A business model can make or break your site. So, it deserves your respect.
It doesn’t matter if you are a newbie or an experienced marketer. Basing your site on a strong business model will strengthen your site and set it on a road map for success.
Whichever business model you choose — which you will determine based on your individual goals and particular interests — you need to craft it in a way that helps you reach your goals efficiently.
For a deeper look at some various online business models — and how to choose which one is right for you – check out the 130-level courses within Affiliate Classroom V2.
You will read how to get your site off to a good start by running it with the business model that fits your own needs and goals.
And once you’ve picked your business model, you’ll learn how to watch out for the following pitfalls that many a marketer often makes.
Mistake #1: Forgetting Customer Value
Whatever business model you choose, you’d better offer something that buyers — not just casual surfers — are going to love. Sounds obvious? If only it were. Thousands of sites are launched every year, and only a tiny handful actually sell something people want, or offer information people are really looking for.
As an affiliate marketer, you’re selling OTHER people’s products, services, or advertising.
So don’t decide on a business model without knowing whether you can locate in-demand products, services, or content to plug into it.
Mistake #2: Not Knowing Where You Fit In
MBAs call this “finding your fit in the value network.” We call it knowing whether there’s any room left for your business model — and your business — in the crowded Internet marketplace.
A few years ago, when the market for digital money-making information went flat, every marketing guru launched a private membership site. Shortly after that, the “System and Seminar” model became all the rage, along with its spinoffs — bulky e-courses, audios and videos, and personal coaching. Niche marketing came right on its heels, along with the make-your-own, quick-and-dirty software craze. In all cases, a few good ideas spawned a long stream of copycats, glutting the market.
The result? If you were a newcomer, no matter how much of an expert you might be, or how good your product was, it was an uphill battle for marketing experts who weren’t early adopters.
So no matter how many experts sing the praises of “building your own list,” make sure you investigate whether there’s room for YOU to make money with a list … and whether you’re suited to direct response opt-in marketing. That goes for ANY business model.
Don’t just research your market. Make sure you know if there’s enough room for yet another portal, mini-site, or content network in your niche.
Mistake #3: Offering Too Much for Too Small a Return
It’s become commonplace to sing the praises of “overdelivering.” But if your business model includes low commissions PLUS plenty of customer service and incentives, think twice.
Small commissions are okay if your business model is focused on volume sales. And you can promise one-on-one attention, valuable incentives, and cool freebies IF each individual customer is worth plenty of cash.
But combining low margins with lots of labor-intensive coddling and extra goodies can spell huge losses. Few affiliate marketers, especially newbies, can afford to combine massive sweat equity with small returns.