Aff-base on assumptions? How to Start - when to Quit Day Job

[kevin7890]

As I stated in my introduction before, I am planning to start my online business with 3 revenue streams in mind (% indicates its portion to the overall revenue goal):

1. Affiliate Marketing (5-10 original content sites) – 60%
2. PPC (mini sites with some original content, some RSS feeds) – 30%
3. Domain buy/sell – 10%

What do you think about this "model"? I am thinking of taking off 6 months starting on April/May to dedicate my time to affiliate marketing.

I don't expect to earn a signifcant revenue during this time period, but I am targeting to make $150k for 2008. Is my financial goal unrealistic based on my business "model"?

I am well versed in stock markets, loans, insurance, personal finance, and latest technology trends (enterprise setting) so these topics will be the focus of my affiliate marketing plan.

Can you suggest a better way? Any specific suggestions or comments are most appreciated.

Kevin

[Linda Buquet]

HI Kevin, thanks for posting this question out here in the open forum. Sorry I could not answer you in private, but I think you raise some good points that others can learn from in this public discussion.

"I am well versed in stock markets, loans, insurance, personal finance, and latest technology trends (enterprise setting) so these topics will be the focus of my affiliate marketing plan."

Most of these are VERY competive markets, so drill down to try to find a niche or a niche within a niche - at least to start with. See my other posts on finding niches, I have lots of blogs on the subject too.

I think it's a good but aggressive plan. 1,2,3 all require a good bit of learning, trial and error. Can't help but wonder if you shouldn't focus on just one at least to start. #3 IMHO can be addicting and a time **** with possibly no money coming in from your efforts. (been there, done that). If you try doing #3 before you have 1 and/or 2 down I think you would dilute your effectiveness in all 3. I think most affiliates play the domain game naturally AFTER they have a solid biz built up, but I wouldn't focus there. It can pull you in and **** you dry.

I'd also recommend getting at least ONE affiliate site launched and promoted before you even think of quitting your job. What if you've romanced this then find out it's really not what you would like to do long term or realize you are not cut out for it?

Plus you have a TON of learning to do. Get some of the learning and other basics under your belt while you still have a regular income coming in.

From our private conversation I feel you've got what it takes, but I know you are used to making a lot of money. I know you also said you had a cushion to get you by for awhile, but seriously some affiliates are only making 500 - 1,000 a month in their 1st year. 150K in year 2 with no direct background in online marketing would be REALLY tough to do.

Not trying to be pessimistic, just realistic. Keep the job while you learn and work AM on the side. Then go part-time if possible and put more time into AM. Transition in instead of cutting off your income totally.

Edited to add: I just went back and read your intro again. You said:
"I hope to ramp up some affiliate sites in the next 3-4 months on a part-time basis."

Yes that's a better plan, I was afraid based on this post you were just going to cut loose and jump in.

Anyone else have feedback for Kevin???

[kbldshmn]

Not sure if it's way off base, but I'm hoping for the same results myself. Good luck and keep us informed.

Renato

[James Martell]

Hi Kevin,

I agree with Linda that you should have "ONE affiliate site launched and promoted before you even think of quitting your job".

In fact, I would like to up the ante one more notch.

In addition to having ONE site launched and promoted (and earning at least $2000-$3000 a month), that you should also have at least one years income in the bank that you can draw upon while you learn and build your business.

I also agree with Linda when she says "you have a TON of learning to do".

But, it can be fun, and very rewarding financially and personally. I think you will also find it will be a lot more fun building your business if you have your regular income so you don't need to worry about income while you're progressing.

I would also like to suggest that instead of developing "5-10 original content sites" that you may want to focus all of the attention on one site.

Having lots of sites is one strategy, and a viable one at that, -- providing each site is complete and making money before moving on to the next one, and that the site owner has a plan in place for the ongoing maintenance and promotion of each site.

Unfortunately for many multiple site owners this is not the case and find themselves struggling to keep up and find themselves overwhelmed.

Having one site is another strategy, and also a viable one at that, because it allows the site owner to focus all of the efforts on the one site. This is ideal for those who have limited resources and allow them to do things such as:

1.) Continually add fresh content (articles, reviews, etc.)

2.) Focus ALL of their inbound links to one site

3.) Send a monthly (or quarterly) press release

4.) Add a daily blog post (if applicable)

5.) Send a twice monthly newsletter

6.) Add audio and/or video if applicable

7.) Communicate and work closely with your merchant(s)

8.) Monitor and track traffic and conversion rates

9.) Promote and moderate an online forum (if applicable)

10.) Continually look for new ways to promote your site (paid search, etc.)

One of the mistakes new and old affiliates make is diluting their efforts over too many sites. In doing so they find themselves overwhelmed because they don't have the time or budget to develop inbound links for all of their sites, not too mention all of the other things mentioned above that should (or could) be done to their site ongoing.



~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Your words of wisdom will be added to the 5 Star Hall of Fame.

"Having one site is another strategy, and also a viable one at that, because it allows the site owner to focus all of the efforts on the one site. This is ideal for those who have limited resources and allow them to do things such as:

Unfortunately for many multiple site owners this is not the case and find themselves struggling to keep up and find themselves overwhelmed..."

.
.
.

[Linda Buquet]

James, wiser words could not be spoken.
You made SO MANY important points in that post!

Here - here! I nominate this for post of the year!

[kevin7890]

Hi James-

Thanks alot for your valuable comments. I will make sure to try and follow your suggestions.

It's just that my current workload (70+ hours a week) and tending to my pregnant wife do not leave enough dedicated time for my new venture. I am working on a niche site that I hope to unveil within next 2 weeks or so!

Thanks again to Linda/James/Kbldsmn for your thoughtful comments and suggestions!

kev

[Linda Buquet]

Kev, if you've discovered a really good niche don't disclose it here or in any other public forum. Too many idea stealers and everyone's looking for that perfect hot niche. Do tell us about it in general terms though if you can and Best of Luck!

[kingseesar]

Cheers, James! That is a great list of suggestions!

I am happy to say that I have been doing most of these things already. I am still concerned because after 7 weeks of hard work, I have not made any money at all yet, but I have refined my projects to focus on one site and series of products (with blogs and articles pointing to that site, adsense ads on the way (waiting for Google approval) and basically following many of the suggestions listed in your post. Fingers crossed. I will probably post the second I see a dime show up in my account.

What I wanted to ask was your opinion (and this goes for all, of course) on my concentrating on on site. I am planning on getting this series of promotional projects in place and then letting the project grow on its own while I work on another one or refurbish an old one that seems to be doing fairly well traffic-wise, although I am leaning towards forgetting all the first efforts and just chalking them up to learning experience and focusing on one more good series of products and a new site and have two major projects going at all times.

Does this seem like a sound plan or, as a n00b am I biting off more than I can chew? Don't forget I am a panicky work-o-holic with no money eating bananas every day for the last five weeks. Seriously. I am ready to work!

Okay. Let me have it. I can take it.

With that said, speaking as a n00b: I would have done simply a week's more research before I started and I would have concentrated more on one main project and one smaller project (to keep things fresh and have a back-up.) Instead I tried everything each time I learned a new trick - posting articles to about 65 sites, placing tons of US Free Ads for tons of products (okay, well about 40 ads for ten products, but you get the idea,) and making two blogs, one multi-page site, and writing four articles per product. I needed someone to tell me it was okay to stop and stick with one project.

Okay. I'll stop rambling.Thanks again!
Will

[onlinemarketerz]

Originally Posted by Linda Buquet

Kev, if you've discovered a really good niche don't disclose it here or in any other public forum. Too many idea stealers and everyone's looking for that perfect hot niche. Do tell us about it in general terms though if you can and Best of Luck!

Just tell LOL....Try using web 2.0 technique to promote your product...many affiliate success using that system

[KirkhamsEbooks]

My own opinion is "grow on your own" is similar to the concept of a product being so good it sells itself, but with affiliate marketing that can happen to some degree. I believe the merchant is always the primary push behind getting a product moving however

Rick