If you’ve been common Internet marketing for any amount of time, you should already know how affiliate marketing works: you either earn a commission by promoting other people’s products or you sell your own ultimate commission machine and pay affiliates a portion of your sales to promote you.
In this article, I want to show you the most common online business models and discuss their pros and cons. Then I will give you a step-by-step system designed specifically for those who are just getting started online and want to build a business that generates consistent, reliable income.
The three main methods that everyone references are:
1. Affiliate marketing: Drive traffic to other people’s sites and earn a commission if you make a sale. Commissions are usually paid a couple of times a month through PayPal or ClickBank.
2. Product Creation: Develop your own product and sell it online. In most cases, people begin creating digital products such as an ebook, software, or a membership site.
3. Market Protection under the law: Purchase protection under the law to products that have already been created. These packages usually come with a salesletter, graphics, and a download page.
While these are all viable business models, the question is, which one is best for the newbie?
Structure #1: Affiliate marketing — The easiest way to make Money?
On top, affiliate marketing seems to be the ultimate business for those who are just getting started and want to create a few bucks online.
You might have seen claims like these before:
You should not create your own product. You should not build a website. You should not build a list. You should not take orders. You should not handle back-up and support. All you have to do is DRIVE TRAFFIC to your affiliate link and the sales begins running in…
Unfortunately, acquiring the traffic is where most people don’t succeed. They get disheartened and eventually give up.
Generating traffic is not as easy as most of the ‘Gurus’ claim…
1. Advertising costs have increased and Google has made it harder for affiliates to get traffic without paying reasonably limited price.
2. SEO tactics that worked yesterday may not work tomorrow because the search engines can and will de-index your pages without warning.
3. Blogging platforms. 0 is the latest anger, but who knows how long that will last? It seems that whenever a new traffic strategy comes, everybody advances on the bandwagon and it eventually stops working.
4. Traffic transactions? Safe Lists? Surfing for hits? Don’t make me laugh… They’re all about as worthless as FFA links.
And even if you do eventually work out how to generate consistent traffic, there’s another problem with affiliate marketing…
It’s not a reliable revenue stream because you’re dependent on forces beyond your control.
The fact is, if you leave the sales process up to someone else, your success will be established by what that merchant does or does not do.
Product owners can alter their affiliate links without warning, sell out to a rival, or even drop their affiliate programs and refuse to pay their affiliates.
Many years ago, I promoted a membership site (I won’t mention the name) that paid monthly recurring income. I built up over $1000 in recurring commissions and never got paid a single dime for my efforts!
And then there are the ClickBank merchants who leave commission water leaks all over their site. They make it too straightforward for individuals to steal your commissions.
There are ways to prevent commission theft. But the merchants don’t care because after all, they just want the purchaser leads.
Structure #2: Product Creation — How hard will it be?
Since affiliate marketing has so many flaws, creating your own products would seem to be the solution…
You have more control over the sales process, high profit margins (especially on digital products), and you can get affiliates to promote you.
The problem is, the process can be frustrating — especially if you don’t know what you’re doing. Choosing a market, writing the content, designing the website, and then hoping that it will sell… that’s a lot of work with no guarantee of a bang for your buck.
And let’s face it, most people either can’t or don’t want to write a 60-page ebook. I’ve done it and it’s really a lot of work!
Of course, you can hire a ghostwriter. But good writers cost a lot and you would still really need to get anyone to round up the book for you, write your sales letter, and design your website. The whole process could take months and if you’re a newbie, it may never have finished…
Creating your own product is a great idea if you’re already generating income on line. But when you’re just getting started you can’t take the risk of going through all the work, effort and expense when you don’t even know if your product will sell.
Structure #3: Market Protection under the law — The ultimate Shortcut?
So, if developing your own product isn’t the answer and affiliate marketing alone is capricious… then market protection under the law must be the best solution. Right?
You’re still in control over the sales process. You have high profit margins on digital products. You can still get affiliates to promote you. And you can skip the whole product creation process!
Well even though ebay model seems like the perfect fit for newbies, it also has it’s flaws…
I’m not going to get into all the different flavors of market protection under the law in this report. But I will say that there are basically three ways to buy a market protection under the law licence.
1. You can purchase a package of products that everyone else is selling.
2. You can purchase protection under the law to a product that is limited to a certain number.
3. You can purchase exclusive protection under the law to a product that no one else will be selling.
Exclusive protection under the law — even limited protection under the law — can be expensive (up to $1, 000). And just like creating your own product, you have no guarantee it will sell. Again, not the best option for newbies…
When you have an established business and a good-sized email list, you can take a few risks. And even if the product is a dud, you’ll usually come out ahead.
You might have seen those packages or membership sites full of market protection under the law products that you can buy for pennies on the dollar. Most of them are pure junk. But you can find quite a few diamonds in the rough that are worth selling.
The problem is… everyone else and there dog is selling them too (especially in the I’M market).
So what’s the best structure for newbies?
Here’s the answer you’ve been waiting for… All THREE!
What you may not realize is this: you are not limited to just creating products, selling market protection under the law, or promoting other people’s products.
Internet marketing is not linear… it’s a development. When you’re first starting out, you will need a plan that will generate quick cash. But over time your ultimate goal should be to create a REAL business that generates a nice monthly income.
Now we’ve already determined that promoting affiliate programs from scratch is not the answer. It takes too long to generate free traffic and buying traffic is risky when you don’t know what you’re doing.
You want to make quick cash that you can provide it back into your business and make it grow. So here’s the plan…
1. Begin selling low-cost market protection under the law products ($7 — $27). If you can get private label protection under the law, that’s even better because you can modify the content and add your own affiliate links.
2. Pay affiliates 100% commission to promote for you. This will be the leverage you need to get other people to send you traffic and build your list.
3. Build a list of buyers and sell them high-quality affiliate products. Concentrate on just a few good products that you truly believe will help your subscribers succeed.
4. Re-invest your hard earned money into exclusive protection under the law or create your own product. You can command higher prices for exclusive protection under the law to quality products. Creating your own product is optional. But it will brand you as an expert in your field and gain the respect of your customers.
Obviously, there are many variations of this structure. For instance, you can include an opt-in box (popover, inline, etc. )#). You could utilize a squeeze page. You could add an up-sell, a down-sell, or a one-time offer…
But the main objectives remain the same: Hand out your front-end profits and other individuals to build your list while you make money on the back end.
It’s this that I call an “Automatic Money Machine” and once you set it in motion, it keeps churning out cash like clockwork. And you can go on to build another one.
I hope you enjoyed this article and take action on the you’ve learned.
Great, Derrick Vehicle Dyke
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