In Step 7 of Starting a Start-up we looked at adding passive streams of income to your business model. For the next several weeks, we will discuss various systems of passive income. We will start with affiliate marketing. We touched on it in Step 7. Go here to read it.
There are two ways affiliate marketing can work for you.
- Become an affiliate for other entrepreneurs, selling their products earning a commission for each sale.
- Create your own affiliate program.
Become an Affiliate
This option is the least amount of work out of the two choices. As an affiliate, you allow other entrepreneurs to promote their products on your website.
The affiliate system they have in place will assign you an unique affiliate link. You will receive a commission for each product your site visitor purchases using your assigned affiliate link. Commission payouts generally range from 4-15%.
Create Your Own System
This option is an excellent way of spreading the word about your products. Your affiliates will promote your products on their sites earning a commission from you for each sale.
When creating your affiliate system, you can either form a joint venture with someone who already has an established system in place or you can go it alone.
Running a Successful Affiliate Program
- Provide excellent resources; i.e., banners, buttons, links
- Pay on time
- Have a valuable product to promote
You can have systems set up to automatically pay your affiliates using PayPal or an affiliate marketplace, for example, Commission Junction if you have your products there. Check around to see what works best for you.
If you are short on time or experience, there are virtual assistants who specializes in affiliate management.
In our next webinar, we will cover extensively business models and systems for passive streams of income. We will also go more in-depth into affiliate marketing citing more tips on how to run a successful affiliate marketing program. If you can’t wait, pick up the Start and Grow Your Own Business courses by going here, which contains an entire module on business models and systems for passive income.
Are you an affiliate or do you run an affiliate marketing program? Join the discussion by commenting below.
Come back next week when we look at more passive income systems. As always thanks for reading!