Tuesday, February 13, 2007

A New Twist On Affiliate Marketing


Affiliate marketing is nothing knew. There are hundreds of thousands of affiliate online, all looking pretty much the same. But being the same is something that John Gromovski didn’t like. So he decided to become the first affiliate discounter. How’s that possible? Well, John works only with vendors, who let him offer discounts … out of his own commission.

“I started DePrice.Com in December of 2004 with 9 dollars,” says John. “As an affiliate, I didn’t need any inventory. I simply signed up with several vendors, got permission to offer discounts out of my own commission, created a simple website and started selling software, using forums, Froogle, search engines, etc. The very first month I’ve sold about $2000 worth of software, clearing $500. Next month, I tripled my profits. Last year, Deprice averaged $17,000-$20,000 in sales a month. This January our sales are up 20-25%.”

Is it really that simple? Well, not quite, John insists. The trick is to find a software title in high demand and offer the lowest possible price, so that people talk about the site, making advertising expenditures unnecessary or minimal. John claims that he sells East-Tec Eraser for $39.96 an offer that nobody on the internet matches. The very same software is offered at Amazon.Com for fifty dollars.

Another niche he actively pursues is finding shareware titles that big vendors don’t carry and don’t offer discounts for. He especially likes downloadable casual games like Luxor: Amun Rising that are under the radar of big game sellers. Still, persuading software makers isn’t always easy.

“Some software developers are afraid of affiliates who sell at prices that are lower than their own. But that’s really silly. Discounters generate extra sales, they don’t take sales away.”

As far as competition goes, John is not afraid of anybody undercutting him either.

“Being a discounter is a tough business. Most people simply can’t do it because they don’t have any free or real cheap traffic. Plus, the margins are really slim, so most folks who follow my model don’t do software, preferring niches where 50% commissions are quite normal. eBooks, online courses, membership sites – things of this nature.”

The Super Affiliate Handbook: How I Made $436,797 in One Year Selling Other People's Stuff Online

Restaurant offers skinny models free meals