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From $50,000/Month To ZERO – The Problem with Affiliate Marketing

written by John Chow on July 3, 2013

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Most new affiliate marketers getting into the business do what I call hit and run affiliate marketing. It’s the model they’re all familiar with because it’s the one they hear about the most. The hit and run marketing steps goes something like this.

  1. Select an affiliate offer to promote
  2. Send traffic to the landing page with PPC/PPV/CPM/Solo Mailings/Media Buys/Etc.
  3. MAKE MONEY ONLINE!

Some affiliates do very well with this model. Most lose their shirts. One of the few who has been able to make a go of the hit and run model is fellow British Columbian, Tyler Cruz.

Tyler does hit and run affiliate marketing, and he’s very good at it. We have had numerous exchanges on IM where I tell him his type of revenue model is a house of cards that can come tumbling down at anytime because of the inherent flaws in the business model. Those flaws include:

  • The customer doesn’t belong to you.
  • You only get paid once.
  • You have to keep spending money on traffic or the money stops.
  • The advertiser may pull the offer.
  • The advertiser may lower the payout.
  • Google may slap your landing page.
  • Your affiliate network will rip off your campaigns (this happens more than you think).
  • Competition will drive up advertising cost to the point where the campaign is no longer profitable.
  • You can never tell anyone what offers you’re running for fear of them copying you (this is why they try to get you drunk at the Affiliate Summit, so you’ll talk!).
  • You have to constantly hunt for new offers to run because you never know how much “life” your current offers have.
  • I’m sure there’s more, but it’s all I can think of off the top of my head.

Tyler acknowledge these flaws but he doesn’t make changes that could put his business on a more stable footing. And one really can’t blame him when he’s pulling down results like this:

Affiliate Income

As you can see, Tyler was pretty much able to increase his affiliate earnings every single month, and making me look like an idiot. That all came to a screeching halt this month as Tyler came face to face with the problems of hit and run affiliate marketing.

hitandrunmarketing

Tyler now has to start all over again to test and find profitable offers and hope the train stays on its track a little longer this time. I have no doubt he’ll be able to do it, but I also know that I wouldn’t want to use a business model that puts you in a feast or famine lifestyle. I want to live the Dot Com Lifestyle!

Is There A Better Solution?

The number one flaw of affiliate marketing is the customer doesn’t belong to you. When you make an affiliate sales, you get a commission for your efforts. The problem is this commission is all you get. What you don’t get is the customer. He belongs to the guy who paid you the affiliate commission. He will then go and sell additional products to the customer and you won’t see a dime of it, even though you were the one who brought him the customer. If Tyler grossed $607,175.30 in affiliate commissions, imagine how much his advertisers made off those customers! By not owning the customers, Tyler left MILLIONS OF DOLLARS on the table.

Real businesses are built on repeat customers buying more and more stuff from you. How long do you think you can stay in business by using a business model that tells you to spend money on advertising to get a customer for someone else?

The secret to making money online is the big money is not in the first sales. The big money is in the sales after the first sale. The problem for you as an affiliate marketer is you only get paid on the first sale. Have you ever wondered why there are affiliate programs that pay 100% commissions? It’s because they’re making a killing on the backend, which they don’t have to share with their affiliates.

The backend income is the reason why successful affiliate marketers eventually develop their own products for affiliates to sell. My products include IM John Chow, Blogging with John Chow, WP Blog Videos, and Work From No Home. I pay affiliates 50% when they make a sale, and I am happy to do so because the customer belongs to me and I get 100% of the after sales, which is where the real money is.

The problem with creating your own product is it’s very time consuming and expensive. For example, the sales page for Blogging with John Chow cost over $7,000. Then there’s the video production cost, the content creation cost, the affiliate manager, customer support, servers, affiliate software, etc. Unless you have a substantial amount of money to put up, and a well known brandname, you’ll end up losing more money than doing just the affiliate marketing model! So what’s the solution?

My Top Tier Business

My Top Tier Business (MTTB) is a system that I have been testing for Matt Lloyd, founder of My Online Business Empire (MOBE). MTTB combines the low start up cost of affiliate marketing and gives the same benefits of being a product producer by allowing you to own the customer, and earning a commission on every after sale, for life. The result so far has been nothing short of amazing. I think it will become the number one way to make money online.

My Top Tier Business is a 21-step system for making your first $1,000, $3,000, or $5,000 commission online, even if you have no experience with online marketing. In fact, this 21-step program works so well that Matt is willing to give it to you for FREE and personally guarantee that you will make at least $1,000 in commissions within 30 days or he will pay you $500 cash!

earnings

By Application Only

In order to qualify for this over-the-top guarantee, your application needs to be accepted and you need to actually go through and complete each of the 21 steps (all of these steps are simple, easy-to-follow, and can be done in your spare time) and work with your coach. Yes, you get a personal coach for free as well.

To ensure we get high quality applicants, we have put up a $49 application fee (refunded if your application is rejected). If your application is accepted, you will receive the following at no additional charge:

  • The Internet’s only Done For You direct sales system that will deposit $1,000, $3,000, and $5,000 commissions into your back account without you ever having to pick up the phone
  • Personal 1-on-1 coaching with one of my Top Tier Coaches (all of my coaches are 6-figure earners and bona-fide online marketing experts)
  • Daily training lessons, videos, and webinars
  • 21 simple steps to making your first $1,000 online even if you have no computer skills whatsoever
  • Insider access to the most effective sales funnels and best-selling products in the home business niche today
  • The secret “4th ingredient” to my master Sales Formula that can instantly double your income overnight
  • A professional sales staff that will make phone sales for you
  • Done For You product fulfillment, payment processing and customer service (I handle all the “grunt work” for the programs sold to your leads)
  • Access to my traffic-generation team that will get qualified leads for you

mttb2

This offer is being limited to the first 250 applications that are accepted. We have to limit applications because our coaches can only work with a limited number of people at any one time. The sooner your get your application in, the higher the chances that you’ll be accepted, so go apply now.

Click Here To Apply for My Top Tier Business

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