Why people write book reviews
I would like to recommend a book to you. If you like reading about psychology and how to persuade people – then check out Influence: The Psychology of Persuasion by Robert Cialdini.
In case you didn’t click above, here is the link again:
If you clicked through the above link you would have been taken through to Amazon.com’s page for the book.
If you look closely within the url you will see it says “tag=amianz-20” (roughly halfway through the url address).
The “tag=amianz-20” tells Amazon that you clicked through from my website. “amianz-20” was the “affiliate code” they have assigned to me.
If you end up buying the book, they will pay me a percentage – from 3 to 15 % of the book price. So, for this book, which sells for approximately $12, they would pay me approximately 50 cents. If you ended up buying more products at the same time than I would also make a commission for those as well.
This may not sound too exciting. If its only 50 cents a book than you will need to help sell thousands of books, before you make a decent living. But don’t forget you could also help them to sell iPods, cameras, computers, televisions or other items that sell for a lot more money. Then the commissions would be a lot more interesting.
The real secret to Amazon’s marketing success was the affiliate scheme – they have over 100,000 affiliates that send them traffic. Amazon wins as they don’t pay for the marketing costs, unless a customer buys. The affiliate wins as the more successful they are, the more they make. And the customer wins, as they receive free content because there is an incentive for the content creator to drive traffic to their site.
Why I got excited about online marketing
There is an event in Dubai on 20th and 21th November. People that are actually making a fulltime living on the internet will be flying in from Australia, Europe and North America to show how they make money online. You can learn more about the event at www.poweronlinedubai.com.
If you clicked through you would see that the event is priced at $397. If you actually buy a ticket, I make a $200 commission – or over 50 % of the ticket price.
Now, it gets interesting doesn’t it? Now – its much more tempting to start marketing online. I would have recommended this event anyway to my friends – the ones interested in getting out of the rat race. But with the incentive, I start thinking more ‘creatively’ about marketing for the event. In order to start making money, I don’t need to invest thousands of dollars in product development – I simply go create content – in my case, by writing, but it could have been video or an audio podcast. I update my facebook and twitter statuses to let people know about the event.
If you visit www.clickbank.com you can see that you can make upto 75% selling digital products. Remember, it doesn’t cost the creator of an ebook or downloadable software any more money if they sold an extra copy – so often times they are giving away 75 % in commissions through to affiliates as they want to attract marketers to help them sell. Same for an event – if an extra person attends lectures on learning about the web, the teachers are only too happy. Plus at the event they will probably try to “upsell” you various products so they want more visitors to the event. So thats why they are incentivising me heavily (its not just me, anyone can become an affiliate!).
The url that I am given to market so that Unlimited Power Online knows that the customers came from me is actually http://www.kickstartcart.com/app/?af=1022337 but as you can see it doesn’t look clean and people are less likely to click through. They trust it less. So what I have done is to spend $10 on a domain name “www.PowerOnlineDubai.com” and simply have it forward to the above address. This technique, which I learnt from Ernesto’s coaching, is called a “naked url”. I could go and promote this url anywhere – on radio, TV or newspapers.
Remember, as the consumer, you are always paying the same price – its just either Amazon/PowerOnlineDubai gives me a commission or they keep it themselves – you don’t lose anything. They actually want to give away commissions as then they know I will work harder for them – if I’m not making any money than I will stop promoting their products.
How books will become free
People work on incentives. When you realise that you can make a living from creating knowledge than you are more likely to do it. For instance, you can get a free ebook from my coach – the “amazingly useful websites“. The book is here: http://www.kickstartcart.com/app/?Clk=3317037. All you do is to visit and enter your email address.
The thing is that he has done a lot of work of researching good sites for you. I help him by telling you about it. You go and download the book – the book has really useful information but it also has loads of affiliate links embedded in it. For instance, he might recommend hosting providers and often they will give him a commission if you buy. Plus as you have given him your email address he adds you to his mailing list. If he ends up “upselling” a product to you – he gives me 50 % of what he made from you. You get a free book, I “look good” to my readers for providing them a good resource and if you ever happen to buy anything both Ernesto and I win.
The old school method of creating ‘edutainment’ meant that you charged people upfront for the book or movie. If they didn’t like it, too bad – they lost their money. The new method of creating knowledge is to give away your best content for free. To use the same method as a free television station – the ones that let you watch the show for free as long as you watch the advertising within it.
This blog post is an example of the new age of marketing. I spend my time to provide you with relevant knowledge that you have hopefully found useful. A very tiny percentage of you might come to www.poweronlinedubai.com and for each ticket sold through that link I make $200. The more I make, the more I get encouraged to create content.
This is exactly how the world of teaching will change. Teachers will go out and create good content and give it away on the web. They will then either make their money through advertsising or from creating their own “brand” and then selling consulting, coaching or tuition to students.
Tips for starting online
Do not spam people with your “sales pitches”. Don’t go on to peoples walls on facebook and start promoting all sorts of products. Or send an email to a large group. This is always a tricky thing – I still ocassionally cross the line between what is “acceptable” and what is moving towards spam. The newbies always make these mistakes.
I do use facebook as a platform to help me get started. For instance, I have linked my wordpress blog so it comes through as a “note” on facebook. I also often use my status on twitter or facebook to simply promote my blog or to encourage people to subscribe to my blog. Facebook gave me a bigger audiance than starting to build one from scratch (it has taken me a few years to build “friends!”).
To get started simply visit www.wordpress.com and start a free website – it is a lot easier than you think to have your first website. You could start off by joining Amazon’s Affiliate Program. Find your niche and start attracting traffic. Making a living on the web is not a “overnight” thing but takes a lot of energy and time. The smartest thing I did was to get an internet marketing coach and start to network with people that were making money online. This has literally saved me hundreds of hours of work and I’ve already made more money online this month than I have all my previous years combined.