Top 4 Reasons People Fail At Affiliate Marketing

By Gerald Price

When running a business online you must use multiple income streams if you want to make the most profits. One great income stream is the use of affiliate marketing. I have detailed some ways in which typical affiliate marketers fail and how you can avoid doing the same.

1. They Get Hung Up On Commission
Many affiliate marketers will focus solely on commission percentages. For example, they would choose a product with a 75% commission over one with 25% commission basing the decision only on the commission received. However, the product with the lower commission is more than likely receiving more sales and converting more visitors. Be leery of high commissions because there might be a good reason why the commission is so high. Maybe the creator of the product can't make enough sales on their own, maybe due to poor copy or inferior products. Always look for quality products that have good sales records or one you would actually use yourself (or even better DO use). In the long run promoting quality products will make your more money and receive more repeat sales. Normal commissions will range from 15% to 50% with the average around 35%.

2. They Promote to the Wrong Markets
A common mistake many beginners make is marketing solely using 'free advertising'. What I mean is marketing using free classifieds, traffic exchange networks, and forums. Now, these means of marketing can be effective when used correctly. However, usually a beginner can be discouraged due to the lack of results. The reason they may not be able to convert more sales is because most people are there for the same reason. Others are promoting their own links and products and aren't necessarily targeted contacts. It's not uncommon to see several people promoting the same product. If you can be original and promote a product they could use in their business you could make a fortune. The real secret to success online is your website. You must have your own domain if you want to appear as professional as possible. For example, would your rather promote "your-name.longusualdomainthatsnotrelated2mysite.net" or "your-name.com"? Which site would you be more likely to visit or make a purchase from? This leads us to the next area in which affiliate marketers fail.

3. They Build a Site but Choose the Wrong Hosting Company
A website is your 'face' to the world. Don't make the mistake of choosing a cheap or even free hosting company. The old saying "you get what you pay for" is never more true when it comes to choosing the right hosting company for your business. If you choose a free hosting company you will have ads placed on your site that you have no control over. This means they are making money from your hard work, money that should be yours. Also, you don't have control over what types of ads are placed, so they could be advertising for your competition on your site. Also, free hosting companies limit the space you can use and most do not give you your own email. Cheap or discount hosting companies can cost you money by having lots of down time or unreliable servers. They may lack the tools you need to run your business. For example, a quality hosting company will offer tools such as auto-responders, automation software, unlimited sub-domains, unlimited email accounts, several site builders to choose from to suit your experience level, and ways to earn money from placing your 'hosted by' link at the bottom of your pages. The hosting company I use offers all these tools plus traffic generating software, website submission, help with press releases, and more. Plus, I now get paid to host my site and use the awesome tools because after you refer only three people your commissions will be more than your cost to host your website. The hosting company also offers a software that automates my affiliate program and allows me to control all aspects including the percentage to pay to each tier and the ability to make different percentages for different products. This leads us to my next area in which unsuccessful marketers fail.

4. They Don't Take Advantage of Sub-Affiliates
If you want to make the most money possible using affiliate marketing then you must take advantage of sub-affiliates. Sub-affiliates are 'recruits' who sign up as an affiliate from your own affiliate link. These can be customers who have decided to now market the product, or other marketers who came to the site using your affiliate link. When these sub-affiliates make a sale you will receive a percentage of the sale. This will typically be 1-25% with the average being 10-15%. You can recruit sub-affiliates by making a website that focuses on affiliate marketing. If you have an email list you can recommend a product to them that they should sale. Also, you will naturally recruit sub-affiliates without trying just by promoting the product. When you take advantage of sub-affiliates you can add a significant income stream that you literally do nothing for. You won't have to place ads or links and you still get paid for the sale. For example, say you have an email list and you recommended a website or product for them to promote and 100 of them sign up as affiliates. Now, imagine if they all make just ONE sale of a $50 product. If you receive 10% sub-affiliate commission that would be an extra $500 for someone else's hard work. However, these figures are quite conservative because I believe they would probably make more than one sale in a month. The numbers show how you can easily add a significant amount to your income stream by using sub-affiliates. So always look for quality products that offer a 2 tier affiliate program. By choosing quality products the chances are higher that the customer will turn into an affiliate. Quality products also ensure more sub-affiliates.

In conclusion, if you want to make real money online using affiliate marketing as an added income stream you need to promote quality products that sale, not the ones with the super high commissions, use the right hosting company, and take advantage of sub-affiliate sales. When you do these things you will be sure to make more money online.

Coby Wright is the creator of a website that gives you resources for making money online. He teaches people to duplicate the things he does to make money online and includes product reviews, free articles with reprint rights, a valuable newsletter, and a 2 tier affiliate program.

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