First, we have the traditional commerce. But then, businessmen and entrepreneurs around the world began to change that model and make it easier for people to make money. In traditional commerce model, it all starts from raw materials. And then from there we have manufacturers who takes these raw materials (for free) into useful products. And then, we have the wholesaler, who buys the products in a huge bulk at a low price. Next we have the retailers who buys a smaller bulk but a higher affordable price. Then lastly, we have the consumers (us) who buys the products and use them for ourselves at an even higher price. It got difficult until one day I met people from all kinds of business areas and learn how the businesses actually work.
First, there was affiliation marketing. This model is different in comparison of the traditional commerce. Basically, you help them sell stuff and you get a commission out of each sale. It's more like being a salesperson. How you close the sale is your move and approach. But the idea is to help sell the products manufactured. I came across one after the other in affiliation marketing online. How they did it was they help refer people to join the site and they get paid. Different affiliation marketing got different systems. The main idea is to get more people to join or buy something. It's interesting but the question remains,"Would you really join if your best friend or relative or someone you love ask you or is in one?"
See, the advantage to the whole affiliation is that if you join, you get to experience the companies benefits compared to the usual customer to business relationship. Unlike the customer relationship, an affiliated partner to the business gets good benefits such as; passive income, trips, seminars, useful products, discounts and probably many more.
The disadvantage is, not all affiliation marketing are the best in the business. So do be careful when you join one. I had a chat with an american through mIRC (Yeah I still chat there from time to time) and he told me about his bad experience with affiliation marketing. It's already common there in America. He told me that the company is willing to give him 30% out of every verified referrals. And that's it. There are no other perks, no other benefits, no products, etc. Basically if you think about it, that is called a pyramid scheme. A get rich quick scheme and a scam. Since there are no products, why join? Because of the potential to get a passive income? That's not really passive income if you still have to work for it. A passive income, by definition, is to receive money without having to work for it all.
A real live example of a passive income is having a business running for you. Taking for example the fast food chain restaurant. You tell someone to run the business for you, you provide everything, the resources, the people, the food, the ingredients, the brand, etc, but in return you only ask for 7% out of the business profits per month. The other 93% will be used for the business to keep it running. Imagine having 10 businesses running for you. That's 70% percent of passive income!
Affiliation marketing should be no different to that. Basically, we are the business and we run it. The company just supplies everything to us, the product, the brand, the idea, etc. All we have to do is run it and we get an active income. We'll get a passive income if we manage to get someone under us to run the business for us. Even more if we manage to get more people run the business for us. So you see what I mean?
Affiliate is a powerful tool. A nice way of earning a decent passive income is by having the business run for you.
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