Start home based business and make money with affiliate program is one of the easiest ways to get your feet wet in ecommerce. You simply send visitors to your merchants and collect commission if the visitors make purchase there. However, most of the home businesses failed. Why?
Before we discuss the reasons. Lets look at some basics about business. Unless you are setting up a non-profit organisation, in any business, the key goal is to maximize profit. How profit is derived?
Basic formula :
Profit = Income - Expenditure
So, you want to make profit, your income has to be greater than your expenditure. To maximize profits, you should generate as much income as possible and, at the same time, keep your expenditure in control. This apply to all businesses, including online home based business. In fact, to make money with affiliate program is more simple.
There are 2 ways to increase your income:
Refer more visitors to your merchants.
Increase the Conversion Rate (that is, the percentage of visitors referred by you bought the products from the merchants.)
(This is based on the Pay Per Sale affiliate programs. For Pay Per Click affiliate program, it is even more simple. Your commission would be based on each click you send visitors out to the merchants, no need the conversion.)
You should aim to achieve most in both ways.
How about the cost? From the above, naturally, you should arrive to the following cost:
Cost to sent visitors (in other words, traffic) to your merchants.
Cost to increase Conversion Rate. - You will find that it does not incur monetary cost. You just need to learn to do it correctly.
So, why most home based business fail? It is the problem of low traffic and terible conversion rate.
To achieve high traffic, you need to make your own web site which search engine love. That is about contents, and links etc. One major part is the Search Engine Optimization.
To achieve high converion rate, you need to know about online shoppers' mindsets. Let me explain.
Visitors are searching for content! (what, content again!) They are looking for information, not looking for where they can spend money. Naturally, they resist sales efforts. See, visitors do not know you. There is no reason for them to believe what you say. You need to build your own credibility through your web site. Besides, you should "warm up" your visitors before send them to your merchants so that visitors click through with a "open-to-buy" attitude. This is what we call PreSell. Leave the selling to the merchants. Do PRESELL instead of selling.
The best practice for small business to make money on computer is to follow this critical path :
Content >> Traffic >> Presell >> Monetize
Is this process difficult? Not at all! But do keep in mind that this is not a “get-rich-quick” scheme. You need to bring effort and passion to the table. After all, you are building more than a Web site. You are building a real business! C T P M works, if you work it!
So, are you really to take on the training to learn how to Start home based business and make money with affiliate program through C T P M ? Read on.
