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Starting a Legitimate Internet Business – Affiliate Programs

If you were to list all of the necessary elements to begin
building a legitimate Internet business from scratch, few
people would have the skills, experience or in lieu of
those, money to even get to square one. When it is all said
and done and you are ready to start advertising your
business, you may find you don’t even like marketing, or
worse – there is no market for your product or service. Then
what?

All of that is precisely why affiliate programs are the
perfect way for you to see if you even like Internet
marketing before you try to build a business online from
scratch. If you start out on your own, you will need to know
programming, web design, and connectivity, just to display a
website on the Internet. To take this way out, you would
need to create your own product or service that you could
sell to create income. Then of course no business can
happen unless you advertise and market it, and this requires
knowing effective strategies.

All told you could spend years getting it all together and
then more time to promote your business before you would
ever see a profit, particularly if you had to pay for all of
the above. The statistic bandied about for many years for an
offline business, is 5-years to make a profit, during which
time your expenses continue – for example with a store or
office outside the home, there is insurance, taxes, rent,
inventory, staff, equipment and supplies. They need to be
paid whether or not you sell one thing during that time and
this is one reason why it may take so long to realize a
return on your investment.

While having an Internet home business of course you
wouldn’t have all those ongoing, mounting expenses, however
in reality it still does take time and lots of effort – More
than likely nowhere near 5-years, but of course that is
depending on what sort of a system/product you are
creating.

When you become a member of an affiliate program, you are,
with your membership dues, buying the right to use and
profit from their intellectual property – everything they
have spent time and money to develop to build their
business; and to use their resources, including that they
handle all your sales transactions and serve your customers,
and you earn commissions when you make a sale. It is a
perfect exchange, where you are promoting their business and
giving them free advertising by your efforts to earn money –
so that is why they allow you to use everything for what
comparatively speaking is a very small amount of money – not
to mention all the time you are saving in development and
experimentation.

Now it is likely you have heard the misinformation about how
affiliate programs are ‘pyramid schemes’ or ‘scams’ or
‘Ponzi schemes’. It is true ‘MLM’ (multi-level
marketing) has gotten a black-eye not only because there are
in fact some unscrupulous businesses (everywhere, in any
industry) but also because people do not understand what it
is they are paying for, and it is true you wonder, why you
are paying for a job?

Let’s compare a closely related industry which is being a
product distributor – for example selling health or beauty
products. People have been doing this for ages, and they
pay for everything – there are likely membership dues,
and/or sometimes you must have inventory, or to buy the
product yourself every month. You pay for the order forms,
catalogues and brochures, and of course marketing and
advertising unless you know how to do it yourself. They may
provide some level of training to help you. You may earn
commissions on anything you sell and if it works, eventually
you will recover your expenses and make a profit.

The question is why are these multi-level marketing
companies not painted with the same ‘scam’ brush as
affiliate programs? Because you can see a tangible product?
Because you are not technically making money from referrals
alone? When you sell someone a product aren’t you referring
them to that company? Or is it more ‘legitimate’ because
you recognize the brand name and there is no mystery about
just what they do or what you get?

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