By Joanna Martin
Speaking from stage is the most effective way to attract new clients but no matter how large the audiences, there is a limited amount of people you can reach…you create your elegant business model by identifying ways you can generate income 24 hours per day… without you needing to be involved in the sale.
Affiliates are people who market and sell your products on your behalf… and receive a percentage of the sale price in return. You may be fortunate enough to find someone with a huge community who will promote your products… or perhaps it is a friend or colleague who has a smaller community but wants to be able to offer your products for a share of the proceeds.
The rates can vary significantly… sometimes affiliates are paid a flat fee for each sale but a percentage split is the most common option.
The likelihood is that a large list owner who agrees to joint venture with you will want a higher percentage of the sale… and it isn’t unusual for you to need to reward these top level affiliates with 100% of the sale as commission.
People with smaller communities may agree to less commission… perhaps 50% of the sale price… but regardless of whether you pay 50% or 100% of the commission to an affiliate, there are huge benefits for you in marketing this way.
Imagine you have 100 people in your community… or no community at all, and someone with a community of 10,000 agrees to promote your product but asks for 100% of the sale as commission.
I know that for most people, the initial reaction is to feel that there is no point in accepting this deal as they will make more sales but with no financial benefit.
But look at it another way… supposing 500 of your affiliate’s connections buy your product? Your community has just grown by 500 and next time you promote a new product, there are an extra 500 people who are interested in what you have to offer.
Ideally you will have up sells immediately available to sell at either a lower commission to the affiliate or no commission at all.
So while you didn’t generate an income from the first sale, you can continue to market to your larger community and make more sales in the longer term.
Do you market your products through affiliates? How has that worked for you? Please leave me a comment in the box below.