message.


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The-Different-Types-Of-Affiliate-Marketing

Affiliate marketing programs has never been as popular before as it is today. Why? There can be a number of reasons. The most probable reason, however, could be the fact that the benefits of affiliate marketing have become clearer to a lot of people now than they were before.

Today, both the merchants and the affiliates can see clearly that affiliate marketing can work for both of them. The merchant sees affiliate marketing today as the chance to advertise their products at a lower cost. The affiliates, on the other hand, sees affiliate marketing as an easy way of earning profits online by doing what they like most, and that is by creating websites.

Just as the popularity of affiliate marketing has shifted into greater heights, so has the people’s outlook about it changed. No longer is affiliate marketing considered today as an alternative method for the merchant to advertise his products, or as a source of additional income for the affiliates. For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues.

So the question now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Or are there affiliate marketing programs that work better than the others?

There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click (PPC), and pay-per-performance (PPP).

Pay Per Click (PPC)

PPC is the most popular type of affiliate marketing for affiliates with small websites, and probably the easiest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant’s banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant’s site. However, typical fees for PPC affiliate programs are small, usually not exceeding a dollar for every click.

Pay Per Performance (PPP)

PPP affiliate marketing is the most popular among merchant and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an actionthat is whenever the visitor he has referred actually buys something from the merchant’s site or when the visitor becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in PPP affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

Pay-per-performance affiliate marketing can be further classified into two popular types: pay-per-sales (PPS) and pay-per-lead (PPL).

o Pay Per Sale (PPS)

In a pay-per-sale type of affiliate marketing, the merchants pay the affiliate a certain fee whenever the visitor he has referred to the merchant’s site actually buys something from the merchant’s site. Affiliates are often paid on commission basis, although other merchants would opt to pay a fixed fee. But no matter what the basis of the fee is, it is generally higher than the fee paid to affiliates in a pay-per-click affiliate program.

o Pay Per Lead (PPL)

The pay-per-lead type of affiliate marketing is a slight variation of the PPS type and is often used by insurance and finance companies and other companies who rely on leads for their company to grow. In this type of affiliate marketing, the affiliate is paid whenever the visitor he referred to the merchant’s site fills up an application form or any similar form related to the business of the company. Compensation for this type of affiliate marketing is based on a fixed fee whose rates approximate that of the fixed fee in the PPS type.

Aside from these three specific types of affiliate marketing, a lot of other affiliate marketing types exist. If the classification is based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There is also another type of affiliate marketing that pays the affiliate each time the customer he has referred purchases something from the merchant’s site.

Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made. In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. All the previously mentioned affiliate marketing types (i.e. PPS< PPL, and PPC) fall under the single-tier classification.

In two-tier affiliate marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant's site, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation. Multi-tier affiliate marketing works the same way, although the affiliate gets additional commission for a wider number of affiliates in different tiers in the affiliate network.

Residual Income Affiliate Marketing

In residual income affiliate marketing, the affiliate gets paid not only once for every customer he has referred to the merchant's site. Rather, the affiliate is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.

The different affiliate marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best. 

Creating Multiple Streams of Affiliate Marketing Income

Have you ever heard or read the phrase “multiple streams of income” before? Do you know what this phrase means? For many businessmen, creating multiple streams of income online or offline is one way of securing themselves as well as their businesses in the future. They also believe that it can also save them from the so-called famine effect in the business industry. Once you are engaged in affiliate marketing business, it is advisable if you have multiple streams of affiliate marketing income so that if one of those income streams vanished, it will not upset you the way losing your sole stream would. If you depend on just one source of income and this single stream has been downsized or has lain off, you’ll surely find yourself bankrupted and hopeless. Try to ask the most successful online entrepreneurs, and you’ll discover that they have established multiple streams of online income.

There is a businessman that said and attested that the very first step you must take in creating multiple streams of income is to assess or evaluate your resources. Start by assessing yourself first. Jot down your answers to the following questions: What are the talents, abilities, strength and gears that you possess? Are you gifted with excellent and creative writing skills? Can you do well at sales? Are you good in communicating with people? Are you born with an artistic skill or unique ability that other people don’t have? Through this, you can determine the kind of business where can possibly excel.

Next, look around and write down you assets and physical resources such as computer, color printer, scanner, digital camera, cell phone, CD or DVD burner. Write these all down because it can be used as a resource. Consider also your friends and family. Find out what do they possess that you have access to. Remember that no man is an island. You can use the talents, abilities, knowledge and resources of everyone you know.

That’s basically the initial step if you want to create multiple income streams. But if you’re already a webmaster or a site owner, you definitely have an edge. Why don’t you join affiliate marketing business to help you gain extra income out of your own website?

Being involved in affiliate marketing is one of the most desirable ways to make multiple sources of income. It is because affiliate marketing programs come in various shapes and forms. There are a large number of affiliate marketing programs that you can sign on with and start gaining bucks right away. In affiliate marketing, you can make money by promoting and reselling your affiliate products and by recruiting new affiliates. What’s good about this is that you can find widest array of training materials that can enhance your marketing abilities. In affiliate marketing, you can be sure that there are genuine products to promote and sell and there is real income to make.

Either part time or full time, being an affiliate marketer is an excellent way to create multiple income streams by means of promoting products and services from web merchants. Here, you can get affiliate commission without investing big bucks in making your own product and without worrying about book keeping, customer support and ecommerce. All you have to do is to promote and resell the products and services in your site and pass on potential customer’s the merchant’s site.

In affiliate marketing, it is advisable to promote more merchants in your site so that your visitors will have variety of destinations to choose from.  Using multiple merchants in the same site or niche means only one thing – you have multiple streams of affiliate income. There is absolutely nothing wrong with this business strategy because this is one of the best ways to protect your business and expanding your horizons. Through this, you can be assured that you won’t experience crisis if ever one of your web merchants closed his/her program.

However, you should choose only those affiliate programs that interest you so that you can effectively advertise and promote them. Don’t ever be tempted into signing up for numerous affiliate programs in the hope that one of them will bring income. Select wisely and don’t be engaged in selling products you know nothing about. Go with the stuff that jives with your enthusiasm; your passion can capture your client by the nose and guide him/her to your affiliate link.

You should also work hard to make your multiple streams of income more stable. You can do this by embracing some strategies and tactics and by developing within yourself, some traits that can help you become successful in any kind of business such as patience, persistence and thirst for knowledge.

Lastly, just remember the adage that says “Don’t put all your eggs in one basket.” So that if one of them is lost, you can still have some to make omelets. And what do these eggs have to do with multiple streams of affiliate income? Well, it goes without saying that the more streams of income you possess, the bigger and better your money lake becomes.


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Borders has early affiliate marketing strategy success

Bookseller Borders latest affiliate internet marketing strategy seems to be well on the way to success.

Borders.co.uk has already had around 150 websites sign up since its launch last week.

Claire Bending, online marketing executive at Borders, explains that the appeal to other businesses is more than just financial.

"They will also have the chance to work with a passionate and original brand which has made a strategic move towards becoming a real destination store in its own right," she told the Bookseller.

Borders enticed websites to sign up with a eight per cent introductory commission rate on any online marketing referrals for book, CD and DVD sales.

Another high-street retailer, House of Fraser, also recently announced plans to bolster its affiliate marketing campaign.

The firm recruited Commission Junction to check its campaign performance that includes paid search and social communities online marketing.

Chris Bishop, online acquisition manager at House of Fraser, stated that the retailer is keen to develop "the best retail affiliate marketing programme in the UK next year".

Will affiliate marketing suit every business model?

Online Marketing specialists Business Feet help create value from business websites




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Share Results offer affiliate promotions

At this year's Affiliate Summit East, August 10-12, Share Results (booth #907) will be featuring several affiliate promotions within some of the fastest growing verticals. In addition to educating affiliates about existing opportunities in the Share Results network, the relationship-oriented network will also reach out to affiliates with a number of special offers intended to put them ahead of market trends.

These special offers will span the gamut of the rising verticals, including the environment, breakthrough medical technology, online interactive gaming, and education. With consumer awareness of such issues on the rise, these offers will allow affiliates to become established in markets before they are saturated.

While affiliates will be able to promote carbon offsets through the 4Offsets affiliate program, the Planning Family affiliate program will allow them to profit from helping new families save money during the recession. Online interactive gaming promotions will include both fantasy football through the SportsBuff affiliate program, and casual games through the Real Arcade affiliate program.

Having undergone considerable growth in the last year, Share Results has seen several other high profile merchants come into their network. Focused on relationship building, the affiliate network will meet with affiliates to educate them about how they can have a positive impact on the lives of consumers by promoting.

"Affiliate Summit is a focal point for the affiliate marketing industry, and we're proud to be participating in it," said Nicky Senyard, CEO of Share Results. "We look forward to Affiliate Summit because it gives us the opportunity to meet with current partners and reach out to other merchants in the affiliate marketing industry."

Affiliates can visit the Share Results booth (#907) to meet with affiliate managers and obtain information packages about joining the various affiliate programs in their network.

Other Share Results partners that will be attending Affiliate Summit and represented at the Share Results booth include eLearners, Insulite Labs, and Imaginary Greetings.

Affiliate managers attending Affiliate Summit include Le Nguyen, Maranda Moses, and Julia Stead. Share Results will also be participating in the Great Affiliate Road Rally on August 9th. 




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Share Results Brings Cutting Edge Promotions to Affiliate Summit East

At this year's Affiliate Summit East, August 10-12, Share Results (booth #907) will be featuring several affiliate promotions within some of the fastest growing verticals. In addition to educating affiliates about existing opportunities in the Share Results network, the relationship-oriented network will also reach out to affiliates with a number of special offers intended to put them ahead of market trends.

These special offers will span the gamut of the rising verticals, including the environment, breakthrough medical technology, online interactive gaming, and education. With consumer awareness of such issues on the rise, these offers will allow affiliates to become established in markets before they are saturated.

While affiliates will be able to promote carbon offsets through the 4Offsets affiliate program, the Planning Family affiliate program will allow them to profit from helping new families save money during the recession. Online interactive gaming promotions will include both fantasy football through the SportsBuff affiliate program, and casual games through the Real Arcade affiliate program.

Having undergone considerable growth in the last year, Share Results has seen several other high profile merchants come into their network. Focused on relationship building, the affiliate network will meet with affiliates to educate them about how they can have a positive impact on the lives of consumers by promoting.

"Affiliate Summit is a focal point for the affiliate marketing industry, and we're proud to be participating in it," said Nicky Senyard, CEO of Share Results. "We look forward to Affiliate Summit because it gives us the opportunity to meet with current partners and reach out to other merchants in the affiliate marketing industry."

Affiliates can visit the Share Results booth (#907) to meet with affiliate managers and obtain information packages about joining the various affiliate programs in their network.

Other Share Results partners that will be attending Affiliate Summit and represented at the Share Results booth include eLearners, Insulite Labs, and Imaginary Greetings.

Affiliate managers attending Affiliate Summit include Le Nguyen, Maranda Moses, and Julia Stead. Share Results will also be participating in the Great Affiliate Road Rally on August 9th.

More information on the various merchants in the Share Results network can be found here: http://www.shareresults.com/featured_merchants.php.

About Share Results
Relationship-oriented affiliate network Share Results works closely with both merchants and affiliate to optimize their marketing campaigns. Dedicated to meeting the unique needs of their partners, they offer three tiers of affiliate marketing solutions: a network of publishers, affiliate programs across several verticals, and affiliate marketing software that's available for while labeling. Staffed by passionate and hardworking affiliate marketing professionals, Share Results has established partnerships with some of the most trusted and well-established merchants online - including Photobucket, eLearners, SportsBuff, and Real Arcade. 


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Mark's got his Eye on new world of affiliate marketing

THE Holy grail of turning new technology into business success had eluded more than a few companies, but one Manchester-based firm is on the right path.

R.O. Eye launched into the brave new world of affiliate marketing in October, 2004, and after starting out with a staff of two the company had grown to 21 people and a projected turnover of £7.5m.

Director and founder Mark Kuhillow's career stated at Auto Trader, before he moved to MediaVest, were he was asked to establish the interactive arm before deciding to branch out on his own.

Mark says: "I'd always had a burning desire to go for it on my own, so I resigned to launch R.O. Eye.

"There were quite a few options in terms of people wanting to back the business. The big agency networks were interested, but they wanted 65 per cent. So I launched it on my own with a second child on the way and £20,000 in the bank, and started work with my colleague Colin Telford." Like all good ideas, the principle behind the business was simple. The growing field of affiliated marketing was dominated by technology companies who provided the know-how, but offered no marketing knowledge whatsoever.

New field

Mark's approach was to bring the expertise of the traditional marketing sector to bear on the new field of digital marketing.

He said: "We could see that affiliated market programmes were going to be a huge sector and at the time none of the other agencies were focusing on it.

"The networks were just technology companies with absolutely no marketing services so we decided to bring in agency methodology, such as dealing with clients, dealing with suppliers and executing marketing strategies. Basically, all the skills we already had and it seemed obvious to us that we had a good business model.

"We have created our own sophisticated planning tools in-house, but essentially we are a marketing services company that utilises other people's technology."

Mark's vision has paid off in spectacular fashion with R.O. Eye emerging as the leading affiliate management agency in the UK with clients such as Alliance & Leicester and Marks & Spencer.

However, with traditional advertising spending at an all-time low, the future may not be as rosy, but Mark remains upbeat.

"We are really well positioned," said Mark. "Everyone is going to feel it, there are no two ways about it. But advertising spend is naturally migrating towards digital because it's so much more accountable, and far more efficient."




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