Hello folks! Have you ever thought that affiliate marketing uses various forms of leverage? Knowing the power of leverage might help you look at affiliate marketing from a different perspective. Leverage can be the key to open many doors to take your business to a whole new level!
The best way to understand the concept of leverage is in the mechanical world. Imagine if you were trying to remove a wheel from your car. To do that you would have to undo the nuts holding the wheel securely in place.
Try to undo a tight nut using your bare fingers. You wouldn’t be able to do it unless you had incredible strength. Instead, you use a wrench like one of those in the picture below:
This mechanical tool will enable you to use a relatively small amount of force to undo the nut. The length of the lever converts the small force you exert using your hands, into a larger force at the nut itself, sufficient to loosen the nut. We use leverage in many aspects of out lives without even realizing it. Let’s review a few examples.
Purchasing A Home
When you buy a home, rarely does anyone pay all cash upfront. You borrow most of the money from a bank in the form of a loan. You pay the loan back over time. Say the home costs $250,000. You make a 10% down payment of $25,000 and take on a mortgage for fixed monthly payment over 30 years. The amount of your payment will depend on the interest rate. In this hypothetical example you were able to take ownership of a home by spending only 10% of the purchase price. This is the power of using the bank loan for leverage.
Say your analysis told you a company was providing exceptional service to its customers. This resulted in building very strong customer loyalty. What was even more astounding, you knew that their products didn’t offer the latest technology. Nor did every product they make turn out to be a winner. Yet sales were booming?
Customers lined up outside the store for hours to get a new product just being offered for sale. They could go to the store the following week and purchase that same product without having to wait in line.
What were they doing that was different to their competition to generate this blind loyalty?
Their emphasis was on WHY were they doing rather than WHAT they were doing. They told their customers how their products were going to make their lives easier through simplicity. They opened stores where their products could be tried out, touched and experienced before they bought. Trust was established in a big way. Their customers were willing to buy what they sold even though they could get something costing less made by their competitors.
Price was NOT a deciding factor for their target market.
Their customers felt they truly cared for them. It all came down to a warm feeling that had a major impact in maintaining customer loyalty.
You decided to buy the stock for $100. Your hunch was right. In a year the stock value doubled to $200. In this case you leveraged the stock market to make a gain on your investment. I think you can guess what company I was using as a model for this form of leverage.
Just like in these examples, there are situations that can be used as leverage in affiliate marketing.
5 Powerful Ways To Use Leverage In Affiliate Marketing
1) Time Leverage
Affiliate Marketing is a business you can do with zero or very little up front investment. Any investment will be related to purchasing your domain name and associated website hosting costs. At least this is the case with the company I will be recommending to you
What you do invest is your time. You spend time creating your website and writing content. In order to do a good job you will need to select a niche that you are passionate about or so knowledgeable to motivate you to write a whole lot of content. There is more.
You will need to conduct research to get to know the products in this niche so well you can write compelling content. Content that will help the reader make a decision to purchase right away.
When a visitor clicks your affiliate link to the company you’re affiliated with and makes a purchase, you will earn a commission.
Of course, you will need to use many strategies like Search Engine Optimization and Social Media to drive adequate traffic to your website. But that will happen over time as you learn what to do and develop the skills to do so.
Affiliate Marketers who have taken the time to write hundreds of articles are able to earn enough in commissions to create a significant income. Hard cash that can equal and even exceed what they are earning in their day job. And spending less time compared to their previous job too!
What I am talking about is the use of time leverage in your business.
2) Employ Manpower Leverage
As your business takes off you will realize you are earning enough income to afford to pay others to do various tasks for you. Why? Your time has become more valuable.
It makes good business sense to use your time for more valuable tasks and to outsource the routine and mundane tasks. The cost of these services will be much less than what you will end up earning.
This is an example of using manpower leverage in your favor.
3) Join Affiliate Marketplaces
Once you have succeeded in building traffic why not join one or more affiliate marketplaces. Why? To have easy access to thousands of companies who offer affiliate programs. In this way you can find more than one company that offers products and services in your chosen niche, with less effort.
It costs nothing to join them. What you get is the convenience of communicating with several companies from one location as well as getting paid from one location too.
This is the power of the convenience of marketplace leverage.
Here is a very small list of top companies that offer affiliate marketplaces.I have added active links to those I have written reviews about.
- CJ Affiliate By Conversant
4) Invest in Ads For Scaling Up
Eventually you will be earning enough to pay for ads, usually in the form of Pay Per Click (PPC) to direct even more traffic to your website. The sales you will make will be much higher than the cost of the ads.
This is use of advertising leverage.
5) Expand Your Business With Multiple Websites
Think of your website as your online store in this virtual world. In the real world, business owners start of setting up one store at a time. As that store becomes successful, they invest those profits to set up a second store. Then a third and a fourth. This is how revenue and profits can be leveraged to serve more customers and increase your earnings power.
As you create additional websites in different niches, you are using the power of leverage to expand your affiliate marketing business. The amazing fact is the time you are devoting for your multiple websites is no different and may even be less than what you used to spend on your first website. You have got better at doing this business that makes you an expert. I call that being super efficient.
The world is full of entrepreneurs who are generating incomes in the tens of thousands of dollars a month. It is not unusual for affiliate marketers to make millions of dollars income in a year.
As you should expect, this does not happen overnight. But in say 10 years, earning a million dollars annually through affiliate marketing is very feasible.
This is the power of business expansion leverage.
What About You?
Can you think of any reason why you would not invest your time building an affiliate marketing business? I can see one big one. Where do you start? Hold tight as I will be resolving this important issue later. Let’s continue.
I want to share with you a few tips on time management.
You could start with devoting a few hours a day that you carve out in your normal schedule. Here are some suggestions.
Awake an hour earlier and use that extra time to conduct content research every morning.
Spend 30 minutes instead of an hour for lunch. Use the remaining 30 minutes for keyword research.
Instead of watching TV at night for several hours, set aside 90 minutes to write content for your website article.
This all adds up to 3 hours a day. 15 hours a week not counting the weekend. Throw in another three hours over the weekend and you can easily devote 18 hours a week working on building your online business.
That is almost 1000 HOURS A YEAR!
One word of caution. If you are married and have children living at home, it is crucial that you set some guidelines to not be disturbed when working your business. How about discussing what you are doing with your loved ones. Tell them that your goal is to create a passive source of income to free up more of your time in the future by being able to work totally from home.
Then schedule regular quality time with your family to make sure you are not ignoring them. When you get their understanding and approval BEFORE you start to disappear to your computer, this will significantly make it easier for you.
However, if you do not, they will be wondering what you are up to disappearing everyday with seemingly no reason at all. Except that you are doing something strange on your computer.
Just think, what would happen if you used that time wisely in your affiliate marketing business? Couldn’t you be well on your way to fire your boss one day? And start a journey to have the financial resources to improve the quality of your life and that of your family? Just think what doubling of your current income will do for you.
YES YOU CAN!
With that amount of time it should be possible to write at least 3 articles, also called Blog Posts a week. In one year that will amount to about 150 articles. In two years, 300 articles. Guess what starts to happen now?
Google and the other search engines will consider your website an authority in your chosen niche. After very little traffic in your first year you will see that curve start to ramp up. When you are at the 300 to 400 article range, this ramp is not gradual anymore. It rises almost exponentially.
What that means is more people are clicking your posts resulting in more eyeballs reading your content. An increasing number of visitors will proceed to click your affiliate links to make purchases.
This process happens 24/7. While you sleep.
The Power Of Leverage
Now that’s the power of leverage I am talking about. 5 of them. There are more. I haven’t even discussed The Power of Social Media Leverage! That is fully covered in the training.
As soon as you have added several posts in your website, you are ready to use the power of Social Media to drive traffic to your blog posts. .
At this point you will have created an asset that has value. Individuals whose websites have been generating at least $50K annually for several years are able to sell them for the low six figures or more. It’s much like selling your store in the real world.
Once you can demonstrate real and sustainable results, people are willing to buy your store. The same is true for your profitable website. In fact there are website trading companies who provide brokerage services to do that!
But why would you want to sell the golden goose? There could be many reasons. And they have to be bigger, very compelling reasons. Here are two.
- You need to invest in even something bigger.
- You need to pay for expensive life saving medical bills.
How Not To Learn The Ropes – Really?
Just like in any business it is important to know what NOT to do just as what TO DO.
There are many companies who promise you can get-rich-quick if you only paid them many thousands of dollars a year for their courses and followed their training. Of course, there are no guarantees. They will tell you in the small print that the results you get will depend solely on your own efforts. Really?
That is off course true. What they don’t tell you is it takes a year or more to get to the income level they dangle in front of you. They make it seem it’s a bargain to shell out $1999 because you will make that up in a matter of months. Really?
Guess what. People believe them because who doesn’t like a shortcut. I do too. In fact, I have been taken in by such courses before and found out later that they were not true. Worse yet, after sending that $1999 you are told that there are additional courses you need for all of this to work. Really?
How To Learn The Ropes – Correctly
I want to share with you my recommendation on how to learn the ropes CORRECTLY. This company prefers that you try them out for free first before you spend anything.
Its name is Wealthy Affiliate. It has been in business for almost 15 years and has over 2 million members. Thousands have created successful affiliate marketing businesses. Every day success stories are shared on the Wealthy Affiliate platform.
Here is what you get for FREE.
- Live Help For Your First 7 days
- 1 website
- Website Backup
- Beginner Training Course
- Personal Affiliate Blog
- Affiliate Bootcamp, Phase 1
- Video Walk Throughs
- 30 Keyword Searches
- 2 Training Classrooms
- Affiliate Program
- Earn While You Learn
- 1 on 1 coaching 1st 7 Days
- Cost = $0
There is even no credit card required to get started.
You can learn everything online in the comfort of your home. Or anywhere you have a laptop and connection to the Internet.
If you like what you experience, you can upgrade to Premium for less than $1 a day at the annual rate.
Premium Level gives you the following in ADDITION to what I have listed above:
- Unlimited Live Help
- Private Messaging
- 10 Websites instead of 1
- Website Security Package
- Affiliate Bootcamp – 7 Phases instead of 1
- Live Video Classes
- Unlimited Keyword Searches
- 12 Training Classrooms instead of 2
- Affiliate Program – 2X Higher Payout
- 1 on 1 Coaching, Unlimited
- Private Access To Owners
- 24/7/365 Website Support
- Website Feedback Platform
- Website Comment Platform
- Website Analysis
- Cost = $49 a Month. ($359 if paid annually)
There are NO upsells.
If you like, check out my review of Wealthy Affiliate.
Alternately, you can click the banner below and sign up for free right now. No credit card required.
The training you receive at Wealthy Affiliate will teach you the 5 examples of leverage plus more. My objective was to be completely transparent with you regarding how leverage works. But to use it correctly, you first need to know the underlying principles involved. And then learn the skills and how to put them into action.
Do you have any concerns, questions or comment’s you would like to talk about? You can do that in the comment’s area below. Or you could send me an Email so that I can answer you privately. You have my promise that I will not share your Email with anyone else.
Looking forward to being of service to you.
20 thoughts on “5 Powerful Ways To Use Leverage In Affiliate Marketing”
One thing that I always repeat about WA that because it is not a quick success thing anyone interested should really be ready to invest a lot of time and also give it enough time for a website to mature.
Obviously there are many factors that take place and can bring success faster or slower but from what I have seen it needs at least 2 years in order for any website to really take off and start making some good profit.
So anyone thinking that can be successful with WA overnight should think again.
You echo my sentiments exactly. Since my focus was on different forms of leverage, I tried to place them in the order that will work chronologically. That is the reason why I devoted most of my attention to using ones time wisely as the 1st form of leverage. That is the part that will take about two years to yield reasonable results.
Only then does it make sense to utilize the other means of leverage.
If someone needs money right now, besides ones job there are other means to exchange your hours for dollars. But it will take more time away from your business so that should not be undertaken lightly.
It all comes down to ones priorities and goals.
Thanks for your perceptive comments.
This article addresses the concept of affiliate marketing from a very unique perspective. As you mentioned, leverage is something we use nearly everyday and in most cases, without even realizing it. When starting out an affiliate business, I think the most valuable leverage is time. This is especially true for those starting on a very limited budget. Other forms of leverage according to this piece, can be utilized over time. Great post.
Thanks for your comments. You may have noticed the order of those 5 forms of leverage. That was intended to show a chronological sequence to start each one. The first order is to buoild traffic organically. And that is where the personal time factor is most critical.
Then comes using manpower to accelerate that trend. If this phase is accomplished first, the companies in the affiliate marketplaces will be motivated to approve your application. And that is what will accelerate your sales to generate even more profits.
It just gets better after that. You are ready to take it to the next level. But this may be up to three or more years from starting. That is OK as you will already be earning sufficient money to appreciate the benefits you were originally expecting.
Thanks for commenting.
Your website content is great. Many concepts should be understood by more people. If you can spend a little time each day to develop your sideline business. In fact, it is also a risk of spreading only one job. On your website, I see professional analysis And ideas. I hope you continue your efforts. Let us cheer together!
You said so many nice things here. All positive. I was moved when you supported my efforts and wanted to cheer us forward together.
Yes, we can do it.
All the best to you.
Affiliate marketing is a very wide term. There are so many ways to earn from Affiliate Marketing. Some claims it is easy to earn money but some claims difficult. Statistically more than 95 % of the affiliate marketers failed terribly. Affiliate Marketing is a very tedious road if you want to master it well. Thanks for your blog. Well done.
Kim, you hit the nail on the head. The overriding question anyone embarking down this path must answer.
Is it worth the effort to spend several years to create an asset that will pay you several times what you are earning in your job with less effort. If that cannot be believed, then there is no point in moving forward. Otherwise disappointment will take over and that will lead to the end game. As it does for 95% of those who begin.
Thanks for your accurate comments.
Many thanks to you for sharing such an excellent article with us. I’ve been working in affiliate marketing for a long time and I’ve seen it use leverage.
I also use it myself to take my business to a new level. And this seems to me the key to opening a new level of doors. 5 powerful ways to use leverage in affiliate marketing are to save time, provide appropriate manpower, provide top links that affiliate marketplaces provide, invest in advertising for scaling up, expand business through multiple websites.
So I think if I can afford these 5 Powerful Ways to Use Leverage In Affiliate Marketing, I can do better in the future and will definitely share with you new experiences soon.
You summarized what I wrote about so concisely. That was brilliant. I wish you much success in your affiliate marketing journey and look forward to reading your progress when you use these methods of leverage.
Thanks for your thoughtful comments.
Thank you so much for giving us such a wonderful article and I have been doing affiliate marketing for a long time so your article is really helpful to me.
You have discussed in detail about five powerful ways to use leverage, which is really great. Because I think it will help me a lot to take my business to a good level. In a word, it’s the key to opening a new level.
Manpower leverage investing, multiple websites and time consuming are two particularly important ways for me Because website, manpower and time are two of the most valuable things in moving a business into a better position, which I realized through the article.
You mentioned 5 powerful ways to use leverage in affiliate marketing in your article that I must follow and I hope I can improve my business and share it with you soon.
I look forward to reading your use of these leveraging methods and how they will have helped you take your business to a higher level.
Thanks for your find comments.
Thanks for sharing this post on 5 powerful ways I can use leverage in affiliate marketing. Of course, a customer will always trust a company that they feel cares for them because the company provides true value.
The ways we can leverage are truly amazing. I am very much ready to spend as much time as possible in my business creating valuable contents and helping my readers so I can build trust. I’d definitely hire people to help me expand my business when I begin to make some money from it.
Wealthy Affiliate is such an amazing place to be. I haven’t recovered from the value I’m getting right now and more value being added as each day passes by.
I found ot reassuring we have a lot in agreement. Most of all is that Wealthy Affiliate teaches us all we need to know about leverage and how to use it. The term leverage is not used directly in the courses, but that is how I see it. And wanted to bring it to the attention of others in my post.
Thanks for your great comments.
Affiliate marketing is indeed a good way of making decent and consistent money online. But I think what scares most people even in their first day of learning is the fact that they have to put much work into it. Let’s face it. You want to build a real and sustainable business, won’t you put in the effort to achieve it? It applies to any other physical businesses. To succeed in this business model, we really need to be productive.
You got it spot on. Without effort you can’t achieve anything. Thanks for driving that point home.
I’m new to affiliate marketing and reading your article just got me more enlightened. From what you said so far, we can indeed start from small and through productive goals scale our business to a height where we start earning thousands monthly. Investing your profits by building other niche websites is really a cool idea. I learnt a lot from your post.
I am honored by your comments. Notice that I paced these phases in a specific order as each one feeds on the one before. The first one is where you will spend most of your first year at the very least. Setting up your website to attract traffic organically is the foundation key to increase the probability of success of what comes later.
This is such an exciting pursuit knowing the power you have in your hands. Treat this like a business and not a hobby and it will pay you dividends. Know that 95% of people who start quit. So if you don’t quit, and continue to do the work, the probability of success is quite high.
Much success to you in your affiliate marketing journey.
Thanks for this article. You made it helpful for people who like to explore online opportunities. I love doing affiliate marketing because it only costs a little to start our websites with quality content, and I believe people will feel the same as I do.
When I started to build my online business, there is one thing I was scared of – the total cost per year! I could only afford at a lower price from my pocket to make sure it won’t make me sad if I don’t see the positive results in the long run. I am glad I found it just like you mentioned in the last paragraphs.
I also agree with you that we need to have a good plan to achieve our own goals. For example, using the time we watch TV every night for creating our content or spending 30 minutes for keyword research instead of a 1-hour lunch break. These will work for me & others too.
Looking forward to more articles from you,
I appreciate your thoughtful comments. When I wrote this article I was drawing from personal experience. In the beginning it can be overwhelming, especially for beginners.
Wealthy Affiliate was not my first company I joined to learn about Affiliate Marketing. I wish it was, because I would have saved myself a lot of time and money. These other places all had a system of enticing you in with a very low monthly subscription fee.
After joining, you find out that to learn all the really good stuff you have to purchase specific modules. Like how to use SEO. How to build traffic. How to use ads to explode your business. And so on and so forth. Each of these modules usually cost hundreds and even thousands of dollars. Wealthy Affiliate offers EVERYTHING for such a low price.
No matter how good any training is, the student, meaning us, has to do the work and leverage everything to the best of their ability to make this work.
Glad you found my article helpful. Hopefully you’ll get some benefit from some of the other articles I have written on my website.
All the best to you.