Step one is committing to becoming a producer.
To attract customers, and partner with affiliates who’ll help promote your products, follow these principles:
- Have a solid understanding of your customers’ needs. When you identify your target audience’s biggest problems, you’ll be able to create products that solve them. Once you do so, you’ll have customers for life.
- Be clear about what your customers are willing to spend. You can’t expect meaningful rates of conversion if you develop champagne products for beer budgets. Test, poll, research similar products, and interact with potential customers to discover what they’re willing, or even able, to spend on your product.
- Deliver your product in the expected format. Trying to sell a magazine to someone who wants to see a movie is an effort in futility. A videocassette won’t sell to someone who has only a DVD player. Learn how your target customer wants to receive your content and then deliver it via the appropriate medium.
Higher prices lead to greater affiliate participation. Whether your product costs $10 or $10,000, it’ll require roughly the same amount of effort for an affiliate to promote it. As a result, most affiliates will choose to invest their time into selling high-priced products that provide substantial returns. Printed books and ebooks, while often providing wonderful content, are ill suited for commission-driven relationships as are most other products that sell for under $500. Today’s successful partnerships involve the promotion of products priced between $500 and $4,995. Products above and below these price points continue to be sold, but they represent the two ends of the bell curve. Successful Internet marketers offer products at the center of the curve—and right now that sweet spot is roughly $2,500.
Higher commissions mean happy affiliates. Selling a highpriced product isn’t the whole story. You must also be generous on commissions paid. Today, 40%-50% commission rates are commonplace, as is the payment of an additional 10% for second-tier affiliates. Second-tier affiliates, also known as brokers, help recruit affiliates for a product launch. When a product is sold, a second-tier affiliate typically receives 10% of the purchase price. Naturally, this cuts into your net profits. However, industry leaders understand that 40%-50% is a price worth paying for instant massive exposure, immediate income, and adding thousands of hopefully satisfied customers to their sales funnel.
Continuity programs create long-term relationships. While instant cash is always nice, long-term passive income is even better. Whether they consist of bi-weekly one-on-one coaching, monthly product shipments, quarterly VIP programs, or annual membership dues, continuity programs provide ongoing benefits for both you and your affiliates.
Developing products from scratch is hard. But even more difficult is creating products that fulfill audience needs, provide immense value, are of superior quality, and convert prospects to paying customers. Success requires satisfying all four criteria.
Today, he who has the list controls the game.
Internet Prophets: The World's Leading Experts Reveal How to Profit Online by Steve Olsher