There’s many affiliate marketing business models you can use as an affiliate. Not all of them give you the same benefits either so it’s prudent to do your homework. You could spend years working on your affiliate marketing business and make peanuts if you choose the wrong one!
Business models for physical affiliate products tend to pay far less than those for digital products, for example. Take for example Amazon and eBay who’s affiliate programs pay between 1% and 10% commissions. Compare this to digital products which pay from 40% to 100% commissions and you can see the difference isn’t a tiny one!
Sell just 10 products from Amazon at $40 a product and you’ll earn only $12 at 3% commission. But sell the same value of digital products and you’ll earn $160 (at 40% commission).
Obviously with the physical affiliate products business model you’ll need to deal in large volumes. But there’s more to consider too when it comes to affiliate marketing business models.
Affiliate Marketing Business Models – Recurring Income Products
Digital products also offer recurring commission on certain products. If you choose business tools you can even earn lifetime commissions on sales you make should your customer stick to the product for good! Recurring commission affiliate programs aren’t all alike either. Some only pay you the commissions for the first year. After that, your commissions end and you’ve sent your customer to the product owner, who could go on to earn a lifetime of sales from your efforts.
Recurring commissions are often found in business products and tools used for online businesses. Autoresponders, hosting providers, online marketing courses and SEO and keyword tools are just some examples of products which offer lifetime commissions.
It’s well worth choosing these kinds of products if you’re serious about making your affiliate business pay too. Compared to one-off commissions from single-point-of-sale products, you could save yourself a lot of hard work and make your life easier.
Affiliate Marketing Business Models – The Six Figure Sales Funnel
You can build a six figure business from affiliate marketing if you use the right business model. It’s a whole lot more difficult if you’re stuck with low paying physical products and a slow marketing strategy. But with high ticket digital products you can maximise your earning potential and scale up quickly using paid marketing strategies.
With low valued products, you’re stuck with cheap and free marketing tactics which are time consuming, slow and unscalable.
The six figure affiliate business model uses a range of products too, not just one. With a product range, you can offer your products to many people. A low valued “entry level” product is just the beginning of the sales funnel. A mid-range product and high ticket product should be a part of a six figure sales funnel. Add in recurring commission products and multi tier commissions and you have several income streams from a single funnel.
Build a sales funnel like this: access here.
Multi-Tier Commissions, Subscriptions, High Ticket, Built In Sales Team
The SFM Digital Business System offers a high ticket product range paying up to 40% commissions on a range of digital products:
Affiliate marketing business models don’t often offer this in terms of commission levels. In fact most affiliate business models will pay out $1 a month for each subscriber you get on your email list. With The SFM model, you should average $5 a month per subscriber – 5 times that of the average sales funnel.
Of course this all depends on your advertising. Once you have set up your sales funnel, you’ll need to market your online business. The SFM offers training and education for anyone wanting to start an online business from scratch using this system and strategy.
You’ll need a marketing budget in order to drive targeted visitors into your sales funnel. Or, create content if you have the time.
Learn more through this free video series.
Summary
There’s various affiliate marketing business models out there. Free products are free, but often end up giving you less back than the high ticket affiliate products which are worth paying for.
With a high ticket product, you get a high commission. With a business model which offers high ticket, subscription commissions, a product range, multi-tier and a built in sales team, you will be able to earn far more than with a free affiliate product which only pays you once.
Whatever affiliate business model you choose, think about the hours you’ll be putting in making those sales. With often what amounts to the same amount of effort, you can earn a lot more using the right products.
Access a free video series to learn more about The SFM Digital Business system and product range.
See also affiliate revenue model examples.
You can download this article here: Affiliate Marketing Business Model PDF.
