Tuesday, May 29, 2007

Affiliate Marketing - A Goldmine at 50 Percent Per Sale

I could never understand why anyone would pay me 50 percent of their selling price when I sent a customer to their site and that customer buys their product?

Wow to me this seems more like a goldmine!

On the other hand maybe they have a good reason for paying so much. The product owner might know that it is not easy and takes a lot of work to get people to buy products. Even at 50% commission you will be working and after paying for all your advertising costs your commission may not meet your costs. So they are happy to pay half of what they collect in commissions to you and in some cases actually price their product and then add the affiliate commission to get their selling price.

Now have you seen those emails where they tell you that if you buy a certain product you can then sell that product with 100% going into your Paypal account? Up until recently I always wondered how these people ever made any money out of this. It just didn't make sense to me. Then I realised that product promoter didn't want to make money out of this product. It is in the future sales to that customer where the product promoters profits will be realized. He was in fact into niche list building so that he could then use his newly acquired customers details to promote more expensive products in that particular niche. Basically he was using the fact that you the affiliate wanted a quick small gain to help build his list and not yours. He was focused on the long-term rewards and was prepared to lose in the short term.

BY now you would have worked it out that product promoter does know what he is doing and is not crazy giving away so much money in commissions. He only has to give the commission away once because he now has the buyer's name on his list and can therefore sell him further products without paying further commissions to affiliates. In the mean time the affiliate must continue to find more and more buyers through expensive marketing while the product promoter now uses his autoresponder to send out further offers to those buyers found originally by the affiliates.

Now you know why product promoter can afford to give away such big affiliate commissions.

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