What is the 'real' profit?

Hi prasanth5,

You've hit the nail on the head there, because starting from scratch every week with no sales is no way to build a business.

That's why, if you want to sell stuff as an affiliate, the right way is to find a niche with plenty of different affiliate products.

Then, create a free gift and squeeze page, related to that niche and capture names of prospects interested in the subject - before you mention a specific product they might be interested in.

Then, sandwiched between several emails of good free content, send them an email directing them to a site where you review one of the products in that niche.

Some will buy, most won't.

But what that means is you have an income producing asset in the form of a list in targeted prospects whom you can offer the whole range of products in that niche (always remembering to continue to build that relationship of trust by sending plenty of free stuff in between the promos).

In the end, you might convert 60 or even 70% of your list to eventually buying one or more of the products you promote (particularly if you target a niche where multiple purchases are the norm (sports, hobbies, make money etc). Compare that with a one hit chance of a sale if you do it the way most gooroos teach.

But, although affiliate marketing is the fastest way to see some income coming in, I only regard that as a first phase in a long term on line business plan.

When you have a growing list and a separate review site for each affiliate product in that particular niche, you want to create your own product in that same niche. By then, you'll know all the other products inside-out and backwards and so will be able to produce something even better.

Then you get an army of affiliates selling your product.

Finally, you move up to the penthouse suite of internet marketing and join the top dogs with some sort of continuity program, such as a membership site, paying you a regular, repeating monthly income.

Then you'll have found the holy grail of a passive on line income.

Warmest regards,

Paul

P.S. as you can see, below - I'm speaking from personal experience!

This is also why promoting recurring subscriptions is a good idea. If you can get somebody to sign up for a monthly service and get 20% of their payments you can get a pretty nice stream of cash built up.

Hi

I agree with Paul Hooper-Kelly, but if you are looking for a system that will create income every month, maybe you should have a look at a MLM system.
With most of them you still start from scratch every month, but as soon as you have a team, you efforts are multiplied.

Regards

Real Profit = income - Operating Cost ( money and most importantly, your time)

The goal with PPC is to define a CPA and get below it. For example if I sell a product for $50 and my supplier sells me the product for $30 then I have $20 to play with. That $20 makes up my CPA for my campaigns.

I might only wish to break-even on the front end. Building that mailing list in the back might be my whole strategy. You only need a stead 200-300 orders a day and you're building a very nice mailing list.

It's just having the cash flow to push so many orders per day and if you can achieve that volume with your current CPA.

It basically works like that...

I admit I haven't been out of school very long, and I did "modern math" too, but I can't even see a $20 profit there, let alone being happy with it.

To me, it doesn't matter whether it's each month, or each week, or each day, or whatever: I don't expect to be paid commissions if I haven't referred any sales.

Well, I think they should all be picked with great care, yes.

But I don't expect commissions for anything other than sales of the company's products/services.

Even in network marketing companies (i.e. "multi-tiered affiliate sales"), it's still lawful (in most of the world) to be paid commissions only on the commissionable element of sales of the company's products/services, after all: it isn't legal to be paid for sponsoring/recruiting, or out of people's "joining fees" - those aren't network marketing companies: they're illegal pyramid scams pretending to be network marketing companies.

Quite apart from any legal or ethical considerations, I'd certainly want to stay away from companies who are paying out anything that isn't directly derived from sales of its products/services, wouldn't you? They're not going to last for ever, are they?

I agree with what Alexa Smith has said. Having accepted it I would say that IM could still be very interesting even if selling has to be done from the scratch each month.

Except Alexa everybody else seems to miss the fact that in the original example there is a net $20 LOSS, not profit

Isn't that a loss? In that case, NO!!

Ya multi-tier affiliate programs are becoming more and more popular now because affiliates want to leverage their downlines work too...

The link in my sig file is actually a new affiliate opportunity that is multi-tier with 100% commissions, but the best part is that the commissions are recurring. I think the best thing to do is promote recurring offers especially if the program you are promoting has a strong retention rate.