I’m sure that if most of you are as I, you have never thought that there could be a difference between being an affiliate or an entrepreneur.
Is there a difference between an affiliate marketer as compared to an entrepreneur. By definition there is.
The rest of this article is about these differences in the two as I perceive them to be.
So with that in mind, let’s explore my differences to see if you agree with me. If not, send me a comment explaining why you feel as you do.
Entrepreneur.com says that an affiliate marketer by definition is one who signs with a company (affiliate) who markets the company’s product(s) for a commission.
Our first model below explains in (poor) graphic terms how this works.
This model was drawn by the author. As you might have guessed, he failed art in kindergarten!
The affiliate drives traffic, free, organic or paid, to the sales page and when a sale is made, he is paid a commission. There are several advantages to this model for the affiliate.
- no products to create
- no shipping
- doesn’t require a website
- no returns to deal with
- get paid a commission $
- no selling
Then too, there are disadvantages with this model.
- one sale and done
- no list for the affiliate to resale his products to
- commissions are usually less than you could make from other models.
- no back-end money from the initial sale
- must sale tons of products to make good money
However, Affiliate Model I definitely serves a purpose. Amazon and eBay use this model.
You build your website, select a product and find traffic to send to the company to buy a product. Amazon pays about 8%. Many of their products are low-end sales items; therefore, to make money you need to sale lots of products.
In an earlier article I gave some statistics: 96% of affiliate marketers make $1000 dollars or less per month. 4% of affiliates make nearly all the over 9 billion dollars per year that affiliate marketing brings. You can read the article here.
Affiliate Model I–Who Makes the Money
Let’s look at another model that I have sketched–poorly, I might add–to have a visual of who makes the money.
Of course the affiliate makes his commission, but the real money is made on the back-end sales. The affiliate generates the list for the company by sending a customer there.
One thing to consider, the customer is primed to buy. He just bought the product that you as an affiliate sent to him/her.
When you look at Model II, you see that the affiliate does make his commission when the customer buys the product. However, the company begins an email campaign to the customer offering high-end products to the customer.
Most likely the company sends a thankyou letter with an option to join his firm or buy another product. If the company has many products to sell, it can continue to send emails to the customer until the customer buys something.
Online Dictionary tells you that a person who organizes or operates a business, taking on greater than normal financial risks in order to do so, is an entrepreneur.
In the above model, Entrepreneur Model, the company allows you to drive traffic to their site. When the potential customer opts in either for a low cost product or to join the company as a member, a list begins. The major difference here, the list is yours. You just became an entrepreneur!
I don’t have drawn on the above model, but if the customer opts in to become a member, you get a commission. The two links I have provided here offer this type model. Both have excellent training. Both are very reasonable to join.
The list is yours. You can begin an email campaign to promote the company you have joined, or you can promote your own products or use the affiliate model I above. The business actually becomes yours.
Remember in the Affiliate Model I who made all the money. You had one sale, one commission, and then you were done. With the above model, look at the number of different ways you have to make money.
There’s still two more ways for you to make money. To the right of the “Thank You” page, there should be another funnel page with an offer on it. Something sells from this funnel, you get a commission and the customer is still in your list, or he/she may choose to buy another product from the company.
Guess what? Whenever the customer you send buys, you get a commission!
I’m not going to spend any more time explaining the above model. I think you can see for yourself the advantages of working inside a model such as this.
You can actually reach nearly any goal you set for yourself with a model as the one above. You’re in charge! You own the business.
However, you don’t have to create any products. You are still using other people’s products. The company has spent much money to create all the different products.
Of course the company is going to make money; otherwise, you could never have the opportunity to join them in making money.
Yes, the company still makes money from the customers you send to them. Yet, you retain the list of customers, and anytime your customer buys any company product–high or low-end–you get a commission.
Could I encourage you to take a look at the company with this amazing offer. I surely did! The model is one of the best I have found on the internet.
Two Models Using Other’s Products
After looking at the above illustrations, which option do you prefer?
- an affiliate
- an entrepreneur
- own your business
- work for yourself
Do you want to own your own business or work for someone else? See, I believe you got online to get rid of the day job. I know that I would rather work for me than anyone else.
If I had young kids, I would teach them the above Entrepreneur Model. It is the best way to make money online. You have the potential to keep earning money. The return on your investment is super.
The great things about this model are:
- no product creation
- no shipping
- no building page after page of products to sell
- no product handling
- work from anywhere–beach, home, travel to another country
How to Generate Traffic
There are several ways to generate traffic.
- free traffic sites
- organic traffic
- buy email lists
- Facebook ads
- ads on Twitter or Instagram
- use Facebook, Twitter, Youtube, Instagram and other social media
- Pintrest is a great place for free traffic and paid traffic
The above is only a partial list of how I generate traffic. The companies above teach you how to find traffic and target them to the products you offer.
I have shared a large amount of information with you. Besides, my ability to draw lacks understanding sometimes. If you need clarification or have questions. Leave them below. I’ll get back soon.
Our goal is to help you succeed. Let me know how I can help!