The Pros and Cons of Affiliate or Joint Venture ‘Pay Out 100% Commissions’ Strategy

The Pros and Cons of Affiliate or Joint Venture ‘Pay Out 100% Commissions’ Strategy
March 30, 2012 Dmitri Stern

Is paying 100% commission to attract qualified leads a good strategy? Find out here…

How to sell a product or service is one of the toughest challenges for any industry when setting up an online business. You would think it would be easier, but it is in fact challenging and risky.

The internet is such a vast place with limitless opportunities however, if you cannot manage or strategize it well enough, your sales efforts will go down the drain. You might wonder how can selling your products and services online give you more chances of being successful in what you do? The answer is scalability and traffic.

The realm of Traffic Generation could be very overwhelming. This is mainly because of the sea of options in front of you. So before randomly using anything that comes into your mind, it would be better if you knew most of the [effective] marketing and advertising tools there are. One of which is paying 100% commissions – or well known in offline world strategy of Loss Leader.

Just like an actual business, you have to create a systematic approach on how you’re going to convert qualified leads into profitable sales. This is what paying 100% commissions all about.

How does this help an online business generate traffic then? It’s basically about telling your visitors and most importantly Joint Venture partners with large lists to recommend your product or service to the others and when it sells, they would have 100% commissions on the front-end sales and 70% on the back end sales.

For a newbie, this might seem a little shady as asking someone a favour and giving a lot back seems like a scam. But you’ll be surprised on how many online businessmen do this. In fact, this kind of marketing approach holds its place in sales.

But, there are always pros and cons.

Starting off with the pros, 100% commission is basically a trial and error strategy. If it works– good. If it doesn’t–move to the next strategy. If it does work though, your sales are guaranteed to increase.

Imagine a number of people recommending your product and services (using affiliate link on their website or other forms of electronic communication to their followers) and the ones they have recommended it to will do the same thing then it goes on and on. This mainly enables you to create a market on a larger scale, giving you scalability. The best thing about this is that it grows exponentially, if executed properly.

Now, we can never avoid the glitches as there are a few ‘cons’. The success of “100% commissions” loss leader strategy depends on how the offers are presented to potential customers that could be converted into affiliate partners. Most people are still not used to this kind of marketing – it could time and effort to

a) Educate your potential customers;

b) Develop relationships with people who understand the concept and have good lists.

Take your time and educate your prospective partners how the strategy will work and what’s the benefit for them and their clients – this can take time and concerted effort.

This strategy will only work if your products or services are genuinely good and customers will benefit from it.

Good examples of this strategy could be found on the following websites:

Click Bank

Warrior Forum

What to know more about online and offline marketing – consider to subscribe to my weekly – short’n’sharp Marketing Updates Newsletter.

To your success!

Dmitri Stern




Dmitri Stern

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