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introduction
As I have no way of knowing what type of Home Business
you want to start Online it is difficult to give a step by step instruction
on How to Start Your Home Business Online.
There are thousands of opportunities to join programs as
an affiliate, promoted everywhere on the internet. Some are genuine and some
are not.
There are MLM's [multi level marketing], JV's [joint
ventures] paid to surf programs, paid survey's, viral marketing schemes,
etc. etc.
Perhaps you have already joined such a program?
* Or perhaps you are making sandals at home which you
want to market Online.
* Or maybe you have a corner store which you would like
to advertise locally Online.
* Or accommodation that you want
to advertise worldwide Online.
The common denominator here is that you are going to
promote whatever you are
doing ONLINE.
I am not some millionaire Guru that's going to tell you
that if you do exactly what I do you'll make millions in your first couple
of years. As a matter of fact I still see myself as a newbie in this
industry. However I strongly believe that I have some useful information,
gained from my own struggles to make a living Online. I am a person that
believes in big dreams, however I also know that dreaming won't build my
business. I have to act, to make my dreams a reality. Going into action on
the recommendation of some hyped up promise can send you bankrupt and
disillusioned in a hurry.
I wrote an article in the "Any Ideas" Newsletter 15th
January 2006 that points out the importance of having Your Own Website
regardless of what type of business venture you undertake ONLINE. I
think it pertinent to place it here as well.
The Sins of omission
Firstly I want to clarify that this article is not about
the many scam propositions that plague our inboxes everyday. "The sin of
Omission" is committed by genuine affiliate programs, joint
venture programs and MLM programs, etc.
By genuine I mean programs were people who are prepared
to work have the potential to make mega bucks through companies with good
products, service and support.
As a complete newbie about three years ago I decided that
I would expend my maximum effort to make an income online. I was prepared to
learn and commit whatever time was necessary to make an income from home on
my computer.
I steered away from programs that sounded too good to be
true. I did my due diligence on companies before I joined them and only
joined companies that promised to train me every step of the way. Even so, I
got scammed a couple of times or the companies went bust, at best I made a
few dollars. During this time I subscribed to newsletters, bought e-books
and researched the internet for hours on the subject of internet marketing.
Still I could not get close to making an income online even though I
followed instructions to the letter. However, I learned a lot in the
process.
Following are a few important things I learned along the
way:
Below is a graph of Promotional tools that companies give
you to promote their products for x$'s yearly membership fee.
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I could
go on and on with this list however I am personally convinced that if you
are serious about establishing a business on the Internet you must have
your own website. By all means if you do not have your own product to
promote become an affiliate or joint venture with someone but do it via
YOUR OWN WEBSITE.
There is one common denominator to all successful
internet marketers they all have their own website.
Get a presence on the World Wide Web where real people can see you and
potentially you’ll have millions of customers coming to your business
whatever that business might be.
The thought of having to build their
own site scares a lot of people, that is probably the main reason for the
"Sin of Omission". Building and optimising a site is not so difficult. I
believe that anyone that can follow simple instructions can build and
optimise their own site given the right information. I also firmly believe
that if you are not prepared to build your own site or have it built for you
that you will not succeed in Internet marketing.
The site you are on right now is the
first site I've ever built and it is currently listed in 2nd place out of
approximately 160,000,000 sites competing for the same search terms.
Amazon.com is in 1st place. I have written an e-book
"How
To Start A Home Business Online" which will give you all the
information and tools that I used to build and optimize this site.
Whether you use my book or source
your own information my message to
you to kick off a successful 2007 Online is, if you are not already the
webmaster of YOUR OWN WEBSITE then make it your first priority this year to
become one, or hire one.
UPDATE 2010 We now have a free online study . Go to the Kimbro's Study after reading this page.
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Starting Your Home Business Online
When you think about Starting a home based business Online, what do you
think of first? Which aspects of making a choice on where to start are
important, which are essential, and which ones can you take or leave? You be
the judge.
"Where is all the help I'm supposed to get. I have been buying ezine and
classified ad builders and signing up for Echecks and Virtual credit cards.
In the meantime I have no business and no ads set up. When does all this
happen? Let's go here. I spent all day on this. I'm running out of time."
I kid you not, this is the sum total of an actual email that hit my inbox
this week. Not only did I not know this person from Adam, this was the first
and only email I had ever received from her and to this day, I have no idea
what she's talking about. Presumably, she signed up for one of the affiliate
programs I promote from my site and was asking, in her own inimitable style,
for my help. Although I am always ready and willing to help anyone I can,
this is most definitely NOT the way to go about asking for it.
The attitude displayed in this person's email to me (and she is by no means
an isolated example) exemplifies why so many people fail to make a success
of their online businesses. Leaving aside the utter rudeness of the
approach, notice the impatience, the expectation to be up and running in a
day, the HURRY, the apparent belief that real world principles such as
courtesy and good manners don't apply online (they do). Think this person is
going to last the distance? What kinds of tactics do you think she is
capable of resorting to in pursuit of the almighty dollar?
So, let's take a realistic look at affiliate programs, what they can and
can't do for your business and how to maximize your chances of creating a
successful, long-term business with them.
WHAT IS AN AFFILIATE PROGRAM?
An affiliate program (also known as a reseller, associate, referral or
partnership program) is essentially a revenue-sharing arrangement whereby
you, the affiliate, receive payment from the owner of a product or service
that you promote on their behalf.
Affiliate programs are an excellent way for the new internet entrepreneur to
start an online business.
TYPES OF AFFILIATE PROGRAMS
There are various types of affiliate programs.
The most simple involves you, the affiliate, placing a banner ad, graphic or
text link at your site which is linked to the site of the business you are
promoting. This link is coded with your unique affiliate ID so that the site
visitor is recorded at the target site as having originated from your site,
thereby allowing you to be credited with the sale.
Payment is generally a fixed percentage of the sale value (commission) or
"pay per click", where the affiliate is paid a certain amount for every time
a site visitor clicks on the link at the affiliate's site, whether or not a
sale is made.
The more sophisticated affiliate programs are multi-tier and allow the
affiliate to earn commissions not only on the traffic they directly refer to
the target site but also a proportion of sales generated by their
sub-affiliates.
BENEFITS OF AFFILIATE PROGRAMS
The greatest benefit of affiliate programs is that when you are just
starting out in your own online business you don't have to worry about
creating your own product or service. You just promote someone else's and
get a share of the revenue pie for your efforts.
You also don't have to concern yourself with warehousing, transport or
logistics headaches. All of this is handled by the business whose
products/services you are promoting. All you need concentrate on is driving
traffic to that business's website. This means that a high proportion of
your revenue is profit.
The owner of the product/service is also responsible for collecting payment,
customer service and the myriad other details that come up on a day to day
basis in running the business.
DISADVANTAGES OF AFFILIATE PROGRAMS
The main and obvious disadvantage of affiliate programs is that it is the
owner of the product/service who earns the lion's share of the profit on the
sale.
You're working on commission. You will NEVER earn by way of affiliate
program commissions as much as you can earn by way of profits from producing
and selling your own product/service.
As a result, affiliate programs represent a high opportunity cost when you
consider what you could earn if you instead channeled the time and energy
you spend on promoting affiliate programs into creating and promoting your
own product/service.
For this reason, it does not make sound business sense to rely solely on
affiliate program income for the longer term growth of your business.
Instead, think of them as a way of dipping your toe in the water when you're
first getting started, and a nice little sideline once you've created your
own product/service. Do NOT build your business around affiliate programs
with the intention this will always be the backbone of your business. You'll
be stunting your own growth if you do.
CHOOSING THE RIGHT AFFILIATE PROGRAMS FOR YOUR BUSINESS
So, keeping in mind what affiliate programs can and can't do for your
business, let's turn to what you should look for when choosing an affiliate
program or programs to promote in your business.
Synergistic Products/Services
First off, and this is a cardinal rule, only promote those programs which
will allow you to create synergies with your site. This means selecting
programs that naturally complement the subject matter of your site and that
will therefore be of interest and relevance to your site visitors. This will
ensure your prospects (ie your site visitors) are pre-qualified which will
result in a relatively higher conversion ratio (the ratio of visitors to
purchases) than would be the case if your traffic is untargeted (which will
be the case if you promote unrelated products and services from your site.)
Quality In All Things
Keeping the need for synergy uppermost in mind, look for quality programs
first and foremost. The last thing you want to waste your time, money and
reputation on is a shoddy product or service. There are just too many
quality programs out there to settle for anything less.
Stability of Company
Look for a company that's been around for a while and that's reputable and
stable (both financially and in its management). Any reputable company will
have full contact details readily available so do your research.
References
Look for testimonials and references from other affiliates. If the company
you're interested is not forthcoming when it comes to putting you in touch
with other affiliates, move on.
Affiliate Agreement
Look for a professional, considered and detailed affiliate agreement
(contract). This shows that the company is serious about its business.
Watch out for exclusivity clauses and other restraints. Some affiliate
agreements will require that you not promote competing businesses' products
and services. This is not to say you should avoid such agreements. As a
general rule, it is your interests not to promote competing programs anyway.
Just be aware of what the agreement says on the subject to avoid getting
yourself into hot water.
Look also for an agreement that treats spammers harshly. This protects not
only the company but other affiliates as well. The last thing you or any
other reputable affiliate needs is to have your reputation and the
reputation of the product/service you are promoting besmirched by these
sorts of tactics.
Now that we've covered those aspects of Marketing, let's turn to some of the
other factors that need to be considered.
High Commissions
Promoting someone else's affiliate program necessarily requires that you
divert traffic away from your site and towards someone else's. Make sure
you're properly compensated with a high commission structure. And be sure to
set up your link so that when the visitor clicks on it, a new browser window
is opened for the target site. This at least keeps your site in front of the
visitor so they can go back to your site once they've finished at the site
your link has taken them to.
Lifetime Commissions
Look for affiliate programs that will credit you with not only THIS sale but
all other sales the customer may make in the future. Many programs are set
up so that the customer is identified as "yours" so that when the customer
returns to the target site in three months time, the sale is recorded as
having been generated by you.
Residual Commissions
Include programs that offer residual commissions in your portfolio. Good
examples are webhosting services, autoresponder services and the like where
customers sign up for a continuous service that requires periodic, regular
payments. You receive periodic, regular commissions as a result.
Tracking of Commissions
Look for programs that allow you real-time access to your stats so you can
keep easy track of your commissions.
Reliability of Payment
When checking with affiliate references, find out what the business's record
is on paying out commissions. If they're slow or there appears to be a
pattern of problems, keep looking.
Frequency of Payment
Make a note of payment schedules too. Some programs pay weekly, some
monthly, some quarterly. Some only pay once you accumulate commissions of a
certain amount. None of these arrangements are necessarily good or bad in
and of themselves. Just be sure you know what to expect.
Programs that Require Payment Up Front
Two words: MOVE ON!
Affiliate Support
Finally, take a look at what support the business offers its affiliates to
make sales. Do they provide resources such as sample ads, banners, logos and
the like? Do they provide useful advice about maximizing your sales? A good
affiliate program provides affiliates with a LOT of support in these areas.
MAKING MONEY FROM AFFILIATE PROGRAMS
OK, now you know what to look for in an affiliate program. Here's how to
maximize your sales of those products and services and, therefore, your
commissions:
Get Your Own Website
No ifs, no buts. DON'T rely on the you-beaut self-replicated job the company
provides all its affiliates. Link to that site from your main site.
Get Your Own Domain Name
This presents a much more professional image. Many people won't give the
time of day to a business that thinks so little of its prospects that the
owner won't shell out 10 bucks for a domain name. So mean business and look
like it.
Get Traffic To Your Site (Duh!)
As a rough guide, you will need at least 500 targeted unique visitors a day
to your site to make reasonable money from affiliate programs.
To get unique visitors to your site - this is a must have - Free Website Traffic
You Must Have A Site That Will Attract Repeat Visitors
If your website is nothing more than a splash page consisting of little else
other than banners for umpteen different affiliate programs, forget it. Your
site must be worthy of your visitor's time and interest before you can even
begin to think about converting that visitor into a paying customer. So
create a real site with real content that will keep them coming back for
more.
Personal Testimonials
A personal testimonial will result in more sales than a mere link or
advertisement. So take the time and trouble to write a personal endorsement
of the product or service you are promoting. And, of course, it goes without
saying that in order to write a personal endorsement, you must know that of
which you speak. NEVER promote a program you haven't first purchased
yourself. If you don't think enough of your program to invest in it, how do
you expect to persuade others to?
Promote With Your Signature File
To compose a signature in
your email. In Microsoft Outlook.
Select and click on
TOOLS within tools click on OPTIONS in Options click on SIGNATURES.
Compose your signature and
save.
To compose a signature in
your email. In Yahoo.
Go to Mail Options
Go to Signature. Compose your signature.
Check Box Add signature to all outgoing mail.
Hit Save
Include a link to your site in the signature of every email you send. / [Too
many links may cause your emails to end up in bulk or spam folders]
Therefore it is better to just place your website URL Promote your affiliate
links from your website not from your email signature.
Promote In Your Own Ezine
Finally, if you're not already publishing your own ezine or newsletter to
stay in touch with your site visitors, start. It's a great way to promote
not only your site but also the affiliate programs you promote from your
site.
MAKING SERIOUS MONEY FROM AFFILIATE PROGRAMS
The only way of making SERIOUS money from affiliate programs is by creating
your own product or service and recruiting affiliates to sell for YOU.
The affiliate program phenomenon is one of the Internet's true success
stories. It provides a toe-hold for the would-be internet entrepreneur to
begin a real, live business of his or her very own. But the real beauty of
affiliate programs lies not in what they can do for you, as an affiliate,
but what they can do for you, as a recruiter of affiliates for your own
program. By all means jump on the bandwagon and start promoting other
people's products to get your start. But don't wait too long to start
developing your own product line. There is a ready-made sales force
numbering in the millions ready and waiting to sell it for you.
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