Is it possible to create an automated income generator? Wouldn’t that be great to have money coming in 24/7 with a complete autopilot money making system? This is no longer a pipe dream, even though there is work involved. An online business, for example, can automate much of the process of delivering products and taking orders. Think of, for example, the last time you bought something over the internet. Purchasing things online is simply a matter of clicking buttons.Â
Once you learn how to get on the other side of those transactions,Â as the seller, you can create a system which is very much an automated income generator.
Automated Income Generator – Digital Products
Take for example the purchase of an ebook, (or digital product). This is an sales strategy which struck me as immediately like an automated income generator several years ago. Sales like this happen on a constant basis, particularly with new technology like Amazon’s kindle, laptops and ipads. Nearly everyone ownes a smartphone too, which means sales of products like these will only increase.
You can download a book instantly and read it on your kindle for very little cost. Likewise with music downloads. But think about the cost involved in sending the product, almost none! An ebook or digital kindle download is the perfect example of a repeatable business model which costs virtually noting to send, store or manage.
On the other hand, traditional business models require staff, business premesis and are limited by their location. An online business, on the other hand can distribute products internationally and over the internet. E-books and music for example can be downloaded instantly.
Automated Income Generator – Putting Yourself Between Customer and Product
So how can you capitalise on this amazing business strategy? Simply by putting yourself in between the transactions. A model known as affiliate marketing allows anyone to promote products online and benefit from their sales. You don’t need to personally own the products either, you can simply join an affiliate program and activiely promote almost any product on the internet.
Take for example Amazon. Amazon is one of the biggest affiliate companies on the internet. Anyone can join Amazon’s affiliate program and earn commissions from sending people to any of their millions of products. It doesn’t end at Amazon either. There are literally thousands of affiliate products which you can sell and earn from on the internet. Clickbank is one of the biggest marketers of digital affiliate products.
With digital products you can earn much more per sale than with physical products. Usually around 40% of their sale value. This is largely because they are cheap to send and store. Digital products don’t require postage and can be sent free over the internet. Physical products tend to incur more storage and postage costs. So affilaites will earn a smaller percentage commission per item for physcial products.
How Does This Work And How Do You Automate It?
So far we have looked at how an online purchase is done with a few clicks, how products are delivered automatically, and the model used for using this yourself – affiliate marketing. But how does this relate to an automated income generator? Well as you will see, this can be done with either paid online advertising, content generaton or a mixture of both.
Here are some simple affilaite marketing strategies which you can use to put yourself between the customers and the products. Remember, you don’t need to deliver any orders, hold any products or even buy products yourself (although knowledge of products is helpful). Simply refer customers to products and services around the internet. You don’t have to speak to anyone or deliver anything and your main job is to refer people to products on the internet.
Strategy 1 – Review Websites
Building a review website is a great way to start an affiliate marketing business. Once you have a successful website which brings in a good amount of website traffic, you can effectively have an automated income generator. The work needs to be done before hand, as with much of affiliate marketing.
It’s not a “set it and forget it” overnight system. Start by setting up a website. Review and compare various products and link through to your favourites. The last step a customer tends to make before making a buying decision is to look for a review of the product they like. If your website gives them the information (and reassurance) they want, they will use your (affiliate) link to purchase the item.
Strategy 2 – Blogging
Building a website and blogging from it is how many affilaite marketers start off. By blogging about their interests or something they are passionate about, they can earn money by sending their visitors to various products and services online. If you have an interest in travelling, for example, you can blog about your various trips abroad. Some travel bloggers recomend hotels and car rental firms from their blogs. By attaching banners and links to these firms, after joining their affiliate programs, they can earn money as people use their recommendations.
Strategy 3 – Paid Advertising
Some affiliate marketers send website traffic directly to products with paid advertising. By setting up multiple adverts online they can direct people to several products at once. Paid advertising is the quickest method for generating traffic. Simply set up an advertising campaign with an online advertising platform like Google’s Adwords, Bing, Yahoo or Facebook, and ‘turn on’ traffic. Once a strategy proves successful you can simply increase your daily budget. If a $2 campaign brings in a $4 profit, for example, you can simply turn up your budget to increase the number of sales.
Types Of Affiliate Products
Not all affiliate products are equal. Some products can earn you a small commission. Other products can make you much larger commissions. Even though affilaite marketing can offer an ‘automated income generator’ of sorts, there’s still work involved. You need to put yourself between the customer and the product somehow. Once a customer purcahses something you earn money. However, the products you choose can determine to a certain extent how successful you are.
Single sale products will only make you a single commission. Choosing products which offer high ticket commissions, subscriptions and back end sales can mean your earnings continue for each customer. Examples of subscription products are things like online software such as website hosting for example. By choosing products carefully before starting, you can earn much more per customer.
Automated Income Generator
Although there’s work involved in building a successful affiliate business, over time and with effort your business can become much like an automated income generator. The fastest way to do this is through paid advertising and by choosing high ticket items with built in subscriptions and back end sales. Once the initial sales are made you can make further sales and commissions through a built in sales team and monthly subscriptions.
The other route is to build content (like this article, for example). If someone uses my links in this content, I earn commissions on sales I generate. Content generation is a great method of building multiple streams of website traffic through to various products and services online. If your content ranks well on the search engines, you can have a constant stream of income from your sales.
To learn more about online marketing and building an affiliate business online visit this page and sign up for a free video series.