|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.
Viacom Soars on Affiliate Revenue Forecast
Viacom said it expects fourth quarter ad revenue to be positive and estimated affiliate revenue will decline in the low-to-mid single digit percentages for the full year. It had earlier predicted mid-single digit percentage declines. The gains come ...
Should Media Firms Spend Their Tax Windfall or Save for a Rainy Day?
When Viacom reported earnings last week for its fiscal first quarter, the numbers weren't pretty. The owner of MTV, Nickelodeon and Comedy Central saw its U.S. ad revenue fall 6%, while overall advertising increased just 1%. Affiliate revenue was off ...
Viacom's TV business suffers from cord cutting
Viacom, like other linear-television channel providers, is hurt when viewers cut their cable subscriptions from both lower advertising payments and a decline in affiliate revenue generated through subscription fees paid to cable companies. In its first ...
Tax Gains Lift Viacom Net Despite Lower Revenue
Viacom Q1 Revenue Falls, but CEO Projects Better Performance Ahead
Why Viacom Shares Popped Today
How Disney's Media Networks May Fare in Fiscal 1Q18 - Market ...
The Walt Disney Company's (DIS) Media Networks segment, which contributes the bulk of the leading media conglomerate's business, reported $5.5 billion in revenue, down 3.4% YoY (year-over-year). The fall was driven by an 11% YoY decline in the ...
Cable networks carry water for Fox in Q2 beat - Twenty-First Century ...
Twenty-First Century Fox (FOX, FOXA) has reported fiscal Q2 earnings that saw revenue gains carried entirely by cable, against declines in broadcast TV and the film studio. The company's income from continuing operations more than doubled to $1.84B ...
Fox Q2: TV Affiliate Revenues Climb 12%, Advertising Down 2% 02 ...
Fox's Q4 broadcasting income slumps amid lower ad revenue ...
Star India, FNG help prop up 21st CF Q2 numbers - Indian Television
Disney Q1 profit up 78% | - Advanced Television
The Walt Disney Company has reported a 78 per cent increase in profit for the first quarter, thanks largely to a huge tax gain. Disney's Q1 profit jumped to $4.42 billion (€3.58bn) from $2.48 billion last year. Earnings for the quarter included a $1.6 ...
Lower ad revs, higher production cost depress broadcasting in ...
Disney's Q1 numbers ride on parks and resorts segment | Indian ...
Broadcasting & Cable
Disney Profits Jump Because of Tax Benefit
Broadcasting & Cable
ESPN's operating income was down because of an 11% drop in ad revenue, partially offset by higher affiliate revenue and lower programming costs. Ad revenues were down partly because of one fewer big college football bowl game due to a shift in the ...
Disney Prices 'ESPN Plus' Streaming Service at $4.99 Per Month
Bob Iger unveils $4.99/month ESPN Plus price, calls app 'future of ESPN,' after quarter where ESPN held steady ...
Disney profit beats estimate on strength in parks business
iHeartUs helps couples grow their relationship | TechCrunch
Today's Valentines Day, and while it's certainly the quintessential consumer-driven holiday, it's also a day where many couples take stock of their relationship. iHeartUs, a new app for couples, is launching today to help those couples keep and grow ...
Starling's marketplace banking rollout adds pensions, savings, travel ...
Starling, the U.K. challenger bank that offers a mobile-only current account, continues to execute on its marketplace banking strategy. Following the required regulatory approval, the Starling Marketplace is adding a number of financial services ...
21st Century Fox Sees Q2 Profits Rise - WORLD SCREEN
Quarterly profit at 21st Century Fox came in at $1.84 billion, a 114 percent gain on the prior-year quarter. The results for the three months ended December 31, 2017, includes a tax benefit of $1.34 billion. The company reported total quarterly ...
|home | site map|