One thing I learned right off the bat was if I want to make six figures, it's going to be tough selling little $10 items doing affiliate marketing on Amazon and ShareASale. My commissions are usually only a few percent through these affiliate marketing programs. Let's say my goal is to make $100,000/yr:
My average priced item is $10
My average commission is 4%
That means to get to $100K I would need to sell 250,000 $10 items to get to my $100,000 goal. That is a lot of products!
So, there are two factors to this equation. Price and commission. I'll get into more tips in later blogs, but increasing both of those will obviously make you more money. It takes the same amount of work to write a blog post about a $10 product as it does a $1,000 product.
Let's try to reach $100K by plugging in $1,000 as the average price, instead of $10. With that, I would only need to sell 2,500 products, or a little over 200/mo.
Also, a lot of the higher ticket products offer recurring commission or a higher percentage. Let's bump that number up to 10% commission. So to get to my goal of $100,000/yr:
My average priced item is $1,000
My average commission is 10%
Now I only need to sell 1,000 products, or ~83 products/month, to get to my $100K goal! A lot better than my initial estimate of 250K. Add in a recurring commission there and bam! That money just starts piling up.
Here is a real world example from my first week into my affiliate marketing journey.
My first sale came in and I remember being so excited. Someone bought a book through an Amazon affiliate link on my Mother’s Day gift idea blog for $21. Any guesses what my commission was?
.95! Not even a dollar.
A few days later I wrote a blog review of Allbirds shoes and had someone buy a pair through an affiliate link. Those shoes are $95 and they give out 15% so i received $15 in commission.
Same amount of work but 15X more commission.
Higher-ticket items will help you achieve your revenue goals faster.
With all that money coming in, I highly recommend utilizing a bookkeeping software. I use QuickBooks to stay organized. They usually offer promotions too. When I signed up they gave me 50% off for the first six months. It's only $7/month and saves users on average 42 hours/month. Well worth it if you ask me!
To help achieve work like integration, in my mind, you need to be creating multiple streams of revenue. Affiliate marketing can be one of those streams. With SEO it is more of a journey than a race. You have to put in the work now, which pays off down the road!
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