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Affiliate Marketing Best Days Ahead

Friday, January 8th, 2010

Crossing the Line – the line between performance and traditional advertising has been breached and the best days of affiliate marketing are ahead.

By Greg Shepard

Years before the NASDAQ tanked and banner advertising died, e-commerce pioneers like Amazon.com and CDNow began partnering with topic-centric websites to drive revenues, paying a commission for each sale referred. The practice spread quickly and became known as “affiliate marketing.” By early 1999, Forrester Research proclaimed “affiliate programs” as the Web’s most effective traffic-driving technique – almost twice as effective as banner advertising.

Consider that by September 1999, more than three years after Amazon launched, there were over 1,000 merchants offering affiliate programs. And by 2000, Amazon’s Associates Program had grown to over 500,000 affiliates. What Amazon founder and CEO Jeff Bezos started as a polite conversation had grown into an entirely new industry, bringing with it affiliate networks, directories, newsletters and a variety of consultants. Other innovations followed and affiliate marketing is now an integral part of the Web’s composition. It’s also now widely heralded as the Web’s most cost effective marketing vehicle.

Still, as affiliate marketing evolved, issues with the model have been exposed. The affiliate community needs to remember that affiliate marketing is not about generating cheap advertising, but developing profitable strategic relationships.

But now there is a way for merchants to now offer a win-win where both merchants and affiliates have a vested interest. Improving technologies now make it possible for the formerly CPS, CPA, CPL performance programs and the CPM, CPC, and flat advertising models to unify creating a new hybrid that I call the CPP (Cost-Plus-Performance) model.

The CPP combines a paid campaign with a performance campaign and offers the best of both worlds. I see this as the future of affiliate marketing, a wide-open world of performance and payment where the CPP takes inventory lost to Google’s AdSense and advertisers back. The result is a whole new world of opportunities for merchants, affiliate managers and affiliates.

The hybrid CPP is converting former CPM, CPC advocates into affiliate marketing believers. For many top websites, affiliate marketing now represents a chance to loosen the grip of pay-per-click search engines and costly advertising. The most difficult obstacle in affiliate marketing is finding good affiliates with traffic. If a site sells traffic then they must have it, and if you negotiate a Cost-Plus-Performance payout valuable opportunities begin to open up.

Merchants are also realizing that affiliates need better tools as well. Technologies such as data-feeds, site and shopping cart abandonment (exit traffic) promise to allow merchants, who are also affiliates, to increase EPC and EPM numbers without compromising the visitors experience, thereby improving monetization. By simply offering additional products and/or service offers at or after the point of sale, merchants can add revenue without diluting the sales process.

It’s becoming clear to merchants, affiliate managers and affiliates that the line between performance and traditional advertising has been breached.

It started with Google’s entry into the market. Google’s AdSense captured valuable affiliate program inventory, which caused the flexible affiliate marketers to evolve again. The industry’s response was to tangle with the paid advertising side of the market. Google’s method is to pay out for ad space – the same ad space that was used by affiliate marketers. That limits available inventory and changes the Web publisher’s expectations.

Some affiliate marketers using AdSense end up to cannibalizing their own market. Why? To get guaranteed income from traffic. If you pay for traffic, you’re guaranteed to get it. The merchants get guaranteed traffic and the affiliates get guaranteed revenue from traffic. However, this presents a problem. Traditional advertising places the risk on the merchants, while performance places the risk on the affiliate. In either case only one has a vested interest in the campaign.

It’s clear from a handful of recent studies and reports that marketers are frustrated with the current process.

In a survey of 135 senior-level marketers a recent study found that while 60 percent of respondents said that defining, measuring and taking action on ROI is important, only 20 percent are satisfied with their ability to do so. In addition, 73 percent reported a lack of confidence in their ability to understand the sales impact of a campaign.

The study, conducted by Marketing Management Analytics (MMA), the Association of National Advertisers (ANA), and Forrester Research in April 2005, was presented in July at ANA’s 2005 Marketing Accountability Forum.

Also this summer, a MediaLife’s media buyer survey quantified what most already suspected: media buyers think that about only half of media reps know what the heck they’re doing (via MediaBuyerPlanner.com). A significant minority of the buyers – about one in six – have such a low opinion of representatives that they said only 10 or 20 percent are useful.

Complaints centered, unsurprisingly, on time wasting, both in the form of over-contacting and proving ill prepared when conversations do take place. Another big complaint proved to be overly hard selling, with some reps seeming to believe that repetition or browbeating may succeed in getting a property on the buy where the numbers won’t.

Half of the buyers said they agree with the statement that the rep problem was “no big deal. Sure, they’re annoying sometimes, but I’m sure they find me equally so. It’s how the industry is set up.” About 45 percent agreed instead that they are “a necessary evil. Most are okay, but there are a few really obnoxious ones I hate doing business with.”

Even with all the issues, the good news is that the affiliate community is still evolving. Organic search is becoming more competitive. CPM rates are going up. Paid search is becoming cost prohibitive and the need for cost effective online inventory is becoming stronger, causing the affiliate space to grow at ever increasing rates. As merchants, affiliate managers and affiliates become even more interwoven, the friction decreases and new forms of integration and aggregation are made possible.

I see it this way – the race is on! In the last year the number of merchants offering affiliate programs has more than quadrupled. Literally, millions of websites now participate as affiliates – from personal homepages at Geocities and Homestead to Fortune 500 companies. And now, more often then not, merchants with affiliate programs are also affiliates.

Whether termed affiliate marketing, collaborative commerce, revenue sharing or syndicated selling, the affiliate space leads the way in the ever changing landscape of online marketing and has become the Web’s fastest, simplest and most cost effective marketing vehicle.

As both merchants and affiliates continue to recognize the power of change, affiliate marketing’s best days are yet to come. In a few short years, affiliate marketing looks to become the tail that wags the dog – controlling the majority of the adverting and marketing dollars. Despite the less then impressive advancements in the advertising world and hype, affiliate marketing stays true to its origins as a better way of connecting buyers and sellers and rewarding those that facilitate those relationships.

Founders Club

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Affiliate Marketing: Ultimate Winner or Swiss Cheese Wallet

Wednesday, January 6th, 2010

Have you ever wondered just what it is about affiliate marketing.  I mean it is boasted you can make an ultimate winner income of about $100,000 a year from affiliate marketing.  Or are the 90% of internet marketers correct that are not making money saying your wallet is just swiss cheese with your money just floating through it.  I am not sure myself, but here in the last month I have signed up more than 550 total between three affiliate down lines, and 1000 people in my email list. 

Swiss cheese wallets seem to be the 90% that are not making money with affiliate programs.  People are just watching money drain from their wallets with no results what so ever.  People pay for pay – per – click advertising with Google Adsense, and purchase expensive email leads, and have no success what so ever.  Some Adwords pay – per – clicks can get very expensive.  Good leads can be very expensive depending on who you buy your leads from.  Just to have no luck in making sales, and building down lines.  So is it worth the trouble involved?  Yah, I will be the first to say residual income from an affiliate program down lines is great, who wouldn’t say it isn’t.  But, the expense you have to pay is absolutely, outrageous.  How do the ultimate winners do it.

The ultimate winners on the other hand boast of $1,000. ‘s of dollars per month from sales from affiliate programs.  But, how in the world are they doing it?  Are they using some so called new super Google Adwords program?  No.  Are the ultimate winners purchasing super leads from some secret source? No.  Than what is the difference?  Can anyone just lay it on the line, and tell us how to become ultimate winners!  Can anyone teach us how to prevent the swiss cheese wallet?   

The answers!  The questions to be answered are not elusive.  The internet is full of the answers to building down lines, and the six figure incomes.  The key to understanding the answers is who do you listen too, and study to build those massive down lines and six figure incomes.   Do the gurus have the answers?  Some of the gurus have been on the internet for 10 years, and have established down lines, and email list of 1,000’s of people.  Those same gurus have the credibility almost like Mother Teresa! 

So, than how has the big money earners done the same thing?  Earning millions of dollars with only 2 to 3 years on the internet.  These people have accomplished earning millions of dollars from affiliate programs.   Well, now if you just spend an evening surfing affiliate programs by the truly successful people you will discover they are all doing the same methods and tactics.   I have an idea, but you gotta get it from me; for free.  Yes for free!

 

Founders Club

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Affiliate Marketing: Persistence Pays

Monday, December 28th, 2009

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Affiliate Marketing – My Guru Reveals All

Wednesday, December 23rd, 2009


Copyright 2006 Mdarma

History of affiliates program.

The affiliate program was also known as Associate program. It started around the year 1994 – 1996 and Amazon.com spearheaded with the intention of increasing revenue. It was simply a way of getting web sites directing traffic or buyers towards other sites. By doing this, the traffic to these sites increased.  With this increase in traffic, the revenue also increased.

Affiliate Marketing is really a huge Internet business.  All that is required to do is to sell someone’s product and you will receive commission.  Isn’t it great! Now Clickbank and Commission Junction are large organizations that have capitalized this system.  It gets three parties together, the manufacturer, the agent – affiliate marketer, and the end user.  Do you know by using affiliate marketing you can virtually market anything in the Internet?

Many individuals are using this option successfully and are making a sizeable income.  Affiliate marketing is a cost effective and efficient way to promote products and services in the Internet.

Affiliate marketing is all about promoting or selling other people’s products and services.  Most of these affiliate programs offer a commission of 60-70 % of the selling price.   If you are keen in affiliate marketing, you will need to have your own website. From your website you channel visitors to the affiliate’s main page to do the purchases. To do this, you have to join some programs and represent them to promote their products or services.

The beautiful thing about this business is that you can operate it from your home, well anywhere and at your own time.  Usually you will be paid at the end of the month.  However, some operators have set a minimum amount you have to make before they make the payment.  If one has not made the minimum amount, this money will be added on to your next month earning.

Some operators do have an affiliate program, where you can introduce friends below you and you will also receive a percentage of their earning.  Isn’t this great?

There are some individuals who have mastered the strategy of affiliate marketing and are making good income.  These successful people are sharing their ideas with people like you and me.  All we have to do is to tap their brains and move on with our goals in making sizeable/residual income.

This is a great business opportunity, but it takes a lot of time and effort to build your clientele of people.  Be patient and follow what your guru tells or teaches you.  Success is within you.

 

Founders Club

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Affiliate Marketing – And the Learning Curve

Monday, December 21st, 2009

When you put up your first website – you have to admit that you are pretty green to the ways of the Internet World.  You think that once your website is up, and you have put  your links in place, you will be in the money.  I, and I am sure many, would love that to be true.  Just think how many Super Affiliates we would have.  I will give you a small sampling of what to truly expect.

The Begin of the Begin

You will be excited at first, and you will have a sense of pride in your accomplishment.  Granted, it is no small feat to getting a website up and online.  But this is just the beginning of your Internet Marketing experience.

Once you have your website up, you should be asking yourself — where do I begin, or, what do I do now?  If you are short of cash, which, in most cases people in the beginning are — you can begin by:

1.    Writing articles
2.    Optimizing your site for the search engines
3.    Putting Adsense on your site

All this takes time and work.  But, when you first begin, you do have time to optimize, to write articles, and to put adsense ads on your site.  Why?  It has been said that for the next six months or nine months, Google, and possibly, the other search engines, may put you in the Sandbox.  Some say the Sandbox exists, some says it does not.  Whatever it is called, you will see a degree of dormancy in your site.

My own thinking is that there may be a pre-set time of six months before you see a rise in your unique clicks – I know I did. I feel that there may be several reasons for this:

1.    It’s a great way to protect the Internet community against unscrupulous sites – I figure that these sites have a lifespan of six months before people give them the boot.  It only takes one person to feel the blunt of a scam, before talk in the online forums begins.
2.    Websites go up and go down daily. The search engines are looking at saving themselves time and money.  If you are still on line after six months or nine months, you’re paying your dues, and they may figure you are serious about maintaining a business online.

What Do I Do During That Six or Nine Month Period

First, and foremost – since I have supplied you with this information – do not get frustrated and throw in the towel.  Granted, at first the only clicks you may see is your own, but that will change.

Second, start positioning yourself, so when your dormancy with the search engines ends, you have the quality content, and the quality products to begin to fly.  That means, writing articles, getting your name out to the masses, and learning to utilize Adsense.
And when you have spare change, try your hand at advertising on Adwords.

In the beginning your learning curve is just out of the starting gate – take this time to read, buy appropriate ebooks, experiment and research.  All are important to moving your learning curve to the expert level.

To conclude, a website is just a small part, but an important part, of becoming an Affiliate Marketer.  The other important elements, is persistence, hard work, and marketing. And finally,  if you still have the passion after the initial exhilaration of becoming an online entrepreneur wanes – then you’ll make it.

 

7 Figure Secrets

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