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Place your TextLink AD here free
Once you truly understand the power of backend profits, you'll explode your marketing results and create an unstoppable viral machine.
The techniques I will reveal to you have often been taught in many marketing courses and articles...but they are still underutilized because of two words -- "tunnel vision."
Backend profits means the additional income that you earn from a customer. The first purchase from a customer is the front end profits while the second purchase and so forth will be your backend.
The really good marketers understand that the most money will be made on the backend.
Here are a couple reasons why:
You can charge higher prices for backend products because you've already built a relationship with your customer.
They already know the quality of your product and of your customer service. You no longer have to convince them that you're credible and that your information is good.
You only have to convince them that your backend product is higher quality than your front end product and that they NEED the backend product.
Trust is one of the single most important components of selling. You can earn that trust by providing a good front end product.
Most marketers do not truly understand the power of the backend and that's a fact.
I know because I see very few affiliate programs which pay higher than 50% commission.
Think about this for a minute.
Let's say you sell your product for $50 and you give 50% commission. You have 5 affiliates who each make 10 sales each.
You pocket $1,250 after paying commissions. You now have 50 customers. Five of them end up purchasing your $100 backend product for a profit of $500. Total profits is $1,750 for you.
Now let's consider giving away 75% commission to your affiliates.
By giving away higher commissions, you get 10 affiliates instead of the 5. Ten affiliates making 10 sales each at $50 will make you $1,250 -- which is the same front end profits as before.
Now you have 100 customers and make 10 backend sales for $1,000 profit.
So how did you end up making more when you increased your affiliate commissions by 25 percent? You made it on the backend.
Here's what is happening behind the curtain as you increase your commissions.
You gain more affiliates and subscribers as those affiliates send you more traffic to your site.
Those affiliates are happier with their higher paycheck because you gave them higher commissions. Therefore, they will continue to send traffic to your site.
This cycle increases your traffic over time as you gain more customers, more affiliates and more subscribers.
It's the ultimate viral marketing machine!
More subscribers equal more profits. More customers equals more profits. More affiliates equals more profits.
So is all that worth a hit on your front end profits?
Yes!
The problem most people have is they can't stand to see their affiliates making more than them. Tunnel vision keeps them from seeing all the extra subscribers, customers and affiliates which could be theirs.
Please remember one thing about running your affiliate program.
A 75% reduction in profits is better than a 100% reduction, which is the case if the affiliate had not made ANY sale.
In summary, you should create an affiliate program for your front end product which gives away a majority of the profits.
You should also spend your time creating multiple backend products.
Gary Huynh is a full-time online information marketer. He currently earns money from affiliate programs along with running multiple membership sites. View his weblog at: http://www.garyhuynh.com for more tips and tricks to help you achieve a full-time work from home business.
MORE AFFILIATE REVENUE RESOURCES updated Thu. February / 09 / 2012Disney's Earnings Beat; CEO Bob Iger Talks Piracy, Parks CNBC.com Increased guest spending and attendance at the parks, and higher advertising rates and affiliate revenue at the media networks drove the earnings upside. The revenue fell short of analyst expectations (Disney doesn't provide guidance) – at $10.779 ... |
 Globe and Mail | Disney derring-do New York Post “Affiliate revenue will kick up due to Comcast and other deals that will be negotiated,” Disney CEO Bob Iger said yesterday on a conference call with analysts to discuss first-quarter results. Iger noted the Mouse House doesn't yet have deals with ... The Walt Disney Company Reports First Quarter Earnings Disney Posts 7% Broadcast Revenue Drop Walt Disney's CEO Discusses Q1 2012 Results - Earnings Call Transcript |
 Telegraph.co.uk | News Corp. Earnings Jump in Second Quarter Broadcasting & Cable Affiliate revenue rose 9% at the domestic cable channels. Operating income for the television unit, which includes Fox Broadcasting, rose 25% to $189 million from $151 million. The company said the growth was the result of increased broadcast network ... News Corporation Reports Second Quarter Net Income of $1.06 Billion Headwinds Fail to Deter News Corp. |
 The Frisky | Pinterest Is Making Money In A Slightly Shady Way The Frisky It's also a boon for a company like Skimlinks, which takes 25% of all affiliate revenue. So what's the problem here? Well, Pinterest hasn't been disclosing to users when and how it is making money from their posts. If I pin a link to a cute pair of ... Skimlinks is the real story behind Pinterest's success |
AMD, Nike, Disney, Panera Bread Among Stocks Driving Big News Feb. 7th Wall St. Cheat Sheet The increase at ESPN was driven by higher affiliate revenue reflecting contractual rate increases and a reduction in revenue deferrals related to annual program commitments. During the quarter, ESPN deferred $190M of revenue compared to $266M in the ... |
Fox Studio, TV Divisions Boost News Corp. Q2 Profits Despite Hacking Investigation Reuters A little bit of everything contributed to the higher figures, from a nine percent growth in affiliate revenue to a six percent increase in advertising revenue. FX in particular continued to stand out as a top performer, while the NBA lockout both ... |
Fox on Top Multichannel News SNL Kagan calculates FNC's affiliate revenue at $985.3 million in 2012, based on 82 cents per sub each month. “The network is getting strong monthly subscriber fee increases, up from 58 cents in 2009,” according to Baine, who projects average license ... |
 Fortune | It's time for Disney to cut ABC loose Fortune Disney (DIS) blamed the poor showing at ABC on lower affiliate revenue following the end of Oprah Winfrey's popular talk show and a decrease in political ad spending, as it was not an election year. While both may explain a decrease in revenue, ... |
Cruise line, theme parks propel Disney profit Orlando Sentinel Operating income at Disney's media networks rose 12 percent for the quarter to $1.2 billion, as higher affiliate revenue at ESPN and the Disney Channel cable stations more than offset declines at broadcast station ABC. Operating income at Disney's ... |
Viacom's CEO Discusses Q1 2012 Results - Earnings Call Transcript Seeking Alpha We expect our affiliate revenue to grow on an annualized basis in the high-single to low-double digit for the foreseeable future. As we unlock value for our content across platform, we're unlocking growth potential across global markets as well, ... |
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AFFILIATE REVENUE RELATED ARTICLES:
Affiliate Program Intro What is an affiliate program? Everyone who surfs the web has come across affiliate programs. You may have seen a banner on a website that says, "click here", and once you do, you get access to whatever's being promoted. The Logic Behind Niche Content Profits In researching most successful online businesses, you start to notice a trend emerge. As far as websites go, there are a few giants such as Yahoo and MSN that cover every topic imaginable. There's a Tween In Your Future - Are You Ready? Within 15 minutes of coming through the door from school, she has her neck crooked around the phone. A music CD tucked into the computer's drive drowns out all but the occasional giggles of that conversation. Is Earning Money With Affiliate Marketing A Myth? Day 1 - What Are Affiliate Programs? Welcome to the wide world of affiliate marketing! Affiliate marketing (sometimes called referral marketing) is based business people. So, what is an affiliate and what does he or she do? The affiliate marketer acts as a "middle man" between merchant and consumer, but without adding anything to the consumer's cost. Tracking Phone Sales Is Important To Your Affiliates Today the majority of affiliates are looking for compensation when your customers call in their orders by phone. One of the first things they will look for when thinking about joining your affiliate program is to see if you have an order phone number on your site. 9 Ways to Catapult Your Affiliate Marketing Career Affiliate marketing involves the promotion of a website by a person known as the affiliate. He is the one who acts as the middleman between the merchant and the customer. How To Profit From 2 Tier Affiliate Programs And Build A Sub-Affiliate Army In The Next 24 Hours Before I get into depth with this article I first want you to have a good understanding of what a '2 Tier' affiliate program is and there advantages. Then from there I'll go on to explain how you can start recruiting Sub-Affiliate's by simply locating the Super-Affiliate's within your Niche market. Attracting Good Affiliates Good affiliates can be hard to get. There could be any number of reasons for this, but I am going to focus on what I believe is the one major problem that prevents someone from attracting good affiliates. 8 Reasons Why Affiliate Marketing is the Better Option Many people are confused when they first become iterested in internet businesses, they find themselves asking what type of busisness is best for me?Well I can't answer this for you but I can certainly give you a few pointers in the right direction and my personal opinion. So here they are:1. The Affiliate Interview - Do You Have What It Takes? So you have decided to start up your own home business and after hours of searching you have decided on the program you are going to join.Now stop and take check before you rush in. Affiliate Marketing - Join in on the Success of the 2nd Wave What do I mean by '2nd Wave'? Let me explain: Can you remember the good old days when affiliate programs first came into existence in the mid to late 1990's? Everybody jumped in with two feet and put up dozens of affiliate links on their site with no real thought to what they were doing. We then wondered why we didn't make any money - not any real money that is. Become A Reseller If done properly, reselling web hosting and related services can be a low maintenance, high profit vehicle to online financial independence!Reseller programs allow businesses to lease servers, connectors and bandwidth from established hosting firms but brand the product at their own. Resellers act independent of hosting companies and are not construed as employees. Backend Profit Secrets and Viral Marketing Once you truly understand the power of backend profits, you'll explode your marketing results and create an unstoppable viral machine. The techniques I will reveal to you have often been taught in many marketing courses and articles. Want to Increase Your Affiliate Commissions? Do you participate in chat rooms and message boards related to the product you're reselling? You should be! This is one way to Increase your affiliate income and make more money. When you participate in chat rooms and message boards, start a conversation with a person without trying to sell to them. How to Choose an Affiliate Winner The idea of using affiliate programs is to produce extra income and in the process attain total financial freedom. More and more people from all over the world are looking for a real winner. Generate More Sales in ANY Affiliate Program - Part Six ACTIVE AFFILIATES are those who sign up under you for free, then upgrade to being a paid affiliate. Those who sign up but don't upgrade within the first 72 hours are called inactive affiliates and who are unlikely to ever upgrade. Affiliate Programs... 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Or, do you ask your friends' opinions and look for independent product reviews before opening your wallet? If you're a savvy consumer (which of course you are), then you put more stock in your friends' opinions and independent product reviews. As affiliate marketers, we become much more successful when we approach our site visitors as friends and take the attitude that they too are savvy consumers.
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