Tuesday, March 25, 2008

Make Money Online

Own Product
You market an eBook priced at $49 for download from your website and use a 3rd party payment provider such as ClickBank.

Each month you have 1,000 visitors to your website and a sales conversion rate of 5% so your revenue is $2,450 per month.

Now consider expenses like web hosting at $10 per month and credit-card processing fees of 8% giving costs of $206 per month.

So, in this example your profits are $2,234 monthly.

Affiliate Marketing
You have a website about fishing where you review equipment and have product links carrying your affiliate tracking code.

Your website gets 10,000 visitors a month and 10% click on a product link. 10% of these people purchase an average of $100 of merchandise. You get paid 5% commission.

So 1000 people click and 100 buy a product and you are paid 5% of $10,000 in commission.

You only have web hosting costs of $10 per month to deduct.

This nets you $490 per month profit.

Own Product or Affiliate Marketing ?
From the above examples it is clear which is the most profitable approach to take. However, you may struggle to develop your own product, yet you can immediately access 1000's of other people's products via the affiliate marketing route.

The affiliate commission on eBooks is generally far higher than physical goods so you can make good money marketing other people's eBook products rather than developing your own.

For physical products, successful affiliate marketers generally create sites that recommend the products such as sport's equipment. If the price of the products is high, you can make good money.


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