Affiliate Marketing - Small Ticket Versus Big Ticket Products - Internet Marketing From Home

Affiliate Marketing – Small Ticket Versus Big Ticket Products

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Time For BED, Get GPT Instead

Today I want to talk about filthy lucre.

Well actually it’s night time for me, because as I write, it’s late.  But I just had to finish it before I wander off to the wonderful land of nod.

I want to discuss the issue of business models. If you want to create enough cash flow to quit your job, it’s vital that you get this right.

I was one of the lucky ones.  I made the right decision when I started my online marketing career.  Or was it luck?  In reality, it was more about a good thought process which led to a sound and sensible decision.

What Is a Business Model? 

A business model refers to the type of business you are evaluating.  When I was evaluating different businesses, I asked these questions:

  • What is their product?
  • Big ticket or small ticket?
  • Is there a market for the products?
  • How do they generate inquiries and leads?
  • Will any personal selling be involved?
  • What is the short-term (60-90 days) income potential?
  • Can I make $8,000 – $10,000 a month within 90 days?
  • Can the business be done strictly from home, or do I have to go out and meet people?
  • Does the company allow and encourage the use of the internet to find new members/customers?

After looking at various options and thinking about my goals, it became much clearer for me.  So, my ideal business model ended up looking like this:

  1. Income potential of $8,000 – $10,000  a month within 3 months
  2. No cold calling
  3. Inbound inquiries, no outbound
  4. No personal meetings
  5. No company meetings to attend
  6. Ability to work remotely (ie, not location dependent)
  7.  Internet-centric

Of course, your criteria may look different to mine, but what you see is exactly the shopping list that I put together in 2006.

Check the Cash Flow Profile 

In essence, I chose to market big ticket products from the get-go.  The primary reason was based on the likely cash flow from this type of business model when compared to most other options.

But before I came to that conclusion I looked at the cash flow profile of other home business models and programs.  For example:

  1. Developing Info Products.  Info products are often the easiest and cheapest type of product you can create.  So, I did consider developing my own.
  2. Services.  Offering a consulting service was another option.
  3. Traditional Affiliate Marketing.  Marketing digital products such as ebooks via platforms like Clickbank, JV Zoo and Warrior Plus.  In recent years Amazon’s affiliate program has also become popular.
  4. MLM or Network Marketing.  Traditional mlm businesses selling pills, potions, lotions, not to mention cleaning solutions.

After thinking about this for a while I came to one simple conclusion – none of them would fit.

For instance, developing my own info products would take a lot of time, and I didn’t have a clue about niches and topics.  I could see that I could be spinning my wheels for 6 months or more, without making a single, solitary cent.

Offering services such as a consulting service was another option, as stated.  But I couldn’t satisfy myself that I had something valuable to offer, and had no idea how to find clients online.  I reasoned that it might take me six months or more to sort all of that out, and I still wouldn’t have a client.

And as for traditional affiliate marketing, the least said about it the better.  If you can do basic maths you can readily see that receiving commissions of $20 a sale is a one-way road to bankruptcy.  It just didn’t stack up.

And then we have MLM or network marketing.  I’ll spend a bit more time on this one because lots of people join various programs.  But the question is, ‘does it stack up?’

Why I Said No To Network Marketing

After attending many sales presentation for various companies I decided that networking marketing (or MLM) wasn’t my cup of tea.  Here is why:

  1. I’m not into pitching and hustling friends and family en masse.
  2. The companies frowned on the use of the internet to promote.
  3. The cash flow profile in the short to medium term is abysmal.  This is because their pay plan is always a back end kind of plan.  To maximize income you must reach the top of the plan which can’t be done until you have developed a big team with many leaders.

Either way, if you’re in one of those MLM programs, it’s probably one of those BED deals

What?

Back End Dough

You work your ass off for X years and maybe you’ll crack the big time.  That’s the dream.  But here’s what happens….

Most people give up before they make it.  In fact, only around 1 percent of people who join these programs ever reach the top of the pay plan.   Not good odds.

Apart from the fact I don’t like the way traditional network marketing companies do business, the economic reality is that if you want to replace your current salary, the chances of doing it quickly are remote.

My situation was quite clear – I needed money NOW.  Not in 5 years time.

That’s why I LOVE GPT

Get Paid Today

I’ve made over a million bucks promoting GPT programs.

I do the work, someone joins, and I get paid.  But not $15, not $27.50, not $38.  I get paid at least a $1,000.  Like that idea?

Click the banner here and get some more information:

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Your Turn to Give Now

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Was this post valuable for you?  If yes, I’d love you to comment below and share on Facebook.

Time to Comment!

What are your favorite ways to make money online’?

Are you a small ticket marketer, and if so have you made money?

Have you had any experience marketing big ticket products?

Make a comment below!

About the Author Kim Willis

I've been an online marketer since 2006. During that time I've learned alot and made a full time living from month 1. I established this site to share my knowledge with you. Who knows - maybe you will change your life, just like I have.

  • Patricia Evans

    Great post Kim…..got the whole picture in a nutshell there.Lots of food for thought for many who don’t know which way to go.. Thank you…I know many who need to read this..

  • thanks Patricia!

  • Hi Kim,

    As always an extremely valuable post. You have the innate capacity to break down otherwise convoluted business models that enables everyone to very clearly make their own assessment

    For sure I’d recommend all those business opportunity seekers to do their own research just as you did. However, having the valuable background you’ve provided, will most definitely make their research and decision-making all that much easier.

    Thanks for sharing your expertise Kim.

    Best wishes from the remote Thai village marketer

    Peter

  • Hi Kim,

    You beat me to it …… this theme was my next week’s blog post – but you have really done it justice.

    I have gone through much the same learning curve. But you had the sense to do the planning and thinking in advance. Without doing what I did and plunging in to many of the models you describe. Instead, I did it THW (The Hard Way).

    Never mind, I’m still here standing and a lot of sad/funny experiences learned along the way.

    Finally I have reached the same conclusion as you have and the two programs I’m involved with are exactly BED types. To be honest,when I first joined, I didn’t actually realise that one of them was BED, but I was chatting with one of the leaders last night and that was exactly how he described it. Probably as you were writing this post.

    So I completely agree with you, and enjoyed how eloquently you described it. Shame I didn’t find your (unwritten!) blog post a few years ago 🙂

    Joy – Blogging After Dark

  • Thanks Peter,

    I think perhaps many people make emotional decisions that are not supported by hard-nosed facts.

    Th best thing is to start with the end in mind – the goal. Then work it back from there. If they are happy to wait a few years for a payoff, then the traditional MLM they’ve just fallen in love with may work fine for them. However, if they absolutely need to generate income faster they need to look at other options.

    Kim

  • Hi Joy,

    We all travel on different pathways. I’ve experienced a few dead ends in my time, particularly in the offline world of business.

    Fortunately, I made the right call when I started the online thing – a pleasant change for sure.

    The thing that worries me about those BED schemes is that you are being asked to put total faith in the company for X years, before you start making a good income. Considering the high failure rate of these companies – for me at least – it’s a bridge too far.

    Kim

  • Nice post Kim.

    It’s cool you were able to chart your course before going into business back then. So many people get into business to make quick money online not thinking of long-term business model. Nice.

  • thanks Uzoezie. Always take the long term view, is best advice

  • Hey Kim,

    Affiliate marketing is one of the most popular ways to monetize online content. While there are many true stories of Internet entrepreneurs amassing small fortunes by delivering high-converting referral leads to affiliate businesses, this relatively straightforward concept isn’t always as simple to execute as it appears.

    Affiliate marketing is an effective money-making strategy for countless online entities – however, as straightforward as it is in theory, success is rarely as easy as it looks. By choosing a sustainable long-term strategy, devoting resources to quality content production and promotion, understanding legal obligations, and optimizing with software solutions, we can position our affiliate marketing program on the path to success. Eventually, thanks for sharing your worthy information with us.

    With best regards,

    Amar kumar

  • Hi Amar, yes you are right

    Affiliate marketing is a great way for people to get started in internet marketing. It gives them an opportunity to make money without having to develop their own products

    Thanks for dropping by

    Kim