google
yahoo
bing

Affiliate Marketing Business Model

Posted on May 26, 2009 in Affiliate Information  

From time to time I get the question about Affiliate marketing as a Business model. So of course i give my opinion. My opinion is that it is one of the easy ways to start a business, you need little cash on hand (you could even start with none using free services squidoo, blogspot etc.. (although i don’t recommend it for long term)). Some comparisons of Affiliate Marketing Business and the so called standard business model.

Startup Cash:
Affiliate Marketing $0 to $5,000 (While you could startup with more you really should be able to make a go at affiliate marketing with 5K)
Standard Business $5,000 to $100,000 (or more)

Defining Customers and Target:
Affiliate Marketing – 1 day to 2 weeks choose the offer and your customer target is basically defined, plus some research on your end using free tools (Google Adwords, search engine trends, etc..)
Standard Business – up to 6 months or more as at time with a standard business to find and attract your customers and narrow down your real target audience.

Becomng profitable:
Affiliate Maketing – you can be profitable from day one but lets be a little more realistic that within a month or so you should be profitable, even if it is only like 1/2%.
Standard Business – Many standard business don’t plan on making a profit until the 2nd year!

As you can see from the information about starting a business with Affiliate Marketing is much faster paced and cheaper. Which is part of the reason i got into it. But as with any business if you aren’t determined to succeed and willing to fight even when things are going bad your business will fail. You must learn to adapt to new ways much quicker online than you would in standard business but thats part of the fun.



Digg it! Del.icio.us  Fark it! Add to Furl Add to Newsvine Add it to Netscape for voting Reddit! Add to Technorati Add it to Google Bookmarks Add to Yahoo! MyWeb


Comments

5 Responses to “Affiliate Marketing Business Model”

  1. Lee on May 26th, 2009 1:03 pm

    How much should an affiliate marketer be prepared to lose before finding his/her first profitable campaign?

  2. CPA Affiliates on May 26th, 2009 1:08 pm

    The amount prepared to lose is no more than you are willing to lose. I would not bet my last 100 on AFF marketing but if you have 100 to 500 to play around with on PPC etc.. than go for it. As you will LOSE some money the key is to learn quickly so the loss turns to profit quickly :) .

  3. Cricket on May 26th, 2009 1:16 pm

    With the economy still struggling, I see more and more people looking for ways to increase their earnings online. Do you have any specific tips for choosing an affiliate company to work with? Or, should they look for specific companies with affiliate programs?

  4. Juniper on May 26th, 2009 1:56 pm

    Would you recommend getting a credit card to fund large adwords campaigns, or should I stick with the cash on hand? I’m worried I’m going to screw up and end up having a big balance that I can’t pay off because an offer doesn’t convert.

  5. adamsdavid on May 28th, 2009 11:53 am

    Most definitely utilize a credit, especially once you get in a groove with some successful campaigns. It is also smart to get a credit card with a nice cash back or rewards program. The beauty of affiliate marketing and credit cards is that your payments from the networks will likely come in before you get your credit card bill in the mail.

Leave a Reply