|Affiliate Revenue Information|
Affiliate Programs : Golden Opportunity or Waste of Time?
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.
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.
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.
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.
Retail Briefing: Retailers are trying to loosen Amazon's grip on affiliate revenue
As customer acquisition costs through Facebook and Google rise, retailers are turning to publishers for help. Affiliate partnerships with publishers is becoming an increasingly appealing solution for retailers to drive traffic to their sites with ...
The Weekly Covet: The Breast Cancer Awareness Products Our Editors Are Loving This Month
Once a week, we ask our editors to share the items they've been loving—whether it's a new skincare product they can't wait to try or a travel essential they want everyone to know about. Consider "The Weekly Covet" your editor-approved wish list for ...
Charity Navigator - Rating for Susan G. Komen for the Cure
Memorial Sloan Kettering Cancer Center | Charity Ratings | America's Most Independent Charity Watchdog ...
Little Mix is returning to the Echo Arena during 2019 tour - here's how to get tickets
Alternatively, tickets can be bought for other dates including Manchester Arena, the SSE Hydro in Glasgow, Metro Radio Newcastle and more at www.axs.com/littlemix and www.ticketmaster.co.uk/littlemix. Note - the Liverpool Echo may earn affiliate ...
BuzzFeed News is teaming up with Amazon to launch a book club in a push to create new revenue streams
The New York Times purchased Wirecutter for $30 million last year, hoping to cash in on the site's niche audience and affiliate revenue. "It's always encouraging — and, frankly, important — to see publishers diversify their offerings," Janet Levine ...
Search Engine Journal
Amazon oneTag – Using it to Earn More Affiliate Revenue?
Search Engine Journal
Pro-privacy search engine DuckDuckGo hits 30M daily searches, up 50% in a year
DDG says it has been profitable using its non-tracking business model since 2014, also making money from affiliate revenue. It does not break out active user metrics but earlier this year cited third party estimates which peg its user-base at around 25M.
Digital Marketing Coordinator (Affiliate)
Check and follow-up that the above gets done continuously and correctly to give the best user experience and best placement of affiliate assets on the websites to maximize affiliate revenue. · Coordinate with a 3rd party supplier to engage a ...
Alfie Boe is heading to Liverpool Philharmonic on 2019 tour - here's how to get tickets
... By' from www.HMV.com by 11.59pm on Monday, October 15. VIP packages available at sjm-vip.com including Ultimate Meet and Greet VIP and Up Close VIP. Note - the Liverpool Echo may earn affiliate revenue from any purchases made via these links.
Viacom forecasts growth rebound in US ad sales, affiliate revenue
Domestic affiliate revenue, or the fees collected from U.S. cable and satellite operators and online distributors, fell 4 percent to $934 million in the quarter. Analysts expected a 4.2 percent drop, according to FactSet. Net income attributable to ...
Viacom says turnaround is on track, profit beats
Viacom Says Its Turnaround Is On Track
Viacom, Inc.'s Earnings Beat Isn't Reason To Celebrate
Viacom Soars on Affiliate Revenue Forecast
On a day when the Dow Jones Industrial Average officially entered market correction territory, and despite disappointing revenue growth in its fiscal first quarter, Viacom stock soared Thursday after the programmer increased its forecasts for ...
|home | site map|