By: Gen Wright
The first step to take, is to find a lucrative market that is suitable for affiliate marketing. That is one thing all marketers must know - spot the right business opportunities. It is not easy to acquire this ability. Patience and perseverance is required to spot the lucrative opportunities.
You can use affiliate marketing techniques to help you spot opportunities on the Internet. Use affiliate marketing to promote other people's products and services. When a sale is completed, you earn a percentage of sale amount. If you can't convert the traffic into paying customers, you don't earn a single cent.
There is very little risk involved in affiliate marketing. You start off by driving traffic to the sales page. 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. There is no need to spend money to develop a product, only to realize that nobody wants to buy it. If you find that an offer is converting strongly, simply swap the offer with a better one by developing your own product.
You see, it all starts from affiliate marketing. If you like, you may even test different markets at one go. Very soon, you will be able to see for yourself, some concrete results - which market is lucrative with rapid buyers, and which market appears to be just luke warm.
Once that is over, just keep your eye on the profitable opportunities. If you want to make more money, just rinse and repeat what you have done.
Here is how you can scale your business - build a list of customers and sell to them again and again. Even though it sounds simple, some marketers are still not building a list.
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.
Assume that you don't acquire any more new customers (which is unlikely). Can you still grow your affiliate business? You can continue to develop more backend products. That means making more sales from your customer database. Each customer is worth more to you now.
A customer lifetime value is the amount of profits that you make from the same customer. For example, if he spends $1,000 with you over the course of the relationship, the lifetime value is $1,000.
Here is where it gets interesting. Now if you know that for every customer you acquire, you will earn an average of $2,000 during a customer's lifetime, how much would you spend to acquire that customer?
This is what many affiliate marketers are not doing enough of. They make an upfront sale of $47, and then they 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 will be making 3-4 times more than what you are earning now.
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