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What are affiliate programs and how can we utilize them?
Affiliate programs are the ultimate joint venture online that can make you get rich quickly. In an affiliate program, you joint venture with other webmasters and only pay them when you make a profit. This means that
- You never have to pay for advertising that doesn't work and
- You never have to pay anything up front.
Utilizing affiliate programs is the most powerful way to market a product online. This is probably why all the top marketing professionals have used affiliate programs to make hundreds of thousands of dollars online in a very short time.
Who can start an affiliate program?
If your product has a medium to high profit margin, an affiliate program started for the product will assure that it is much more successful than otherwise and hence result in a higher profit.
What are the advantages of an affiliate program?
- An army of sales representatives for your product- Affiliate programs allow you to build an army of sales representatives, all of whom will have their own websites, visitors and opt-in lists.
- These sales reps are your affiliates and they use their visitors and opt-in lists to advertise your product.
- You don't have to pay them a penny until they make a profit for you.
- Maximum advertising for your product
Imagine having 250+ high traffic sites all advertising your product via
- banners, text links
- recommendations in their Ezine and on their website
- through e-books they write and freely distribute and all of the other available methods.
- Quick money
If your product is good and you have a decent sales copy to prove it, your sales are going to go through the roof. This means you could be making $30,000+ a month within six or seven months with your own affiliate program.
- Easy to recruit new affiliates
It's easy to recruit new affiliates, especially if you run an affiliate program that operates on two-tiers. A two-tier program is a program whereby affiliates earn commission when someone they referred to the program makes a sale. This encourages webmasters to find other people to join your affiliate program and thereby allows your affiliate base to
- quickly multiply itself and
- continue to grow steadily
I know of an affiliate program, which uses a two-tier system that has 50,000+ affiliates all promoting the programs products. Imagine the profits that 50,000 affiliates can make for you? However, it is very rare for any program to ever get as big as to have 50,000 affiliates. 5,000 affiliates is a much more achievable number, after which only the quality of your program will be able determine the growth of your affiliate program.
Here's a sample presentation of a hypothetical affiliate program to help you understand the benefits of an affiliate program. The numbers and amount of revenue projected is certain to get your temperatures rising.
- First imagine you've loads of affiliates
- Next imagine that after you give your affiliates their commission, you make $20 a sale.
The below figures are what you could earn in such a scenario. Note that the more the affiliates that join your program, the more the money you make, it's as simple as that.
Orders Each Day |
Monthly Income |
Yearly Income |
3 |
$1,800 |
$21,600 |
5 |
$3,000 |
$36,000 |
10 |
$6,000 |
$72,000 |
20 |
$12,000 |
$144,000 |
30 |
$18,000 |
$216,000 |
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