Affiliate Marketing VS Product Creation

This is a huge obstacle many people face when entering the online marketing world: Should I become an affiliate marketer or should I create and sell my own product..?
Before I get started let me quickly define the two business models so that we are clear as to how money is generated with each.

• Affiliate Marketing: In this business model you will be making income by referring customers to another person’s product or service. So basically you will sign up with the vendor as an affiliate and for every sale you generate you get paid a commission.

• Product Creation: This business model is pretty self explanatory; you will be creating a product and selling it in the marketplace for 100% of the profits. In this example we will be assuming your product is an information product of some sort.

There are a lot of marketers that will say the easiest way to start making money online is affiliate marketing. Just because of the simple fact that you can choose a vendor whose product you want to promote, sign up as an affiliate, start sending traffic to your affiliate sales page and BOOM! You make money. Sounds pretty easy. You don’t have to deal with creating a product, setting up websites, dealing with customers, etc.

At the same time there are marketers that say creating your own product is easier and the more profitable of the two and allow you to be more in control of your business.
It really all depends on what your strengths and weaknesses are and what you’re looking to accomplish in your business.

Let me get some of the pros and cons of each and put things into perspective so you can have a better idea of where you want to get started.

Affiliate Marketing

It is a strong argument that affiliate marketing is the easier of the two to start with which is why it is recommended as a starting point for beginners.
Here are a few of the pros of affiliate marketing:

• Most affiliate vendors/networks are free and very easy to join. Most of the time you will answer a few basic questions, set up a username and password and get instant access to the affiliate member’s area within a few minutes.

• Marketing materials are provided. Once you set up your profile in the affiliate member’s area you will have complete access to all marketing materials needed to get you going such as banners, pre-written emails, etc. In the members area you will also be provided a unique affiliate link which will take your prospects to a complete sales page which has already been created for you. Armed with these materials all you have to focus on is getting traffic to your affiliate site.

• All websites are already created for you. As an affiliate you do not have to deal with the headaches that can come with setting up a website. The vendor has done this for you and as long as you use your affiliate link your sales and commissions will be tracked through that link and paid into your account.

• Do not have to deal with customers. We all know how difficult it can be to deal with customers but as an affiliate you do not have to worry about this problem. Once you make a sale as an affiliate all you have to worry about is cashing your check and the customer is passed on to the vendor.

As you can see being an affiliate marketer definitely has its perks. It’s quick and easy to join a vendor/network, all the marketing materials and sales pages are provided and you do not have to deal with customers. You can focus your time on generating traffic, making sales and cashing checks!

Now let’s take a look at some of the cons of affiliate marketing and how you can overcome them.

• The competition. Even though it can argued that affiliate marketing is the easiest way to make money online it can be strongly argued that it’s the most difficult due to the competition. There are hundreds of thousands of affiliate marketers you have to compete with to make a sale. At the same time many experienced marketers agree that most new affiliate marketers do not know what they’re doing since it’s such an easy business to get into.

– One of the best ways to overcome this obstacle is to educate yourself. Always be a step ahead of the competition by learning what the top affiliates are doing to give them that edge needed to make the sale.

• Profit Margins. As I mentioned before with affiliate marketing you are making a commission for referring a customer to a vendor as opposed to you being the creator of the product and earning 100% of the sale. So there can be a lot of profits you are leaving on the table by promoting someone else’s product instead of your own.

– This obstacle is really not in your control when it comes to affiliate marketing but the best thing you can do is promote a product with a higher payout of 60-80% as opposed to 25-50%. This way you will be making more income with less sales.

• Building someone else’s business. As an affiliate not only are you generating sales and profits for the vendor you are also helping them build their business instead of your own. Once you make a sale and are paid a commission that customer is now in the hands of the vendor which can continue to sell additional products and services to that customer for the lifetime of their relationship.

– The best way I know of building your own business through affiliate marketing while also sending customers to the vendor is to set up a landing page of your own that requires the prospect to input their name and email before they get access to the sales page. This way the prospect is on your customer list as well and you can now email them future offers and affiliate products directly. Now of course you will have to provide an incentive to the prospect for them to enter their email like giving away a free report, video training, audio file, etc. We will touch on this in a future report.

• Lack of control. With affiliate marketing you really don’t have much control of anything but generating sales. Should the vendor/network decide to shut down or no longer sell the product you are promoting you are left back at square one. When it comes to product creation you have a lot more control of your business and can profits but we’ll be touching on that in a few.

– Unfortunately this is a huge downside to affiliate marketing and something you really can’t prepare for. Building your email list as mentioned before is the best way to ensure that you still have an ability to make sales with your current list of customers while you set up a new campaign with a new product.

There are just as many cons as pros with affiliate marketing but none of these reasons should stop you from getting started if it’s a business you wish to pursue. One important thing that you want to keep in mind is to take time to invest in your education and skill sets to put yourself ahead of the curve. By doing this you set yourself apart from the competition and a step ahead to making the sale.

If you are interested in learning more about affiliate marketing and jump starting your way to success visit my author resource box.

Now, just for a second picture yourself being the product creator and having an army of affiliates promoting your products as we move into the pros and cons of Creating and selling your own product.

Product Creation

Product creation can be a scary subject for many because as a newbie you are most likely skeptical and completely in the dark as to how an online business operates, let alone creating a product from scratch. But to your surprise it can actually be one of the easiest ways to make money online.
Let’s get into some of the pros of creating and selling your own product and see why it can be an avenue you consider:

• Control. When it comes to product creation you are in complete control of just about everything. You are in control of how you market your product, the price, its delivery, and you are in full control of every customer you bring into your business as well as any future purchases they make from you.

• Profits. Of course this is a huge reason why many people create and sell their own products. As a product creator you get to keep 100% of the profits from every sale you make. Now there is an exception to this when it comes to setting up your own affiliate program and having other affiliates promote your products but we’ll touch on the power of this next.

• Affiliates. Once you create your unique product you can choose to leverage others to help build your business. Setting up an affiliate program can be a powerful way to explode your business on autopilot. You can offer your affiliates a commission of 30-50% and have them sell their butts off for you especially if your product brings high value to the marketplace. Also you can make money while you sleep as you know your affiliates are working hard to make you sales.

• Building a Brand. Being the product creator gives you the opportunity to build a brand for yourself in the marketplace of your chosen topic. Since your product is unique you are able to name the product whatever you like and build a brand around that topic. This is very big if you want to build your business through word-of-mouth advertising which we all know is the strongest form of advertising.

As you can see there are also some great advantages to creating and selling your own product. You are in full control of everything, you will earn more money, you can build an army of affiliates, and you can build a brand for yourself and your business. But as in everything there is a downside so let’s get into that next.

Here are a few cons of product creation and how you can overcome them:

• Time. When it comes to your time, creating your own product will definitely take up more of your time then simply signing up as an affiliate. Not only will it take time to create your product, but you also have to create a website to sell your product from. And that can be a headache of its own which we will talk about next.

– The great thing about product creation is you can outsource just about every process involved in starting your business. You can literally pay a professional writer to write your information product for you and you take the credit for it. Of course you always want to proof read it and modify a bit to fit your personality and style.

• Websites. Once your product is completed you will not be able to make any profit unless you are able to get it published online. For some this can be your worst nightmare. This can cause you a lot of headaches especially if you are not tech savvy. This can easily cause you to quit or never begin to try to make money online, or it can cause you to have to hire a web designer to build a site for you which can be a few hundred to a few thousand dollars in cost. This leads me to my next topic.

– Again building a website can easily be outsourced to a web designer who can build you a clean professional website usually within 48-72 hours.

• Cost. When it comes to creating a product it can easily be said you will have more start up costs then an affiliate. When it comes to setting up your sales funnel you have certain costs like buying a domain, hosting your website, hiring a web designer to set up you site unless you’re doing it yourself, paying for the graphics to brand your product, etc.

– A lot of you may be asking yourself how much are you going to expect to spend on your product creation business? Don’t worry take a deep breath..a lot of the things you will be paying for are really inexpensive. You can buy a domain for about $10 and hosting is about $5 a month. Now I want to introduce you to a site that will dramatically change the way you do business it’s called http://www.Fiverr.com. This is a community of people that are willing to just about anything for $5. Go ahead and visit the site and see for yourself. You can literally have an information product created on a topic of your choice, the graphics and ebook cover created, and a website build for $25-$30.

• Customer Support. As the product owner you will be responsible for your customer service and support and this alone can drive you insane and drain a lot of your time and energy. As in any business on or offline you will have your happy customers and your not so happy customers. Your customers will have questions, demands, concerns, etc and it is your responsibility to make sure they get the support they deserve.

– Customer support can also be outsourced but unfortunately this comes with the territory of any business and something you will have to deal with. Yes you can have someone take care of your customers service but you should definitely be as involved as possible to make sure they are getting the best support possible.

As you can see as a product owner, yes you will be in control, yes you will make more money, and yes you can build a brand, but with all this comes a lot more responsibility then an affiliate marketer.
Before wrapping things up lets touch on a few things that we can all agree on in both affiliate marketing and product creation.

• Work from home. Whether you are an affiliate marketer or promoting your own products both allow you to be in control of your time and work from home. For many this a highly sought after luxury to be able to spend more time with family, friends, spouse, etc.

• Your day job. Unless you are a super marketer and were born with super online business skills most of you will still be working your day job as you build your online business. With that said you can build your online business on a part-time or full-time basis around your current work schedule whether it is one hour a day or ten hours a day whatever it is that works for you make sure you keep it consistent. Make sure you schedule your online business time just as you would schedule any other activity and make this non-negotiable.

• You’re the boss. No matter if you’re marketing as an affiliate or your own product, you are your own boss in both situations and your income is directly influenced by your efforts. This also allows you to make money on demand. If you’re looking to take a vacation or buy a new car and you need a few thousand dollars you can just jump on your computer and set up a new marketing campaign.

If you are leaning more towards creating your own products visit my author resource box.

In conclusion there really is no right or wrong, better or worse, that was not the point of this article. The point of this report was to shed some light on both business models so that you can be more aware of what you can expect in moving forward with your online business. In my opinion there shouldn’t have to be a choice between affiliate marketing and creating your own product. You should integrate both into your business plan and become educated in both arenas. By doing that you will quickly see that many top affiliate marketers make a killing selling their own products and many people who sell their own products make a killing as affiliate marketers.

One thing I do want to stress is no matter what you do it is going to take time, effort and hard work. Don’t fall into the trap that many newbie’s do which is consistently searching for the next plug and play system that is going to make you the next overnight millionaire. And there are plenty of “Guru’s” out there who prey on the newbie community and put out junk products promising overnight millions with pretty sales pages and you continue to fall for them. STOP!! Map out a business plan, decide what you want to accomplish, find one reputable mentor you want to follow and get to work! Focus on following that chosen mentor all the way through to your first online dollar. Lastly, make a promise to yourself that you will not quit before starting the journey!

To Your Success,

Joshua Zamora

Why So Many People Crash In Affiliate Marketing

More and more people are lured into affiliate marketing and you might be one of them. Indeed, affiliate marketing is one of the most effective means of generating a full-time income through the Internet. It’s a fair deal between the merchandiser and his affiliates as both benefit from each sale materialized.

Like in other kinds of business, a great deal of the profits in affiliate marketing depends on the affiliates selling, advertising and promoting strategies. Everyday, as affiliate marketing industry expands, competition heightens as well so an affiliate marketer must be creative enough to employ effective and unique ways to convince potential buyers to purchase or avail of the products and services offered.

Compared to traditional advertising practices, affiliate programs are more effective, risk-free and cost-efficient.

Reasons people fail in affiliate marketing

So why do many people still fail in affiliate marketing? There are a lot of reasons and a lot of areas in the program to look into.

The most critical aspect in the affiliate program is advertising. It is the most important thing all other kinds of business as well; many affiliate marketers fail in this aspect because they lack hard work. Although it pays to be lucky, you cannot merely rely on it. Affiliate marketing isn’t as simple as directing customers to the business site.

You must invest in yourself

If you want to earn big, of course, you have to invest time and great amount of hard work in promoting the products. The competition is very high and customers nowadays are very wise, too, as earlier mentioned. After all, who doesn’t want to get the best purchase? That is, to pay less and get more in terms of quality and quantity.

Being prepared is critical in affiliate marketing

Lack of preparation is also a reason why one fails in affiliate marketing, whether he is a merchandiser or an affiliate. Part of the preparation is researching. On the part of the merchant, he has to be highly selective in choosing the right affiliate websites for his affiliate program.

In order to be sure he has the best choices, he must have exhausted his means in looking for highly interested affiliates whose sites are sure fit to his products and services.

The affiliate site’s visitors must match his targeted customers. On the other hand, the affiliate marketer must likewise research on the good-paying merchandisers before he signs up for an affiliate program.

He must ensure that the merchant’s products and services match his interests so he can give his full dedication and attention to the program.

He can get valuable information by joining affiliate forums, comparing different affiliate programs and reading articles on affiliate marketing where he can get tips from experienced affiliate marketers on how to choose the best merchants and products with high conversion rate.

Your website is critical to the success of your affiliate business

The website is a very important tool in the whole affiliate program. You should plan how your site is going to be, from domain name to the design, the lay-out, the content, and ads, as a marketer.

Some users are particular about what they see at first glance and thus when they find your site ugly, they won’t spend their time looking at your site. On the other hand, there are those who want information more than anything else. Marketers with “rich-content” web sites are usually the ones who prosper in this business because the content improves traffic to the site.

Websites with high quality contents and relevant keywords are the best optimized sites. Having the right information about the product and service and not just a bunch of empty hyped-up advertisements will allow you to earn big in affiliate marketing even when you’re asleep.

If you’re not able to sustain the interest of your site visitor, you won’t be able to lead them to purchase. No click-through means no sale and thus, no income on your part.

Selecting a top level domain name is also crucial to the success of the affiliate program. Lots of affiliate sites don’t appear in the search engine results because they are deemed by affiliate managers as personal sites.

Major search directories and engines would think of your site as a transient one and thus, they won’t list it in the directory.

Know first what you are going to promote, before you decide on the domain name. Even if they feature the exact products the customer is looking for, the customer might think the site is not relevant and becomes weary of the site contents.

An educated affiliate is a successful affiliate

Above all, an affiliate marketer must be willing to learn more. Certainly, there are still a lot of things to learn so an affiliate marketer must continue to educate himself so he can improve his marketing strategies. Many fail because they don’t grow in the business and they are merely concerned about earning big commissions quickly.

If you want long-term and highly satisfactory results, take time to learn the ins and outs of the business. Continue to improve your knowledge especially with the basics in marketing ranging from advertising to programming, web page development, and search engine optimization techniques.

Likewise, study the needs and wants of your site users and how different merchandisers compete with each other.

If your initial attempts are failures do not give up. Keep plugging away. Do not get disappointed. You see, thousands are attracted by the possibility of generating skyrocketing incomes through affiliate marketing and so they sign up in any affiliate program without carefully understanding every aspect of the business.

When they don’t get instant results, they quit and sign up for another program and repeat the process of just copying links and referring them to others. When you sign up for an affiliate program, don’t expect to get rich in an instant.

Work on your advertising strategies and be patient. Stay focused and become the best student you can be and you will not be one that crashes in affiliate marketing.

Robin signing out

Affiliate Marketing 101 – What You Need to Know

What would you like to promote? Affiliate marketing is no stranger to the Internet, and certainly no stranger to network marketers and article marketing is still a successful way to promote your online business or blog. Affiliate marketing offers a phenomenal opportunity for people who do not have a lot of start-up capital or a lot of time to put together a giant campaign. Affiliate marketing has some very good advantages which include no product of your own, no inventory, no shipping or overhead and no real sales force. For the merchant it can also be a cheap and effective marketing strategy.

What are Affiliate Programs?
Generally speaking affiliate programs are marketing programs offered by web advertisers or merchants that recruit website owners and bloggers. The merchants provide banner ads, links and buttons for website owners to place on their website to market the merchant’s products. In turn, the website owner or blogger will receive a referral fee or commission when a customer purchases a product that is delivered via an affiliate link. One of the most common types of affiliate links are pay per click (PPC – Pay Per Click) however, increasingly now have been intertwined with email and content marketing.

The Product:
When you are looking for an affiliate program there are some things you need to consider before choosing which company you are going to take arms with. The product should be one of quality can also be a service. As long as it’s a product viable service and it offers something of value to the customer.

There are several types of compensation plans built into affiliate marketing programs, and one of them can be a residual program. However, not all affiliate marketing programs have residual programs built into them. If you can find one with residual funds, then that would be the way to go. However, there are some that actually offer a significantly high commission rate that may make up for the loss of the residual income. There are also others that offer a multilevel marketing structure of compensation. Now if you’re familiar with multilevel marketing than that may be an avenue that you would choose to examine.

But before jumping into any multilevel marketing program, you should read up on it and do a thorough analysis. The last thing you want to do is jump into an affiliate program that is going to be a serious waste of time.

Choosing an Affiliate Program:
Back in 1994 there weren’t very many affiliate programs to choose from and most of them were revolved around offensive content websites. Today, affiliate programs have a higher standard and it is a new way of doing business. There are many companies that have affiliate marketing programs lime Amazon, web hosting companies, domain name registrars, and electronic websites, Apple iTunes, bit defender, panda security, PC health boost, Commission Junction, eBay Partner Network, Google AdSense, VistaPrint and the list goes on and on.

You can find an affiliate program for almost anything you want to sell. It is a good idea to sell something that is related to your website, providing you have one. Not everybody that signs up for an affiliate program has a website to run it through. There are some that actually write articles and direct the URLs to their affiliate program.

Becoming an Affiliate:
If you want to become an affiliate it’s not that hard. You simply go to the website of choice and look for their affiliate link program. Usually what will happen is you will sign up and get a unique affiliate ID along with some banners and links. You then place these on your website so that your potential audience can click on those links which if they purchase, you will receive a commission. Just because you signed up for an affiliate program doesn’t mean that you’re actually going to drive traffic to your website. You still need to do something about driving traffic to your website or affiliate link like write compelling articles and become an expert in your field. These articles can be placed on article databases and are a sure way of driving traffic to your website or affiliate link.

What You Should Look For:
When you go shopping for an affiliate program, try to look for high affiliate commissions, long cookies and of course you would want to get a great conversion rate. Two-tier programs which have the same structure as a multilevel marketing organization and can be quite lucrative. Such organizations that earn billions in multilevel marketing and direct sales is companies like Amway which has been in business for 53 years, Nu Skin started in 1984 and Nature’s Sunshine started in 1972 so multilevel marketing has been around for some time. Residual affiliate programs is definitely the way to go. You continue to make money on that visitor month after month. The advantage here is that eventually your sales start accumulating where you’re making more and more money as opposed to the individual sale where you have to continuously make money to stay at the same level.

Where You Can Go:
There is services out there that have a database of a lot of companies that are doing affiliate program so you do not have to run around and seek out each individual program themselves. Companies like ClickBank where you sign up and select the affiliate program you wish to support.

Marketing Your Link:
Now let’s talk about that affiliate link for a moment. Most affiliate links are extremely long, hideous and some of them have special characters in them like a “?” or “=” sign. These links will not rank on search engines like Google very well and definitely cannot be added to pay per click like Google AdSense. What I would suggest is getting yourself a domain name and rerouting it to your affiliate offer. Let’s take for an example if I wanted to become an affiliate of a cell phone electronics company and I had a website I can actually write a review on a particular cell phone that I’m trying to market. If it’s more than one, then I could just pick a product or two to write my articles on. Anyway, I would try to register a domain name that may have something in it like cheap cell phones or something along those lines to help the search engines determine what your product might be.

Increase Your Sales:
What if you don’t have a website and you wish to increase your sales with affiliate marketing; what would you do? One way to market an affiliate program I briefly touched on is to write quality articles about the product that is being marketed. I truly suggest this strategy to increase traffic and sales. There are several article directories that you can post your articles to, but do not post the same article to multiple sites other than the article directory and your own site if you have one. Article directories can be a very good source of traffic because of their reputation and the amount of visitors they have each month reading your article. Of course, some of those readers will click on your affiliate link driving traffic to your affiliate program. I like Ezine Articles as an article directory, but there are others like; Goarticles, ehow, Examiner, Technorati, Thefreelibrary and much more, but that’s a good start. Don’t just read one article when doing your research and regurgitate the content from that one article. Try to do some in-depth study to get a complete understanding of what it is you’re writing about. Once you have that understanding, try to simplify your article by using either bullet points or topic list. To get people to click on your link you need to be compelled to do so, but the only way to do that is to write compelling articles.

Making money on the net with affiliate programs can be a rewarding experience if you know where to go the fine the right affiliate program and how to do the research needed. Just locating an affiliate program is not all you need to do, you need to weigh the gravity of that affiliate program. First determine what it is you would like to sell and do your research. Hopefully, you will look for something that accents your website or if you don’t have a website, something that you know a lot about so that you can write your reviews.