Whether you are new to the internet industry or have been working in an ‘online’ capacity for some time, you may have heard about affiliate marketing. Affiliate marketing is the fastest way to earn from an internet business without having to have your own products or services. You are effectively selling someone else’s product for them through your content. When a sale goes through a marketplace such as Amazon or Ebay, for example, and that sale has been referred through a third party website, the person who referred the sale makes a commission.
What that means for bloggers is that they can recommend products and services and write about them on their blogs. When their visitors go through their blog post and buy a product, they make a commission on the sale. With affiliate marketing the commission can be up to 40% of the products value. 40% for selling a product which you don’t even see. You never have to deal with any customers or speak to anyone to do this. The service is provided by the company and you are paid. Your only job is to create content and drive visitors to the product that they already want or need.
It’s a great business model. There are two basic ways to drive your visitors to the end product. You create useful and informative content either through blogging or creating videos or a website, and you can pay to advertise. If you are paying to advertise it is important obviously that you pay less in advertising than you are making in sales so initially you would need to start with a small advertising budget and slowly increase it as you obtain a good spend to sales ratio.
Here is where high ticket sales comes in. If you are using paid advertising to market products worth $100 you would only receive $40 should you make a sale (assuming a 40% commission rate). So your advertising spend to make a $40 commission needs to be less than this. You may have to send 100 visitors to a website before you make a sale and for each referral you are spending money. If each visitor costs $0.40, for example, then after 100 visitors you will have spent $40 on advertising. Assuming you make a sale you will have made exactly no profit! Obviously by ‘tweeking’ your advertising or getting 2 sales per 100 visits it slightly changes things. You would make $40.
For smaller value items it is a very difficult proposition to organize a realistic advertising budget which works and so many affiliates go for free blogs and websites and avoid advertising altogether. Or they spend a huge amount to make a little and then increase their advertising spend.
To rank a site on Google and get free visitors via the search engine’s results takes plenty of time and commitment. This is a tactic I used for quite some time but the main problem with this method is getting enough traffic or visitors through your website or blog to make enough sales. You need to create a lot of content just to get a modest amount of traffic through your site. You also need to pick a niche which enough people are interested in and which isn’t too competitive.
High ticket sales however is a complete game changer and I was lucky enough to be introduced to the idea by my business mentors. Sign up for their video course here. With high ticket sales you can make commissions on products worth $1000 and above and this means that you have much more flexibility with your advertising expenditure. Using the same example as above on expenditure let’s say you spend $0.40 for each visitor you send to your site. If after 100 visits you make a sale you will have spent $40 and made $400, again assuming the same commission and buying rate you are up by $360. Even if only half as many people buy the end product you would still make 1 sale for every 200 visits – so $400 for every $80 spent. That’s $320 profit. That profit can then be used to increase the adverting budget and scale the amount of visitors you send to your product/s. Of course you may get more or less sales depending on the quality and targeting of your advertising.
With a small value item for sale you are forever battling with your advertising expenditure or attempting to get ‘free’ visitors to your site by spending time creating content. With high ticket sales you are in a much better position from the start and any sale immediately puts you in a better position to either take a profit or scale your business or both!