Most of the really successful affiliate marketers make their money in one of two ways:
- They have a big email list to market to.
- They spend a lot of money on paid advertising such as through Google AdWords or Pay Per Click (PPC) marketing.
I’m guessing you may not have those kinds of resources at your disposal, and putting up a website or getting a professional website designed with a few banners and affiliate ads isn’t going to get you anywhere too quick, so here’s the plan:
Instead of hoping that some of your visitors might click on one of your affiliate ads, and that they might buy something, you want to capture their name and email address so you can market to them again and again.
Studies have shown that it usually takes about 7 tries to get a yes or a sale. So by having visitors on your list, you are now able to contact them multiple times, greatly increasing your results.
By doing it this way, not only are you building a valuable email list, but you’re also able to market different offers and products to them, further increasing the chance that you’ll get a sale. Let’s say you were able to follow up with each subscriber 5 times. That’s going to increase your affiliate commissions by 5 times – and by sending them different offers, that number could be even higher.
And once you set up an autoresponder campaign (more on this later on in this module) – the whole process would pretty much work on autopilot – all you need to do is send traffic to your blog.
Now that we know how we’re going to sell, let’s look at what we’re going to sell.
Most people approach affiliate marketing all wrong. As I mentioned, a common practice is to put up a website and cover it in affiliate ads. Let’s see how well that approach will work: With a 2% ad click through rate and a 2% sales page conversion rate (these are average numbers you can expect to get), you would need to have about 2,500 page views to get a sale or about 750 visitors (3.3 page views per visitor average). Following that method, you’d need to get 1,500 visitors to your blog each month or 50 visitors each day, just to make two sales.
The second big mistake people make is promoting low ticket products. If you promote a $7 commission product, you need to make 14.3 sales just to make $100. If you promote a $50 commission product you only have to make 2 sales.
While it might be slightly harder to sell a higher ticket product, it is by no means that much harder that it’s more worthwhile to be promoting a lower commission product. A $50 commission product usually has a similar sales page conversion rate to that of a $7 commission product. In fact, some more expensive products sell better since, because of the higher price, they have a higher perceived value.
Bottom line: It’s going to take a lot more traffic to make $100 selling a $7 vs. a $50 commission product.
The third big mistake people make is that they promote one time sales. It doesn’t take any more work to sell a recurring commission program (such as for a membership site) and it’s been shown to convert sales at the same rate as a one time sale.
When most people purchase a product with recurring fees, they are just thinking about how much the first payment is. If they don’t like it, then they can simply cancel. But if it’s good, they won’t mind using/paying for it for a long time to come and you’ll earn a commission each time they do.
On average people who join a recurring program make about 4 payments or sales (there will be life long members and people who drop it after 1 month). So on average, you’ll make 4 times the commission from each sale and it won’t take you any more work to do that.
Therefore, if you follow up with each subscriber 5 times and have 5 more chances to make sales, if you promote products with a 5 times higher commission rate, and if you promote recurring programs where people use it for an average of 4 months, you can effectively make 100 times more commission.
Not 100% more, but 100 times more. So instead of selling two $7 commission products per month, you can sell 2 recurring $50 commission programs per month and if they stay a member for 4 months, you’ll make $400 vs. $14. And by being able to follow up 5 times or more, that $400 is looking more like $2,000.
But… there’s one small problem. Most recurring programs don’t payout $50 recurring commissions. Getting $20 to $25 is more likely, but you can still make 40 to 50 times the commission vs. promoting a one time sale of $7.
So, while the ideal circumstance is to have all of the big three in your affiliate promotion, it’s not always possible. You can be a successful affiliate marketer as long as your campaign has two out of the following three:
- Getting visitors on your email list
- Selling high ticket products
- Selling recurring products
Since you pretty much always want to capture email addresses, make sure what you’re promoting is either a high commission or a recurring commission, but preferably both 🙂