The Different Ways Of Becoming A Millionaire From Affiliate Marketing
The Different Ways Of Becoming A Millionaire From Affiliate Marketing
There are many people who stereotype affiliate marketers as a bunch of antisocial guys sitting around all day, making millions of dollars slinging ads via email, Facebook, Google, and any other of the thousands of traffic sources available. However what most people don’t realize that many of the actual wealthiest people within the affiliate space are not the actual affiliates themselves. Infact there are a several number of roles within the industry that can often make much more money from filling their role. Being said, I’ve comprised a list of a breakdown of the following roles in the industry:
1.) The Affiliate
You know those guys who actually get all the sales. They are car the turns the wheels in this industry. Whether you are an affiliate promoting via PPC, SEO, CPM, Social, Email or anything else, making a few million is very possible with just 1 big hit with a campaign.
Positives: Being an affiliate can be the most laid back job in the entire world with several highly profitable campaigns running.
Negatives: The stress it takes to get those profitable campaigns dealing with all sorts of obstacles ranging from funding to the ad approval process..
2.) The Affiliate Network
The main job of an affiliate network nowadays is basically a financial risk manager provider for affiliates, brokering both a financial and technology relationships between affiliates and advertisers. In exchange, the affiliate network gets a cut of the profits. There is an easy path to making a few million by getting a some big time affiliates running offers through your network, which is much easier said than done.
Positives: Once a network has a solid number of big affiliates running traffic, the cash flow grows exponentially.
Negatives: In many cases, the networks must front money to the affiliates before getting paid by the advertisers. This of course creates problems when advertisers don’t pay their bills. The equation for profit is clear, but this equation comes with risk networks must accept if they wish to stay afloat in this industry.
3.) The Ad Network
An ad network is essentially any company that brokers traffic to a media buyer of any type. The ad network will pay the traffic provider a number less than they charge the media buyer. Depending on the type of ad network, these margins can be as high as 60%-40%, for the ad network. The more quality traffic you have, the more demand is created for your inventory, allowing you to charge more and increase profits.
Positives: If you have alot of quality traffic, a million dollars in profit will be a drop in the bucket for an ad network. Ad networks can often create exclusive agreements with the traffic providers, creating a very strong and stable revenue stream.
Negatives: You need to actually have inventory to broker. If your inventory is of low quality, costs will need to be super low to get any buyers. The lower the cost, the lower the profits.
4.) The Advertiser/Offer Owner
You are the product owner, and pay affiliates to generate your sales. Your path to a million dollars is heavily relied on quality of traffic and fine tuning your sales path.
Positives: If you have several high quality affiliates pushing your offers and have a highly optimized backend, not only are you getting sales, but you are building your company on auto-piolet, with the affiliates doing all the hard work.
Negatives: Getting high quality affiliates is the first of many deciding factors of your success. As an offer owner, you also have to deal with processing, chargebacks, optimizing sales funnels, all to back out enough to provide a competative CPA for affiliates. If you can’t offer a competative CPA, no affiliates will want to promote your offer.
5.) The Agency Of Record (AOR) Provider
Having an AOR agreement is when an advertiser agrees to give you exclusive brokerage rights for generating leads for their product. This can turn into being an easy path of making a cool million. The job entails finding an advertiser who wants to promote their product via affiliates, and convincing them to only go through you to do so. If you convince someone to pay you $40 a lead, and you can get someone to generate leads for $35, than that is $5 a lead you get for all the work everyone else is doing!
Positives: This can be the least stressful role of making big bucks online. You connect the dots, and earn the ongoing revenue.
Negatives: The hardest part to earning a long, stable income from having the AOR of an offer is being able to successful keep your agreement with the advertisers and affiliates exclusive.
6.) The Processor
For every transaction online, there needs to be a processor. This processing company takes a percentage of every transaction. This percentage can range anywhere from 2.5%-8% depending on the risk level of the account. The processors are often the biggest winners in any industry, however they live and die by the policies of Visa and Mastercard. As a side note, your average person cannot start their own processor, however there is always the opportunity to refer users over to the processors for a referral comission.
Positives: Huge volume merchants equals massive profits for the processoor.
Negatives: Starting a processor essentially means you are starting your own bank. This is extremely capital intensive, and there is a fair amount of risk involved when dealing with the infamous issues of chargebacks and fraud.
7.) The Call Center
Most offers these days have a very extensive backend and upsell process that normally require call center support. Call centers get paid based on inbound minutes, outbound minutes, and percentages of their sales. Call center providers are an area where most entrepreneurs struggle to understand, however if you are a call center guru, and more specifically, have extensive experience in fine tuning sales paths, the sky is the limit. A stable call floor is an absolute cash cow.
Positives: There will always be a need for people with extensive call center experience. Once you get the right pieces in place, making big cash is only a matter of data.
Negatives: It may take several years of trial and error to truly be able to capitalize from call center experience. Call centers performance are also often directly correlated with the quality of leads being called.
8.) The Distributor
The distributor is often overlooked in the affiliate industry, however there is a ton of cash to be made from this sector. The distributors job is to produce, package and mail out the products to customers. Distrutors are also responsible for storing all of the product goods in their warehouse.
Positives: Once the warehouse is setup, a few big clients can be a homerun for any distributor.
Negatives: Startup costs include having warehouse space and being able to handle a large quantity of products.
9.) The Technology Provider
Perhaps the most talk about aspect of the industry are the technology providers. These are the companies who make the tools and platforms we use everyday to manage our stats, sales, and optimize accordingly. A popular platform is a sure fire way of making millions of dollars in extremely scalable revenue.
Positives: Once the technology is complete and the idea hits, a good technology company can scale indefinitely. This often leads to insane margins and extremely lucrative companies.
Negatives: There are 2 key aspects of running a technology company which are A.) Execution – actually building the technology properly, and B.) The market responding to the technology and revenue model as expected. Believe it or not, most entrepreneurs fail in the execution part, as building technology can become quite challenging for new entrepreneurs.
10.) The Consultant
These are the guys who make money telling people what they need to do to improve their business. Consultants often expedite the learning curve for beginner entrepreneurs and help advice and fix companies with misguided leadership. Once you had success in a market, being a consultant is just a matter of sharing your experiences, displaying them in an understandable fashion, and leveraging your connections to provide quality to your clients. Consulting in affiliate marketing can range anywhere from legal, technical, marketing and monetary consulting. Consultants can make big bucks depending on experience, achievements and reputation in their vertical.
Positives: Fairly easy to do if you truly understand the market you are consulting in.
Negatives: Getting clients and making a name is the hard part. Consultants often charge larger fees because 80% of their time is actually spent recruiting, as their billable time is only about 20% of their time.
11.) The Lead Broker
Lead brokers buy or generate leads off of one resource, and broker them to another for a higher price. Lead brokers typically deal in massive volume, meaning their profits are rather large per deal. Lead brokers can range from email contacts to post sale leads.
Positives: If you have a reliable supplier and buyer for the leads, a lead broker can make tons of cash.
Negatives: High quality leads is often a must!. Poor lead quality will eventually backfire and lose you a revenue source. Keep your mind on value and the money will be there!
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