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Affiliate Marketing: Choosing Between Percentage and Price

Mar 1, 2008
You have decided once and for all to take charge of your future. Perhaps working for someone else just isn't for you. It could be you've decided that you want your income to reflect your effort. Maybe you just accept that a second income is something most people need to have these days. The list of the reasons why could go on forever.

However, the results are the same. You've made the decision to take control of your financial future and become an Affiliate Marketer.

Unfortunately, that decision is likely to be an easy one compared to what comes next. You have probably examining dozens of affiliate programs, read the Gurus' sales pitches, down-loaded all the free giveaways and seen enough down-line levels and payout figures to make a mathematician's eyes go blurry.

Now, you have to decide which affiliate program or programs you will be putting your efforts into promoting. There is one frequently overlooked aspect of affiliate marketing and it's a very important one. It is whether to choose a marketing plan with a high or low percentage paid to the affiliate. The reason this question is often overlooked is quite simple. Most experienced marketers usually recommend signing up with programs that give a high percentage of sales revenue to the affiliate.

While on the surface that may seem to be the obvious choice you need to ask yourself a couple of questions. What the price being charged is and how many sales will you need to make to reach the income targets you're setting for your new business.

These questions are too often not taken into account and that can doom your affiliate marketing business before it gets started.

A high percentage payout seems like a great idea as long as it is something people are willing to purchase. If not, it won't matter if you get 100% payout because 100% of nothing is still...nothing. On the other hand, an in-demand product is great but if the percentage for the affiliate is too low it may require too much work to get enough sales to make a decent income.

These questions can be addressed easily if you're willing to put in the effort. Since you've already made the decision to pursue this business, and I'm assuming you realize that you have to actually do the work to get the rewards, this process is just another part of having your own home based or internet business. The good news is that all the tools you are likely to need are available on the internet. You just have to look for them.

There are forums, blogs, chat rooms, myLot, MySpace, Yuwie. The list goes on and on. These places are loaded with people who are happy to give you their input if you ask. Go to these sites and start discussions, ask questions and find out what people's needs are. Check online marketplaces. Many have search features to find the most popular products that they are selling.
About the Author
Tom Schaffer is an escapee from the corporate world and is pursuing a life of affiliate marketing at http://www.jerseyshoremarketing.com. You can see his current venture at: http://www.jerseyshoremarketing.com/redirect87.html
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