Affiliate Marketing is TOO Expensive

by: Rosalind Gardner

I received an email this week from a gentleman who asserted that affiliate marketing as a business simply wasn't for him.

Why?

Because it is too expensive!

Huh? Too expensive? WHAT's too expensive?

Let's assume that because he sent an email, he already has the basic equipment and software that he needs to start an affiliate marketing business - that being a computer, email software and an Internet connection. I'll also assume that he has a desk on which to store that stuff, a chair on which to perch and a telephone line. Nothing extra to buy or lease there.

What about all those products to buy and stock?

Oh ya, you don't have to buy SONY's TV's or Dell's computers to sell them as an affiliate. Not having to buy them will also save a big chunk of change in storage fees at the warehouse as well. Hmmm.... that ALSO means that as an affiliate, you don't have to ship those heavy items.

Actually, those affiliated merchants are pretty good guys all around. Not only don't you have to buy, store or ship the product, you also don't need to deal with those pesky customers. Just send them from your site to the merchant's site, and the company will handle all the sales details. They'll take the customers' money, figure out your share and send you a check.

Pretty sweet deal.

Maybe it was the cost to build a web site that bothered him. Yes, graphics programs and HTML editor software can get pretty expensive, but there are plenty of low and no-cost options available. If building the site yourself proves too time-consuming, there are also excellent graphic designers who sell beautifully designed web site templates for less than twenty bucks.

Oh, I know! It must have been the cost to advertise. Hmmm... the last time I checked one of those national magazines, it cost about $1200 to get a 1/12th of a page ad in black and white. Your ad could be seen by up to three quarters of a million people. But how many of those readers would actually be interested in your message?

By contast, that $1200 could buy up to 120,000 clicks from a targeted audience on the Internet.

What method do you think would be more worthwhile in terms of return?

Furthermore, when you use Internet pay per click advertising, you don't have to spend the whole $1200 in one shot. You could try a $50 test ad. Analyze your ROI, return on investment. If it's not satisfactory, rework your ad and try another test. In the worst case scenario, you'll gain a few subscribers to your newsletter to whom you can promote other products later.

I personally work and rework my ads and aim for a 100% return on my advertising investment. Where else are you going to get that kind of return on your money nowadays? The stock market? Your bank account? The race track? The latter probably has the best odds of the three.

OK, so let's do a tally to see how much, or how little, it could cost to start an affiliate marketing business on the Internet. The expenses are as follows: domain $8.95, hosting $9.95, web site template $14.95 and $100.00 for a test ad. Total outlay for the first month equals $133.85. Assuming a 100% return on your advertising investment, you'll have earned $200.00.

In the first month you'd already be in the black - $66.15 richer.

Affiliate marketing on the Internet is one of the least costly businesses to start, and one of the very few that contains the possibility of profit in the first month.

If a C-note is too big an investment in a business that has brought financial freedom to thousands, then perhaps it's best to stick with 'the day job'. Of course, I didn't even touch on all the money and time you'll save by working at home. Next time.