“How the Affiliate Business Model Works” Affiliate Chemistry “How the Affiliate Business Model Works”

Introduction Affiliate marketing business models is also known as the third-party proprietor Affiliate marketing is to promote other people’s products via referral No hassle of product creation, payment management and customer service support Growing in popularity in various industries in the recent years

How Affiliate Marketing Works? “Pay-Per-Action” model to either Make product sales Generate leads If an affiliate successfully sells a product or generates a lead, the merchant pays the affiliate a commission (5-75% of product price) Referral process works by using a unique link that allows tracking for both merchant and affiliate

Affiliate Marketing Model Affiliate Network Affiliate Targeted Traffic Merchant $

Rules of Affiliate Marketing Selection Rule 01: Choose Your Niche Find hungry market and gather a list of products to promote Rule 02: Be Picky About Product to Promote Market only products that are high demand, high quality, fairly priced and low refund rates Rule 03: Do the Math! Project how much can be spent on advertising and how many sales to reach profit target Rule 04: Research on Your Merchant Read customers and affiliate reviews

Where to Find Products to Promote? Clickbank http://www.clickbank.com Commission Junction http://www.cj.com PayDotCom http://www.paydotcom.com Link Share http://www.linkshare.com

Independent Affiliate Programs Paid by directly by merchant rather than affiliate networks To find independent affiliate programs, Google search “product name + affiliate” Example:- “fat loss 4 idiots affiliate”

How to Select Products to Promote Visit affiliate network and gather list of related products to promote to your niche Check out at the sales page and offer Important to find product with high conversions and low refund rates (<10%)

How to Select Products to Promote (Con’t) 3 Main Ways to Find Quality Products Buy the product and test it yourself Find out from forums to see what people are saying See what other affiliates are doing and if they are spending money on advertising

Product Selection Checklist Relevant Product Good Quality Sales Letter Commission Payout % At least $20 per sale Low refund rates

Clickbank No.1 largest digital product marketplace Instant product delivery Professional support and handling All tracking is done for you High commissions up to 75% Commission payments sent weekly

Clickbank (Con’t)

Clickbank (Con’t)

Clickbank’s Refund Rate Calculation (Product Price – 7.5%) - $1 = Net Commission Net Commission x Payout Percentage = Affiliate Commission Affiliate Commission - $Earned/Sale = Refund Difference ($ Refund Difference ÷ Affiliate Commission) x 100 = Refund Percentage

Clickbank’s Refund Rate Calculation (Con’t) Example:- 3 Variables Required:- Product Price = $67.95 $Earned/Sale = $43.21 Payout Percentage = 70%

Clickbank’s Refund Rate Calculation (Con’t) ($67.95 – 7.5%) - $1 = $61.85 (Net Commission) $91.85 x 70% = $43.30 (Affiliate Commission) $43.30 - $43.21 = $0.09 (Refund Difference) ($0.09 ÷ $43.30) x 100 = 0.20% (Refund %)

How to Create Clickbank Hoplink

Affiliate Campaign Model Traffic Source Landing Page Sales Offer

Traffic Source Main Types of Traffic Source:- Article marketing Social bookmarks Squidoo lenses Video marketing Podcasting Blogging Pay-per-click

Landing Pages Pre Sell Page Opt In Page Review Page Social proof Personal experience on product Opt In Page Lead generation and list building Follow up emails to build relationship Review Page Product comparison

Sum Up of Affiliate Marketing Affiliate marketing is to promote other people’s product After your niche research, follow checklist to find a quality product to promote Traffic  Landing Page  Sales Offer Efforts will pay off and allow you to reap greater profits in shorter period of time