Introduction to Affiliate Marketing. (Or how affiliate checks can keep your wine cabinet stocked this year.)
You may have heard that affiliate marketing is a good way to make money on the internet.
And you might fancy well fancy a bit of the affiliate marketing money pie yourself.
After all, it’s not cheap to keep your shoe cupboard overstocked and the children’s margarita habits satisfied.
So what is Affiliate Marketing? Give me an introduction please.
Okay. Thanks for asking.
In affiliate marketing, a business with something to sell, rewards one or more affiliates for each each customer (or visitor) brought about by the affiliate marketer’s marketers efforts.
So basically you, the affiliate marketing dude(tte), get rewarded for marketing someone else’s stuff.
The seller puts all the effort into producing something awesome. Now he wants to sell it to as many people as possible. Because of this, he is prepared to share the money he gets from the sale of the item with you if you can find him some customers.
For downloadable products with negligible distribution costs the seller is often prepared to share 50% of the cost of the item with you, sometimes more. And all you had to do was find someone who wants to buy it.
Cool, eh?
So how I do affiliate marketing effectively?
Well, let’s have a think about the actions that might lead a person to purchase a given product.
Let’s assume that our prospective customer is either:
- ready to buy from a preselected manufacturer, retailer or authority figure
- looking for more information on a product or service
- looking for information to help them solve a problem.
Let’s think about your prospective customer, as he sits in front of his computer, ready to search.
Scenario 1 – Dave has already decided on the product he’s going to buy.
Dave has heard great things about Kevin Hogan and his Secrets of Reading Body Language Home Study Course. He’s a subscriber to Kevin’s newsletter Coffee with Kevin Hogan, and he digs Kevin’s no-nonsense approach to life and work. He learns a ton from Kevin’s newsletter and he trusts and appreciates the Kevin Hogan brand.
Dave is likely to go directly to Kevin’s website, or take a link from Kevin’s newsletters, maybe with a discount coupon code. He’ll buy the Course directly from the source that he trusts.
Is there any way that you could persuade Dave to buy the course through your website, rather than directly from Kevin?
Well it’s not likely, because Dave isn’t looking for anyone else.
Your best chance in this scenario would be to buy prominent advertising on keywords similar to the one’s Kevin uses to promote the product, or to offer compelling extra bonuses or rebates to tempt Dave to buy through you – effectively reducing your margin on sale.
Neither of these options are likely to do very well because you are competing directly with Kevin, who is an established and trusted authority figure. And Dave isn’t looking for you anyway.
Oh well.
Scenario 2 – Marie is looking to buy a certain type of product, but doesn’t know which one.
Marie had a great conversation with her friends last night about body language. She becomes fascinated by the subject. Her friend John tells her that he took a great weekend course on body language and it helped him to improve his personal and business relationships enormously.
Marie goes online to search for body language courses in her local area of Wichita, Kansas.
Is there a possibility that Marie could buy the Kevin Hogan home study course through your website?
Well, yes. But you will need to be the answer to the question that she was searching for.
Marie was looking for body language courses in Wichita. If you know something about that subject then maybe you can create a website that Marie will visit?
Maybe you’ll have a website with reviews and listings of different courses around the U.S. or within Kansas. On that website you’ll could also have a review of Kevin’s Home Study course, or a relevant sales letter. Marie might decide that, although she was looking for local weekend courses, she quite likes the idea of being able to study at home. And if she buys the course you make a share of the profit.
In this scenario you have created a niche market - people looking for local weekend courses.
If you concentrate your efforts in building a resource rich website in this area, or buy advertising in this niche area then we can attract visitors and sell some copies of the course.
It’s not a great niche, because there is little emotion associated with the common problems and passions of the group. But it’s a step forward from Scenario 2.
Scenario 3 – Susan is pissed that her husband cheated on her.
Susan’s husband cheated on her last year.
She’s hurt and she wants to be sure this doesn’t happen again.
She goes online and searches for information on how to be sure she is never lied to again.
In this scenario, is there a possibility that Marie could wind up buying the Kevin Hogan home study course through your website?
Of course. But, just like before, you need to be the answer to the question that Susan is asking.
Maybe you have a website with articles and advice targeted at married women trying to deal with their husband’s infidelity. Maybe you have a specific page dedicated to reading body language to ensure that you are never lied to again. Maybe this page will contain a summary of your experiences with the Home Study Course and a link to purchase it.
It doesn’t really matter. What matters is that we have defined a niche. And in concentrating on that niche, you have been able to provide the answer to the question Susan is looking for. Once you have her attention you can then offer her the chance to buy the course from you.
This niche is probably going to be more profitable to you than the previous one because there is a large amount of emotion associated with the common problem the group experiences.
Do you see how this works?
Good. So, how do you decide what affiliate product to promote, and how are you going to decide what niche to target?
I would start with thinking about your own personal experience. Is there a product you have bought recently that you have had a lot of value from? Ask yourself the following questions:
- Why did you buy the product?
- What in particular benefits did you get from the product?
- What kind of people do you most identify with?
- How could the product benefit your friends?
It can be a great approach if you have personally received a lot of value from the product and have a clear idea of an accessible group who could obtain similar value from it.
Good luck! And let me know how you get on.
See you later dude.
JJ Jalopy.
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Comment by Lynn Lane
4 October 2009
JJ,
The affiliate game is well defined in your post. I think you have it all covered. Some points that I will think on for my affiliate marketing.
Thanks.
Lynn Lane
http://www.Warriorofsuccess.com
Lynn Lane´s last blog ..Success Drafting.
Comment by Lisa McLellan
5 October 2009
I love affiliate marketing! That’s where I make almost all my money!
Lisa McLellan
Child Care Expert,
Babysitting Services, Babysitting Tips, Babysitters, Nannies
Comment by Steve Chambers
5 October 2009
Nice intro to affiliate marketing
Steve Chambers
Sales Training Speaker
Comment by John Ho
5 October 2009
JJ,
Great info as usual.
Affiliate marketing kicks start one’s internet business without the need to have their own products.
To ride on existing winners is a smart way of integration marketing.
John Ho
Numerology Expert Birthday Numeroscope
John Ho´s last blog ..“Numerologist Expert Asks: Is Elvis Presley Still Alive?
Comment by Las Vegas Online Dating Coach and Dating and Relationship Expert
5 October 2009
Hi JJ,
great job of providing an excellent and clear presentation on affiliate marketing. Love how you include the photos! (oooo, Jude – handsome bloke indeed!0 And do so with your fun sense of humor as well. You make it very easy to follow and easy to understand.
Great job, JJ.
Happy Dating and Relationships,
April Braswell
Online Dating Coach and Dating and Relationship Expert
Comment by Pam Schulz
8 October 2009
Great introduction to affiliate marketing. The key is to be the answer to the question people are asking.
Pam
Expert Houston Retirement Planning & Wealth Management Services
Pam Schulz´s last blog ..An Interesting Fact
Comment by JJ Jalopy
14 October 2009
@Lisa – Awesome. Great job!
@Steve @John – Thanks. I try!
@April – I am rather handsome aren’t I? Thanks!
Comment by Darryl Pace
27 October 2009
JJ,
That was a great post. I think I know what my niche is, but I’m unsure if I should focus my website on that niche, or if I should leave my website as kind of a general fitness-related website, and have a separate single-page website that targets my niche. What do you think?
Health, Fitness for Working People — Darryl Pace
Comment by JJ Jalopy
27 October 2009
@Darryl – Good question bro.
There’s a huge amount of competition in the fitness market, so I’d look for a backdoor that will let you sneak into the market in a niche that you can really dominate. You can do this by really niching down, as you suggest.
I’d suggest focussing your entire site on that niche, at least for the time being, as it’ll give you the extra google-juice that you might need.
The best way to dominate a niche, by the way, is to spy on a competitor, copy what they’re doing and do it better. A little espionage can be fun!