That’s right folks, making money online, affiliate marketing, is not easy money. Everyone that came here looking for the magic elixir or instruction manual that will teach you how to make a million dollars in a month in your sleep should move on.
Still there? Let’s talk about the benefits of Making Money Online. Just because I say it’s not easy money, doesn’t mean the potential is not there. However, if you are going to try to go into affiliate marketing you have to realize it’s a business and evaluate its potential as a business.
Before I do that, I’m going to talk about something that we’ll call the hair cut affect. Walk into just about any hair cutting saloon to get a hair cut and what do you have to do? Usually, you’ll have to sit and wait for someone to become available to cut your hair. Why is that? It’s because the amount of business they can handle is limited to their manpower. This happens in any industry: restaurants, auto shops, and hair salons. In the service industry, a worker can only help a very limited number of customers at a time. What about retail. So at your hair salon, they likely try to make a little extra money by selling you the hair gel they have stocked on the counter. Retail is a little better because one person can sell whatever amount of product they carry in the store. The potential for earnings grow, but still they are limited by inventory.
So, what does this have to do with making money online? Did I say that every industry is limited by their manpower? I lied. When you decide to work online, you open the doors to unlimited potential. Sure, you’ll need to take the time to build traffic and bring customers to your website. In that sense you can only do so much each day. However, once you have people coming to your site, a million of them can hit the buy button at the same time. And guess what? You could be asleep and the transactions will just go through.
Then there’s my second point. What about carrying inventory? If you are trying to build an internet presence for your brick and mortar store, you still have inventory limits. Of course, I’m sure no one will complain if they sell out their entire store. However, what if you go into affiliate marketing? Someone else is carrying the inventory for you! In fact, often times, that inventory is digital. What does that mean to you? It means an unlimited supply of virtual goods. You can just sell and sell.
Now, the beauty of this system is that it defies traditional economics to a certain extent. Normally, high supply would result in low demand and thus a lower profit margin. However, when you are online, your customer doesn’t consider your infinite supply of digital widgets. They are sitting at home and have a need for something, so they find their way to your site looking for that item. Their demand is entirely internal. It’s perceived demand, virtually unaffected by market factors.
The second way that this business defies traditional economic limitations is that it carries virtually no overhead! You can start a blog for free as I described in my previous article about Creating and Monetizing Your First Blog. Or you can find a low cost hosting option for complete control over your site, which I recommend. A service like iPage, which hosts this site, charges $3.50 a month and include a free domain.
Let’s recap the benefits of making money online:
- No limit on manpower. (Negligible I should say)
- Unlimited supply
- Perceived demand
- Little overhead costs
So, if someone came to you with a business opportunity with all these factors, you be interested, right? All of the economics are perfect to jump into a business with so much incredible potential. Now, in order to achieve that potential, you’ll need to put in the effort to find the right niche, bring in traffic and build your online presence.
Chances are, if you’ve read to the end of this post, you can see the unlimited potential of making money online through affiliate marketing. Not only that, you have the good sense to realize that you won’t tap that potential overnight, but through a process.
This blog is here to discuss that process. Come back often to read about tips and ideas on how to build your site, find your niche and bring more traffic to your site.