The Ultimate Affiliate Marketing Business Model

In today’s post I am going to reveal to you the ultimate affiliate marketing strategy that some of you might not be aware of.

You probably bought all kinds of ebooks and courses about making money online with affiliate marketing, and I bet most of them teach you to become an affiliate first before you create your own product for sale, am I right?

Well, what I am about to tell you may shock you because to be honest you will make MUCH more money as an affiliate if you create your own product first. Huh?! What?!  …Yes I said it 🙂

I am not saying that you can’t make a decent amount of money with pure affiliate promotions. Hell I made a ton of money promoting CPA offers, and products from many different affiliate networks, but when you create your own product for sale things become much easier especially the part of driving targeted traffic.

Let me explain in more detail

When you are first starting out the most important thing is targeted traffic. You need to learn how to drive highly qualified targeted visitors to your affiliate offers or no money will be made. It’s actually not that hard because you can always buy traffic. The problem starts with converting that traffic into sales.

There is going to be some learning curve before you figure out how to convert the traffic you are getting. You will need to do a lot of testing and it’s going to drive the costs high before you find which traffic sources produce best ROI for you.

Next, you are not building a list of buyers. You are basically giving away all your leads to the product owner who simply does nothing to get the traffic from you.  All you get is a commission and that’s only if you actually make a sale.

So once your supply of traffic runs out you are dead in the water. No more money for you 🙁

Of course you can always send your traffic through a squeeze page before redirecting them to the vendor’s website and that’s what smart affiliates do. You should always build a list! But you are not using the number 1 secret to making money which is leverage.

On the other hand the product owner has many more opportunities to make affiliate sales because all he has to do is redirect the traffic you sent him for free to other offers.  The vendor can put affiliate links on his thank you pages, inside his ebook, send out promo emails to his list he built thanks to you, and the list goes on and on.

See my point?

So how can you do this if you are just starting out? The best and easiest way to do this is by creating low cost products.  How hard would it be for you to create a nice 20-30 page report (you can so totally outsource that too!) and sell it for $7-$27 bucks?

Then you can set up a 100% commission affiliate program and start recruiting affiliates to sell the product for you. You should probably add some kind of upsell into the funnel to make it worthwhile for affiliates to send traffic. If the only commission they get is a measly $7 bucks they might not even bother.  You can add an upsell by simply making a video course out of your ebook you just created, or get some high quality PLR product and rebrand it with your name etc.

Now all you have to do is concentrate on converting that traffic affiliates are sending you and make more money. You will need to create a good converting sales letter or sales video. I highly recommend outsourcing this part if you have no copywriting experience. When you are a vendor the best investment you can make is to hire a good copywriter instead of worrying about traffic. Affiliates will send you traffic so that’s out of the way.

I hope you are getting the idea here. A product owner is nothing more than a super affiliate who uses leverage to sell other affiliate products on the backend. That’s how all the gurus do it in the internet marketing community.

There is nothing wrong with being just an affiliate. You can make a lot of money with that too especially when you are building content sites and your traffic is free. Building Authority content sites is a huge business because your product is traffic at that point, but that’s a whole different topic.

Anyway, if you want things to be easy you need to create a product of some kind with an affiliate program attached to it. If you offer converts well and your EPCs are high affiliates will drive all the traffic you can handle. They will spend money on PPC, media buys, doing SEO and all the stuff you are doing right now yourself.

Let me know what you think by posting your comments below.

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6 thoughts on “The Ultimate Affiliate Marketing Business Model

  1. You are absolutely right! All those gurus teach newbies to be an affiliate first, but the truth is you should concentrate on creating your own product instead of wasting your time promoting someone else’s stuff. The people who make the most money online sell their own products.

  2. Well, you can be an affiliate first but just remember to create your own vendor funnel as quickly as possible because it will make things heck of a lot easier.

  3. You have a good point here and it has set me thinking now as I have a product that I have been getting ready to launch. I have wondered how best to do this and this post has actually got me on the right track. Very timely post and always great information. Thanks Rob

  4. That is absolutely right. I have been an affiliate first myself and still I am, but owning your own sales funnel where you control the sales process and have affiliates driving traffic for you is more profitable, because your build a list without spending money out of your own pocket. I still do CPA marketing though and promote other people’s products. You can also build a huge list just being an affiliate and using paid advertising methods, but things get way easier when you are a vendor too (especially in the make money niche)

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