The Internet Marketing Profits Newsletter -- "Think It. Create It. Test It. Do It."
April, 2003 -- Issue 29

Valeriu S. Popescu, Editor and Publisher
The Internet Marketing Profits Center, Inc.

Past issues available on newsletter archive

ISSN: 1583-4180

phone: +40-232-477900   fax: 1-925-666-2853

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The Internet Marketing Profits Newsletter - Email Me


Marketing Online Since 2000
Internet Marketing Profits Newsletter

In the Internet Marketing Profits Newsletter - issue 29Alan Zunec, a former insurance agent, now making money from home, far surpassing initial financial goals and achieving life work balance on his terms, not the boss's. He is the boss now, using the power of affiliate programs. Finally, learn how extended warranties are subtle forms of insurance policies that guarantee a product or service's performance.


 This issue includes: 

    1) "The Sky's The Limit... Here's Your Last Chance To Make Big Internet Marketing Profits From Home!"

    2) "Now It's Your Turn To Build Sales With Extended Benefits."

    3) "Classified Ads."

    4) "Tell Us What You Think!"


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 1) "The Sky's The Limit... Here's Your Last Chance To Make Big Internet Marketing Profits From Home!"

GotDot.com profiles Alan Zunec a former insurance agent now making money from home, far surpassing initial financial goals and achieving life work balance on his terms, not the boss's. He is the boss.

Most people take traditional jobs to earn a living. It's a by product of the industrial revolution, when people were pulled off farms, and sent to school. School prepared workers for the routine of a 9-5 workday. But somewhere along the way, people found the courage, to make the jump seeking their own fortune, their own business. For most people, like Alan, that dream, the quintessential American Dream, came in the midst of working for someone else.

Dissatisfaction, diminishing drive and passion, limited income, and loss of opportunity are all factors leading to the dream. With some dreams you wake up, the lucky ones, you get to live: experiencing the sweet joys of seeing a dream blossom into reality.

To put things into perspective let's go back to the 9-5 scenario. When you have a job, there's a set salary, the earning potential is limited. It's like the old saying, if you have a roof on your house, there's a restriction. Remove the roof and the sky's the limit. Alan says, "If you believe there is a limit you're cheating yourself. You'll lose 110% of the opportunities."

In Alan's prior profession as an insurance agent, he gave the job 100% but, reached the point where passion and life balance disappeared. Without that, no amount of money mattered. Alan realized, if you don't own it, or sell it, time is someone else's, but, when you find something you love you'll give it a 110%.

At 30 years old Alan set a goal for obtaining work life balance and found it. With affiliate marketing, the sky's the limit; the income potential is that phenomenal. As a former analyst at first Alan didn't believe it, he needed proof. He found out, that proof is in the pudding and in the process discovered a whole new way of life. Now Alan has time for the good things in life.

Like Alan says, "I'm Peter Pan, a big kid. Now I have time to play golf, go to the gym, walk on the beach, watch a hockey game and visit with friends. I have the financial independence to do it all."

Anyone can make a success with affiliate marketing. Listen to Alan's story and you'll learn how. As Alan says, "Most people get stuck in a job they don't like. You don't get time back, it creeps up on you, and before you know it, it's gone."

What is affiliate marketing?

By now most people have heard all about the success of Amazon web site. What they may not know is that Amazon spawned an Internet industry in 1996, by allowing independent website owners to earn commissions by referring paying customers to them. This is known as pay-for-performance-advertising or affiliate programs.

With affiliate marketing it's important to remember, that there are three primary roles consisting of the merchant, the affiliate (publisher) and the third party (Commission Junction). The merchants (advertisers) pay a commission on sales generated by customers, which the affiliate (publisher) sends to their sites. Commission Junction (third party) pays affiliates on behalf of the merchants and provides a tracking system. The merchant handles all order processing, shipping, and customer service. Visit Commission Junction to see a partial listing of their top-notch merchants offering affiliate programs.

How Alan Zunec, prepared to make the jump, leaving a secure job as an insurance agent

The first thing Alan did was find mentors, whose messages resonated. He read Bill Gates' book Road Ahead, and Henry Dent's, the Great Boom Ahead and Roaring 2000. Those visionaries talked about global changes and the new wave of doing business on the Internet. And Alan discovered James Martell, an entrepreneur, and successful affiliate marketer with over 70 specialty shopping sites, and the author of the James Martell's Affiliate Marketers Handbook and the host of the Affiliate Buzz, a popular audio newsletter for affiliate marketers.

At first, Alan says he was a bit skeptical, so he did his homework and contacted affiliate managers asking such questions as: if it works for everyone, can it work for me, what is the potential, what is the life span, how long will it be around? He got the answers and heard nothing but accolades about James Martell. As Alan says, "James is a real doer, a lot of people walk the talk, not walk the walk, but with James it's the truth. The amazing thing with affiliate marketers is that, there's a real sense of community. What ends up happening is, you want everyone around you to succeed, you help them and, they help you."

How Alan got started in affiliate marketing

Alan not only read James Martell's handbook, but also attended his training in Vancouver. Alan says, "The biggest thing about James' training is how easy it is to understand. If you follow what he tells you to do and look at the examples it works. James provides the vehicle with his 8-step-system for affiliate marketing. It's up to the affiliate marketer to keep the engine running. It takes work, but the payoff is there."

In the beginning Alan set a target for making money in six months, but by three months, the business proved itself as a viable financial entity. Alan says, "The learning curve was very difficult at first, partly, because my internal skeptic prevailed. I spent weeks with four hours of sleep a night, just building the sites, and wondering how is this working, and getting blown away by the visitor numbers. In the early days of the business, I just didn't understand the power of search engines. But the light bulb went off and there's no turning it off. The sky's the limit. And the checks keep rolling in, they really do."

The convincing factor proved to be search engine optimization. By following James Martell's formula for choosing keywords, visitors came to Alan's website in droves, verified by reports from a tracking program, known as Hit Tracker.

Keywords as explained in James Martell's Affiliate Marketers Handbook are the search engine building blocks. Marketing on the Internet is all about placement and being seen. To be successful you need the keywords people use for queries on the search engines, that's how your web site will be found.

How web traffic translates into making money

Alan's niche markets are credit cards, cell phones, and satellite TVs. Monitoring the number of visitors coming to the site is critical. You need traffic and conversion to make affiliate marketing work and to make money. It's like sales' law of averages the more people you talk to, the more are going to order.

Commissions paid on average are 7-10%. Credit card companies pay $30-50 for an approved application. Cell phones companies pay $20-70. The satellites companies pay $35-70/satellite.

Here's an example of the money making potential, let's say: you have three web sites with a 100 visitors a day and a 1% conversion (equivalent to 3 conversions a day), that's equal to $110 U.S. per day ($30 cell + $50 satellite + $30 credit card). By the end of the month that's a return of $3300.

Alan follows the same methods for web site construction developed by James Martell. These principals are incorporated into Alan's successful series of specialty shopping featuring: cellular phones, satellite tv and credit cards.

Got Dot: What kinds of financial goals did you set?

In the beginning, Alan set a goal of making 300 Canadian dollars per site, which is equivalent to ten dollars a day. In no time at all Alan surpassed that target, and moved up to 50 a day, then 100, and more. The bar keeps getting raised.

Got Dot: What's a typical day?

Alan's days start early before 7AM and are divided between writing articles, building web sites, talking to merchants learning what's new, and examining new web partners like Commission Junction, LinkShare, and any affiliate program offering a good fit.

Alan says, "Any time I get tired of looking at the computer, I step outside. In Vancouver it rains a lot. I love the smell of rain. Sometimes I play golf in the middle of the day, take a walk on the beach or catch a hockey game and there's no boss questioning my priorities. The time is mine and I love it."

Got Dot: In these recessionary times, what advice would you give someone looking to make a change?

The first thing Alan says is, "What recession? With affiliate marketing, the door is open twenty four hours a day. James Martell provides the vehicle, learn how to drive it, and you too can make money. Take the plunge, move forward, and don't be afraid. The only person holding you back is yourself."

Here are Alan's tips and techniques for success:

  1. Make a plan -- Determine what you're looking to accomplish and how much money you want to make.


  2. Create target goal note cards and place them around the house. Visual markers on the refrigerator, in the bathroom, and in your wallet can be really empowering.


  3. Conduct a test market. Build your web site and see if your goals are realistic.


  4. Pick an industry niche you like. You don't have to pick one that everyone is doing.


  5. Follow your conversion rates. Commission Soup, Commission Junction, and LinkShare offer great reporting.


  6. Speak to affiliate marketers and find out how they're doing and see what insights they can share.


  7. Ask questions. If you are interested you have to ask questions and keep asking. There are no dumb questions.


  8. Study the search engines. Understand how they work.


  9. Buy James' affiliate training manual and be sure to subscribe to his affiliate buzz audio newsletter to stay up-to-date.


  10. Remember the business is yours. You are responsible for your actions.

Alan says, "With affiliate marketing you can earn more than the average American three fold or Canadian and that's making money from home: forgoing the corporate grind and achieving life work balance. You have to work for it. There will be countless hours where you just keep revamping and fine tuning the vehicle, but if you want to drive and be your own boss, that's what it's all about. The sky's the limit."

Internet Marketing Profits Newsletter Contributor Alan followed a simple 8-step-system for affiliate marketing created by James Martell, entrepreneur, successful affiliate marketer, and developer of over 70 specialty shopping sites covering a wide range of topics including: home theater systems, home decorating, and luxury bedding; and is also in the business of helping students to earn extra income from home using affiliate programs and the Internet.

 

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 2) "Now It's Your Turn To Build Sales With Extended Benefits."

An area that can become profitable for many businesses is the "extended" warranty. Extended warranties are subtle forms of insurance policies that guarantee a product or service's performance, especially after an initial period of time.

While the guarantee promises benefits, the warranty promises that the enjoyment of those benefits will continue. In other words, an extended warranty is like a guarantee's guarantee.

A warranty promises that a product will perform the way it is supposed to for a very specific period of time. If your product comes with a guarantee, then consider selling an extended warranty that ensures its continuation.

But if your product is can not be guaranteed for whatever reason, consider a warranty that may take the form of future upgrades, additional benefits, membership programs, points clubs or support services.

For example, if you sell computers, you can also offer a buy-back plan. For an additional fee, customers "buy" the ability to choose to trade in their systems for a better model within a year following their purchase.

The plan, which may appear in the form of a certificate or letter, promises them a complete refund of the purchase price that's applied towards their upgrade. If they choose to exercise their option, they only pay the difference when they upgrade to a later model.

The Silent Profit Center

As for services, the extended warranty is a little different since services are intangible, do not break down, need repair or depreciate in value.

But they are just as profitable. Warranties can take the shape of memberships, clubs, preferred customer programs, priority service packages, extended service packages, prepayment plans, premium service programs, future discounts or upgrades plans, and so on.

In short, warranties are much like service agreements.

For example, if you're a consultant you can offer prepaid retainer packages that include several hours of consulting or special on-call priority privileges, all at a discounted rate.

On the other hand, if you offer repetitive services such as a hairstylist or a chiropractor, you can offer a number of prepaid visits at a discount. If your cashflow is particular low during a specific month or season, you can arrange your packages so that they renew at that point in time.

The summer is a slow time for snowplowing services. But with prepaid packages, which are sold in the summer and renewing in the summer, it creates an income stream when things slow down.

These programs are often more advantageous to the client for a variety of reasons. And many marketers and businesses shy away from them. But they really don't see it from their client's perspective.

Beyond the obvious price incentive, the benefits of extended warranties include less billing, more convenience, preferred service, faster delivery, extra privileges and many others.

Join the Club

Premium programs, or "preferred client clubs," are very popular. They have a mystique and a sense of extra value about them, which is being part of an elite group to which higher priority or greater attention is given.

As American Express says, "membership has its privileges." Club members might enjoy a members-only 1-800 service number, extra premiums, express checkout services, contests, etc. Online, clients can become members of a private site, access premiums, receive additional web-based services (like reminder services, auto-shipping, toolbars like eBay's Toolbar, etc).

But keep in mind that the savings factor in such programs is the greatest motivator. Consumable products translate into repeat sales. Therefore, an extended warranty in this case would be a repeat customer program.

(Also called "rewards programs.")

This could involve a flat discount rate on all purchases made at a particular store during a certain timeframe. What this program also does is to preemptively reduce the possible loss of a client to a competitor.

Bookstores sell avid reader membership programs. For an annual fee, they offer members a fixed discount rate on all subsequent books purchased during the time that the program is in force. These programs can range from one month to a full year. Costco Price Club is another great example where an annual membership fee is charged but members enjoy wholesale or bulk prices.

Nevertheless, while extended benefits are in and of themselves profit centers, they're also powerful positioning tools since they help to increase your core business at the same time.

People love options and the feeling that they are being taken care of. They also want to reduce the element of risk in the buying process. People want to avoid pain, and that includes the pain that comes with the potential or future loss of a benefit.

So, help them feel more secure with the knowledge that they will continue to enjoy your product or service. Sell them an extended warranty!

Internet Marketing Profits Newsletter Contributor Michel Fortin is a copywriter, author and consultant dedicated to turning businesses into powerful magnets. His specialty are direct response, long copy, email and web sales letters. Get a free copy of his ebook, "The Ten Commandments of Power Positioning," and subscribe to his free monthly email newsletter, "The Profit Pill," by visiting http://SuccessDoctor.com

 

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 4) "Tell Us What You Think!"

Dear friend, I would love to hear what you think of this issue of The Internet Marketing Profits newsletter. And of course, if you have any suggestions for upcoming issues that you'd like to share with me, please send those, too -- just email me right away! And don't forget to check out the previous issues at the Internet Marketing Profits Newsletter Archive.

Warmest Regards,

Valeriu S. Popescu, Editor and Publisher
The Internet Marketing Profits Newsletter


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