by Editor
Last week we talked about an issue facing the more traditional side of affiliate marketing, one that has already had incredibly serious implications for the affiliate marketing space and could have equally monumental implications for the broader performance marketing space. While this affiliate tax issue has received a fair amount of press, the overall awareness feels low in relation to the seriousness of the topic and the effort being expended by individuals, companies, and organizations to fight it. If that is a correct perception, the reason stems not from the amazing efforts of those fighting it but our nature. Most people worry about today and tomorrow. They don’t focus on a long-term threat. We like doing things where we can feel and see what happens as a result. In the fight against affiliate tax, it’s like funding research. We see some advances, but it’s the type of fight where you have to give and support it even though there isn’t a clear or tangible path to victory.
The affiliate tax, like many taxes, is driven by one thing - money. The state governments need it. There biggest source of revenue is still not where they are used to having it, and unlike other businesses, once governments get used to spending a certain amount, they don’t have the nimbleness to cut back. Sensing an opportunity, we have the big box retailers who employ tens of thousands of people in various local markets whispering into the ears of lawmakers about millions of dollars they deserve. For the big box retailers, the affiliate tax is a chance to level the playing field, and if the end result is fewer tax dollars because of affiliates moving out, it’s no loss to the retailers. The retailers, who have physical presences in all states, must charge sales tax for all online purchases; whereas certain online merchants can appear the cheaper solution because they do not have to charge sales tax.
When it comes to the web, states aren’t just relying on potential sales tax dollars as a way of leveraging the web for new sources of income. Unlike affiliate tax, one such option has the potential to do the reverse - make the government and the performance / affiliate marketing community money. The only catch - it’s a touchy subject, because, like sex, it has deeper implications than just business. For the vast majority of those reading, the topic will sound anything but scandalous or charged. We could have already mentioned it, and they wouldn’t have known it is that commonplace. In fact, we have already mentioned it, and it also happens to be integral to one of the biggest destination cities in the US - gambling, more specifically gambling online in the US.
If you’ve been in the online space for a longer period of time, you will remember when as an affiliate you could not only run online gambling offers but gamble legally online. Even after it became illegal for US residents to gamble online many sites still allowed those in the US to play. After a few high profile arrests of executives that leniency came to a halt. It hasn’t stopped millions from still participating, but it has deeply curtailed the activity. Proving we are not the center of the universe, since the changes, the world of online gambling has been a thriving, multi-billion dollar business for everyone but those targeting US players. Like many rules, the change didn’t stop those in the business from making money only who made money from them. We hear stories about what the wealth creation in the gambling space has done, and the numbers sound more like Groupon with 80% margins. They are the type of money that we associate with Russian wealth and certainly the type of money that governments would dream of receiving. The problem? It’s gambling.
Gambling is obviously legal in the United States, so the question of online gambling is not simply about pure legality. Gambling based games are obviously hugely popular as well - it was on the back of poker that Zynga got its first major hit, and late night TV is filled with poker tournaments on multiple channels. The issue with gambling has more to do with the issue of abuse. Gambling is a vice, and the message being sent by states is one of an enabler. Gambling doesn’t kill, but in the hands of the wrong person it leads to story after story of ruin. It becomes a galvanizing force for morally concerned citizens. It’s death by a thousand cuts. 99% will have a positive experience, but the 1% who do not will easily cast a shadow over the rest of the industry, making not just the industry look bad but those who allow it to look bad.
There is another problem with gambling, and it is perhaps rooted in the nature of the activity. It’s a perception issue. The gambling industry doesn’t attract the most upstanding people. They aren’t all bad people, and they are certainly some of the smartest and wealthiest people. They just aren’t model business people. They aren’t as a whole, aspirational. The wealth they make is, but as a group, they tend to look and feel more like adult webmasters. They might share the same activity as their offline counterparts, but unlike the physical casinos, the low barriers to entry means more companies without the brand investment of a Full Tilt Poker. The physical nature of offline gambling produces an all-around experience - one that makes the gambling almost secondary. They are experiences in fun and luxury, not just about the game. That also makes it easier to survive negative press. We certainly wouldn’t mind seeing a new vertical enter into performance marketing, but we would want one that doesn’t just make money but helps build enterprise value companies not flat companies with quick cash.
Editor
DM Confidential
www.dmconfidential.com
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We've all heard stories of people making easy money online with auction sites like Clickbank, or by writing a blog, or by using Google AdSense, and quite a few other methods. Is it truly that easy? If you're a newbie, then the answer is "no". When you discover a proven system however, then it truly is feasible to make easy money online. My favourite approach for accomplishing this is with affiliate marketing.
It is a fact that affiliate marketing is among the simplest and most efficient ways to generate income online. However, you will have to make an effort right until you can generate income from your affiliate business. You must work hard if you want to achieve success and you will also have to apply certain tools in order to earn money.
1. Make a list of topics that you find intriguing.
2. Sign up with some affiliate networks and browse their product offerings.
3. Find affiliate products that are being successfully promoted by others. This can be done by searching the affiliate stats.
4. Find out if there's a demand for the item you are thinking about promoting. This can be done with the Google AdWords Keyword Tool. It can show you how many times a specific keyword phrase is being searched for each month.
5. When you discover an item that meets all of these criteria then sign up as an affiliate. You'll get a unique Id number that's located in your link to the merchant's web site. This identification number is what makes it possible for you to get paid.
6. Publish a Newsletter (Optional)
It amazes me how many people don't capture email addresses on their site. Email marketing can be one of the most effective ways of creating loyalty and trust with your visitors.
Newsletter can keep your visitors informed with what’s new at your site, and it also provides you with the opportunity to market additional product and services to them.
What’s great about a newsletter subscriber is that they’ve already told you they like what you have to offer. They wouldn’t have given you their email address if they didn’t right? So it’s important you keep their interest so they don’t unsubscribe.
Don’t go for sales every time
Many people make the mistake of throwing to throw in too many sales pitches in their newsletter. If you appear as though you’re just trying to get your visitors to buy something every time you send out an email, they’ll catch on quickly and unsubscribe.
Now, there is the exception. If you own a shopping website then this rule doesn’t apply as much. Your visitors expect you to send information on new products in your store.
For example, when you sign up with Target.com’s newsletter, you expect them to send you deals and information on products on you can purchase on Target.com . What else would you do at Target.com but shop?
However, if you have an information website on how to play tennis, and in your newsletter you’re constantly trying to get people to buy from different sports stores you’re affiliated with, that’s a di9fferent story.
Eventually your subscribers will start to feel like they’re being pitched to over and over again. Pretty soon they’ll get the idea that you’re just trying to earn a commission and sell products.
Mix relevant information with product recommendations
It’s important that you find a nice mix providing quality information and soft selling. In other words, every email you send out should not be promoting something. Something you should just send out helpful information that your audience can use.
Then once and a while you can throw in a recommendation for a product you believe your subscribers will be interested in. This is where you plug the company you’re affiliated with.
Let’s say you send a newsletter on how to perfect your tennis swing. You can go through the techniques in your email and at the end you can recommend your favourite tennis video from amazon.com. This is where you send them to buy the video and Amaon.com’s affiliate program pays you.
So even though you are promoting a product, ou still began the email by offering them valuable information about the topic of tennis. What’s great is if you do this effectively, it doesn’t come off as “selling “. It just appears that you’re making a recommendation for a product you love.
I use Aweber
I tried running a newsletter script on my own server, but it was not very robust. Unless you are really into programming, i’d recommend using a third party site to manage our newsletter.
With Aweber, you can collect demographic information from your website visitors then they subscribe, and you can send targeted massages based upon the information you collect.
So for example, let’s say when people subscribe to your newsletter you ask them for their age and their sex. With aweber, you can send a targeted email out to females under the age of thirty if you wish.
Aweber also tracks click-thru rates for links inside your emails and they provide excellent reporting.
7. Learn from the top successful affiliate marketers that have succeeded as being affiliate marketers and copy the same exact methods and techniques that they’ve done.
Lastly, you're going to need to develop a marketing plan. This doesn’t include things such as creating internet websites, writing articles, producing videos, advertising, or a combination of any or all of these techniques. You might wish to invest in a good affiliate marketing course to teach you about the numerous strategies available.
You can also discover the top secrets and methods made by one of the top successful affiliate marketers (Steve Iser), that will take you on a step by step guide and discover how to generate big revenues using nothing but free traffic.
http://tinyurl.com/CbCommisioncrusher
And you can also contact me on carltonlucas@hotmail.com I’ll be more than happy out there to help
Posted by: Carlton
Date: April 12, 2011
URL:
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