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         April 2, 2010               Circulation: 142,925                   
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In today's newsletter...

"Disturbing Trends In Affiliate Marketing"

I received an email this week from ThirdSphere Hosting, notifying affiliates that they're ending their affiliate program. Bummer, another monthly paycheck gone.

Recently Amazon.com decided to end relationships with thousands of affiliates in states implementing new tax laws. My state was included.

While I'm certainly not a "sky is falling" alarmist claiming the "death of affiliate marketing", there are other signs that it's time to make some serious "adjustments" in your online business.

I'll explain it all right after this quick sponsor message...


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Affiliate marketing is a nice model for small and home businesses. You recommend products and services in your niche and you earn commissions.

But it's not so nice when you don't get paid.

I'm sure you've heard of the Stompernet fiasco from last year. Many affiliates including yours truly were left holding the bag after a super successful launch. While I did finally receive some commissions after repeated contact with them, I haven't seen another dime in residual monthly commissions in a year now. Disappointing considering I sent them literally hundreds of new clients.

This year I've also had other decent sized affiliate checks (totaling more than $5,000) due to me, paid 4-5 months late for reasons that various merchants never explain.

So, what's the deal? Am I simply hooking up with the wrong merchants?

While that argument could be made, I'm hearing from more and more affiliates who are losing out on commissions as well as a lot of sweat equity, after sites like Amazon.com pull the plug on them.

Perhaps it's a combination of things hurting affiliates lately. The recession that is affecting many merchants, the new tax laws in many states, and yes, in some cases even merchants who simply don't pay for one reason or another.

While I am not giving up on affiliate marketing altogether, I am making two important changes. You need to consider them as well.

I'll share them with you right after this quick time out...


Could You Make Your Living Online?

The freedom you get is incredible.

But no matter what anyone tells you, it takes some work and lots of determination.

If you're not afraid of some hard work, come read my web-based guide at: make-a-living-online.com

There's no opt-in necessary -- I explain everything you need to know right at the site.

~ Jim Daniels


Affiliate Marketing Adjustments...

Adjustment #1: Diversify!!

Luckily I've been pretty well diversified since I started affiliate marketing. I'm redoubling that effort now.

It is a big mistake to put all your eggs in one basket when affiliate marketing. You need to be promoting multiple products and services from multiple merchants and even multiple networks.

Lots of Amazon affiliates learned this lesson the hard way recently. They built up businesses focused on promoting products from Amazon.com then had the rug pulled out from under them. In some cases years of hard work and reliable income was lost literally overnight.

If you are promoting affiliate products and services via just one merchant or even via one affiliate network, you are making a mistake. I suggest you work with a minimum of 10 different merchants or at least a handful of affiliate networks.

There are certainly plenty to select from online. Just be sure to do a little due diligence before joining each one. Read what other affiliates are saying. Make sure they pay affiliates reliably and have been for some time.

Adjustment #2: Focus Less on Affiliate Marketing and More on Your Own Products and Services

This past year I've started focusing less on promoting affiliate links, and more on my own stuff. I opened a new coaching program along with an affiliate program via clickbank. I'm also rolling out a new site later this month that I worked on all winter.

While affiliate marketing is certainly easier than creating your own products and services, it is proving far less lucrative. Why limit yourself to promoting products and services as an affiliate, when you could be making even more money on the other end?

Literally anyone can become a merchant and have affiliates promoting for them instead of the other way around. It's really not that difficult. Heck, I've been doing this for years and affiliates have generated more than a million dollars in sales for me.

I'm not saying give up on promoting affiliate links altogether, but a mix of 50% affiliate promotions and 50% your own stuff is a MUCH better formula for long term success.

All you need in order to start making this migration is a product or service of you own.

If you do not have the time or creativity to create products or services of your own, consider buying some licensed products in your niche. There are lots of information products and software available with license in just about every niche.

All you need to do is gather some top quality information and repackage it into your own product. It can take on the form of an ebook, a kit of products, a membership site, audio or video training modules, etc. It's so easy to do with licensed content, you simply do some re-writing, re-formatting, get some new ecovers created and personalize everything as your own.

It is perfectly legal when you buy private label rights and it is how many people you know as gurus got started. Why not do the same thing. Many people double and triple their income when they take this important step.

Just imagine having an army of affiliates promoting your product via clickbank or your own in-house affiliate program. It sure would take the worry out of which affiliate program is closing next!

Well, that's it for today's gazette. I'll talk with ya in a few weeks.

Jim Daniels - Creator of ezWebBusinessBuilder - the world's first View it and Do It software for profiting from the web.

P.S. I have a new site coming out this month so keep a close eye on your email. Due to the nature of the site, it'll be open a very short time, then pulled off the market. (That's all I can tell you right now.)

 

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