However, if you are serious about building your Internet Business for the long term, there are 4 crucial tools you need (some are free, while some are paid). In case you are wondering if these tools will cost an arm or a leg, not to worry – These tools cost less than $30 in total!

In this article, I am going to share with you 4 tools you must have if you want to build up your Internet Business for the long term.

 
1. Domain Name

This is the very first thing you need – and that is, a domain name.

Think about it – You are being approached by 2 companies – One with a free blog domain name and one with a .com domain name. Which company will you want to sign up as a customer with? Of course the one with the .com, right? The reason is because it looks more professional.

The same rule applies. Having a domain name for your website makes it look more professional, and people are more likely to place their trust in you and your business.

When it comes to choosing a domain name, make sure you choose one that is related to what your business is about – So that, at one look, your prospective customers can tell exactly what you specialize in.

Next comes the issue of whether to choose a.com, or.net domain name – I will always go for a.com domain name first. If it is not available, then I will go for a .net. I will not go for the rest (such as .me, .info, etc.)

In case you are wondering (about the cost of a domain name), it costs approximately $10 a year. (Certainly very affordable to anyone, isn’t it?)
 
 
2. Web Hosting

After you have gotten your domain name, the next thing you need to get is web hosting.

A web hosting is one that will hold all the files that your website has.

When it comes to choosing a web hosting service, make sure you go for one that is reliable (that has at least 99% uptime), and one with a 24/7 live support. The reason is because, if the web hosting that you use is always down, your customers will not be able to access your website. And as a result, you will lose out on possibly a lot of sales.

A basic web hosting service costs approximately $5 a month (this again, is very affordable to everyone).
 
 
3. Autoresponder

Now that you have gotten your website up and running, the next thing you need is to get your visitors’ information (so that you will are able to follow up with them).

You can follow up with your visitors by sending them emails – And as such, you need a way to capture their email address, and also a way to send out emails to them – All these can be handled by an autoresponder service.

With an autoresponder service, you will be able to create forms to capture your visitors’ email address, store them in a database, and send them emails as and when you want to (either to tell them that you have just updated your website with a new article, or you have come across a very useful product/service you think will benefit them and want to recommend to them).

An autoresponder service cost approximately $20 a month.
 
 
4. Web Analytics

There are 2 ways you can get statistics about your website – Such as the number of unique visits, from where did your web visitors come from, the number of pages they visit (along with which pages they visit), the links they click on, along with other vital statistics.

You can get some essential statistics about your website from your web host (go to your website’s cPanel, and locate the icon “Awstats”) or you can sign up for a free Google Analytics account (where all you need to do is to copy a few lines of code to your website and you will be able to capture essential statistics about your website).

With these statistics at hand, you can find out useful information such as the topics in which your visitors are more interested in (and with this information at hand, you can create more articles on the topics in which your visitors are interested in). And by doing so, you can get your visitors to visit your website again and again (this will help boost your website’s traffic volume).
 
 
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The reason is because, these people follow to a set of success rules (and they abide to it), while you don’t. This probably explains why those people manage to get the kind of success which affiliate marketing can bring, while you are still struggling to make a steady income.

So, what are the set of success rules? There are, in fact, 4 of them, and in this article, I am going to share with you 4 affiliate marketing success rules you must know.

Not only should you know what these rules are, but you should also remember them by heart, and always follow them whenever you are promoting a product/service as an affiliate marketer.

 
1. Know Your Audience

By knowing your audience, what I mean is that, you should always find out what your targeted audience (in the niche that you are in) are having problems in.

The easiest way to find this out is through forums (simply search for “[niche] forums”, replace the word [niche] with the niche that you are in, in the search engine and you will be able to find out all the forums that are available for the niche that you are in).

What you need to do next is to sign up as a member of some of these forums, and browse through the latest discussion posts and find out what are people talking about – By doing so, you will be able to find out the problems that they have.

With this understanding, you can then locate for products/services that will help them solve their problems, present to them. If the product/service really does help them with their problems, you can be sure that they will be most happy to take out their credit card to make the purchase (by clicking on your affiliate link and you generating your commissions).

That, in fact, is the best way that you can generate maximum amount of profits for your efforts – By finding out and understanding your audiences’ needs.
 
 
2. Know Your Role

As an affiliate marketer, your job is not to hard-sell (like a salesperson). Rather, your job is to presell prospective customers with the products/services.

The best way to actually presell your prospective customers is to actually approach them and raise their awareness about the product/service (which you are promoting) from a third-party perspective.

What you can do is that, you can give them a full review of the product – Such as giving them a brief overview of what the product is, problems in which the product will help solve, along with strengths and weaknesses about the product itself.

You want to be sure that you give your prospective customers a full, unbiased review of the product – That way, you can be sure that they will be more receptive toward your opinion, and your recommendations.

Simply hard-selling to your prospective customers will not work – In fact, it will only have them label you as a spammer!
 
 
3. Consistent Web Content

If your affiliate marketing strategy involves creating a website, where you post contents on the niche that you are selling products/services in, make sure you update your website regularly.

While it is most ideal that you update your website every day (where you post 1 article to your website everyday), many of you might have problems in fulfilling this requirement (due to the fact that you have many other commitments). Hence, as a general guideline, you should update your website with new content at least 2 to 3 times in a week.

When it comes to content creation, make sure that the content that you upload to your website is unique. Search Engines love websites with unique content (and also one that is regularly updated).

Therefore, by having unique contents on your website, your website will be rewarded with a high placement in the search engine listing, and as a result, your website will receive much more traffic (compared to other websites that are ranked in the second, third, fourth, or even in the fifth page of the search engines).
 
 
4. Driving Targeted Traffic

If you want to get more sales, you need to get more traffic. It is as simple as that.

You can have the best offer on the Internet, but if no one gets to know about it, then there is no way you will be able to generate any sort of income for your efforts.

There are many different traffic generation strategies available for you to choose from, both free and paid.

Free methods include article marketing, forum marketing, press release marketing, web 2.0 marketing, video marketing, etc.

Paid methods include Pay Per Click Search Engine Marketing, banner advertising, classified ads marketing, etc.

Do not attempt to work on all the different traffic generation strategies available. Rather, you should pick and choose 1 or 2 that you feel most comfortable with, and work on them every single day to drive traffic to your website (or offer pages).
 
 
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Every single digital product now has many affiliates promoting it. Sometimes, for the more popular products, there are hundreds of affiliate marketers promoting it! And these marketers are all vying for the same customers! So, how do you get customers to buy from you (instead of from all the other affiliates)? If you want to get people to buy from you, it is important that you differentiate yourself from your competition.

The best way to do it is by offering what I call an “affiliate bonus”. So, what exactly is an “affiliate” bonus? In this article, I’m going to share everything you need to know about it – What exactly it is, the advantages of having one, and also how you can create them.

 
What Is An “Affiliate Bonus?”

An “Affiliate Bonus”, as the name implies, are bonuses that you offer as an incentive to get people to buy from you.

The thing is this – People are going to buy the product anyway. And it is human nature that, prior to buying it, they will go around looking for the best deals available.

As an affiliate marketer, there is nothing you can do to offer discounts off the product (unless you know the product owner personally and you have an agreement with him/her to give your customers a special discount). Other than that, the only way you can do to give your prospective customers the best deals is to offer them bonuses – As an incentive for buying from your affiliate link.
 
 
Advantages Of Having An “Affiliate Bonus”

I can be honest with you here – Many affiliate marketers are a bunch of lazy people – They will just create an affiliate link for the product, and then they will just send all the traffic directly to the merchant’s sales letter, hoping that they will be able to generate some sales.

Therefore, if you create some bonuses and give away to your customers as an incentive for buying from you, you will actually be able to get in front of almost 90% of the competition – And with that, you will be able to generate more sales (compared to others who just direct the prospective customers to the merchant’s sales page).

In case you are wondering what kind of “bonuses” can you give away, I am going to share with you 2 different types of “affiliate bonus”, along with how you can go about creating them.
 
 
Different Types Of “Affiliate Bonuses”

1. Cash Back

Giving your customers some cash back for their purchase is the simplest kind of bonus you can offer to your prospective customers.

What you can do here is that, you can offer a certain amount of cash back to your customers if they purchase the product from your affiliate link. However, you want to make sure that the amount of cash you give back to your customers is less than the amount of commissions for each sale you refer (so you can still make some profits).

How you can do this is that, you need to get your customers to provide you their PayPal email address after they have purchased the product from your affiliate link. And what you need to do thereafter is, you need to send the money (that you promise to give them as bonus) to their PayPal account 60-days after they have made their purchase.

Why 60-days? You may ask… The reason is because, most product purchases come along with a 60-day money back guarantee. Hence, you don’t want to give them the money right after they have made their purchase (before the 60-day period), in case they ask for a refund later on (before the 60-day period) and not only your commissions get reversed, you will also make a loss for that particular sale you made (that was reversed).

2. Bonus Products

The bonus that you give to your prospective customers can come in the form of products.

What you want to do here is to give them some products that is related to the niche in which the product you are promoting is about as an incentive to those who purchase from your affiliate link.

You can get these products by:

i. Using Resell Rights Products – Get a few products with resell rights that you can give away to your customers as bonuses (for buying the product from your affiliate link). However, before you give away these products, make sure you check through the product license to make sure that you are allowed to give away the products as bonuses to your customers.

ii. Creating Products Yourself – You can create a short 15 to 20 page report to share your experiences, and also some tips, about the product that you are promoting. If the product is a software, you can share with them step-by-step on how they can use the product (if there isn’t a user manual attached to it) – By doing so will greatly help your customers.

iii. Outsourcing – If writing is really a problem for you, you can also outsource the entire product creation to someone else (you can find lots of freelancers available in sites such as Elance).

By applying the simple strategies that I have outlined in this article, you will be able to get ahead of your competition and be able to boost the amount of sales.
 
 
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As simple as affiliate marketing may seem, in order for you to be able to witness for yourself any kinds of success (which top affiliate marketers have), you need to equip yourself with certain strategies.

In this article, I am going to share with you 5 affiliate marketing success strategies that you, as the affiliate marketer, must know if you want to have the capability of generating massive amounts of cash with every single product/service you promote.

 
1. Pick A Niche

First and foremost, you need to decide the niche in which you want to promote products/services in. Just to give you some ideas (in case you are stuck at this stage) – You can start off with a niche in which you have an affinity with. That way, you know the problems in which people in that niche are facing, and what you need to do now is to find products/services that will help these people with their problems.

However, before you decide upon a certain niche, make sure you conduct proper research (to ensure that the niche indeed has a demand, and there are people spending money on it). The simplest way is to find out whether or not there are books and magazines published on it.

If there are, it implies that there are indeed people spending money in the niche (no book or magazine publishers will publish something which has no demand).
 
 
2. Pick A Product To Promote

The easiest way is to go to the ClickBank Marketplace to look for a product (in the niche that you have chosen in the previous step) to promote.

The next question will be – How many products should you choose. For the start, what you can do is to look at all the products available in the ClickBank marketplace that you can promote (by reading through the product sales letter).

Thereafter, pick and choose one that you feel that is the most compelling (in that, upon reading the salesletter, it makes you want to take out your credit card to make a purchase).
 
 
3. Step-By-Step Strategies

Now that you have chosen a niche to go into, as well as picked out a product you want to promote, the next step would be following step-by-step strategies to promote the product.

Many people (especially newbie affiliate marketers) encounter many problems at this stage – Due to information overload. I have seen some newbie affiliate marketers purchasing almost every single Internet Marketing product available in the market, and at the end of the day, they do not know where, and how to get started.

What you should do is, just pick and choose one step-by-step Internet Marketing guide (before you decide to purchase it, you will want to search the Internet for any reviews on it) and then go through the entire guide at least twice (to make sure you fully understand all the work that is required of you to promote the product).

After you are done with that, you will then start to take action – In following the step-by-step instructions as outlined by the Internet Marketing guide and start promoting the product you have just selected in the previous step.
 
 
4. Take Consistent Action

I know that, for the start, you may feel overwhelmed by the number of things you need to do, and you may not know when to do this, and when to do that.

What you can do is take out a piece of paper, and write down every single thing you need to do to promote the product. Thereafter, look at the your own schedule, and find out how much time you can allocate for yourself every single day to work on promoting the product (in general, I would recommend that you allocate 1 to 2 hours a day to build your Internet business).

What you need to do next is to allocate what you need to do to the time you have available – For example, you could work on web design on Monday, article writing on Tuesday, so on and so forth.

5. Track Your Results

Finally, you need to track your results – So that you know the kinds of results you are getting for your efforts. You can also find out what your prospective customers are interested in (so that you can cater to their needs).

If you have a website created to promote the product (this is highly recommended), you should set up Google Analytics (you can sign up for free) and start tracking on the statistics of your website – Such as the sources of traffic (where your visitors visit your website from), the pages the visit, and how many times they click on your affiliate link to visit the product merchant’s sales page, etc.
 
 
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Many Internet Marketers (especially newbies) fail because they are guilty of one or more of the 5 deadly mistakes which I am going to share in the next few sections.

 
1. Not Researching

Remember – If you want to able to generate money online, you need to sell products/services in which people want (and NOT want you want).

Many affiliate marketers make the mistake of not researching for market demand (to find out whether or not there is a demand for the niche, along with whether or not people are spending money in the niche) before plunging into it.
 
 
2. Not Investing In Proper Education

This is one of the common mistakes that many newbie affiliate marketers make – They think they can pick up everything they need to know about affiliate marketing by trial-and-error.

By doing so, you will most likely end up all “bruised and battered” (as you will be faced with all sorts of obstacles, and make all sorts of newbie mistakes that will seriously damage your morale) and eventually give up.

There are lots of guides (in a form of ebooks, step-by-step videos as well as audios) that will show you how you can get started. By following these guides, not only will you cut short your learning curve, you will also avoid the most common pitfalls which many people make.

As a result, you will be able to attain your goal of being able to generate a full-time income on the Internet much faster (compared to those who learn through trial-and-error).
 
 
3. Believing In Hype

I know its hard to ignore it when you see salesletters telling you that their products have the capability of helping you generate insane amounts (such as millions of dollars) in a ultra-short period of time.

Now, the thing is this, there is absolutely no short cut to generate money online. You need to treat the entire Internet business the same way you would treat an offline business – You need to spend time to build the entire business up, and over time, you will be able to see your business grow (and so too, will your income).

If something sounds too good to be true, then it is probably not true.

Many newbie marketers fail because they believe in hypes like these – And instead of succeeding, they eventually ended up failing miserably.
 
 
4. Promoting Poor Quality Products

This again, boils down to the lack of doing proper research.

Many newbie affiliate marketers make the mistake of promoting products/services without conducting prior research on it for its quality.

By promoting these poor quality products (without doing research beforehand) will result in you getting poor results from your promotion efforts, so much so that you find that its a total waste of your time and effort and you eventually give up on affiliate marketing totally.
 
 
5. Not Taking Enough Action!!

Even though this is the last point, but I feel that it is the most important point.

You see, if you are serious about wanting to succeed in this business, then you really need to take consistent action to make it happen!

I see many newbie affiliate marketers saying things like they do not have the time (as they are still working full time), but surely it is possible to spend an hour or two every single day to work on your Internet business, isn’t it?

Either you wake up an hour or two every day to work on it, or you can spend an hour or two after dinner (when you are back home from work) working on it – Surely it isn’t too much to ask for, right?

If you truly want to enjoy the benefits of what an Internet business can bring, then it’s time to get up and take consistent action… Right Now!!
 
 
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After you have located a product/service which you want to promote, the next thing you need to do is to create an affiliate link to that particular product/service (The affiliate link is a direct link to the product/service, with a unique identifier attached so the merchant will know who referred the sale, and be able to credit commissions accordingly).

Before you can create your affiliate link, you need to sign up to an affiliate network in that merchant is using to manage product sales (as well as affiliates that are promoting the product/service).

There are a couple of things you need to look out for (in particular, 4 of them) before you sign up for an affiliate network and start promoting the merchant’s products/service, and in the next few sections, I am going to share with you exactly what you should look out for.

 
1. What Others Are Saying About The Affiliate Network

I do this all the time – Before I sign up to become an affiliate in an affiliate network, I will always check on what others are saying about it.

You can find out what others are saying by searching for the term “[affiliate network] review” in the major search engines, where you replace [affiliate network] with the name of the affiliate network.

In particular, you will want to focus your attention on the latest comments (those that are made in the last 6 months or so) – Find out whether or not the comments are positive or negative (what are the negative comments).

As a general guideline, if the number of negative comments for that affiliate network outweigh the number of positive ones, do not sign up for it (don’t worry, there are lots of affiliate networks available that have lots of positive comments and feedback from affiliate marketers).
 
 
2. Tracking

Are the statistics in the affiliate network updated real-time, or delayed (and if it is delayed, find out the number of hours in which reporting is delayed).

Also, you may want to find out whether or not you are allowed to embed unique identifiers to your affiliate link – This will allow you to put in a different code for every affiliate link you create (where you place in the various sites where you are promoting the product/service), so as to help you identify which sites the sales are from.

The reason why you need these information (those that I have mentioned above) is because this will help you track your marketing efforts.

You can find out this information by sending an email to the affiliate network, where you tell them that you are an affiliate marketer and would like to find out more about the tracking system that is in place in the network. Normally, you can expect to hear from them within 24 to 48 hours.

Again, as a general rule, do not sign up for affiliate networks that does not offer any form of tracking – Because you will be like a blind mouse trying to play a “guessing game” of profitability when you promote the products in the affiliate network.
 
 
3. Payout

Find out the modes of payment in which the merchant is offering – Is it via check, PayPal, or Wire transfer? And also when will payment be made – Is payment made immediately when someone purchases a product/service? Or is it paid 15-days after the end of the month (where you will receive commissions for sales you referred the previous month), 30-days after the end of the month, or 60-days after?

Another thing you want to find out is whether or not there is a minimum amount you need to accrue before payment can be issued? Many affiliate networks have a minimum amount in which affiliates must attain in order for payouts to be made.

You need to find out all these information, so as to help you maintain your financial balances.

This is especially so if you are intending to make use of Pay Per Click Search Engine Marketing, or banner advertising to promote the products. Take note that these advertising networks are likely going to charge you faster than the affiliate networks pay you. So you need to be careful here.
 
 
4. Types Of Offers Available

Before you sign up for any affiliate networks, make sure that it has products in the niche that you are in that you can promote, and also the amount of commissions that you will make for every single sale is desirable.

As a general guideline, if the product is a digital product, then you should expect a commission level of between 50% and 75%.

If the product is a physical product, then you can expect a commission level to be within the range of 1% and 10%.
 
 
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I am not going to talk about that in this article (as you can find this information from other articles). Rather, I am going to share with you situations where you should not promote a particular merchant’s product/service.

There are 4 of them that you need to look out for, and I am going to show you what they are in the next few sections.

 
1. Toll-Free Number On Sales Page

I see some merchants having a toll-free number which customers can call in to find out more about the product (as well as ordering it via phone) at the top of the page.

It may seem pretty harmless initially – After all, if customers have any questions, they can just call the toll-free number and get their questions answered. That is good customer service, you may think, and in fact, it’s a desirable one, isn’t it?

However, the thing is this, if these people were to place their orders via the toll-free number, then you are not going to be credited for the sale – Even if the customer visits the merchant’s sales page via your affiliate link.

The reason is because, the person on the other end (who is answering the customers’ phone call and taking the orders) has does not know whether the customer visits the merchants’ sales page directly, or through an affiliate link.

Hence, you will not be able to get the commission you deserve for the work you put in for sales that are made via phone.
 
 
2. Distractions

Look at the merchant’s sales page carefully and find out, other than clickable links which potential customers can click on and place the order for the product, are there any other active links?

These active links can be in a form of clickable ads (I have seen sales letters with AdSense ads), or in a form of links to other websites (links to other websites often be found in the testimonials section, directly under each testimonial).

Another form of distraction can be in a form of links to the merchants’ other websites (either a personal page, or other products or services that they have for sale).

The reason why you do not want such distractions is because, should someone clicks on these links and visits these websites, chances are they will not likely click on the “Back” button again to go back to the merchant’s product sales page – And hence you will lose out on making the sale.
 
 
3. Pop Out Windows

When you first visit the merchant’s product sales page, watch out for any pop outs.

Some of these merchants displays a pop up window (overshadowing the initial sales page) whenever someone visits the product sales page, with content that is totally irrelevant to the product on the sales page.

That will result in your potential customer feeling confused, and clicking on the close button to close down the site and drop the thought about buying the product (and you lose out on making a sale – and commissions for yourself again).

Therefore, you should make sure that there are no pop out windows displaying irrelevant websites on the product sales page.
 
 
4. Direct Linking To The Product

Your affiliate link should link directly to the exact product/service that you are promoting, and not to a generic page.

Let me explain this using an example – Let’s say you want to promote a particular digital camera from a merchant that is selling it (along with products in other categories).

The affiliate link should link directly to the page where your potential customers can buy that exact digital camera you are promoting, and not to the merchant’s home page.

The reason is because – If you want to get more sales, you should make it as easy as possible for people to buy. The more mouse-clicks that they have to make, and the more pages they have to browse, the more likely they will click on the close button on their Internet browser (and as a result you will not get any sales, and commissions).
 
 
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The next step, especially if you are a newbie affiliate marketer, would be “How am I supposed to promote this product?”

There are, in fact, many different ways in which you can use to promote a product.

However, in this article, I am going keep things simple (and not to overload you with heaps of information) by sharing with you 3 simplest ways you can go about promoting the product which you have just selected (both free as well as paid methods) and start generating money in the shortest possible time.

 
1. Blogs / Websites

Whether or not you want to use a free blog (make sure that you do not use a free WordPress blog to promote a product as it is against their terms of use and you will get your account shut down if you do so), or get a domain name and hosting and create a self-hosted blog, I leave it up to you. But I would highly recommend that you use the latter option – As it would look more professional to have a.com name as your website (compared to a free blog name).

There are 2 ways which you can promote the product in your blogs / websites, and they are:

Product Review – You can promote a product by doing a full review of it. Information you can include in your product review can be a brief information of what the product is all about (in general), what it can do for your prospective customers (if he/she were to get it), along with the pros, as well as cons, of it.

Articles – You can write articles centered around the subject in which the product is about and post them onto your websites. And within the articles, you can sprinkle your affiliates links to the product you are promoting throughout the article (not too much though, just 3 to 5 at max, if your article is about 500 words in length).
 
 
2. Pay Per Click This is, in fact, the fastest way for you to get traffic to the product sales page via your affiliate link.

How this strategy works is that, you create ads to be displayed on search engines (under the sponsored listings column), and whenever someone clicks on your ad, you will pay a certain amount of advertising fee to these search engine (hence the name Pay Per Click – You pay only when someone clicks on your ad).

Most of the times, your ads will be approved within as little as 15 minutes (some even instantly) and shown to your targeted audiences (based on the keywords that you have selected), and if you target the right keywords, you can expect to get a product sales within as fast as the next 60 minutes.

However, if you intend to use this method to promote products, you need to equip yourself with the right Pay Per Click marketing strategies – Otherwise chances are you will end up spending lots of money (in advertising fees) and at the same time not getting a single sale.
 
 
3. Article Marketing

Similar to writing articles and post them on your websites, you write articles and submit them to the top article directories, such as Ezine Articles, Go Articles, and Articles Base.

The only thing is that, you are not allowed to sprinkle affiliate links throughout the article. In fact, you are not allowed to have links in the article itself.

You are only allowed to have an affiliate link in the author’s bio, which is normally found below your article.

A word of caution here, some article directories do not allow you to put your affiliate link as it is. What you need to do here is that you need to get a domain name, and then make use of domain forwarding to redirect your readers to your affiliate link whenever they click on your domain name in the author’s bio.
 
 
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How the Pay Per Sale (also known as PPS) model works is that, you, as the affiliate, will get a certain amount of commissions (usually a certain percentage of the product’s total sales price) whenever you refer a sale.

There are 2 different types of products which you can promote in this affiliate marketing model – They are digital products as well as physical products.

In the next 2 sections, I will be talking about what these types of products are, along with the pros and cons of promoting each of them.

 
Digital Products

Digital products are products in which they are digitally delivered to the customers upon payment (in that customers can download these products).

These products usually come in a form of an ebook (normally in PDF format), audio (normally in MP3 format), or video (most videos are recorded using a video recording software called “Camtasia Studio”, and they can be played on your Internet browser).

The following are some of the advantages, as well as disadvantages, of promoting digital products (from the perspective of an affiliate marketer):

Advantages

• As there are no physical deliveries involved in delivering a digital products, the costs savings are being transferred to you as commissions. Most merchants of digital products offer a commission level of between 50% and 75% for every single sale you refer.
   
• Most of the affiliate networks that allow you to promote digital products allow you to sign up and start promoting instantly (even if you do not have a website).

 
Disadvantages

• As many of these products are written by people whom your prospective customers are unsure of, you, as an affiliate marketer, need to spend more time in educating them (and explaining to them why they should get the product)
   
• Higher refund ratio as compared to physical products (as in order to ask for a refund, they only need to send an email to the merchant, and a refund will be processed and your commissions reversed).

 
Physical Products

Goods like TV, books, magazines, cameras, laptops – These are all example of physical products.

Basically, a physical product is something that, upon purchase, the merchants need to ship them out to the customers.

The following are some of the advantages, as well as disadvantages, of promoting physical products (from the perspective of an affiliate marketer):

Advantages

• People more or less know about a product (for example, a Sony TX1 camera – with so many advertisements on it, who doesn’t know about it?), so it is much easier to get someone to buy it (compared to a digital product).
   
• Lower refund rates (due to the fact that, in order to get a refund, customers need to ship back the product at their own cost. And many of them find it too much of a hassle – Unless the product is really of a horrible quality).

 
Disadvantages

• Much lower commission levels (between 1% and 10%) as compared to digital products.
   
• Most of the affiliate networks that you can sell physical products with require you to have a website (with a considerable amount of traffic) when you first sign up with them.

An affiliate program is, in layman terms, a program that is being set up by the product merchant to invite marketers (also known as affiliates, or sometimes also known as associates) to come in and promote products that the merchants have.

And whenever the affiliate has successfully referred a sale (in that he/she manages to get someone to purchase products from the merchant’s site), they will be paid a certain percentage of commissions (usually the amount of commissions the affiliate will receive is calculated based on the total sales that is generated).

 
Why Did Merchants Offer Affiliate Programs?

The reason why these merchants setup affiliate programs is because, if they simply try to sell their products themselves, they will not be able to reach as huge a customer base compared to inviting other marketers to come in and promote the products for them.

And besides, these merchants only need to pay whenever an affiliate manage to refer a sale for the product.
 
 
The Advantages Of Having Affiliate Programs

This is a win-win situation here for both the marketer, and the merchant in that – For the merchant, it gives them the ability to have their product reach out to a wider audience, and thereby being able to generate even more sales for their products. For the affiliate, they can benefit from these affiliate programs in that they can start making money (sometimes even generate a substantial income) without having their own products.

On top of that, all the affiliate needs to do is to connect prospective customers (people whom they think will be interested in the product) with the merchant. They need not worry about product fulfillment, or after-sales support (as all these are handled by the merchant).
 
 
What Is Required To Setup An Affiliate Program

There are a few things that you need to ensure, as a merchant, are present in your affiliate program so as to entice marketers to want to sign up (and start promoting your products)

Proper Tracking System – You want to have a proper tracking system in place so that you will be able to identify which affiliates have referred a sale, so that you will be able to pay them commissions accordingly.

Affiliate Resources – The easier you make it for affiliates to promote your product, the more likely they will do it. Some resources you can have include a few versions of product graphics (which affiliates can put on their websites, or on advertisements), banner graphics, as well as some resources that they can use – Such as articles relating to the products that you have, which affiliates can put on their websites.

Readily Available Support – As a merchant, you should also ensure that help is given to the affiliates whenever they need. You need to set up a proper help desk system so that affiliates, whenever they have any questions, can post them. And you, as a merchant, need to make sure that questions posted are being responded to as soon as possible (usually within 24-hours, if not, 48-hours).
 
 
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