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Affiliate Marketing is TOO Expensive

By: Rosalind Gardner


I received an email this week from a gentleman who asserted
that affiliate marketing as a business simply wasn't for
him.

Why?

Because it is too expensive!

Huh? Too expensive? What's too expensive?

Let's assume that because he sent an email, he already has
the basic equipment and software that he needs to start an
affiliate marketing business - that being a computer, email
software and an Internet connection. I'll also assume that
he has a desk on which to store that stuff, a chair on which
to perch and a telephone line. Nothing extra to buy or lease
there.

Perhaps it was the huge initial outlay of $8.95 at
godaddy.com to register a domain name? He must have
overlooked the discount. You can save two bucks a year when
you register for ten years in advance. That's got to be it.

Then again, there are those ongoing monthly $9.95 web
hosting and $17.95 autoresponder charges. That's $27.90 a
month. Yup, that's pretty steep.

What about all those products to buy and stock?

Oh yea, you don't have to buy SONY's TV's or Dell's computers
to sell them as an affiliate. Not having to buy them will
also save a big chunk of change in storage fees at the
warehouse as well. Hmmm.... that ALSO means that as an
affiliate, you don't have to ship those heavy items.

Actually, those affiliated merchants are pretty good guys
all around. Not only don't you have to buy, store or ship
the product, you also don't need to deal with those pesky
customers. Just send them from your site to the merchant's
site, and the company will handle all the sales details.
They'll take the customers' money, figure out your share and
send you a check.

Pretty sweet deal.

Maybe it was the cost to build a web site that bothered him.
Yes, graphics programs and HTML editor software can get
pretty expensive, but there are plenty of low and no-cost
options available. If building the site yourself proves too
time-consuming, there are also excellent graphic designers
who sell beautifully designed web site templates for less
than twenty bucks.

Oh, I know! It must have been the cost to advertise. Hmmm...
the last time I checked one of those national magazines, it
cost about $1200 to get a 1/12th of a page ad in black and
white. Your ad could be seen by up to three quarters of a
million people. But how many of those readers would actually
be interested in your message?

By contrast, that $1200 could buy up to 120,000 clicks from a
targeted audience on the Internet.

What method do you think would be more worthwhile in terms
of return?

Furthermore, when you use Internet pay per click
advertising, you don't have to spend the whole $1200 in one
shot. You could try a $50 test ad. Analyze your ROI, return
on investment. If it's not satisfactory, rework your ad and
try another test. In the worst case scenario, you'll gain a
few subscribers to your newsletter to whom you can promote
other products later.

I personally work and rework my ads and aim for a 100%
return on my advertising investment. Where else are you
going to get that kind of return on your money nowadays? The
stock market? Your bank account? The race track? The latter
probably has the best odds of the three.

OK, so let's do a tally to see how much, or how little, it
could cost to start an affiliate marketing business on the
Internet. The expenses are as follows: domain $8.95, hosting
$9.95, web site template $14.95 and $100.00 for a test ad.
Total outlay for the first month equals $133.85. Assuming a
100% return on your advertising investment, you'll have
earned $200.00.

In the first month you'd already be in the black - $66.15
richer.

Affiliate marketing on the Internet is one of the least
costly businesses to start, and one of the very few that
contains the possibility of profit in the first month.

If a C-note is too big an investment in a business that has
brought financial freedom to thousands, then perhaps it's
best to stick with 'the day job'. Of course, I didn't even
touch on all the money and time you'll save by working at
home. Next time.

Article by Rosalind Gardner, speaker, consultant and author of the best-selling "Super Affiliate Handbook: How I Made $436,797 in One Year Selling Other People's Stuff Online". To learn how you too can suceed in Internet and affiliate marketing, sign up for Rosalind's "Net Profits Today" newsletter at:
NetProfitsToday.com


 

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