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

10 Things You Didn’t Know About Affiliate Marketing

Most people have heard of affiliate marketing, even if they haven’t actually started doing it. Affiliate marketing is basically referring people to various products and services around the internet. For each sale you generate through your affiliate link, you earn a commission. The size of the commission depends on the products themselves, who is selling them and the percentage offered by the seller to the affiliate.

But what is actually involved in affiliate marketing? What do affiliates do on a daily basis? How do they earn money and how do they learn what to do?

1 An Example Of A Successful Website

There’s several ways of marketing products and services online. Many affiliates create a blog first and sell products and services through their blog. Martin Lewis has a very successful website called moneysavingexpert.com. This is also an affiliate website. By creating content and helping people decide which service to use: which credit card offers to choose, the best interest rate etc. moneysavingexpert.com makes money by sending website visitors to various offers. If a sale is made through this website, the link this credited to it and a commission is made. By creating content, offering value and helping people make sensible choices, the website has built a reputation and become more prevalent over time. Google ranks the site highly in the search engines and thousands of people use it to make purchasing decisions every day.

2 How Can I Get Started As An Affiliate?

Affiliate marketing is huge. There are thousands of people already making their main source of income from the internet. To get started as an affiliate you need to learn some basic strategies and build various methods of generating traffic from the internet to those offers. A lot of affiliates start with a simple blog. Many travelers ‘blog’ about their travels. If you don’t have a passion or interest to blog about, you can start by following an online course which will help. See my bio for more info on this.

3 How Long Does It Take To Make A Living?

Some people go into affiliate marketing with the intention of creating a second income. Some people want to make big money. Depending on how much time you can dedicate to your affiliate business, and how dedicated you are to it, is a big factor in determining your results. Results vary from person to person. With a large advertising budget and the right business model, some affiliates have replaced their living in 6-12 months. For others it can take years before it replaces their existing income. Depending on your approach, advertising budget, and business model, it can take between 3 months and several years to build it to a point where it can replace an existing income.

4 Can Anyone Do It?

One of the great things about affiliate marketing is that the technology is now available to allow anyone to build their own online business. As long as you are prepared to learn and implement that knowledge, anyone who can operate an email, can use online platforms and tools to build their own online business. The main thing you need is the desire to learn. Affiliate marketing isn’t for everyone though. It does take a lot of hard work and it can take years before you are rewarded financially.

5 What Are The Pitfalls Of An Affiliate Business?

You need to dedicate some time to your affiliate business for it to work for the long term. Some people go into affiliate marketing thinking it is some magic pill which will pay them instantly in cash. Much like a job you can’t expect to get out more than you put in. Affiliate marketing is performance related. This means you don’t get paid unless you can successfully sell products and services online. If you don’t know what you are doing it can take years to do this. You can’t be a dabbler and expect to earn the big money. The big earnings are created over years of hard work. Don’t expect to achieve this with only a small amount of input.

6 What Are The Best Things About Affiliate Marketing?

Affiliate marketing offers an incredible amount of flexibility and freedom. You can work an affiliate business from anywhere in the world providing you have a laptop and an internet connection. You can choose your own hours and build it up around existing work. Many people come into affiliate marketing because it offers this kind of flexibility. They can choose their priorities in life: spend more time with family, choose your working hours, travel and work abroad. No more commuting to work or working long hours for a boss you don’t like.

Affiliate marketing also offers incredible scalability. A business which is local is always limited to the people who can travel to that business. An online business can be global. Using digital products in conjunction with a global reach, you can scale using tools and software to reach thousands of people through digital technology. By using automation much of the work involved with an online business can be pre-built. By building automation into the business model, you can focus your activities on reaching a larger audience through content creation and paid advertising.

7 Why Am I Struggling With My Affiliate Business?

A lot of people struggle with their affiliate businesses.This can be for a number of reasons. Firstly building up an affiliate business takes time. You need to dedicate a lot of time to an affiliate business in the first place. Only when you reach a ‘tipping point’ do you really start to see your progress. Many affiliates simply don’t realise how much work is involved. They underestimate how much time they need to dedicate to their online business to make it work.
Paid advertising can allow you to grow your affiliate business quickly. But it costs money and you need the right products too. You can’t advertise small value items with paid advertising. You won’t generate enough profit to cover your advertising costs. You need a range of products and an email list to advertise through.
Content marketing takes much longer to work, depending on your chosen area of business. If you find an untapped niche to market your blog in, you can make some fast progress. However, with a competitive niche you will struggle to get noticed above all the other content which you will have to compete with. There’s several reasons why you might struggle. The main one is lack of knowledge. Get the right education first and your affiliate business will move much faster.

8 What’s The Best Affiliate Model To Use?

There are many different affiliate models, all offering something different to suit the individual. Some affiliates target search traffic and aim to get their content found on Google. Some create their own products and sell them directly to customers. However, having a range of products which you can sell over and over to existing customers is a great model for long term success. Selling a single item online is limited. It means you can only make one commission from each sale. By choosing membership products to promote which also offer back end sales and a built in sales team, you can benefit from monthly commissions and up-sell commissions for the lifetime of any given customer. Selling membership products is definitely a game changer when it come to affiliate marketing because you make an income from each customer, rather than a single commission. But a good model to choose is one in which you have a passion for and can keep doing for the long term. Choosing products which you have no interest in is a short sighted plan. Think about what you would like to do online to generate an income. If you choose to go with your passion, your business will last much longer, and be more successful.

9 Can I Just Sell My Own Products?

Many affiliates create their own products to sell online. However, when you are starting out it is a good idea to learn the basics of marketing first. That way you can start earning more quickly from your affiliate business. I spent a long time creating my own products when I first discovered affiliate marketing. But I didn’t sell anything because of a couple of reasons. Firstly I didn’t research whether my products would have a big enough demand. Secondly I didn’t know how to market them. By joining a program which teaches you how to market products first, you can start making money more quickly. Don’t waste time creating products if you don’t know how to sell them. Marketing is a much more important skill for making money online. Once you know this skill, you can then apply it later when marketing your own products and services. Also your own products will be limited in range. By using an existing product range, you can benefit from products which are already selling. You can choose a program which offers high ticket commission, monthly memberships, back end sales and a built in sales team. Building your own products which offers all of these things not a possibility for most people when starting out.

10 What’s The Point Of Affiliate Marketing?

Some people struggle with the concept of affiliate marketing.They think it sounds too ‘salesy’. When I understood affiliate marketing I immediately found it appealing simply because I needed a flexible way to work around my contract work. I had to drop what I was doing at a moments notice if the phone went. This meant other jobs were awkward to juggle around. No-one wants to employ a ‘flaky’ employee. I wanted to work from my laptop and affiliate marketing gave me that opportunity. For many people this is the reason why they choose affiliate marketing. They can earn an income from their laptop, choose their working hours and not have a boss or place of employment. You don’t have to sell directly to anyone or even talk to a customer. There is no stock to hold. Added to this, the scalability of affiliate marketing which lets you scale up to a global audience and deliver products on autopilot, makes it the best flexible business of the future.