Now here’s a summary of Chapter 6 – “The Death Of Traditional Affiliate Marketing”.
As was made clear four blog posts ago concerning traffic, you will not make any money if you do not get traffic to your offer. There are two main types of traffic: paid and free. However, as is commonly said, “Time is money”, and so the extra time it takes to get free traffic can also be given a monetary value.
As people progress through their journey to become successful Affiliate Marketers they usually quickly realize that the time saved by using paid methods of getting traffic is worth the money spent. Therefore, for the rest of Chapter 6, Dean concentrates on the monetary cost of paid traffic.
In past years the cost per click to get a visitor to a site was relatively low, costing only Cents per click. For several years, however, the cost per click, or C.P.C. as it is known in the trade, has been climbing steadily, and instead of being Cents per click, it is now commonly Dollars per click. As commissions earned have remained steady, or in many cases declined, this has eaten into the profitability of traditional affiliate marketing to the point that it is almost always no longer viable, and many newcomers, even if they do make a few sales, continue to lose money.
When Dean started 10 to 15 years ago he could sign up a potential customer for about 10 cents. This meant for $10 he could get 100 potential customers. He regularly made 2 sales from those potential customers at, say $20 commission each. Therefore, he made $40 after spending $10, meaning he made $30 profit. Nowadays those 100 potential customers would cost him at least $2 each, possibly more. This means the total cost of 100 potential customers would be $200 minimum. But the commission earned on the 2 sales made would remain the same if Dean was lucky. So Dean’s expenditure of $200 would still only result in a return of $40, meaning that he would suffer a $160 loss. This is something that we would all agree is unsustainable.
Dean realized that this growing unsustainability existed several years ago and set about developing a sales system to overcome this apparent inability for newbie Affiliate Marketers to make a profit given today’s circumstances. Future Chapters of his book are dedicated to revealing the secrets that make up the revolutionary system Dean has developed. The system indeed makes it possible again for online marketers, who do not possess a product to sell, to get a positive R.O.I. (Return On Investment) just by being affiliate marketers.
Cheers
Phil