May 02, 2009

Affiliate Internet Marketing - How to Conduct Market Research

By: Gen Wright

The first step to take, is to find a lucrative market that is suitable for affiliate marketing. More experienced marketers know how to spot the right markets to go into. It is not easy to acquire this ability. Expert marketers spend lots of time testing things out, and honing their ability to find good markets.

Affiliate marketing can help you target profitable markets with laser like accuracy. Make full use of affiliate marketing to promote products that you don't own. When a sale is completed, you earn a percentage of sale amount. If the traffic that you send doesn't convert, you earn nothing.

You don't risk much when you get involved with affiliate marketing. You usually start by generating traffic for the offer. All you need is a couple hundred visitors to determine whether the offer will convert well enough or not.

This is the perfect way to test a market. You don't need to spend a single cent on product development. If you find that an offer is converting strongly, simply swap the offer with a better one by developing your own product.

It all begins with affiliate marketing. You can test as many markets as you like, using similar methods. The results will be revealed to you in a matter of days.

Once you know which markets are profitable, just place more emphasis on those businesses. Repeat the cycle again to make more profits.

Here is how you can scale your business - build a list of customers and sell to them again and again. Sounds simple enough? That's because it is a simple business model.

Here is an example. Let's say you start off with just one product, and you sell it for $47. When you make a sale, you earn 47 bucks. If you make 10 sales, you make $470. To make more money, you have to acquire more customers. If you don't, you can't grow your business.

Make a quick assumption - you don't get any more new customers. Can you continue to make more money from your online ventures? You can continue to develop more backend products. That means selling more to the same customer. Each customer is worth more to you now.

The lifetime value of a customer is the amount of money that he spends with you. For instance, an individual who spends $10,000 with you over the next 10 years has a lifetime value of $10,000.

Here is where it gets interesting. For every customer you acquire, you earn $10,000. How much can you afford to spend on marketing?

This is what many affiliate marketers are not doing enough of. They make one sale, then forget all about the customer. Think of ways to serve the same customer several times over. It's a downhill ride when you sell to people who already know who you are, and trust that you deliver.

Setup a simple squeeze page to capture the contact information and keep in contact with your customers. You may very well be making 10 times what you are making now.

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