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Archive for January, 2009

The Week’s Top Affiliate Marketing News Stories (January 30, 2009)

21383494.jpgPrime Season for Affiliate Marketing
Why a sporting event and a lovers’ holiday help create the perfect recipe for affiliate marketing success.

Click Fraud Rates Hit Two-Year High
The industry click fraud rate has risen, representing the highest level recorded since the company began tracking rates in 2006.

Commission Junction UK Launches a Blog
Commission Junction UK has launched a blog to communicate news and issues with affiliates and merchants in the network.

Social Network User Demographics
Adults still make up the bulk of social networking site users, but younger online adults were much more likely than their older counterparts to use social networks.

Microsoft Steps up Browser Battle
Microsoft has stepped up the battle to win back users with the latest release of its Internet Explorer browser.

With Its Print Program Dead, Google Still Aims to Transform Radio Ads
Google appears dedicated to its radio ad business, despite the old media hurdles involved. However, convincing radio stations to adopt its programming platform seems to be a challenge.

10 Ways Twitter Can Make Money
With traditional advertising proving less effective, marketers need new outlets like Twitter and Facebook to help create interest and demand. This article explores 10 ways Twitter can make money.

Analysts Expect Rough Q4 For Yahoo
Analysts expect that Yahoo will hardly be immune to the advertising downturn plaguing Internet companies generally. The company’s results will be dragged down by the deterioration of display advertising, which accounts for the biggest share of its revenue.

CPM Prices Falling Precipitously
With the economy tanking, advertisers are cutting back on their brand campaigns, which includes display ad spending. These price drops also affect the cost of higher-end ad impressions, the report says.


Is Your Business Model A Loser?

20567813.jpgSome affiliates love creating content, building mega-sites of thousands of information rich pages, and making money off collateral commissions and ads.

But what if you’d really rather be a good old-fashioned shopkeeper, with a storefront that combines plenty of great product choices and a pleasant visitor experience?

It’s a dilemma faced by a huge percentage of online business persons who discover that they are, in fact, in the wrong TYPE of business. Not everyone is cut out to be a content provider, mini-site marketer, portal manager, membership manager, or PPC affiliate.

So how do you switch business models in mid-stream without losing money, time, reputation, and sanity?

#1- Look for ways to re-purpose or re-package components of your existing business.
For example, if you’ve been struggling to provide content but would really rather be doing eBay, can you recycle your content into a viral report that’ll drive traffic to your eBay store? Can you turn it into a hard copy information product, and sell it on eBay?

#2- Sell your existing business or site, and reinvest the money in a more congenial business model.
If you’re really not happy maintaining your storefront, mini -sites, membership site, or content portal, why not sell it to someone who’d love a turnkey business? How much you’ll get will depend on your traffic, search engine rankings, market presence, the size and quality of your customer or opt -in list, and your domain name.

#3- Joint venture with someone who will develop your old business model for a percentage of commissions or sales.
One of the easiest JVs to set up… yet almost no one is doing it. Example: You’ve got a big opt-in list that isn’t making any money because you can’t find time to write a weekly newsletter.

Find a good freelance writer, preferably one who knows your niche inside-out. Then ask if they’ll take over writing and managing your newsletter in exchange for a generous percentage of raw commissions on affiliate products. Since you’re not making a penny off your list right now, it’s a win-win for both of you.

Similar JVs could be set up for all types of business models and sites. Just make sure you have clear-cut agreements, in writing, with your partners, that you maintain ownership and control of passwords and domain names, and that you have some checks and balances set up so your partner can’t hijack commissions or promote without your knowledge.


How to Promote High Ticket Backend Offers (Part 2 of 2)

Ticket_2In the last post, we looked at different approaches to promoting backend products. In this post, we will look at developing an effective sales system for your backend products.

Just as there are many types of backend products, there are many different ways to get your customer base to buy those products. The important thing to remember is that once a customer has spent money with you, they are likely to spend money again and again with you, as long as you keep directing them to quality products.

You will most likely have more difficulty coming up with a high-ticket backend product than you will have in selling that product. Some ideas for high-ticket backend products include:

  • Selling Master Resell Rights to your front-end or mid-level product
  • Specialized Membership Websites
  • Printed Manuals and Workbooks
  • Consulting Services
  • Teleseminar Series
  • Video and DVD Courses

These days, just about anybody can make a little money on the Internet – but if you want to grow a substantial business, you’ll need to create a sales system. This includes entry-level products, mid-level products, and backend products.

You may be wondering, once you’ve taken a customer all the way through your sales system, what do you do next?  You start the process all over again with another related entry-level product.  Or you show them yet another high-ticket backend product.

The critical factor is that you must constantly meet your customers’ needs and exceed their expectations. If you do, they will purchase from you over and over again, including (and especially) high-ticket products.

Obviously, to make this work, you need much more than quality products. you must  establish a relationship with your customer with constant communication, and keeping abreast of what your customers want and need.

Think for just a moment about your pharmacist. Your pharmacist probably knows as much about what is going on with your health as your doctor does – because he is the one filling the prescriptions. Pharmacists also know what medicines you need for certain conditions.

Let’s say that you burn yourself. You obviously don’t want to go to the doctor over a simple burn, but you do need to treat it. So you go to your friendly pharmacist – the one who recommended and sold you a wonderful cream for your arthritis when he saw that the doctor was prescribing medication for arthritis.

You’ve been going back month after month to get your medicine refilled as well as purchase that cream, and now, you need something for this burn. You go to your pharmacist, who is happy to look at your burn and make a recommendation for treating it.

This is the same pharmacist whom you can call at home in the middle of the night to fill a prescription that you got from the emergency room for your sick baby – or the pharmacist who will meet you at the store on Sunday morning so that you can purchase a humidifier for your sick baby.

Why does this pharmacist go out of his way to meet your needs? He does this because he knows the value of your business. Without you even realizing it, he has made you a lifelong customer, and he knows that you will continue to get your prescriptions filled and purchase medical supplies and over-the-counter medicines from him – even if you could purchase the same things cheaper elsewhere – for as long as you live, or for as long as he is in business.

He knows how to look at what you are buying, and to make recommendations for other products that are related to what you are buying. You need to become just like this pharmacist.

When you do that, you will become an expert at selling high-ticket backend products.

Selling a high-ticket backend product isn’t as hard as most people may think it is. Again, it is a question of leading your customer to it through your sales system, making sure that you are offering top-quality products, establishing a relationship of trust with your customers, and of course, paying attention to their needs and desires.


The Week’s Top Affiliate Marketing News Stories (January 23, 2009)

newsLag Effect: Paid Search Surges Despite Economy, Cost Continues To Fall
It may be a lagging indicator, but the paid search advertising market actually surged during the fourth quarter of 2008, rising 43% over the same quarter in 2007.

Rental Sites Cash in on Inauguration With Search Ads
An affiliate marketer reaped the benefits of renters looking for vacancies during the Inauguration and credits AdWords as “the core component”.

Google Makes More Cuts; Keyword Prices Decline
Google implements some cost-cutting measures as keyword prices continue to decline and the search giant releases its earnings.

Advanced Forum Link Building
As part of your affiliate link building strategy, forums should not be overlooked. They are endless sources of linky goodness waiting to be tapped into.

Microsoft Expected to Cut Jobs as Profit Weakens
Microsoft Corp is expected to post a quarterly profit that misses its own target and announce thousands of job cuts this week as the global economic slump hurts even the technology industry’s biggest players.

Next Up for ‘The Pool’: Standards for UGC Advertising
Two Publicis entities are likely to tackle the wild world of user-generated content.

eBay Reports 12% drop in Q4 Gross Merchandise Sales
Gross merchandise volume, the total value of goods other than motor vehicles sold through eBay Inc.’s e-commerce sites, fell more than $1 billion.

New Programs Available Through Google Affiliate Network
New programs such as BabyAge, Splendid and Ella Moss join Google’s Affiliate Network.


How to Promote High Ticket Backend Offers (Part 1 of 2)

Ticket_1You work hard to get your customers, and everybody knows that it is easier to retain a customer than it is to get a new one. In this two-part post, we will focus on backend products and the important role they play in helping you retain your customers.

Obviously, selling a product to a customer one time does not help you to retain that customer. You need additional products to sell to each of your customers, and that is where a backend offer comes into play.

You may have a $20 ebook that is selling really well, and you may think that you are successful because of this. But if you don’t have something else to offer your customers, you may eventually tap that market dry. You need a backend product – in fact, you may need several backend products.

Let’s take a look at some of the most successful ways to promote a backend product:

Teleseminars
If you’ve sold an entry-level product, you can invite those customers to a free teleseminar that you are hosting. You can interview the creator of the mid-level product, and make sales of this product through the teleseminar. Later, you could host a teleseminar series for the backend product, inviting those who purchased the mid-level product.

Promote from Within
Promote your mid-level product with the entry-level product, and promote the high-ticket product with the mid-level product.

For example, if the entry-level product is an ebook, that ebook won’t usually give all of the detailed information concerning the topic or subject. So the customer who bought the entry-level product can be prompted, at some point, to purchase the mid-level product and learn more about the topic. The idea is to use the entry-level and mid-level products as promotional tools that lead the customer to the next, higher level product.

Offer Bonuses
You should offer bonuses that nobody else is offering, whether the product is your own or an affiliate product. This significantly increases the value of your product, and works especially well for high ticket items.

One-Time Offers
You’ve probably seen one-time offers. You purchase a product, and are taken to a page to purchase a related product for a one-time special price. If you leave that page, that special price offer – or special bonuses associated with that product purchase – will be gone forever.

OTOs usually work best after the purchase of a mid-level product. Immediately after the purchase of an entry-level product, the customer has not had a chance to see the quality of your product and, in many cases, has not yet built up enough trust in you to spend more money. By the time he/she buys a mid-level product, however, the customer has had the opportunity to see the quality of the products that you sell and will have much more trust in you.

Joint Ventures
Let those who have more experience, or those who can reach further into the market, help you to sell your high-ticket backend product. Bring joint venture partners into your plan. Let them start with the front-end product, and you will be amazed at what they can do for your sales.

In general, this is really possible only if you are the owner of the product, as opposed to being an affiliate, since you will need to pay commissions to your joint venture partners.

Diversify
One front-end or mid-level product may not be enough. Instead, try creating numerous different front-end and mid-level products that all lead to the high-ticket backend product. You will most likely make more sales this way.

For example, someone may not purchase your entry level ebook on organic gardening, but they may be highly interested in an ebook on herb gardening. Or it could be that they prefer an ebook on using herbs for medicinal purposes. All of these products could lead to an Organic Gardening membership website.

In the next post, we’ll look at developing an effective sales system for your backend products.