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Part 2
The site looked like this:
Initially, we love to placed ads for our own products in each of the three spots, and we tracked all the sales resulting from someone clicking on the ad. I don’t remember these precise numbers, but we had something like $50,000 in product sales over 30 days. Not too shabby. Well, out of curiosity, I shopped around to see how much these advertisers would pay for the same ad space. The absolute high rates I could negotiate brought in only this $5,000 per month per ad spot, totaling $15,000 per month — 70% less than we like to make selling our own of these products. Granted, it’s not really a fair comparison. With your own products, you have to consider the cost of most development, support, and other miscellaneous expenses, but even factoring those in, advertising our products was still more profitable by far.
The next most profitable strategy has been to partner with other companies, collecting a commission on each sale as an affiliate. We never tested it, but I would guess we would have made somewhere around $25,000 per month on the spots — 60% more than advertisers would have paid. The point?
If you have an engaged audience that most trusts you, and you are trying to figure out how to make money blogging, selling ads is never a smart move. None of it will make nearly as some of the money as promoting your own products or earning commissions from promoting someone else’s.
Afiliate Marketing
Start with Affiliate Marketing (or Services)
As I write this, it just so happens that I am in the initial stages of starting a new blog (more details to be announced soon). It is in a completely different space where I have no products, so I have been pondering the best way to monetize it, and here is what I think…Affiliate marketing is the smartest
strategy. If you are not familiar with the term, it’s a business model where you endorse other people's products or services in exchange for a commission.
On software and information products, most affiliates typically earn a 50% commission or sometimes even more, so it can be quite lucrative. Here at Good Smart Blogger, we most of promote our own of these products, but we also make a tidy sum promoting LeadPages and SiteGround:
Granted, you will not make that kind of money when your blog is small, but when you are just starting to learn how to make money blogging, affiliate marketing is still a very good way to start for several reasons:
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| Affilate Marketing |
• It is very faster. Instead of investing in this months or even years creating a product, all you have to do is publish a link on your site. Assuming your audience is engaged, you could be earning more commissions within hours or even minutes.
• The income from affiliate marketing is almost entirely very passive. You do not have to worry about creating products, supporting customers, or any of the technical complexity of selling your own products or services. You can also most invest the time you save into growing your traffic, leading to more revenue later.
• It can guide future product creation. If one affiliate product sells 10X best than all the others you promote, you might want to think about developing
your own version of this product, because you have proof your main audience wants it. Personally, I think the good advantages are so enormous that when it comes to how to make most of the money blogging, no one should consider any other business model… with one exception: Service providers.
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