How One Network is going to Produce $968,238.96 | Big Business Talk

by LMC
4 replies
Hey Guys,

Hope everyone's new year was exceptional and that your families are well. I wanted to welcome the WF to 2011 with a great post.

This post is going to discuss some big business aspects to creating a network that will produce $968,238.96. Ok... well that number is well calculated estimation, but still this information is going to be solid.

Now if you don't know me, I am an avid affiliate marketer, website builder, and idea generator. I run a virtual real estate portfolio which brings in passive income for bigger projects. Here is an example of one of those bigger projects.

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We all know that the creator of any product will always be on top. As the creator you have the power to having an army of affiliates, you also have the power to setup up websites targetting specific keywords and having those micro sites each with there own shopping cart without the use of affiliate links.

One of the big problems is "creating the product". Now, I'm not an info product creator, I deal with mainly tangiable goods. For me to create my own tangiable product is just insane....

But at the end of 2010 I contacted a few companies that seemed to have great product but with limited to NO online presence.

Instead of contacting them about SEO services, I contacted to find out if they would be interested in allowing me to be there salesforce on the Internet. I proposed setting up a multiple site network and managing an affiliate program for them.

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January 3rd, I received contact from one of the companies that was interested in my proposal. They have a unique product that has a great search volume and they are going to give me their profit margin...

What does that mean?

They sell their product to distributors at $55, the product retails at $70, meaning I can personally collect $15 on every item I sell.

In essence I'm creating an exclusive partnership with the company. They make their profit, I collect $15, which is around a 20% commission.

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The plan we have fabricated is to have a 13 website network attacking different keywords in the niche that will produce volumes of over 25,000 uniques per month.

Each website will have it's own shopping cart on it and each sale will come into a main hub for the company to see and then distribute accordingly.

The BIG pro is that there is no redirect. The sale is made on the website. No affiliate link, no loss of value on the website.

The BIGGER pro is that the margin is large enough for us to create a second tier affiliate program on each website.

Meaning, we will offer affiliate of OUR website 10%, they will collect $7.50 per sale. We will collect $7.50 on their sale, and the company received their wholesale value.

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The 13 website network really will need limited to no promotion because the affiliate army is going to be promoting the website, providing backlinks and link juice moving us naturally up into the SERPS to acquire our own positions...

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It was actually easier then expected to put together this deal, and we are in talks with working another company.

I reccomend that you look in your local areas and see if there is any company that offers a unique product or has no online presence.

BECOME the salesforce. Work out the numbers and see if you can position an affiliate program for yourself and the company.

It will be BIG money.

Even if it's just a mom and pop store selling clothing, if the margin is there... damage can be done.
#$968 #big #business #network #produce #talk
  • Profile picture of the author Drewry_Media
    Make sure you have a good lawyer that will back you all the way when you sign the contract in promoting your idea. Some companies are shady. Just trying to help.
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    • Profile picture of the author dkpalmer
      Thanks for taking the time to post this LMC. Really good info. Hopefully someday I can pull something like this off.
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  • Profile picture of the author Matt.Lake
    Hey Steve,

    Interesting post as usual.

    Just a couple of things:

    1. Why create a multiple site network over having just one big site going after all keywords?

    Presumably so you can use exact match domains for each sub-site?

    2. How do you intend to recruit affiliates?

    3. You say each site will require little SEO promotion due to affiliates linking to the site. Are these types of links really effective? I would of thought Google is smart enough to know that these are essentially paid links, and thus offer no weight to them?

    Interested in your comments!

    Thanks again,

    Matt
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  • Profile picture of the author LMC
    Thanks for the comments.

    Matt, the multiple site network is because the product enters into different markets, for example imagine you were marketing a "backpack".

    You can market it to students, college students, commuters, tourists, hikers, campers, etc, etc

    Instead of building ONE site dedicated to marketing to all these verticals, I build 6 sites, that target each specific market.

    2) I intend to recruit affiliates by first befriending webmasters in the niche and offering them an exclusive affilaite opportunity. Present them with the creatives and tools to ease success for them.

    Once we build the network up, we intend on listing apart of CJ and other affiliate networks.

    3) There would be less value, but the value is still there. It all depends on the structure of the affilaite program. For example, those that we are going to create 'exclusive' partnerships with won't have your standard af=id tags, but will have their own custom subdomain, with there own checkout, and this is how the sales will be tracked.

    In the above case, all links to this subdomain would count.

    I'm not 100% positive on how all the links would react, but besides the direct linking, the affiliates will push traffic (which i'm sure you already know).
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