Stupid Question #2 for me this week. Why do you do Affiliate marketing, CPA, and Adsense?

20 replies
Hi Warriors,

As long as I'm on a roll...

Why do rank and file IMers do affiliate marketing when they could spend the effort writing eBooks and programs and a bunch of other stuff and then spend the effort promoting those things. Or at least promote MRR stuff and keep all the money.

Same Question RE: CPA

A different twist on AdSense, last time I checked with adsense TOS you can't have "look alike" ads on the same page with adsense. Why not do that anyway and not worry about adsense and make those "look alike" ads go to your own products.

With everything mentioned above you wait and wait and wait for your money. With promoting your own stuff via PayPal you get Instant CASH.

Just wondering.

George Wright
#adsense #affiliate #cpa #marketing #question #stupid #week
  • Profile picture of the author debra
    Originally Posted by George Wright View Post

    Hi Warriors,

    As long as I'm on a roll...

    Why do rank and file IMers do affiliate marketing when they could spend the effort writing eBooks and programs and a bunch of other stuff and then spend the effort promoting those things. Or at least promote MRR stuff and keep all the money.

    Same Question RE: CPA

    A different twist on AdSense, last time I checked with adsense TOS you can't have "look alike" ads on the same page with adsense. Why not do that anyway and not worry about adsense and make those "look alike" ads go to your own products.

    With everything mentioned above you wait and wait and wait for your money. With promoting your own stuff via PayPal you get Instant CASH.

    Just wondering.

    George Wright
    In a nutshell...because it's easier to promote other ppl's stuff than creating your own. And it's feels safer to promote other ppl's stuff than it is to risk a bombshell with your own product.

    You can outsource traffic generation and any other aspect of site building real cheaply right now. That makes for the perfect recipe for the lazy people.

    Now ...that I just read what I wrote...I think I'll join the bandwagon too. Well, maybe just get the ole toes a little wet anyway.
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  • Profile picture of the author Andy1750
    It's a different skill entirely. The same reason that Microsoft don't make curtains - I wouldn't know where to start. And looking at the Clickbank gravity figures for 99% of products there's a TINY change of success. As an affiliate marketer you can pick products that have a good chance of converting. And if they don't, no matter, move into the next product. In the time it takes to create a product you can set up a number of affiliate marketing websites that bring in predictable and regular income.

    There's nothing that I could wrote an ebook on that you can't buy from Amazon (and a much better version than I could ever come up with). Begs the question why so many people buy ebooks - something which I never understood with the exception of the IM niche.

    Andy
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    Not trying to sell you anything :-)

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  • Profile picture of the author misterwrecker
    Some people like to be salespeople others like to be business owners. (Nothing wrong with either of these.)

    -John
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    • Profile picture of the author sonamlama
      Hey George,

      In regards to the "rank and file IMers", I feel they do affiliate marketing because, they don't have any idea on where to begin to create their own e-book or programs. They perceive as a daunting task that can be done by only professionals or people with an exuberant amount of experience. In addition, they do affiliate marketing because they don't believe that they have the knowledge or valuable content to provide to others. Most importantly, they are hindered by Fear. Fear of Failure, Fear of Loss of money, Fear of embarrassment, Fear of criticism and many other fears that they form in their minds as excuses to not make their own e-books.

      With all that said, I don't judge or criticize what any one chooses to do. We all have different preferences and talents. Some do Affiliate Marketing and some prefer e-books. Just remember it doesn't matter WHAT you do, it's all about HOW you do it. This is the key to success in any venture.
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      • Profile picture of the author W.P. Allen
        Most importantly, they are hindered by Fear. Fear of Failure, Fear of Loss of money, Fear of embarrassment, Fear of criticism and many other fears that they form in their minds as excuses to not make their own e-books.

        With all that said, I don't judge or criticize what any one chooses to do


        I don't create ebooks. I create large affiliate/adsense websites and I do very well. I don't FEAR failure. I don't FEAR loss of money. I don't FEAR embarrassment, criticism, or anything else. It's not fear. It's a different business model. There are some people that make more money with Adsense in one month than people who make their own products do all year (and vice versa). No one business model is better than the other if the person running the model puts in the work necessary to make that model successful.
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        • Profile picture of the author George Wright
          Very Cool!

          I admire that.

          Have you ever created one of those large adsense type sites with the look/like adsense ads pointing to other products. If so did it work for you.

          Speaking of fear, what would you do if Google shut down your adsense account? Or is that not even an issue? I hear about it all the time. (yes I fear )

          Originally Posted by W.P. Allen View Post


          I don't create ebooks. I create large affiliate/adsense websites and I do very well. I don't FEAR failure. I don't FEAR loss of money. I don't FEAR embarrassment, criticism, or anything else. It's not fear. It's a different business model. There are some people that make more money with Adsense in one month than people who make their own products do all year (and vice versa). No one business model is better than the other if the person running the model puts in the work necessary to make that model successful.
          Signature
          "The first chapter sells the book; the last chapter sells the next book." Mickey Spillane
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          • Profile picture of the author fxmmorale
            Hi George,

            You posed a very good question and it's one that I had to seriously consider if I was going to do anything substantial online. I agree with your thinking regarding the affiliate deal.

            I liked it in the beginning because it's so easy to setup an affiliate site with links to converting products, but it really is frustrating having to wait for commissions, especially with Clickbanks threshold policy and paypal confusion.

            MRR is much easier and getting 100% of the take on the spot is far better IMO.

            It's also important to note that as an affiliate you've got to build a list and so long as you are promoting someone else's brand, the likelihood of generating the credibility you need to get your list to buy is like trying to sell ice cubes in Alaska.

            One last thing, as an affiliate it can be very difficult to ever see your online business as a business when there is no commitment involved.

            My thoughts.

            Cheers,
            Nando
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            The Marketing Rinnegato Cometh... stay tuned. This link leads to my Warrior blog...
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          • Profile picture of the author W.P. Allen
            Very Cool!

            I admire that.

            Have you ever created one of those large adsense type sites with the look/like adsense ads pointing to other products. If so did it work for you.

            Speaking of fear, what would you do if Google shut down your adsense account? Or is that not even an issue? I hear about it all the time. (yes I fear )


            Thank you George!

            I have never tried the "look/like ads." On my Adsense sites I put pages of solid information that are SEO'd to get organic traffic and on the affiliate sites I use information + product reviews with a mix of organic and Paid traffic. I build all of my sites around products that I know I can promote as an affiliate so if the big G shuts down my Adsense account I could substitute affiliate ads. But I'm not too worried as I follow Google's TOS to the letter.
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  • Profile picture of the author George Wright
    Ok,

    Fair enough and I do see the points.

    One thing though. There are some very nice MRR products with killer sales pages. Act like an affiliate for them and keep all the money.

    Not trying to argue just trying to see which I'm going to jump in 2010.

    George Wright
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    "The first chapter sells the book; the last chapter sells the next book." Mickey Spillane
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  • Profile picture of the author Josef_Benjamin
    I create my own products because I love what I do and I'm confident in my ability to teach others what I know how to do: and that's making money.

    It wasn't always like that, because there's still the fear of failure when I could just as easily promoted oher peoples products.

    My solution is simple.

    I do both. Create and market free and paid products I create and prmote affiliate products.

    I agree, I like seeing the instant cash in my paypal account from one of my own creations, it's more than just the money...it's the fact that what I created has made me money from my own experinece and creativity. It's fun. I'ts challenging, and I embrace it.

    Most people just aren't comfortable in teaching others what they already know how to do so well. And I'll be the first to admit, it's damn challenging teaching people what comes second nature to you. Because what you miss on purpose, maybe what that person needed to move on to the next step.

    Still, despite my fears, I guess I just do it anyways.
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  • Profile picture of the author Paul Ho
    Personally, I prefer to be a product creator.. but yeah being an affiliate is how we all start out right? I believe for all afilliates there will eventually be a point in time where they'll consider creating their own product.. it's the next natural step. You gotta take a shot sometime right? haha..
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    • Profile picture of the author Midas3 Consulting
      I'll give you one reason George, and this is from personal experience.

      I have a number of products on Clickbank, to be competitive on CB now you need to give away 75% of your product value, this is before you soak up CB fees.

      Out of the pitiful amount of profit you make on sales coming via an affiliate you have to pay somebody to man your helpdesk and generally deal with all the hassle that having products which sell in reasonable quantities creates.

      Now let's look at it from an affiliate perspective, I also promote various products, I can get a 75% payout , which all goes in my pocket, I don't need to do deal with customer service, support, refunds , nada, I don't need to worry about some muppet throwing my ebook, videos / mp3's on to some torrent, or whether some moron is spamming our private forum with his sex ads.

      You also don't have to create a product , update it, deal with delivery and so forth.

      In short as an affiliate you can make the lions share of a products profit without any of the associated hassle.

      That said, as a product owner you benefit from the list size, and backend sales and JV stuff.

      There's pros and cons to both, and I engage in both heavily but there's at least one good reason above as to why affiliate marketing can actually kick product ownership in the ass.
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  • Profile picture of the author Zach Booker
    Awesome question, George!

    It's very interesting to see the different answers coming in.

    As for Clickbank; Simon shares my views exactly.

    But since no one touched on CPA i'll take a stab at it.

    With Clickbank you can, putting it simply, slap up a sales page write an e-book and your done.

    It may not get many affiliates that way; but you still did it.

    With CPA it's much different, and much more difficult.

    There are two main models for CPA. Re-bill and opt-in.

    It should be clear that re-bill's are the free trial's, witch are not all scams FYI. And opt-in is where the consumer puts in his name or e-mail for a free gift.

    There are different models but we won't get into that right now...

    First is the re-bill offer.

    Here is the process; in a nutshell.

    1) Contact a supplier of the product you will be selling.

    2) Contact a telemarketing firm to get your "support". (Yes, these are US based.)

    3) Pay both upfront to start producing and setting up.

    4) Make your sales process in which you will need to try and sell the original consumer on a variety of related products through upsells, down sells, cross sells, and value trojans. (And each product will be physical so you gotta get those made too. Most likely they'll be made to order though.)

    5) Get your sales page designed. Oh it may seem simple having almost a full site above the fold. But these guys pay copywriters sometimes tens of thousands just for the little text snippets on the website.

    6) Get the sales page and back end pages set up by a graphics designer.

    7) Get your payment processor set up.

    Now you should be done the upfront work. (The work that doesn't make you the monies.)

    Now it's time for promotion where you either sink or swim.

    8) Now you need to contact affiliate networks and try and get them to accept your product. (Some networks deny almost 90% of offers.)

    9) Now that your approved in some netoworks you need to be competitive by offering a 32-36 dollar payout, up front. You don't know if any 32 dollar customer will be worth more than that, it's simply a gamble. (Unless you bill them the next day for $96, which is not cool.)

    10) Just because your offer is there, just like Clickbank, doesn't mean people will promote it. Now you need to start to get some super affiliates, people who make up 20-80% of your sales, on your side.

    11) Now let's say you get all the affiliates in the world, cool. Now for the next few months you may be able to make above 100,000 a day. But it won't last long so save some of that!

    12) Now you just made 100,000 a day for a month, awesome. But now you gotta pay out your peeps. So first is your affiliate network, all of a sudden one third to half of your money dissapears.

    Than you gotta pay the rest of your supplies, shippers, and support.

    And deal with any charge backs and legal issues.

    At the end of the day one successful offer will make you a ton of money, don't get me wrong.

    But it will take hard work, dedication, and constant failure to finally see the light and make it all work.

    Total upfront cost can be anywhere from 5-100 thousand. And there is no guarantee that everyone will want to promote your offer; maybe only 1 in 5 will be winners.

    Boy this post is long...

    Now onto Opt-in offers.

    We've all seen these "win a free Ipod offers" around, right?

    But how do they make money and how can they afford to pay you a buck a lead.

    It isn't easy.


    There are less than 5 major players in the opt-in CPA offer field, surprising isn't it?

    (By players I mean only 5 major companies make the opt-in CPA offers; everyone else who tries fails and runs out of money. Or they simply can't get any affiliates.)

    All these 'players' make between 25-40 million a year.

    I won't go into great detail but when someone submits their e-mail they go through a long process of surveys they need to fill out etc

    Than when their done they have a 1 in who knows chance of winning an ipod, laptop, whatever.

    It's complicated and i'm not going to pretend to know the ins and outs of that business model.

    But making these things convert isn't an easy task either.

    These guys split test to death and spend atleast 20k just testing and driving traffic to the offer themselves.

    And as with re-bills you need support, the product your giving away, and money upfront without any guarentee of success.

    In short; Clickbank is a simple process. Sure their are tricks and techniques to making it work that decide who succeeds and who fails.

    But all in all we can all basically see how they work and we can all do it if we wanted to.

    CPA offers aren't so easy, but that's why they make so much more money.

    Zach

    P.S- I don't do Adsense so I can't make an equally long post about that, hehe.
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    • Profile picture of the author Steven Wagenheim
      Somebody could be great at generating traffic but be lousy at writing and
      creating things. Or, they simply have no desire to do it.

      Product creation isn't for everybody.
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  • Profile picture of the author HeySal
    George, in my field, gem hunting, I'd need a terra operation backing up my online to not have affiliate products. You can't download a rock pick or dredge - uh...trust me on that one. For the informational side of the business, you have to be real careful about affiliate products. I'd never
    put up a link for an info product for field use unless I can verify that the writer was writing from
    firsthand experience and not just copycatting. These people are sharp and can spot a fake the first trip out - and word spreads fast in this crowd. When it comes to field info, I would rather
    write my own than affiliate.


    I don't see any sense in ad sense. The ads take people off your site, for the first thing - for a few pennies. My traffic is worth more than 2 cents. How do you connect with your crowd if every time they land on your site they are pulled off into cyberspace somewhere? If they get sucked onto another site - I want it to be an affiliated site.
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    Sal
    When the Roads and Paths end, learn to guide yourself through the wilderness
    Beyond the Path

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  • Profile picture of the author JayXtreme
    I spent 10 years dealing with my father's business..

    Product related support ruined my life... affiliate marketing is easy in comparison.

    I later moved onto my own products and software... but still,to this day.. Affiliate marketing and adsense/advertising income makes up over 70% of my business.. Product creation is not something I would ever do full time.

    I can sell monstrous amounts of most good products, but creation just gets me all cranky...lol

    Peace

    Jay
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    Bare Murkage.........

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  • Profile picture of the author waken
    Originally Posted by George Wright View Post

    Hi Warriors,

    As long as I'm on a roll...

    Why do rank and file IMers do affiliate marketing when they could spend the effort writing eBooks and programs and a bunch of other stuff and then spend the effort promoting those things. Or at least promote MRR stuff and keep all the money.
    George Wright
    It could be a JV and other than the commission that both will enjoy, the list will grow pretty fast and easy.

    There are subjects that it's easier to let other do the writing.

    They can promote anything and on any subject they might not want to build long business upon.

    They can use other peoples' products (effort) to test a new market / niche they intend to venture instead of doing it with all risk on themselves.

    They don't need to worry about customer support.

    Originally Posted by George Wright View Post

    Same Question RE: CPA

    A different twist on AdSense, last time I checked with adsense TOS you can't have "look alike" ads on the same page with adsense. Why not do that anyway and not worry about adsense and make those "look alike" ads go to your own products.

    With everything mentioned above you wait and wait and wait for your money. With promoting your own stuff via PayPal you get Instant CASH.

    Just wondering.

    George Wright
    Because Adsense will blend relevant ads without interference. It's literally hands free once it's set up.

    Because there are niches that they don't have any products created.

    Because it feels good to know that they earned everytime people clicked no matter how much the amount could be.

    Because that was an auto blog from their hundreds of auto blogs.
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  • every income stream counts. it all ads up at the end of the day.
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  • Profile picture of the author sonamlama
    I don't create ebooks. I create large affiliate/adsense websites and I do very well. I don't FEAR failure. I don't FEAR loss of money. I don't FEAR embarrassment, criticism, or anything else. It's not fear. It's a different business model. There are some people that make more money with Adsense in one month than people who make their own products do all year (and vice versa). No one business model is better than the other if the person running the model puts in the work necessary to make that model successful.
    Like I said, every one has their own preference and skill sets. Some prefer Affiliate marketing while others prefer E-books. It just so happens you have chosen to make large affiliate websites and you have found success with it. But some may not have experienced the success you have, most possibly due to, what I was saying, Fear. When it comes down to it, Fear is what rules most people's decisions. You cannot say Fear is not a factor in a person's thought process when it comes to making a crucial decision like this one.
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  • Profile picture of the author discrat
    Originally Posted by George Wright View Post

    Hi Warriors,

    As long as I'm on a roll...

    Why do rank and file IMers do affiliate marketing when they could spend the effort writing eBooks and programs and a bunch of other stuff and then spend the effort promoting those things. Or at least promote MRR stuff and keep all the money.

    Same Question RE: CPA

    A different twist on AdSense, last time I checked with adsense TOS you can't have "look alike" ads on the same page with adsense. Why not do that anyway and not worry about adsense and make those "look alike" ads go to your own products.

    With everything mentioned above you wait and wait and wait for your money. With promoting your own stuff via PayPal you get Instant CASH.

    Just wondering.

    George Wright


    For one thing when you promote a Niche like 'learn spanish' you really dont want to even attempt to try to create a product when you are competing against the likes of native spanish speakers who already have created products like 'Rocket Spanish' .


    BTW, also just ask Allen Says and his Affiliate Marketing Sites that are set up like Adsense Sites and promote Clickbank products . He will be more than happy to explain why you dont need to create your own products to make sick,sick money
    Signature

    Nothing to see here including a Sig so just move on :)

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