Part Six - Pros And Cons Of Affiliate Model
Post on 17-May-2015
DESCRIPTIONDo you know what model to choose in your Life and Business?
- 1. Pros and Cons of Business ModelsBy Val A. Slastnikov, Business Models Expert 2010 Digitizer Group. All rights reserved
2. PART SIX (Pros and Cons Of Affiliate Model) 3. What is an Affiliate Marketing?
- Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts.
Is Affiliate Marketing for you? 4. Who belongs in this category?
- Internet and MLM (Network/Referral) Marketers, Independent Associates, Independent Distributors, Agents, etc.
Do you have what it takes to be an Affiliate Marketer? 5. Affiliate Marketing ProsAffiliate Startup Costs: Low Carrying Costs: Low Multiple Income Streams: Yes Leverage: Yes Parent Biz Sub-Affiliates Replicability: Yes 6. Affiliate Marketing Cons Affiliate Control: Low Customer Base: Limited Scalability:Limited Branding Restrictions Marketing Restrictions Media Restrictions Growth Potential:Limited Profitability:Low 7. Affiliate Business Model
Level of Effectiveness = 50% Affiliate Startup Costs: Low Carrying Costs: Low Multiple Income Streams: Yes Leverage: Yes Parent Biz Sub-Affiliates Replicability: Yes Affiliate Control: Low Customer Base: Limited Scalability:Limited Branding Restrictions Marketing Restrictions Media Restrictions Growth Potential:Limited Profitability:Low 8. Analysis
- Internet MarketingFacts:
- Internet Marketing is the talk of the town.
- Businesses see the importance of Internet Marketing.
- Internet Marketing has made its mark in terms of providing successful online presence.
- Advantages of Internet Marketing:
- Internet marketing is a low cost promotional strategy.
- Internet marketing is the easiest way to reach a global market.
- Disadvantages of Internet Marketing:
- Internet Marketing does not build trust instantly.
- Internet marketing is a tough competition.
- MLM (Referral Marketing or Network Marketing)
- Multi-level marketing is a system of marketing which puts more emphasis upon the recruiting of distributors than on the selling of products. As such, it is intrinsically flawed. MLM is very attractive, however, because it sells hope and appears to be outside the mainstream of business as usual.
- It promises wealth and independence to all.
- Advantages of MLM (Network) Marketing:
- You get certain tax write-offs.
- You get to buy products, some of which you will be happy with.
- You get to go to inspirational meetings, some of which will make you feel good.
- You may meet new friends and you may even make a few bucks.
- Disadvantages of MLM (Network) Marketing:
- You may end up alienating some family and friends.
- You may end up buying more stuff than you sell.
- You will learn a lot about deceiving yourself and others.
- You won't be allowed to tell anyone how you are really doing.
- You will always have to think positive, even if that means lying.
- You will have to tell anyone who asks that you are doing great, that business is wonderful, that you've never seen anything go so fast and bring you income so quickly, even if it isn't true.
- The biggest obstacles in Affiliate business model are:
- You dont own the business, so you
- cant improve it.
- Because you cant improve it,
- your success is limited.
- You can only make a fraction of what
- the business owner makes.
- If you consider yourself a true entrepreneur,
- you might as well start a business that you own.
15. Where do you go from here? 16.
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- PART SEVEN