Transcript Internet Marketing Intensive

Affiliate Chemistry
“How the Affiliate Business Model
Works”
Introduction
• Affiliate marketing business models is also known as
the third-party proprietor
• Affiliate marketing is to promote other people’s
products via referral
• No hassle of product creation, payment management
and customer service support
• Growing in popularity in various industries in the
recent years
How Affiliate Marketing Works?
• “Pay-Per-Action” model to either
– Make product sales
– Generate leads
• If an affiliate successfully sells a product or generates a
lead, the merchant pays the affiliate a commission (575% of product price)
• Referral process works by using a unique link that
allows tracking for both merchant and affiliate
Affiliate Marketing Model
Affiliate
Network
Affiliate
Targeted
Traffic
$
Merchant
Rules of Affiliate Marketing Selection
• Rule 01: Choose Your Niche
– Find hungry market and gather a list of products to promote
• Rule 02: Be Picky About Product to Promote
– Market only products that are high demand, high quality, fairly priced
and low refund rates
• Rule 03: Do the Math!
– Project how much can be spent on advertising and how many sales to
reach profit target
• Rule 04: Research on Your Merchant
– Read customers and affiliate reviews
Where to Find Products to
Promote?
• Clickbank
– http://www.clickbank.com
• Commission Junction
– http://www.cj.com
• PayDotCom
– http://www.paydotcom.com
• Link Share
– http://www.linkshare.com
Independent Affiliate Programs
• Paid by directly by merchant rather than
affiliate networks
• To find independent affiliate programs, Google
search “product name + affiliate”
• Example:- “fat loss 4 idiots affiliate”
How to Select Products to Promote
• Visit affiliate network and gather list of
related products to promote to your niche
• Check out at the sales page and offer
• Important to find product with high
conversions and low refund rates (<10%)
How to Select Products to Promote
(Con’t)
• 3 Main Ways to Find Quality Products
a. Buy the product and test it yourself
b. Find out from forums to see what people are
saying
c. See what other affiliates are doing and if they
are spending money on advertising
Product Selection Checklist
Relevant Product
Good Quality Sales Letter
Commission Payout %
At least $20 per sale
Low refund rates
Clickbank
• No.1 largest digital product marketplace
• Instant product delivery
• Professional support and handling
• All tracking is done for you
• High commissions up to 75%
• Commission payments sent weekly
Clickbank (Con’t)
Clickbank (Con’t)
Clickbank’s Refund Rate Calculation
(Product Price – 7.5%) - $1 = Net Commission
Net Commission x Payout Percentage = Affiliate
Commission
Affiliate Commission - $Earned/Sale = Refund
Difference
($ Refund Difference ÷ Affiliate Commission) x
100 = Refund Percentage
Clickbank’s Refund Rate Calculation
(Con’t)
• Example:-
3 Variables Required:Product Price = $67.95
$Earned/Sale = $43.21
Payout Percentage = 70%
Clickbank’s Refund Rate Calculation
(Con’t)
($67.95 – 7.5%) - $1 = $61.85 (Net
Commission)
$91.85 x 70% = $43.30 (Affiliate Commission)
$43.30 - $43.21 = $0.09 (Refund Difference)
($0.09 ÷ $43.30) x 100 = 0.20% (Refund %)
How to Create Clickbank Hoplink
Affiliate Campaign Model
Traffic
Source
Landing
Page
Sales Offer
Traffic Source
• Main Types of Traffic Source:– Article marketing
– Social bookmarks
– Squidoo lenses
– Video marketing
– Podcasting
– Blogging
– Pay-per-click
Landing Pages
• Pre Sell Page
– Social proof
– Personal experience on product
• Opt In Page
– Lead generation and list building
– Follow up emails to build relationship
• Review Page
– Product comparison
Sum Up of Affiliate Marketing
• Affiliate marketing is to promote other people’s
product
• After your niche research, follow checklist to find
a quality product to promote
• Traffic  Landing Page  Sales Offer
• Efforts will pay off and allow you to reap greater
profits in shorter period of time