Friday, December 25, 2015

Affiliate Marketing - New Concept Explained


I have been trying Affiliate Marketing for over 3 years now.
I must admit that I was doing a half hearted effort spending bare minimum amount on advertising. 
Result?.... Not even one sale .


I came across a concept and
I immediately recognised it to be 
a win win situation.

Before I talk about it, let us understand few things.

What is Affiliate Marketing?
Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts.

 In electronic commerce, means of achieving greater market penetration through websites who target specific groups of internet users. For example, Amazon.com (which sells books, electronics, pharmaceuticals, toys, and many other items) has thousands of affiliated interest specific websites from where the visitors can reach products offered by Amazon. The entire sales transaction takes place at Amazon's website which is equipped to handle the complete online payment acceptance process. Amazon passes on a percentage of the sold item's price as commission to the affiliate website from where the sale originated. Click to Read More



Brilliant concept
Let me explain a brilliant and innovative concept in Affiliate Marketing. 
Become affiliate with as many online shopping sites as you can.
Develop a website inviting people to become members. Each member gets a unique link to invite more members and grow a team.
Develop a networking system and which tracks all purchases of all team which takes place with any of these online shopping sites via their link.
They get the affiliate commissions which they share with their members in a systematic way.

Advantage?
With one link we become sub affiliate to all these shopping resources.
I have to just promote one link and the concept.

How it works?
If you get just 10 people to join this concept with your link and they to duplicate it then you have a big team of consumers.
  1. 1 x 10 = 10
  2. 10 x 10 = 100
  3. 100 x 10 = 1000
  4. 1000 x 10 = 10000
  5. 10000 x 10 = 100000
  6. 100000 x 10 = 1000000
  7. 1000000 x 10 = 10000000
  8. 10000000 x 10 = 100000000
  9. 100000000 x 10 = 1000000000
  10. 1000000000 x 10 = 10000000000

Let us understand the maths of profit sharing

Even if 1 out of every thousand do
online shopping of $100 every month

Total consumers who purchase in a month = 10000000
Total Sales ( 10000000 x $100) in a month    =  1000000000


Assuming 5% affiliate commission 
Total commission is 50000000

Out of $5 if they give $0.004  for each person at each level, they end up giving away almost 90% of their profits.
What we get at different levels

  1. 10 x 0.004 = 0.04
  2. 100 x 0.004 = 0.4
  3. 1000 x 0.004 = 4
  4. 10000 x 0.004 = 40
  5. 100000 x 0.004 = 400
  6. 1000000 x 0.004= 4000
  7. 10000000 x 0.004 = 40000
  8. 100000000 x 0.004 = 400000
  9. 1000000000 x 0.004 = 4000000
  10. 10000000000 x 0.004 = 40000000
  11.  Total sum of 1 to 10  = 44444444.44 

What they earned total  (a)    =      50000000 
What they  gave back   (b)     =       44444444.44
 Company earnings (a) - (b)   =         5555555.56


My conclusion
This is far better way of earning affiliate income which can grow to thousands of dollars each month than individually trying to advertise many links of many online shopping sites and get no result.
There is already a company which is working this concept in a very advanced manner having even retail stores in many cities into their merchant store network.
Get the details


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