Affiliate Marketing- Setting your selling prices
You can expand your affiliate marketing business operation with tie-in products and/or services and use your files to inform old customers of your new products from time to time. When advantageous to do so, place additional classified ads to attract more readers to your new tie-ins.
Optimize your selling price structure as soon as possible after starting in business to maximize your profits. Aim for the highest possible income after expenses have been deducted.
Drop shipping is the foundation upon which many successful mail order affiliate marketing business businesses have been built. What it means is that the products you sell are shipped directly to your customers by the manufacturers or wholesalers. You never handle them.
Although the advantages in favor of drop shipping are of great importance, there are also some disadvantages which you should consider carefully before making a final decision. Perhaps the most important disadvantage is that a number of other mail order companies also have drop ship arrangements with the same suppliers. Another is that retail prices are often established by the supplier and already printed in the sales literature he provides. This can limit your profits. And since others are selling exactly the same merchandise at the same prices your market is diluted. These major disadvantages apply only if you arrange a drop ship agreement with a single supplier and offer only his products to your customers.
The best way to reap the benefits of drop shipping and minimize its adverse effects is simply to make drop ship arrangements with several suppliers. Offer your customers several products of each supplier. You should probably not use the supplier’s catalogs but should develop your own sales literature. However, if sales aids in the form of slips, inserts, folders and leaflets are available from the supplier, you should use these if they describe the products you wish to sell. If only a complete catalog is available, use it as an information source to develop your own sales literature. In this way you do not compete directly with any other drop ship mail order company. Instead, you offer a unique selection of merchandise which your customers can order directly from you.
Those persons who reply to your classified ads are mailed sales affiliate marketing business literature describing all the different products you wish to offer. When an order arrives it will be accompanied by payment in full at the retail price or your established selling price. This payment includes not only the amount you must forward to your suppliers but also your profit. You receive your profit before you pay for ordered merchandise and you pay for merchandise with the customer’s money not your own.
To process an order, you separate the merchandise ordered by the customer into groups to be drop shipped by each different supplier. You then type the customer’s name and address on one of your own shipping labels, typing as many labels as suppliers whose products are listed on the customer’s order.
You then prepare your own order to each supplier, listing the merchandise to be shipped to each customer, inserting the wholesale price.
To your continual success!