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Why Traditional Affiliate Marketing is flawed
Let’s dig into the facts to discuss why traditional affiliate marketing is flawed.
I am talking about the typical affiliate marketing model that most people learn when they are starting out.
This is the model that people are encouraged to adopt with the hope of becoming rich.
The affiliate marketing model that is being taught is that you buy traffic.
Then you send it to an offer or something to promote like an Iphone for example whether it be on Amazon, Clickbank or whatever.
So you buy traffic and send it to that offer in the hope that it covers the cost of the product, advertising and your time, hopefully leaving you with some profit.
So once you find a hot product, then you buy a ton of them and then you sell them and you make a boatload of money!
There is something very wrong with this scenario.
What is wrong with this is very simple.
Let’s say I become an Amazon affiliate.
I am selling a product on Amazon and you like my product and click on my affiliate link.
Amazon will then send me a commission and they will handle the fulfillment.
The question is: who owns the customer? Does the customer belong to me or Amazon?
The customer obviously belongs to Amazon!
What is Amazon going to do with this customer?
Amazon is going to offer this customer more stuff and will up sell this customer.
Amazon, after all, is the master of up selling!
After Amazon sells this additional stuff, what do I, the affiliate marketer, get?
The answer is nothing!
Yes, I got paid for the initial sale but I got nothing for the sale after the sale.
The real money is made on the sale after the sale.
The real money is not made on the front end sale.
Most internet marketers lose money on the front end sale.
I am willing to lose money on the front end sale because I will make it back on the back end sale and much more.
Most affiliate marketers do not make money because they do not own the customer.
The money an affiliate marketer makes on the front end will barely cover the advertising cost and may even result in a loss.
Then they will complain that they are not making money.
To make money from affiliate marketing, you need to own the customer and enjoy the back end sales.
So how do successful affiliate marketers promote?
Simple, they own the customers.
They have the email lists with names which they will then send off to the advertiser.
So both Amazon and they will own the customer.
So these professional affiliate marketers will contact the customer and will sell them related products.
Money is always made on the sale after the sale.
If anyone is involved in traditional affiliate marketing where they send traffic to an offer in the hope that the offer makes them more money than they spend, then they are in for a rude awakening.
So the most important rule of thumb is that when looking for an affiliate program, look for one where you enjoy both the front end and back end sales and where you own the costumers.
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