Affiliated Independent Production and Marketing

According to some experts in today's economy, with the advent of networks, production has ceased to be the most effective source of profit and this ability has been moved to the distribution. They argue that in societies addicted to consumption, moves much more money in terms of purchasing products, that involved in the introduction of new options.

If we analyze this dynamic in the past, however, this is not a new phenomenon.

Many of the great fortunes of the industrial age were based on the ability of inventors to organize producers and distribution companies that amplified the impact of their products into the reach of a greater number of potential customers ( Edison General Electric , Ford Motor Company , etc. ).

The model known as Network Marketing or MLM Marketing (Direct Selling organized in networks of association and exponential distribution) was also an innovative approach of "network marketers" emerged in the 50s - 60s ( Amway , Excel Communication , Hebalife , etc.), which activated the "direct gain in distribution" as an alternative to the traditional organization of the market.

The "accounts" of any business today will show that "the cost of production" of an article by any means a minimum percentage in their starting price, adding much of the final price the consumer pays in the process from the production to sale, storage, insurance, goods movement, distribution, advertising and payments. While the costs of this long chain understood in operating expenses, insurance, wages, taxes, etc. are deducted in the price of final product cost to the customer.

However, the appearance of the "computer networks" has promoted at least two effects indisputable: the globalization of the reach of any online marketing company with cash. And the reduction of operating costs for companies that mostly marketed on the Internet ( Ebay , Amazon , Zappos , Shop , etc).

Computer networks also conditioned the emergence of companies that provide "digital products" and many of which are now monopolies "production-distribution" of the First World economy ( Google , Microsoft , Real Networks , etc).

But what brought the networks to benefit the independent producer?

Precisely its ability to operate the mass distribution with a minimal investment, drawing on both the scope of the networks and the low costs of Internet marketing.

Thus appear the Affiliate Program or the "Affiliate Marketing" on the Internet.

AFFILIATE MARKETING AFFILIATE MARKETING OR or "associations"

The Affiliate Marketing is a marketing practice based on the Internet in which a business rewards one or more affiliates or associates for each visitor or customer that gets or concerns, resulting in the acquisition of a product or service.

Simply put, an affiliate program is an agreement between a producer or an independent producer and distributor that sells goods or services online, and which receives a commission for each sale made ​​to a person referred to in their activity in the Network.

This practice has resulted in associated companies or "bank affiliates" (Digital Products Retailers) enjoyed an excellent reputation for reliability and efficiency, and among which ClickBank , Click2Sell , PayDotCom and 2CheckOut , among others.

The advantage of these systems for independent producers, creators, inventors, etc. is invaluable as not only can conceive of "digital products" and knowledge-based programs *, but can also organize the marketing of physical products and services **, through the Web and in both cases, associate these products or services that will enhance Affiliate Banks distribution through commissions paid to third parties.

Another feature of affiliate marketing is a web content manager, able to drive traffic to your sales pages do not necessarily have to be a producer, but simply to join a bank that offers the articles that interests him distribute and vice versa, ie, a producer does not necessarily have to become a promoter of an article, but can simply attach it to a bank to provide its affiliates or distributors structure, by one percent on the final sale.

Affiliate Marketing in the hands of entrepreneurship can be an excellent tool to generate online profits by making appropriate use of new communication media that puts our service. Brought Networks strategy, we have to implement them.

Notes
* We refer here to the "payment shock" of products and services, of which we list two examples models.
1 - Creators and Mentors: Music, films, sound banks, e-books, design services, courses "electronic", etc..
2 - Designers and Programmers piece of software: applications and automation programming services,
protection, hosting, etc..

** Production of "physical" is usually sold in stores or warehouses networks, but using the Internet to advertise, promote events, sale of articles aimed subsequently sent by mail and parcel services, etc..

4 Responses to Independent Production and Marketing Affiliate
  1. Raisa Garrido
    February 24, 2010 | 4:59 pm

    If Omar,
    changes in technology have imposed a paradigm shift in terms of how the economy moves today, and we have two options, or we move to the passage of the new times, or cling to the past and we were in the .
    No doubt affiliate marketing is one of the most useful tools in this new economy.
    Hits
    Raisa:)

  2. omarestrada
    February 24, 2010 | 5:34 pm

    Greetings Raisa,

    incredible economic power of networks and the fact that we are generally escape without a second "look".

    When I reviewed the financial reports of companies that operate only on the Internet at the critical year 2009, it is amazing the differences in how you move this industry, compared to traditional marketing.

    Greetings, thanks for your comment.

  3. [...] The appearance as well as other trends conditioned by technology: Online Marketing, Affiliate Marketing and other variants of the Direct Selling industry predicts a substantial growth [...]

  4. [...] As we mentioned in another post, since the beginning of the Industrial Age and definitely now on the threshold of the digital age, many businesses changed their "financial philosophy" from production to distribution of goods and services, structured in the power of networks. [...]

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