Online Income Generation Evolution. Raymond Wayne

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      Many Internet marketers, myself included, started out in perhaps the easiest way possible... by becoming an affiliate for one or more merchants that had products that allowed other to promote.

      Well, I say easy, but in reality I had to learn a lot of painful and frustrating lessons along the way, many of which I hope to be able to teach you inside IMIT, so that you don’t have so much pain and frustration.

      This particular lesson is more geared to those who aren’t already familiar with what affiliate marketing is all about. If you’ve been an IM’er for a while, you’re probably already familiar with what I’m going to say today, but if not, I think you’ll become very excited with what lies in store for you.

      An affiliate is like a salesperson. He or she finds products that would benefit the market that they’re in, and recommends that their readers consider purchasing that or those products. For that referral, they earn a referral, sometimes just a one-off one, but sometimes, they will also earn future commissions from theat same customer that they’ve brought to the merchant.

      An affiliate is able to earn income because the merchant is willing to pay part of the purchase price for their products to the affiliate that brings them a customer.

      This is done all the time, in all sorts of businesses. Most major corporations have marketing staffs and sales people whose job it is to find customers. They’re paid salaries, and usually commissions as well, based on how much business they bring in.

      Of course you’re familiar with department stores and auto dealerships and just about any business that you walk into. Those people who take you from your walk through the door all the way to the cash register are actually sales people, and many of them earn commissions on your purchases, depending on how their salary is structured.

      Online businesses have found that recruiting affiliates is a dream come true. They can reward those who bring them customers, but they don’t have to deal with the fact that those who aren’t quite so good at the job don’t have to still be carried on the payroll with a base salary, fringe benefits, payroll taxes, office space, etc.

      Affiliates only get paid if they bring in customers who spend money.

      So it’s feasible for a big Internet company to have many thousands, perhaps millions, of affiliates, where that wouldn’t be possible otherwise.

      Amazon, for example, and perhaps the first online business to set up a major affiliate program, has several million affiliates, and their payout on individual purchases is relatively small (typically from 4% to 10% of the purchase price). Also, their terms are relatively non-affiliate-friendly (they only pay for purchases made from the referred customer within 24 hours).

      Still, since Amazon has so much merchandise to offer customers, and since so many people are very comfortable shopping on Amazon, many affiliates just absolutely love promoting their site.

      On the other hand, many marketers that sell infoproducts typically pay 50% or more (sometimes 100%), and often track sales from referred customers for life.

      When I was starting to create products, I couldn’t understand how someone could pay 100% on a product that they worked long and hard to create, but it’s very common now to do so. The benefit for the product creator is they get to add the person that the affiliate sent them to their email list, as a buyer, which is a very profitable business asset to have.

      In fact, I’ve seen instances where sellers pay as much as 200% commissions on the initial sale (yes, that’s not a typo), because they know that once the customer enters their “sales funnel”, they’ll spend much more in the future, on average.

      So what does this all have to do with you?

      Well, first of all, it means that there never will be a situation where a company that has great products will have “too many” affiliates. They’ll welcome you with open arms, trust me, and if they don’t, there are plenty of alternatives.

      That being said, the challenge is, where do you start?

      Affiliates who do well typically have a large list of email subscribers, but if you are just starting, you don’t have a large list... yet.

      Don’t worry, that’s not the only way to profit as an affiliate, but you do want to keep that in mind, and start building up your own email list if you want to maximize your affiliate income in the future.

      In order to do that, you want to set up your own blog, on your own domain, and write content that will soon start attracting readers. You also have to have something that will convince those readers to sign up for your email list, so that means starting to brainstorm topics that you can write about in your niche (which is another decision to make) that will have enough value that people will trust you with their email address.

      That also means that you have to sign up with an autoresponder service like Aweber or Getresponse, so that your email subscribers are handled securely and professionally.

      So yes, there are costs involved... domain name, hosting, autoresponder service. None of those are overly expensive, but the hosting and autoresponder service are paid each month, so it’s a commitment that you need to make.

      After signing up with the autoresponder service, you need to set up what’s called a squeeze page, which is a place for your readers to enter their name and email address, in return for the benefit that you promised (typically a free report or product).

      One by one, your list will grow, and as you start building a relationship with the people on your list, they’ll begin (hopefully) to listen to your recommendations about products that you feel are in their best interest.

      Rule number one for affiliate marketers: never abuse that trust.

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