Email received from ‘Sally’ (not her real name) of Utah:
“I’m new to IM. I’ve heard of affiliate marketing then someone said I should create my own product. I’m confused! What are the pros and cons?” Excellent question!
A lot of Internet marketers start in IM by selling other people’s products to earn affiliate commissions. It’s like being a company’s travelling salesman but without the hassle of driving from one city to another selling the company’s product.
As an affiliate, you wouldn’t:
1 Own the Product.
You wouldn’t need to worry about the product creation process. E.g. getting ideas and testing them then creating the product then testing then tweaking then setting up sales systems and list-building. That’s before the process of marketing the product on the Internet.
2 Be in Control of the Product.
This means that you’re the one scouring the Internet trying to find a product you’re happy to promote. Checking ClickBank, JV Zoo and other third party affiliate networks. Remember that you’ll always be competing against other affiliates for a piece of the IM pie.
3 Control Delivery and Refunds.
If the product owner is rubbish at customer service, it could harm your reputation. Bear in mind that you’re the one who referred your visitor to the site in the first place.
BUT – As the product owner, you would:
4 Be Involved From Start to Finish.
From developing an idea through to creating a product or paying to have it created (outsourcing), then getting everything up and running (and testing all the time) to make sure everything works as it should. After all, put yourself in your customers shoes. Would you feel confident if links didn’t work?
5 Recruit Your Affiliate Army.
Make sure they’ve got a toolbox packed with strategies to promote your site and your product(s). You’d have full control of each site. You’d be the one testing and tweaking your sales copy to get maximum conversions. You’d be the one delivering any sort of product or bonus to your customers.
Each has its own qualities and drawbacks. So, Sally, which of these seems most attractive to you?
Most marketers combine affiliate marketing with product creation. They’ll create their own product, usually an eBook or report, then put hyperlinks in them for affiliate products they promote.
Why do they do this? Because it increases the profitability of each product they create. Not only do they earn income from the sale of the product, but they generate passive income if the buyer then buys the affiliate products using the hyperlinks (links) in the product.
The profitability increases as more passive income is generated by an affiliate who’s promoting the eBook.
I hope that’s helped. Do feel free to contact me if you’d like any other questions answered.
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