Which is better....creating Your Own Product or being an Affiliate?

53 replies
Ok...I know, I inherently made this question 'vague' with words like "better"....lol.....

....but, I was wondering, based on everyone's own personal experience, which has been 'better' to do?

....do you do BOTH? (creating and develop your own product, and affiliate for other's products)

Which one has been MOST lucrative for you?
#affiliate #bettercreating #product
  • Profile picture of the author Suthan M
    Infoproduct creation has been one of the most lucrative thing for me.. Affiliate not so !

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    Whats the latest movie you watched? Anything good?

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    • Profile picture of the author x3xsolxdierx3x
      Originally Posted by Suthan M View Post

      Infoproduct creation has been one of the most lucrative thing for me.. Affiliate not so !

      Did you do affiliations through Clickbank/ Commission Junction / Linkshare?....

      on a side note, I've found LOGO sale to be very lucrative....it's a really easy sale....

      anyone try it?
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      • Profile picture of the author Kevin Riley
        Your own products. Comparing this to promoting other people's products, selling your own allows you to bring in leverage - all the promotion done by your affiliates. As an affiliate, it's only you promoting.

        For example:

        Affiliate promotes a $20 product and gets 50% commission. Their effort nets them 10 sales/week = $100 commission/week

        Product owner promotes their $20 product. As they are busy creating products, they only get 5 sales/week = $100 sales/week.

        But, a few affiliates also promote product and net another 10 sales/week @ 50% commission = $100 sales/week

        Here alone, the product creator is making $200 total sales/week
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        Kevin Riley, long-time Warrior living in Osaka, Japan

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        • Profile picture of the author x3xsolxdierx3x
          Originally Posted by Kevin Riley View Post

          Your own products. Comparing this to promoting other people's products, selling your own allows you to bring in leverage - all the promotion done by your affiliates. As an affiliate, it's only you promoting.

          For example:

          Affiliate promotes a $20 product and gets 50% commission. Their effort nets them 10 sales/week = $100 commission/week

          Product owner promotes their $20 product. As they are busy creating products, they only get 5 sales/week = $100 sales/week.

          But, a few affiliates also promote product and net another 10 sales/week @ 50% commission = $100 sales/week

          Here alone, the product creator is making $200 total sales/week
          Do you do 'well' creating your own products, Kevin? You seem like you know what you're talking about....
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          • Profile picture of the author Kevin Riley
            Originally Posted by x3xsolxdierx3x View Post

            Do you do 'well' creating your own products, Kevin? You seem like you know what you're talking about....
            IMO, very well. I've built up a good line of products, which I believe is key to good steady streams of income.
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            Kevin Riley, long-time Warrior living in Osaka, Japan

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        • Profile picture of the author Brad Spencer
          Originally Posted by Kevin Riley View Post

          Your own products. Comparing this to promoting other people's products, selling your own allows you to bring in leverage - all the promotion done by your affiliates. As an affiliate, it's only you promoting.

          For example:

          Affiliate promotes a $20 product and gets 50% commission. Their effort nets them 10 sales/week = $100 commission/week

          Product owner promotes their $20 product. As they are busy creating products, they only get 5 sales/week = $100 sales/week.

          But, a few affiliates also promote product and net another 10 sales/week @ 50% commission = $100 sales/week

          Here alone, the product creator is making $200 total sales/week
          Couldn't have said it better.

          Plus if you learn how to create things fast, you can be busy creating products yet still selling a ton

          Brilliant.

          Cheers,

          Brad
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      • Profile picture of the author GlenH
        For me, the only way to go is developing my own products.

        In my case it's software applications.

        The profit potential of selling software products far outweighs any downside.

        But that's just my experience.

        --Glen
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      • Profile picture of the author Suthan M
        Originally Posted by x3xsolxdierx3x View Post

        Did you do affiliations through Clickbank/ Commission Junction / Linkshare?....

        on a side note, I've found LOGO sale to be very lucrative....it's a really easy sale....

        anyone try it?
        Clickbank, yes ... , not with CJ though...
        Signature

        Whats the latest movie you watched? Anything good?

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  • Profile picture of the author Tsnyder
    The best business for you is the one that captures your interest
    and motivates you to action. There really is no better or best beyond
    that.

    There's a lot, positive and negative, to be said about either model.

    Tsnyder
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    If you knew what I know you'd be doing what I do...
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  • Profile picture of the author TheRichJerksNet
    This depends upon what you want to do .. Personally myself I push no affiliate products, I create all my own products or do some joint ventures with others but I am still in the creation mode even for this...

    Affiliate Marketing can net you a nice income and so can product creation, it just depends upon what you like to do and what is easier for you to do ...

    James
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  • Profile picture of the author maksym
    I also put my vote on product creating by yourself.
    Too many advantages on that!
    Regarding promoting, CB is the easiest and cheapest way.
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  • Profile picture of the author thescribe
    Which one is best is subjective - it is all about what works for you. Being an affiliate may work best for those who want none of the headaches of handling customer concerns. Being a product creator may work better for those who want and feel they need more control over the process...
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  • Profile picture of the author sbucciarel
    Banned
    My own products are much more lucrative than affiliate marketing for me, plus I enjoy it a lot more.
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  • Profile picture of the author Kevin_Hutto
    Product creation is more lucrative for me... Affiliates sell products for me. I am able to build my lists. Build customer loyalty to my brands & products and then either create new products for my list or pick out affiliate stuff to sell to my lists as a cherry on top. But, my bills have been paid all these years by MY products not someone elses.

    Also, as an aside, in most cases it is much more difficult to make money with affiliate products via PPC... Now, of course people do it, but the margins are much thinner and it is more difficult for them than me. For example, I have a golf product I sell for $50. There are affiliate offers in the niche that people are marketing. Generally it costs me $20 in adwords to make a $50 sale. Now, for the affiliates in the space... One offer costs $99 and they get a $25 commission. Another costs $50 like mine and again there is a $25 commission. Now, someone who is very skilled in adwords can get clicks as cheap as mine (or close to it -- over time) but they are only going to make $5 profit per sale while I make $30 per sale.

    So, I recommend creating your own products if you can.

    But, one word of caution... On the flip side of the coin, you really have to understand and be proficient at testing, sales funnels, writing copy and several other important skills to make product creation work. I cant tell you how many times I talk to people who have a "great idea" for a product -- that will never sell. So you have to be able to test markets quickly and move on... Cut your losers fast and let your winners run.
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    • Profile picture of the author x3xsolxdierx3x
      Originally Posted by Kevin_Hutto View Post

      Product creation is more lucrative for me... Affiliates sell products for me. I am able to build my lists. Build customer loyalty to my brands & products and then either create new products for my list or pick out affiliate stuff to sell to my lists as a cherry on top. But, my bills have been paid all these years by MY products not someone elses.

      Also, as an aside, in most cases it is much more difficult to make money with affiliate products via PPC... Now, of course people do it, but the margins are much thinner and it is more difficult for them than me. For example, I have a golf product I sell for $50. There are affiliate offers in the niche that people are marketing. Generally it costs me $20 in adwords to make a $50 sale. Now, for the affiliates in the space... One offer costs $99 and they get a $25 commission. Another costs $50 like mine and again there is a $25 commission. Now, someone who is very skilled in adwords can get clicks as cheap as mine (or close to it -- over time) but they are only going to make $5 profit per sale while I make $30 per sale.

      So, I recommend creating your own products if you can.

      But, one word of caution... On the flip side of the coin, you really have to understand and be proficient at testing, sales funnels, writing copy and several other important skills to make product creation work. I cant tell you how many times I talk to people who have a "great idea" for a product -- that will never sell. So you have to be able to test markets quickly and move on... Cut your losers fast and let your winners run.
      I know it probably differs for everyone, but how many affiliates should one aim to have? does 100 sound good? ....are you ever very selective when picking affiliates, or do you let just anyone affiliate with you?

      (I guess alot of this probably "just depends"....)

      oh...and, one more question, is there ever a time where somebody WOULDN'T want to have affiliates?
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      • Profile picture of the author Kevin_Hutto
        Originally Posted by x3xsolxdierx3x View Post

        I know it probably differs for everyone, but how many affiliates should one aim to have? does 100 sound good? ....are you ever very selective when picking affiliates, or do you let just anyone affiliate with you?

        (I guess alot of this probably "just depends"....)

        oh...and, one more question, is there ever a time where somebody WOULDN'T want to have affiliates?
        Honestly, one of the advantages of having your own product is that you can make lots of money without ANY affiliates if its a winner-- just market it yourself via ppc... but that being said, most of my products I just put them on clickbank and try to work them up the gravity ladder until i start picking up good affiliates.

        And as for the time when you WOULDNT want affiliates.... When you have a cash cow that has ZERO competition and you want to keep it that way. If you put it up on CB and its a real winner, you will probably get some copycats which could hurt you if you are sitting on an undiscovered goldmine.
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        • Profile picture of the author x3xsolxdierx3x
          Originally Posted by Kevin_Hutto View Post

          Honestly, one of the advantages of having your own product is that you can make lots of money without ANY affiliates if its a winner-- just market it yourself via ppc... but that being said, most of my products I just put them on clickbank and try to work them up the gravity ladder until i start picking up good affiliates.

          And as for the time when you WOULDNT want affiliates.... When you have a cash cow that has ZERO competition and you want to keep it that way. If you put it up on CB and its a real winner, you will probably get some copycats which could hurt you if you are sitting on an undiscovered goldmine.
          hm....I had an individual who has been very successful at IM tell me once "No, you always want to have as many affiliates as possible...you are insane if you don't...."

          Yet....for the nature of my own product, and niche, I honestly believe I can pull a TON of sales on my own....because of how website/platform specific my product is, I'm not sure that I'd want to have a ton of affiliates competing with me, to gain sales from the very same platform.....

          I mean, I may contemplate bringing along a very small handful for the ride as affiliates....but, it doesn't make sense, at least to me, to introduce an affiliate program, at least until you begin to push your product out beyond your own means and niche.....

          I see affiliates as a way to, in return for a commission, to reach people that you wouldn't typically be able to reach on your own....(Giving bloggers a commission for tapping into their reader base....etc).....

          I hope I'm not making a big mistake here, but I don't see a massive affiliate program being a necessity right now, at least not for my own needs and product....
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  • Profile picture of the author LetsGoViral
    The main problem with being affiliate is that you have competition. But if you have a unique product and affiliates promoting it, even when they are competing against themselves, YOU are the winner!
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    Time of thinking is over.
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  • Profile picture of the author JayXtreme
    Both!

    And I wouldn't have it any other way

    Peace

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

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  • Profile picture of the author Bish
    For me product creation has been the most profitable, especially in smaller niches (little competition).

    Affiliate marketing is great if you have a good sized list or if you find you have a flare for it.
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  • Profile picture of the author Frodr
    IMHO..Product creation is definitely the way to go if you expect to make big bucks online. By creating your own products you have full control and can make big profits.

    Ask anyone who has made over a million dollars on the internet and they will tell you that one of the skills needed to accomplish that is product creation.

    Your doing yourself a great injustice if you are not creating your own products. Just think that you could have other people promoting YOUR products and making you SALES while you sleep.

    You cant do that with an affiliate product, your just making someone else rich while you settle for a percentage of the profits.

    I dont mean to downplay affiliate marketing because it is a profitable model, but the profits and the work you have to put in to acquire those profits will never compare to the model which uses YOUR OWN UNIQUE PRODUCTS.

    Most of us are doing this IM thing so we dont have to work for someone else. And with affiliate marketing that is exactly what you are doing, working to make someone else money.

    If you are serious about becoming a million dollar internet entrpreneur, product creation is a necessary skill.

    -Felix
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  • Profile picture of the author Kim Standerline
    Yes product creation is probably the best, but I've been there and done that. (And its been very lucrative). As I'm only hobby marketing now I'm probably going to focus more on affiliate marketing though I will have the occasional product.

    Affiliate marketing means you don't have to worry so much about upgrades and support. An important factor for me at this time

    Kim
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  • Profile picture of the author Jesus Perez
    My Profit & Loss Statement for 2009 made it very clear. My products earned more...with less effort, than web designing and affiliate commissions combined.

    But this doesn't mean you'll have the same success. Those are my numbers only.
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  • Me too: most of my income comes from my own products, and the mailing lists I've built off my own products.
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    • Profile picture of the author Dave Toomey
      Scenario #1: Affiliate Product

      1. Build site
      2. Build links
      3. Earn commissions at 50%+
      4. Affiliate program disappears after months of work and $ invested

      Scenario #2: Your Product

      1. Build site
      2. Build links
      3. Earn commissions at 100% (depending if having affiliates yourself)

      I know what I pick for my 'business'.
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      • Profile picture of the author Alminc
        I wander how profitable is product creation if you outsource
        almost everything. Is it possible to outsource complete product
        creation and still make good money as product owner?

        Let's say you outsource ebook + videos creation.

        You need to pay

        ghostwriter
        video creator
        graphics designer
        copy writer
        affiliate manager

        and let's say it costs you $2000 or $3000 for such product.

        And you pay your affiliates 50-60% and your JV partners 75-80%

        If you sell it for $67 how much can you still be in profit?

        .
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        No links :)
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  • Profile picture of the author Colin Theriot
    The main purpose of affiliates is to promote your original products for you. If you don't have a product yet, create a product about affiliate marketing and start from there.

    Note: the above is only mildly tongue-in-cheek, but look around and you'll see A LOT of people got their start doing that very same thing.
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    Fair warning: It's possible I'm arguing with you because I have nothing better to do.
    Join my free copywriting group on Facebook: http://CultOfCopy.com

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  • Profile picture of the author JK Nyerere
    The warrior forum is mainly an internet marketing forum and so it attracts mainly such people. It is no surprise therefore that most people recommend "product creation" as the better solution to internet riches.

    A forum with an emphasis to affiliate marketing or networking or forex trading would all lead to a different consensus.

    What most people who recommend product creation forget to tell you is that a vast majority of clickbank products FAIL.

    Creating a product is often the asy part, but without the marketing know how, your product will very likely not see any sales. You will have wasted a month or three of your life for nothing. You may even not be able to give away your product.

    Amongst start-ups, fewer franchisees fail in the offline world than those who go it alone simply because franchisees build on established business models. An affiliate also sells proven products. That is why it is easier for a newbie to make money with affiliate marketing than with trying to rehash other people's material. Nobody will know who you are and they will not trust you. Unless your product offers a unique solution to a pressing demand, I would forget about product creation.

    You have to be 100% certain that you can sell your product before spending months and $$$ creating it.

    The false logic that says that product creation makes more money because you get commssion from all of your affiliates is slightly misleading.

    It is like saying that making shoes or clothes will necessarily make you more money than owning a department store. Do all house builders make moremoney than all real estate agents?

    In truth it all depends on what skills you have.

    If you can build a list of customers who trust you from affiliate marketing, you could build on it just like you could if you owned your own products.
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    • Profile picture of the author Alminc
      Originally Posted by JK Nyerere View Post


      What most people who recommend product creation forget to tell you is that a vast majority of clickbank products FAIL.

      Creating a product is often the asy part, but without the marketing know how, your product will very likely not see any sales. You will have wasted a month or three of your life for nothing. You may even not be able to give away product.

      You have to be 100% certain that you can sell your product before spending months and $$$ creating it.
      Exactly. That's why people who don't have strong JV partners and all
      the rest of it in place stay away from product creation.
      One must somehow recruit JV partners in advance, before you even
      start product creation. But how easy is that? It may work that way
      if you are a super affiliate who already made tons of money to product
      creators, so they are willing to support your first product launch.
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      No links :)
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    • Profile picture of the author Colin Theriot
      Originally Posted by JK Nyerere View Post

      The warrior forum is mainly an internet marketing forum and so it attracts mainly such people. It is no surprise therefore that most people recommend "product creation" as the better solution to internet riches.

      A forum with an emphasis to affiliate marketing or networking or forex trading would all lead to a different consensus.

      What most people who recommend product creation forget to tell you is that a vast majority of clickbank products FAIL.

      Creating a product is often the asy part, but without the marketing know how, your product will very likely not see any sales. You will have wasted a month or three of your life for nothing. You may even not be able to give away product.

      You have to be 100% certain that you can sell your product before spending months and $$$ creating it.

      The false logic that says that product creation makes more money because you get commssion from all of your affiliates is slightly misleading.

      It is like saying that making shoes or clothes will necessarily make you more money than owning a department store. Do all house builders make moremoney than all real estate agents?

      In truth it all depends on what skills you have.
      I would argue that if you're unwilling to develop the skills it takes to create and market your own products, you may as well just keep your day job. You can learn a lot by affiliate marketing, but RARE is the marketer who can really TRULY make life changing money without making and selling your own products.

      If you struggle with creating products that fail, use this simple shortcut. Write the salesletter first. Get people to read it and tell you if they want to buy what you're selling. If they do, make a product that delivers on what you claim. If not, keep re-working it until they do.

      That way, even if you're "wasting time" what you're really doing is getting better and better at writing selling copy, and once you can do that, you can write your own check. If you DO decide to focus on affiliate sales at that point, you'll run circles around everyone else because you can actually create unique and effective promotions for them.

      Now, I know what you're thinking. Writing salesletters is hard, right?

      Not really - just answer these questions in order, and you're 80-90% done:

      First focus on the prospect side (it's all about them, after all)

      Who is the prospect?
      What is their most pressing problem?
      When do they experience it the most?
      Where else in life does this problem plague them?
      Why can't they solve it themselves?
      How might they have tried and failed to solve it?
      What if they DID solve it, how would life be?

      Then flip the same questions and answer from your side.

      Who are you?
      What is your solution?
      When will the problem be solved?
      Where else can the solution be applied?
      Why is your solution the best one?
      How does your solution work?
      What if they DON'T get your solution right now?

      That's pretty much it - if you can't get decent answers to those questions, you're not ready to make the product. If you DO get really good answers to those questions, chances are your product idea is sellable and worth producing. Plus, your salescopy is pretty much ready to go, too.

      Edit: I wanted to add that the "Who What When Where Why and How" is a standard journalism trick. I picked up adding "What If" to the list from Robert Plank (I think). Credit where credit is due. However, asking the questions on the prospect side and the producer side is something I came up with on my own, and has served me well. I've been noodling making a copywriting tutorial around that structure, but just haven't gotten around to it yet.
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      Fair warning: It's possible I'm arguing with you because I have nothing better to do.
      Join my free copywriting group on Facebook: http://CultOfCopy.com

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      • Profile picture of the author JK Nyerere
        Originally Posted by Colin Theriot View Post

        I would argue that if you're unwilling to develop the skills it takes to create and market your own products, you may as well just keep your day job. You can learn a lot by affiliate marketing, but RARE is the marketer who can really TRULY make life changing money without making and selling your own products.

        If you struggle with creating products that fail, use this simple shortcut. Write the salesletter first. Get people to read it and tell you if they want to buy what you're selling. If they do, make a product that delivers on what you claim. If not, keep re-working it until they do.

        That way, even if you're "wasting time" what you're really doing is getting better and better at writing selling copy, and once you can do that, you can write your own check. If you DO decide to focus on affiliate sales at that point, you'll run circles around everyone else because you can actually create unique and effective promotions for them.

        Now, I know what you're thinking. Writing salesletters is hard, right?

        Not really - just answer these questions in order, and you're 80-90% done:

        First focus on the prospect side (it's all about them, after all)

        Who is the prospect?
        What is their most pressing problem?
        When do they experience it the most?
        Where else in life does this problem plague them?
        Why can't they solve it themselves?
        How might they have tried and failed to solve it?
        What if they DID solve it, how would life be?

        Then flip the same questions and answer from your side.

        Who are you?
        What is your solution?
        When will the problem be solved?
        Where else can the solution be applied?
        Why is your solution the best one?
        How does your solution work?
        What if they DON'T get your solution right now?

        That's pretty much it - if you can't get decent answers to those questions, you're not ready to make the product. If you DO get really good answers to those questions, chances are your product idea is sellable and worth producing. Plus, your salescopy is pretty much ready to go, too.
        I am talking from experience and I am not sure if you are.

        Sales letters from $20,000 Copywriters sometimes fail to sell a product. Its just not all about copywriting.

        Making life changing money has nothing to do with whether or not you make your own products. It just depends at how good you are at what you do and how big your business is.

        The most visible people in the IM are those that sell MMO. This leads to people to think that that si the only way to be big.

        There are thousands of people who make life changing money that you have never heard of who are making a killing. Remember that Domain guy who owned 100,000 plus domains. People like that.

        It all depends on good you are. Product creation and direct response copy is just one of the many ways you can make it online.

        By the way, affiliates own the website/blog/list that they are using to sell. So they do own something with value. A $50 per day website that any newbie affiliate can make, is worth about $15,000 on the market. This is the same as a product that makes $30,000 per month (50% commssions).

        Ceating an affiliate/cpa/adsense site each month that makes $50 per day is a lot easier and less risky to some people than trying to make a product that will make you $30K. So as you can see, affiliates do "create" value.

        First focus on the prospect side (it's all about them, after all)

        Who is the prospect?
        What is their most pressing problem?
        When do they experience it the most?
        Where else in life does this problem plague them?
        Why can't they solve it themselves?
        How might they have tried and failed to solve it?
        What if they DID solve it, how would life be?

        Then flip the same questions and answer from your side.

        Who are you?
        What is your solution?
        When will the problem be solved?
        Where else can the solution be applied?
        Why is your solution the best one?
        How does your solution work?
        What if they DON'T get your solution right now?
        Those questions and the "marketers" who perpetuate them are one of the biggest reasons why most product developers fail.

        Answering those questions should in no way by themselves be the determinant on whether or not you should go ahead to produce a product. That would be the quickest way to fail.

        Do you think Procter & Gamble, Johnson&Johnson or Kraft only ask those questions before they decide to introduce a new product?
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        • Profile picture of the author Colin Theriot
          Originally Posted by JK Nyerere View Post

          I am talking from experience and I am not sure if you are.
          Me too - you seem to have got the impression I was disagreeing with - I wasn't really, just quoted what you said because it gave me an idea worth commenting on. I've been in marketing my whole career thus far, but am only just now setting out on my own.

          Originally Posted by JK Nyerere View Post

          Sales letters from $20,000 Copywriters sometimes fail to sell a product. Its just not all about copywriting.
          I agree. But I also think it's more likely to sell a bad product with good copy as opposed to selling a great product with bad copy. Whether being an affiliate or a product producer, learning to write good copy is vital. I think we can agree on that, no? (Maybe not even "writing" but you have to at least know the difference between good copy and bad).

          Originally Posted by JK Nyerere View Post

          Making life changing money has nothing to do with whether or not you make your own products. It just depends at how good you are at what you do and how big your business is.
          I agree with that. But I would still say, back to my response, which was more towards the OP, if you compare all the people who are strictly affiliates with all the people who are strictly product producers, the product producers probably make more.

          Originally Posted by JK Nyerere View Post

          The most visible people in the IM are those that sell MMO. This leads to people to think that that si the only way to be big.

          There are thousands of people who make life changing money that you have never heard of who are making a killing. Remember that Domain guy who owned 100,000 plus domains. People like that.

          It all depends on good you are. Product creation and direct response copy is just one of the many ways you can make it online.
          Well yeah, but I kind of assumed that since we were here on the warrior forum, that this was the kind of business we were talking about. Info products. If I was wrong, my bad.

          Originally Posted by JK Nyerere View Post

          By the way, affiliates own the website/blog/list that they are using to sell. So they do own something with value. A $50 per day website that any newbie affiliate can make, is worth about $15,000 on the market. This is the same as a product that makes $30,000 per month (50% commssions).
          Agreed again.

          Originally Posted by JK Nyerere View Post

          Ceating an affiliate/cpa/adsense site each month that makes $50 per day is a lot easier and less risky to some people than trying to make a product that will make you $30K. So as you can see, affiliates do "create" value.
          I don't think I ever said affiliates didn't create any value. I do know some folks who do 100% affiliate marketing, but they don't do consistently well, and in my observation, the things they complain about the most all have to do with the fact that they ultimately have little control over their business. I personally find it easier (and more satisfying) to primarily create new stuff. That's just my opinion, but I thought that's what the OP was asking for.

          Originally Posted by JK Nyerere View Post

          Those questions and the "marketers" who perpetuate them are one of the biggest reasons why most product developers fail.
          Whoa, harsh! I'm willing to assume you were being so snarky cause you thought I was - if so, apologies. We'll have to agree to disagree here.

          Originally Posted by JK Nyerere View Post

          Answering those questions should in no way by themselves be the determinant on whether or not you should go ahead to produce a product. That would be the quickest way to fail.
          I didn't say they should be the only determining factor, did I? All I said is you should have SOME kind of factor, and this is the one I use because it works for me. If you're creating a product (and I'm talking about info products here) without having a clear target customer with a clearly defined problem, you're going to struggle to position it properly.

          I think for the folks that do pursue creating their own products, they would be very well served by answering the above questions if they hadn't considered them. At the very least, it will get you in the habit of thinking of products and services from the end that matters, namely the prospect/customer end.

          It's done a world of good for me.

          Originally Posted by JK Nyerere View Post

          Do you think Procter & Gamble, Johnson&Johnson or Kraft only ask those questions before they decide to introduce a new product?
          Absolutely I think they do. In fact I know they do - I once had a list from some business book (forgive me for forgetting which) but it was a list of the 100 factors P&G use before developing a newly aquired or created brand to bring to market. How else do you think they are able to differentiate a brand line of dozens of products that do pretty much the same thing.

          It's all about asking the right questions to help define a narrow niche within your market. The person who buys Tide vs. All have differentiating factors as far as what they care about, and what they perceive as the "problem" they have with other detergents.

          But besides that, to bring it back to the point of the OP, big companies like P&G and Kraft don't even really enter into the discussion of whether the solo or small-scale internet marketer should create products are market as an affiliate.
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          • Profile picture of the author Frodr
            Originally Posted by Colin Theriot View Post


            I agree. But I also think it's more likely to sell a bad product with good copy as opposed to selling a great product with bad copy. Whether being an affiliate or a product producer, learning to write good copy is vital. I think we can agree on that, no? (Maybe not even "writing" but you have to at least know the difference between good copy and bad).

            I definitely agree with this statement. Good copywriting is essential when it comes to selling anything online.

            Knowing how to write effective copy is a necessary skill, but you need to remember that it is just as important knowing how to test your copy.

            -Felix
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        • Profile picture of the author Karomesis
          Originally Posted by JK Nyerere View Post


          Do you think Procter & Gamble, Johnson&Johnson or Kraft only ask those questions before they decide to introduce a new product?

          Perhaps not, but J&J and P&G have millions to spend on focus groups and have funnel openings the size of 1000 of us combined.

          Comparing J&J to an individual IMer might not be the best analogy IMHO.
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  • Profile picture of the author Truffle
    It kind of depends on what kind of person you are.

    You can start off as an affiliate and test how your current market responds to different offers and build a list while you're at it. When you find out that your market is spending money and what type of products they want and are interested in, you can create your own product and e-mail your list about your new offer.

    If you've built a list of a few thousand people then you can test your conversion rate and if it's decent you can start looking out for affiliates to promote your product and contact other product owners for joint ventures.

    Ofcourse you can always just create a product people want (don't try to create demand for your product, demands should already exist) and drive pay per click traffic or other paid advertising towards your offer and once you've got the conversion rates, find affiliates and joint venture partners.

    If you don't want to spend money doing ppc, you can always do article marketing and forum marketing to get some quick results.

    And once you're earning, you can hire other people to write your next ebook/report in the same niche or in a different one.

    oh and once one ebook/report is earning well in a certain market/niche, you could also create that same ebook in a different form and putting it up for sale on a pen-name.

    That way you've got the same product (completely written differently though) twice in the same market and this can result in twice as many sales in a certain market.

    Just my two cents though,
    have a nice one,
    Joeri Bickx
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  • Believe it or not, product creation is the easy part. Generating quality+quantity traffic (which is what a good affiliate does) is what's hard. As a product creator, I'd be very happy to pay 75% to anyone bringing sales in (and growing my mailing list). Without quality traffic, there's no success in IM.
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  • Profile picture of the author Dayne Dylan
    Banned
    Create your own. THEN...inside those products, promote affiliate products.

    Best of both worlds. And your bank account will thank you. ;-)
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  • Profile picture of the author WD Mino
    Yup I must agree with Kevin. Your own products helps to establish you as an authority as well. but why make others cash when they can make it for you instead?

    Just make some quality stuff write some quality info and you will have no trouble selling your own .

    Treat your affiliates like gold they are the bread and butter give them a bonus every once in a while offer little contests etc etc . definitley create your own stuff.

    -WD
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    • Profile picture of the author Ironman77
      My 5 cents: I think for most people it is better to be an affiliate.
      I think producing a great product with a strong salescopy that makes enough money to attract a lot of affiliates is not that easy.
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      • Profile picture of the author WD Mino
        Originally Posted by Ironman77 View Post

        My 5 cents: I think for most people it is better to be an affiliate.
        I think producing a great product with a strong salescopy that makes enough money to attract a lot of affiliates is not that easy.

        Hmmm. I never thought of it that way. What is this enough money philosophy WD wonders??

        Is there such a thing?does my product need to be raking in the cash before I get affiliates ? Why then do I want affiliates? What is this philosophy it sounds interesting.

        On a serious note affiliates are attracted by what YOU offer THEM not the other way around. yes your copy should be decent but affiliates could care less if your making cash they already know they will make you more it is what you are going to do for them. that comes from a super affiliate not my self.

        The truth is you can be a leader and take care of others or you can be a follower and help others make cash while making a little bit on your own once you reach super affiliate status that is a different ballgame altogether my question is .why have an egg when you can produce the chicken?

        -WD
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        • Profile picture of the author Barry Unruh
          Interesting Topic, I can't really comment from the standpoint of a person with a thriving business in either method, but can from the standpoint of a careful watcher of all the emails I receive.

          The most successful marketers I receive email from all have their own products. BUT...

          Almost every single one of the extreme highest earners (from what I can determine), are selling other peoples products in the form of JV deals. While many people here will argue that is not "affiliate sales", I'd have to disagree. It is just high-end affiliate sales, since often a wide range of marketers are selling the product, it may just not be open for everyone to sell. Basically an exclusive affiliate program.

          Your own product, your own ability to communicate, and building your own list is the first thing you must accomplish. Build the confidence and trust of that list, and then you can offer large ticket affiliate items, and people will buy.

          Again, this is just observations from someone who studies the habits of those marketers I've chosen to follow.
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      • Profile picture of the author Dayne Dylan
        Banned
        Originally Posted by Ironman77 View Post

        My 5 cents: I think for most people it is better to be an affiliate.
        I think producing a great product with a strong salescopy that makes enough money to attract a lot of affiliates is not that easy.
        I have my own products, and don't even run affiliates on hardly any of them. And I've been working for myself online, full time now, for around 4 years.

        So don't think you have to have a product that will attract all kinds of affiliates. If it is small niches, you most likely won't be able to anyway. But then again, you can rule that niche. ;-)
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        • Profile picture of the author x3xsolxdierx3x
          Originally Posted by Dayne Dylan View Post

          I have my own products, and don't even run affiliates on hardly any of them. And I've been working for myself online, full time now, for around 4 years.

          So don't think you have to have a product that will attract all kinds of affiliates. If it is small niches, you most likely won't be able to anyway. But then again, you can rule that niche. ;-)
          This is what my friend did. He identified an underserved Niche (albeit, very tiny), that's 'needs' werent being addressed....he created a product....and, makes around $200,000 a year now...well, this was his FIRST year online....
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        • Profile picture of the author Bish
          Originally Posted by Dayne Dylan View Post

          I have my own products, and don't even run affiliates on hardly any of them. And I've been working for myself online, full time now, for around 4 years.

          So don't think you have to have a product that will attract all kinds of affiliates. If it is small niches, you most likely won't be able to anyway. But then again, you can rule that niche. ;-)
          Exactly, small niche, lots of research & develop a product people want. Works for me & there's no need to worry about finding affiliates, in fact they will probably blow your niche out of the water.
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  • Profile picture of the author YanKirby
    Id go the other way.

    Try to find a product that you think you can still compete on. It can vary according to your experience but you get my point.

    Try to make a site for it and promote that product. Your articles must not mention the title of the product itself but just "a great product".

    If you make money with it that you think you can upscale, why not outsource and make your own product? Make it better than what you are promoting and boom...

    you get to keep 100%. That's just how I look at things when promoting something.
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  • Profile picture of the author bmitch213
    I like to create my own products. Affiliate marketing is okay but when you bring an idea our thought to life it's the best feeling in the world and I work harder at making it successful when I created it. If you sell someones product you don't have to put in all the hard hours of creating but your working for the vendor.

    However some people are good at selling things and others at creating. Whatever works best for you is what you should do. I know many people who make a good living both ways.
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  • Profile picture of the author Slin
    If you join the war room there is a whole thread about this from Allen himself.

    My opinion? Definitely better to own a product.
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  • Profile picture of the author Michael Kohler
    I have had most of my success with my own products. If you use CB, you can have affiliates sell your product, market your product, etc. I remember one of the first products I bought was one on how to get free unlimited traffic. Their solution was to make your own product in a popular CB category. This way, the built-in affiliate program of CB, and all of their affiliates, could help you sell your product. I am not saying affiliate marketing is bad. It is a great way to make money, but if you do make your own product, you can, in my opinion, be more profitable.
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  • Profile picture of the author zackriley
    In my opinion it all depends. if you see an opportunity that is quality at being a affiliate, then you should consider taking it and running with it. but if you have some of your own products and are confident with them and you have a good traffic system, then you might end up making more money using your own products and having affiliates working for you. what i did is i started by being an affiliate, then as i got more experience and began making my own quality products, i started doing by myself and getting people to work for me instead of vise versa.
    hope it helps,
    -Zack
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  • Profile picture of the author Karan Goel
    Good question, it is!

    -Being Product Creator:
    --Benefits:
    ---You get 100% of the sale.
    ---You can control the source of traffic (to an extent)

    --Disadvantages:
    ---Only YOU are the promoter.
    ---Often there is less exposure

    -Being an Affiliate:
    --Benefits:
    ---No tension of creating the product
    ---Generally you get ready made promotional material

    --Disadvantages:
    ---Even a wrong step (wrong keywords for eg.) might ruin you time and investment.
    ---Finding the "real" niche and then the product is sometimes a pain.

    So, both have an equilibrium. It solely depends on the person which one he/she wants to be.
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