Category Archives: online marketing

Drop Shipping vs Affiliate Marketing – Which Should You Do?

What is the difference between drop shipping verses affiliate marketing, and could you do both?

The main differences between the two as far as I can see, is the upfront costs required to do drop shipping.

Drop Shipping

Drop shipping is what some term as product arbitrage, which is a fancy word for buying in a product in at a low price and then on selling the product at a profit.

This model is what is what most people are familiar with in the marketplace. To see it in action all you have to do is go to your local supermarket and buy stuff off the shelf. The owners of the supermarket have basically bought in product and then sell it at a profit.

Capital

One of the draw backs to drop shipping is that you must have either a substantial line of credit to buy in the products at a reasonable discount or you have to have a large sum of cash on hand to buy in the product. Either way, you will be spending hundreds if not thousands to get setup before you even have the opportunity of making a profit.

Warehouse costs

You will also have to have a warehouse to house your inventory. The warehouse space requirements are subject to the size of your inventory. You may need to consider specialized warehouse facilities depending on what you are storing. For example, if you have a lot of frozen inventory like ice cream for example, you may require a warehouse with refrigeration. Some to keep in mind.

Shipping costs

With physical products you will also need to take into consideration shipping costs. If your product sells for say $20 and your shipping cost $25 then you are at a loss of $5. So this figure needs to be considered and either added onto the price of the product or built into the margin of the product.

Affiliate Marketing

Affiliate marketing on the other hand has a lot more going for it. You see, with affiliate marketing, all that you’re concerned with is marketing the product to a high targeted segment in the marketplace.

If you can do this successfully, then you can potentially make thousands of dollars. Some top affiliates can earn hundreds and thousands of dollars.

No inventory

With affiliate marketing you have no inventory costs, because you don’t own the product . And even though you don’t make as much money in the transaction, the owner of the product has a lot more to worry about than you. All you have to do is to get qualified buyers to the product.

Low overheads

So with this in mind, it means that your overheads are super low, and all you have to do is to concentrate on getting people to your affiliate product page.

No shipping costs

You don’t have to worry about the shipping requirements as this part of the process is handled by the owner of the product.

Summary

If you’re a good marketer then the affiliate marketing model is definitely the way to go.

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Learn How To Do Affiliate Marketing Step by Step

Learning affiliate marketing can be a pain in the rear if you don’t know where to start.

Fortunately, it’s not as difficult as some might think if you have the right mentor and are ready to put in the time and effort.

Whilst there are several ways to begin the process of affiliate marketing, there are really only two main things you need to become good at. Both fall under umbrella called traffic.

Traffic comes in a variety of forms, but the two main forms of traffic are paid and organic traffic.

Paid traffic

Positives

This type of traffic is instant, and can be available in large volumes which means that you could be earning money the instant your ad goes live.

Negatives

The cost of the ad can be quite high, some ranging around the $0.50 to $1.50 mark per click. And given some products convert at 100 clicks, means if your product is sells for less than $100 could mean you won’t make a profit.

Develop your own traffic

Positives

The traffic is essential free. You do have to put in the time and effort to create content that well rank in the search engines, but you only have to do it once. They more content you publish the more opportunities you have to pull in more qualified visitors.

Once this traffic has been developed it can keep producing new visitors to your offer day in and day out.

Negatives

It can take a while for the traffic to rank and therefore get visitors. For example, one of your posts could take up to a month or two to rank, so there could be not income for at least two to six months.

Offer that Converts

Whether you’re using paid traffic or organic traffic, you must always look at the product that you’re promoting to ensure that it will convert into sales. Because whilst you might have the visitors coming to see your offer, they might not purchase the anything if the sales copy is not conducive to a sale.

Stands to reason really.

That’s why it is important to select from the best affiliate companies.

To understand what offer converts the best you can just swap out offers to see which one converts the best. Once you understand the numbers then you promote the best converting product in full knowledge that you are not sell yourself short.

Vendors can show proof of conversions

Most vendors these days will show proof that their product sell well online in order to get as many good affiliate marketers promoting their products. If a vendor can get affiliate paying for traffic instead of themselves then they will benefit from it.

I always tend to promote vendor who show evidence of conversions, because it means that if they can get it to convert then I will be able to do so as well.

Follow a tried and proven process

There are a number of ways to promote products however, they are tried and proven methods available that most new folks don’t get to see. But if you can find someone who is willing to show you their proven process then go for it. Even if it might cost you a few pennies to do so.

If you can understand and implement a process and get it to work, then all you have to do is to rise and repeat the process until you have developed the income you want.

Summary

So it is best to learn this craft from people who have experience in this field. But once you become good at affiliate marketing, then it’s a case of rinsing and repeating the process over and over again until you are earning the money you want to earn.

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Steps To Creating Successful Affiliate Marketing Websites

Choosing A Brandable Domain Name

This is not a big issue, but finding a domain name that is brandable as opposed to and EMD (exact match domain name) is probably the best solution going forward unless you know a lot of seo.

Good Hosting

Not all webhosts are created equal. Some webhost providers have shocking support and shocking uptime.

I have heard story from some webmasters who have had websites down for days because their webhosts haven’t been able to fix a problem. This is a big problem if you earn hundreds and thousands of dollars a day.

Use reviews on companies to get an understanding of what webhosts are the most reliable.

Easy Way To Create & Manage Content

WordPress is probably one of the easiest free content manage tools available in the marketplace that offers a wide range of plugins that will give you just about all the free functionality any webmaster could ever ask for.

Since content is the lifeblood of all websites, being able to create content easily and effortlessly is essential to a successful affiliate website.

Affiliate Programs

Whilst there is a plethora of affiliate marketing programs to chose from, not all affiliate marketing programs are created equal. Some programs payout at a high rate and some affiliate programs don’t payout at all.

So it is important that you do your research when it comes to who you work for.

Keyword Research

Being able to identify what keywords phrases you can rank for in the search engines will help you to create a more successful affiliate marketing website.

In the past people who were new to affiliate marketing just wrote about anything and everything and wondered why they weren’t getting any visitors to their websites.

And the biggest reason why people fail in this area is because they are not identified the right content pieces to create. Creating the right content pieces is literally the difference between getting visitors coming to your website and not getting visitors coming to your website.

Compelling Content That People Read

Create content that makes the reader want to keep reading all the way do to the end of the page. That way you can link out to other pages on your website that may be of interest to them.

The key is to get people reading your content and then reading even more of your content. The longer a visitors stays on your website the better. This then signals to the search engines that the content you are providing is high quality and that more of your content should be ranked higher in the search engines.

Interesting Images

Images go a long way towards capturing and keeping your visitors interest in your content. A lot of people take visual cues from well selected and well placed images. So if it makes sense to put in an images thenĀ  do so.

But don’t clutter your website with misplaced images so as to appear as if you have a lot more content on your page than you actually do.

Personable

Always try to make your content on your website personal. No one wants to read formal writing. Formal writing screams “boring”. So try and make your content personable as if you person you are writing for is one of your friends.

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Best Affiliate Marketing Programs For Beginners

If you are a beginner then probably your concept about affiliate marketing is not that clear.

Affiliate marketing is one of the most effective online advertisements that helps any business to make profits by generating leads, traffic and sales for themselves.

For this you have to make sure that you are affiliating yourself with publishers (also known as affiliates) by using one of the best affiliate marketing programs.

There are many advantages of this type of marketing. It is beneficial for both the affiliates who promotes a particular product or service and also for the merchants who are selling it.

How Does This Work?

Affiliate marketing is mainly a process of earning commissions.

For this you have to promote the products or services of other companies and people If you like one product or service and want to promote it to others, then you can use this as a tool for earning some profit for yourself.

This will help the businesses to get leads, customers and eventually increase their profits. On the other hand, affiliates or the publishers get commissions for each and every products sold or services taken from their affiliation.

For this type of marketing, having a good strategy is also very important to get maximum profits.

Beneficial For Business Owners

Businessmen and merchants get a wider platform or scope to showcase and sell their services or products.

Thus it will draw more and more potential customers to your website and thus it will also increase your sales.

Business owners have a lot of work to do and if they keep on focusing on how to gain more customers then who will do the rest of the works?

Thus with the help of best affiliate marketing programs, they gain more and more customers.

This eventually brings more profit to them without spending their valuable time in search for customers.

Beneficial For Affiliates

The website publishers or affiliates can use this marketing strategy as one of their ways to earn extra profits.

It will be quite beneficial for them as well. As soon as they generate any sale through their website, the publisher receives a commission.

The business owners or merchants do not have to invest a lot of money here for this marketing. It is quite affordable even for the small business.

If you are want to work as an affiliate then you can still continue the work or business you are doing. This will act as an extra source of income for you.

Summary

With the help of affiliate marketing, you can create great brand awareness. This helps the businesses to make their products and services popular among the people.

Thus, whether it is a small business or large, many business owners use this marketing strategy as one of their most effective marketing tools.

This marketing strategy not only helps the businesses to create brand awareness and increase their profit margin but also helps the affiliates to earn a lot of money for themselves through commission.

For this using the best affiliate marketing programs are very important.

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