Dive into the dynamic world of affiliate marketing as Jay decodes the secrets behind his impressive $1,158 profit in just ten days with affiliate marketing! In this case study, Jay reveals how affiliate marketing isn’t just a side hustle but a powerhouse for entrepreneurs aiming to stack up the cash without the headache of creating their own products or services.
On Black Entrepreneur Blueprint Podcast Episode #503, Jay takes center stage and discusses the untapped goldmine of affiliate marketing and dissects the pros and cons, sharing invaluable gems for anyone ready to skyrocket their income.
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BLACK ENTREPRENEUR BLUEPRINT SHOW NOTES – EPISODE # 503
Today we’re going to discuss and decode a case study of my foray into affiliate marketing as a stand-alone business. We’re going to talk about the pros and cons and I’m going to do a deep dive into the numbers.
WHAT IS AFFILIATE MARKETING AND WHERE DO YOU FIND AFFILIATE OFFERS?
Affiliate marketing is the process of earning a commission by promoting another person’s (or company’s) products or services.
Affiliate Networks include: Clickbank.com,Digistore24.com, JVZoo.com, WarriorPlus.com, Commission Junction at CJ.com, MaxBounty.com, Maxweb.com, Yellana.com
Commission Types: Sales and CPA (cost per action)
- Sales – when the customer buys the product or service directly from your affiliate link
- CPA marketing (cost-per-action marketing) is a type of affiliate marketing where you get paid for the customer taking an action that is not necessarily a sale but a direct action. For example: you’re an affiliate for a credit card company and they pay you $5 for every person who completes a credit card application regardless if they are approved or not.
PROS
- The sales funnels and conversion mechanisms are already done for you, you just have to drive traffic
- There is no inventory for you to store or ship
- Market multiple products in multiple verticals at any time
- Build a buyers list by using a landing page (benefits of the list allow you to remarket to them)
- Can substitute your own products for the affiliate product if it’s successful (expound) – build your own brand
- You can duplicate their sales copy and funnel for your own products
- You can use affiliate products to create additional income for your current business (fitness coach selling weight loss powder)
- It can be your sole source of income – you can become a professional marketer
- You can learn how to offer your products or services using your own affiliates
- Develop lead generation skills which is the lifeblood of all businesses; leads
CONS
- You don’t control the products or the offers
- Most products have a life cycle
- You may be always looking for the next thing to sell
- If you don’t know how to drive traffic to the offer you won’t be successful
CASE STUDY
Product: Clickbank.com fat-burning supplement
Marketing Funnel: YouTube ads to a bridge page/landing page to the products VSL (explain bridge page/landing page and why you need it for approval purposes on most platforms)
Ad spend: $25 per day for 10 days = $250
Ad clicks: 763 clicks from my YouTube video ad to my bridge page
Sales: 11 sales from those 763 clicks – .014% sales to clicks ratio
Average sale price: $128 per sale
Gross Sales: $1,408
Net Profit: $1,408 – $250 ad cost = $1,158
Average net revenue per click: $1,158 net profit divided by 763 clicks = $1.51 per click
