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.
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
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?
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
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.