I always liked the idea of an automated income generator. Something which could work for me, like a robot, generating cash on autopilot. I looked at vending machines and online systems and eventually found a clever business model known as affiliate marketing.
With affiliate marketing you can promote and sell other people’s products online. When you make a sale, you earn a commission based on that sale. You simply refer customers to businesses and products and earn for the referrals. You don’t need to store products or even deal directly with customers.
PPS Affiliate marketing means you get paid per sale you make (pay per sale). But with certain products you can make lifetime commissions for making a sale. These kinds of products are typically software products and memberships. When someone signs up to a product with a recurring fee, part of this monthly payment can be paid to those referring the sale (affiliates). Not all affiliate products offer this. But subscription affiliate programs offer some of the best ways to create an “automated income generator”.
Automated Income Generator
But first you need to sign up to an affiliate program that offers these kinds of products. Then you need to learn how to sell them. Selling affiliate products can be done in all kinds of ways. Here’s a few of the strategies affiliates use to generate sales of affiliate products:
- Email marketing – the power of email marketing grows as your email list grows. With a large enough list, affiliates can completely replace their income from affiliate sales.
- Blogging and content creation – bloggers write content and v’loggers create videos. By posting content and building up a volume of content over time affiliates can sell products through their content and generate sales organically.
- Social media marketing – some affiliates use social media to find their customers. You can either pay to use a platform or find an organic route.
- Paid marketing is the fastest way to generate an income through affiliate marketing. But you may need to use subscription affiliate products and high ticket products in many cases to become profitable, depending on your strategy.
Automated Income Generator – The Six Figure Digital Business Model
The fastest way to build a digital business which is largely automated is through using paid marketing and a high ticket product suite. See also fastest legit way to make money online.
With a high ticket sales funnel you can recoup your advertising budget much more quickly than with many of the lower valued affiliate products you will find online. See affiliate marketing business models.
One of the main problems with using affiliate products which are physical is that they only pay very little in terms of commissions. Amazon typically pays affiliates between 1% and 11% commissions. That leaves very little for advertising costs, so many affiliates are forced to come up with other methods of generating traffic. See 22 ways to promote affiliate products.
Some methods take months or years to get any traction so product like these aren’t great if you want to build a income fast. But paid marketing and a high ticket sales funnel offers one of the best alternatives.
Use Digital Products Not Physical
With digital products you can earn more like 40% commissions on a sale. Add subscription affiliate products and high ticket affiliate products to the mix and you can get a lot more for a sale. This gives you more room to use paid marketing which can be used to get up and running more quickly with an online business. Paid marketing is also a lot more scalable than methods like blogging and organic traffic generation.
Once you have a profitable paid marketing campaign running, you can simply increase your budget to reach more customers and generate more sales. Once this system is working, simply leave it running.
Your marketing campaign drives targeted traffic towards your sales funnel and subscribers purchase items as they enter. With a product range you can benefit from later purchases, recurring subscriptions, high ticket sales and even multi-tier commissions. See SFM Digital Business System for more details or click on image below for details.
How A Sales Funnel Works
A digital sales funnel is basically an “automated income generator” once it’s working. It uses a number of digital products within a range of products. Products are sold through a marketing system using software and automation:
- A marketing platform: advertising platforms such as Facebook, Adwords or YouTube can be used to drive targeted visitors to a landing page where they are offered some free information. See how to know your target market.
- A landing page collects their email and name and they are sent a number of email messages with the information they requested. See the power of email marketing.
- Emails also contain relevant products and services which may be of use to them.
- Product purchases are followed up automatically with other related products which the customer might find useful
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