Affiliate Revenue Information

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Affiliate Programs : Golden Opportunity or Waste of Time?



AliExpress by Alibaba.com


Now that the idea of doing business over the internet has been firmly established, many potential internet businessmen are searching for the best way to do business. Usually the choice comes down to whether you want to set up your own business and online store, or sign up for an affiliate program.

First of all, let's define what we mean by an affiliate program. An affiliate program is basically an internet business set up by someone else. They could be selling physical goods, education, information or any other products that can be sold online. By signing up as their affiliate, you are helping them promote their business or store. In return, they will pay you a commission for each sale you bring them. The amount of commission varies between different affiliate programs. Examples of affiliate programs include Amazon.com and Wordtracker.

1) EARNINGS

So how does an affiliate program differ from starting your own online store? Let's start by looking at the potential earnings. (After all, the main reason everyone wants to start an internet business is for the money). When you sign up for an affiliate program, you will be paid a commission for each sale you refer to the online store. This commission can range from 5% to 15% for physical products, and possibly up to 50% or more for virtual products such as subscriptions and ebooks.

On the other hand, if you start your own store, your profit can be much higher. For virtual products, your profit can be 100% of your selling price. After all, once the newsletter or ebook is created, you do not need to spend any more effort. When someone buys your ebook, they just download it from your website. If you are selling a physical product, your profit depends on whether you are manufacturing the product yourself, or buying from a wholesaler or dropshipping company. Your profit in this case could easily be more than 40% or 50%.

So, if you only consider the potential earnings, starting your own business is more lucrative than joining an affiliate program.

2) LOGISTICS

However, money isn't everything (Or so they say). When you are starting your own internet business, there are a number of logistic issues you need to look at. Here are a few things you would need to take care of:

a) Create your website

b) Design your product (if you are selling new products)

c) Create your product (if you are selling new physical products, or any virtual products)

d) Set up an online store

e) Set up a merchant account or payment gateway

f) Set up a warehouse or storage space (if you are selling physical products)

g) Have procedures and staff ready to fulfill orders

h) Set up an affiliate program to get others to market the products for you

i) Monitor for fraud

j) Monitor stock levels

As they say, "No pain, no gain". Having your own store pays very well, but requires a substantial time investment from you.

On the other hand, if you sign up for an affiliate program, all you need to do is set up a website to promote the program. All the ads, banners, marketing text etc will be provided to you by the affiliate program. Your only responsibilities would be to get people to visit your website, and hopefully click on the affiliate links to buy the products that you are promoting.

3) CONVERSION

Whether you have your own business or are promoting an affiliate program, the bottom line is the conversion rate, or the percentage of visitors that actually buy something from you. A number of factors influence this conversion rate. Factors as quality of the product, quality of the website, customer support are all important. However, I personally believe that the most important factor is trust.

When a potential customer arrives at your website, he will need to trust your site enough for him to be willing to buy from you. After all, on the internet you are just a faceless salesman. He doesn't know who is actually running the site and whether he will actually get the goods that he orders.

Having said that, one of the key methods of garnering trust is by recommendation and referral. If a store is being referred to or recommended by another website, the potential customer will feel that the store is trustworthy. After all, if the store is not trustworthy, why would the other website recommend it?

This is where affiliate programs shine. When you refer a potential customer to the store for which you are an affiliate, the customer will feel more relieved, since the store is being recommended by your site, a 3rd party. The customer will be more likely to buy from the store, benefiting both the store, and you as well.

There are both pros and cons to joining an affiliate program. You might earn less with an affiliate program compared to starting your own store, but I believe the benefits of not having to be responsible for the logistics makes affiliate programs are very viable "passive" source of income.

Steven is the webmaster of http://www.onlinebiz-help.com - Your Guide To Internet Business. His website contains various resources on affiliate programs and internet marketing advice to help you succeed in your internet business.

AliExpress by Alibaba.com


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How The Knot uses content to grow consumer revenue three ways - Digiday
How The Knot uses content to grow consumer revenue three ways  Digiday

Couples' wedding needs haven't changed much over the years. But as digital advertising has become harder to come by, wedding-focused publisher The Knot ...


Trump’s sanctions on Iran are hitting Hezbollah, and it hurts - The Washington Post
Trump’s sanctions on Iran are hitting Hezbollah, and it hurts  The Washington Post

Spending cutbacks by the Iran-allied Lebanese militia illustrate the profound impact of the sanctions, which are curtailing Iran's ability to support its most ...


Cars.com Reports Fourth Quarter and Full Year 2018 Results | News - Cars.com News
Cars.com Reports Fourth Quarter and Full Year 2018 Results | News  Cars.com News

Cars.com Inc. (NYSE: CARS) (“Cars.com” or the “Company”), a leading digital automotive marketplace, today released its financial results for the fourth quarter ...


Affiliate Marketing 101 - Business 2 Community
Affiliate Marketing 101  Business 2 Community

Affiliate marketing can be described as outsourced marketing. It's a process that involves you hiring a third party who is compensated for bringing business to ...


Viacom Earnings Beat Estimates, Film Unit Loss Narrows - Hollywood Reporter
Viacom Earnings Beat Estimates, Film Unit Loss Narrows  Hollywood Reporter

Viacom on Tuesday posted better-than-expected fiscal first-quarter earnings, but revenue fell shy of Wall Street estimates.


Readers spend 5 minutes on The Financial Times’ luxury title - Digiday
Readers spend 5 minutes on The Financial Times’ luxury title  Digiday

How To Spend It, The Financial Times' luxury and lifestyle supplement, has mastered how to entice wealthy shoppers in terms of browsing and purchasing.


How to Kick-Start Your Affiliate Strategy in 2019 - PerformanceIN
How to Kick-Start Your Affiliate Strategy in 2019  PerformanceIN

All Inclusive Marketing CEO Sarah Bundy shares her top tips to kick start your affiliate marketing strategy in 2019.


IAC-owned publishing company Dotdash grew revenue by 44 percent last year - TechCrunch
IAC-owned publishing company Dotdash grew revenue by 44 percent last year  TechCrunch

Holding company IAC just released its fourth quarter earnings report, which includes positive numbers for Dotdash, the rebranded company formerly known as ...


Apple Kills App Store Affiliate Program (and Developers Should Worry) - Dice Insights
Apple Kills App Store Affiliate Program (and Developers Should Worry)  Dice Insights

Apple is killing its app store affiliate program, designed to incentivize websites into promoting apps. Now the company says it's better than outside influencers.


BuzzFeed Makes $50M In Ecommerce Revenues 11/20/2018 - MediaPost Communications
BuzzFeed Makes $50M In Ecommerce Revenues 11/20/2018  MediaPost Communications

BuzzFeed's Chief Commerce Officer Ben Kaufman and his 65-person team generated $50 million in revenue this year by successfully combining commerce and ...


ABB Launches Blockchain Pilot for Solar Energy Sector - Cointelegraph
ABB Launches Blockchain Pilot for Solar Energy Sector  Cointelegraph

Energy tech company ABB has launched a pilot project to investigate how blockchain can advance the solar energy market.


Publishers say affiliates generate more revenue than other types of marketing - ZDNet
Publishers say affiliates generate more revenue than other types of marketing  ZDNet

A recent survey points to a bright future for affiliate marketing and social engagement.


How Affiliate Marketing Manager Acceleration Partners Succeeded By Cutting Back Its Offerings - Forbes
How Affiliate Marketing Manager Acceleration Partners Succeeded By Cutting Back Its Offerings  Forbes

Three years ago Acceleration Partners found that it was being pulled in too many directions. But cutting back the services it offered and focusing on its core ...


Why the New York Times, BuzzFeed, and more help you find the best - Vox.com
Why the New York Times, BuzzFeed, and more help you find the best  Vox.com

The past decade has seen a flurry of growth in the product review space, with the launch of publications like Wirecutter, Best Products, New York magazine's the ...


Viacom's Q3 2018 Earnings Demonstrate Turnaround, Evolution Into Global Multi-Platform Entertainment Company - Viacom Corporate
Viacom's Q3 2018 Earnings Demonstrate Turnaround, Evolution Into Global Multi-Platform Entertainment Company  Viacom Corporate

Viacom released its third quarter 2018 financial results today, articulating progress on its turnaround and detailing Viacom's evolution beyond its linear roots and ...


Marie Claire wants its fashion editors to drive e-commerce revenue - Digiday
Marie Claire wants its fashion editors to drive e-commerce revenue  Digiday

Marie Claire has launched Marie Claire Edit, an aggregator site where readers can shop from retail partners like Selfridges, Gucci, Prada, Net-a-Porter and ...


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