How do the Warriors make money when they SELL all for 100% Commission?

Simple - they're doing what all savvy, clued-up marketers should be doing: Building Their Lists.

It's their list that provides them with residual, long-term income.

Offering 100% commission will entice JV's to mail your offer. You make your money on the back side with the OTO (One Time Offer) or more importantly creating an email list of all the buyers to market to them in the future (your other products or affiliate offers).

you kidding right,

here is the thing, do you want one sale?

Or do you want a lead?

HInt : you can make money on one sale.

OR.

You can plug stuff to a lead, over and over again, until he unsubcribes.

The best thing about that lead in this case is it is a buyer, so everytime you send them an email or offer they are likely to buy. :-)

Damn! I didn't know that this could be part of a list building strategy and further it's such a BLASTING Tactic! Awesome. Thanks all you guys AnniePot, AUKev and celente for your quick response.

I really need to learn a lot and WarriorFoum is going to be my best school

Its the same concept as using loss leaders in marketing.

Sometimes marketers will sell something they actually lose money on, because the backend of their funnel is optimized and works that well.

A great example of this are webhosting companies like godaddy. These places will run promotions where they are selling domains for so cheap that they lose money on their front end. But it allows them to do 2 things that are highly beneficial. First, it helps position them above their competition. Second, if their backend is optimized, and they have enough upsells, they can make a killing from that first sale... that initially lost them money.

It all comes down to math really.

I'm not going to say Annie and Celente are wrong for everyone,

But I have a different take on this ...

Many 100% commission products are because newbies are creating whatever reports they can muster after having been lulled into believing this is the only way to make money.

What happens is the newbie makes a report that generates $0 but now they have a small "list." However, since the newbie is not experienced with email marketing their list makes them nothing as they try to pimp other products. The only person making money is the original list owner. The newbie loses money because now they have monthly autoresponder expenses and ultimately they are gone.

What they should have done is offered less than a 100% commission so they made some money, and built a list from referrals, so they at least have positive cash flow.

If one is not adept at making money from email marketing then it is foolish to give away all the profit from a product sale.

Many newbies are only going to have one product. They put their heart and soul into it. No matter how good it is or how many sell, they end up losing money and being even more broke.

There is nothing magical about a 100% commission except the ego of someone wanting it. Sales being equal a 50% commission on a $17 product is obviously better than 100% on a $7 product.

Many product creators should grow a back bone. They have something of value that email marketers need.

There are many different ways this can be played. If a product owner believes a list owner can help build them a customer base they will profit from, why stop at 100% commissions? Offer more!

On the flip side, if a list owner believes a product can make them money offer something to the product owner as an inducement to decrease competition from other list owners.

To address the OPs question, another way Warriors make money from 100% commission products are pre-established backend offers that have nothing to do with list building. For instance, my products will refer to additional products I have created, and products from others I get a commission from. Some buyers will also buy these other products. Each product they buy refers to more products, so there is a chain reaction of selling opportunities.

.

Doing this increase there List size which comprise of GOLD....
.
.
oh ! I mean Buyers List !

really? list building!

I'm sure we'll soon see 110% or so ...

List building and upsells is where the money is at.

I guess this is a good tactic if you have your back end products ready to go and you really want to build a list. It makes sense in those cases. However, if you don't have any back end products it will be a total loss.

Some WSO creators make more money on upsells and OTO's as well as building a list of proven buyers which is invaluable!

Probably building a list and promoting products for future use.

When creating offers < $10 it's not worth promoting unless you get all of the commission, I mean the product owner is getting the list, and a chance to build a relationship with the customer you just sent them.

If you are thinking about creating a product like this, be sure that you a higher priced upsell in place, this will have a lower rate of commission and should generate income for the programme owner.

Lastly as has been mentioned these sort of offers should be thought of as loss leaders and the front part of your marketing funnel.

100% commission is a bit like the Freemium model whereby you have a tiered business that "opens up" with a free product to hopefully make money on (later) upsells.

The key thing to note being that all the revenues in the 100% commission go to other people. You make $0 but you collect the emails of all the buyers. Lists built this way are no ordinary lists, because these are buyers and not freebie seekers or strangers in a list swap.

How do Warriors make money on 100%

The obvious answer is upsells, downsells and backend offers. But all this is fruitless if you don't have a quality product worth promoting for affiliates to pick it up.

kinsvater Is right. If the conversion rate is higher but commissions are lower, affiliates will be just as likely to push harder to promote it.

Even if you don't understand the business model does not mean the business model is flawed!!

Here is the deal....

Selling products for $7 or giving affiliates 100% commissions are both a valid method for building a mailing list...

The Lifetime Value of a Customer is often worth much more than the potential earnings from a single product...

I know one fellow who sells $7 products with a 100% affiliate commission in order to build his list of serious buyers... In his back-end sales funnel, he offers products and services ranging in price from $47 to $9995.

Selling information for $7 with a 100% affiliate commission is often much cheaper than buying traffic from Google Adwords and other lead generation sources, and this kind of traffic is often far better than traffic from other lead sources because it is "proven buyer traffic".

I wish I'd known this formula 6 months ago...
I'd have a list of buyers instead of the expensive to maintain list of freebie seekers that I have now...

The affiliate gets the commission but more importantly the vendor gets the buyer who he can market to over and over again. Most likely the vendor will have an up-sell or a high ticket back-end offer where he/she will make the bulk of their profits.