subject: The Info Marketing Secret To 100% Commissions by:Neil Asher [print this page] Information marketing through affiliate programs is simply amazing. It's got the lowest risk and the highest return of any Internet marketing method. When you're the publisher of information products and have affiliates bringing you leads, you only pay for results.
Let's say that you've got a downloadable e-book. You normally sell it through your web site for $40. Maybe you sell a couple of downloads a day and earn $80 in gross revenue.
Now you go out and find some affiliate prospects. You say to them, "I'll tell you what. If you put my link on your pages, and someone comes from that link and buys one of my information products, and I get $40, then I'll give you $20." They agree, and soon you find they are delivering to your site two customers a day.
On the face of it, you might seem to be risking half your gross income. If the two prospects they send you would have found you anyway, your opportunity cost is 50% of $80. But if they bring you two incremental customers you would have never sold to otherwise, you pay them 50% of $80 and net an additional $40.
Again, you're only paying for results. You're not paying for advertising. You're not paying when people look at your stuff. You're only paying when someone actually buys.
Now let's change the paradigm. Suppose I go out and tell my affiliates, "You guys are doing all the work here, so I'm going to give you a raise. What if I up your commission to 75%? Can you bring me more buyers?" Of course, they are going to jump at the offer.
Again, on the face of it, you might seem to be risking the majority of your gross. But the math works out. If they bring in an additional two incremental customers, you still keep 25% for each one they deliver. That's $10 times four, and you don't lose a penny. And if they bring in more than that, everybody profits.
So how about offering an even higher commission? Why not 80% or 90%? Well, at some point the "law of diminishing returns" sets in, and you end up paying more without getting more sales.
But what if you could offer affiliates a 100% commission and still make money? How would that be?
Well, that's exactly what I've done. I combined my affiliate program with my landing page and my opt-in offer. I started to make more money online on the back endmy continuity programsand that meant I could afford to give my affiliates more money.
In fact, the back-end has gotten to be so good that I've got some affiliate programs where I pay a 100% commission. I can do that, because I make my money on the continued relationships, after the initial sale.
That's right, a 100% commission. An affiliate sends someone over. They buy our information product, that same e-book for $40. We say to the affiliate, "You can have 100% of that $40." I can't tell you how many times I've heard the response, "Really? 100%? That just doesn't make any sense."
But it does, because I found that by increasing conversions, it's possible to get more customers on our continuity programs. We get more back-end sales. It makes more sense in the long run to give the customer an incredibly good deal, such as free-line content, and that's just as true of affiliates, toothe 100% commission
I think you're going to see more this in the future, as businesses start to get their information marketing models together and realize it's actually profitable to give 100% on the front end. Having a back-end-driven business model along with a strong relationship-building program will allow you to do that.
About the author
Neil Asher (http://www.neilasher.com/freestuff.htm) has built five multi-million dollar companies from zero, including one he took to $8 million in sales in under two years. He has created and sold successful franchises in England, Italy, Ireland, Australia and South Africa. Visit his web site for access to 17 FREE videos, 6 FREE books and two hours of audio training, revealing "How To Make BIG Money Selling Information Products On The InternetEven If You Don't Have A Website And You've Never Sold Anything On The Internet Before."
