Why is Affiliate Marketing such a good idea to create Passive Income?
Starting with a quote from one of my favorite rich people. Trading time for money, or as Warren Buffet said: “If you don’t find a way to make money while you sleep, you will work until you die.” Is a good example of someone who understands the power of duplication of effort.
He worked persistently and is reaping the rewards 24/7.
We think this concept of creating passive income is only for the rich, or people who already have money. I can tell you there are examples after examples where ordinary people have been able to turn small investments in time or money into large sums of money, freeing up their time.
In this article I will discuss the meaning of Affiliate marketing. The pros and cons. The effort needed to succeed. My hope is at the end of this article you will have a clearer understanding of Affiliate marketing and the advantages anyone can take to create passive income and become independent.
Most people being 50+ seem to have the mindset they are too old to start something new. They think you need to be born with a “silver-spoon”, or that “I do not have the time, money or energy to start a new career”, You need to “start when younger”.
Do these names ring a bell?
Colonel Sanders (65) – Kentucky Fried Chicken
Steve Jobs (52) – Apple
Bill Porter (54) – Online Stock Trading
Charles Flint (61) – IBM
Martha Stuart (50) – Martha Stuart Enterprise
Ray Kroc (52) – McDonalds
Nernie Marcus (50) – Home Depot
All started a new venture when they were 50+.What they all had in common is a desire to improve their and others lives. Age did not stop these entrepreneurs and should not stop you. People of all ages start businesses every day. In all economic conditions.
Does not matter if your’ in your 20’s, 30’s, 40’s, or 50+.
The ability to make money and free up your time is not dependent of age, but on your willingness to take a step and put yourself out there in the marketplace.
I can tell you being well 50+, anyone has the ability to start new, and exciting adventure. Age does not matter. Bringing your past business experience, your understanding of people and through persistence can achieve what you want.
Think, through your life and career how many people did you influence? The new worker joining the company. A friend, sibling or child in need of guidance.
People without knowing it influence others every day. Just by talking with people, you are influencing people. You are transferring your thoughts through words and actions to others.
What is passive income?
The goal of passive income is to earn money while you sleep. This is how to get your assets working for you. You invest time in building something upfront that will generate income down the road with little effort on your part.
Building a business that requires time upfront but allows you to work less as the business gets going is a great way to generate passive income.
Investing in financial products that produce dividend income or interest income and appreciate in value over time is ideal.
The reason why passive income is appealing is that it requires little effort to make money. This is what is often referred to as making your money work for you. Generally, you invest your money in a product that will generate an income.
But beware, passive income is taxable. However, don’t let the tax deter you from creating a passive income. Passive income is taxed differently than active income, but it is still taxable so be knowledgeable before investing.
Passive income for beginners
So where do you start?
There are many ways a beginner can start investing and making money. As Warren Buffet is known to say, “If you don’t find a way to make money while you sleep, you will work until you die.”
Often when people need more money they turn to a part time job or side hustle. The better option would be to stop trading time for money and create passive income.
It does take effort!
You cannot get something for nothing. But if you are willing to do the work. You too can create regenerative income. Being paid for years for work you did today.
“Work smart not hard!”
This saying has truth in it. You worked hard. Get a good job. Save up for retirement. Told you can live the dream. What happens, inflation, family crisis, or just enjoying life and what you worked hard for can disappear.
When looking at a business opportunity, or anything else. People are cautious. Who would want to risk what they have built in these troubling times? Not me says most people. Thus, why I look for opportunities without major cash outlay. The biggest risk I face is spending time away from the TV. But hey, do those people on the TV pay me to watch them?
Note: Not all business ventures require large sums of cash. In fact, a lot of businesses get their start little financial investment.
So how can you go about starting an Affiliate marketing business?
Two ways I see this occurring. You could read all the books you can find. Start building a business from the ground up. Create your product line. Establish distribution chain. Develop a marketing strategy. Through a long time and effort create a business.
To create your own site takes time and money. Even using the simple templates offered on sites like Go Daddy or other hosting site take time and money to set up. Then there is the effort to find programs offering affiliate marketing opportunities.
Another option is to go with an established Affiliate marketing group. You learn what others have learned. Using established companies which have already done the homework and heavy left for you. You pick up what they have and “run with it”.
Using an established Affiliate marketing group. The effort of setting up and establishing the infrastructure to run an Affiliate marketing site has been done for you. All you need to do is start marketing their products and services.
So, to understand why companies want you. You need to understand what Affiliate marketing is.
What are the best Affiliate marketing businesses?
If you’re thinking of going to go into Affiliate marketing as a source of income generation. There are a couple of things you should look at.
What to focus on. There are the high-end items. The big-ticket sale items like homes, cars. there are the semi-repeat sales of clothing, jewelry, fashion items.
Or there are consumable items. Items people need every day.
Example of consumable items include basic needs items. Makeup, laundry, kitchen, bathroom. Things people buy week-in and week-out at the grocery stores.
When there was a shortage of toilet paper. What happened. People stopped buying luxury items and focused on the basics.
When there is a baby formula shortage, again people focus on what is needed.
In each of these scenarios, people focused on solid repeatable products. Consumable products people need every day.
So, if you are going to focus on an Affiliate marketing business. What items do you think brings in the most passive income?
That is right! Repeatable personal items. Things that when are gone, people go to the store and replace.
How Does Affiliate Marketing Work?
This is when you earn a commission for selling another’s product or service. Many bloggers and podcasters use affiliate marketing to add to their income streams. There is no work involved on your end when you sell other people’s products.
Combining the buying power of a group to generate income. 70% of the Gross Domestic Product (GDP) is through the consumption of personal consumption products. That is things average people purchase each and every day.
In Affiliate marketing, you use the power of the masses to receive a commission every time a visitor buys a product or service through what is known as a referral program.
In other words, companies pay you for your intellectual property. This intellectual property is “no one knows everyone you know”. By referring people to these companies. Companies pay you for referring people for things they buy.
If things are what people buying every day. Then your ability to generate income increases. It is that simple.
You see this when reviewing You Tube videos, TikTok, Facebook, eBay. Most people on those sites do not manufacture the items. They just direct consumers to the manufacturers and get paid for directing traffic to those companies.
The problem is you are using a 3rd party to host your Affiliate program. Recently Facebook reduced the commission rate from as high as 10% down to 3%. Don’t you think that was a major hit on those people using Facebook as a mechanism to direct traffic?
Working directly with manufacturers
When looking to starting an Affiliate marketing company. Yes, you are your own boss when you run your own Affiliate marketing business. Work with companies that have a track record of successfully partnering with individuals to build a business that will last. One that allows you to grow, knowing that the manufacturer will treat you right.
So how do I know if the Manufacturer will Treat Me Right.
Simple, look at the payout to their affiliates. Transparency, if a company is willing to show you how much they have paid out to affiliates. You bet they are treating their affiliate right.
I work with a manufacturer that has paid out over 4.5 billion dollars to their affiliate marketing executives. They partner with over 100 other major corporations to provide major brands. You may have heard of some of these companies.
Some of their retail partners include; Sephora, Kohl’s, Jos. A Banks, Walmart to name a few.
What’s Next
For over 20 years I have helped numerous people understand how to take advantage of Affiliate marketing opportunities. If you would like to understand and unlock the potential opportunities for creating a business which can generate passive income. If you are wanting to be part of the American dream, by owning your own business. I encourage you to send me an email and I will be more than happy to discuss in greater details about Affiliate marketing and the advantages.
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