The Most Common Misunderstanding About Affiliate Marketing And Joint Venture Brokering


We get so many inquiries from some really great people, and we are so grateful for it. We have some fantastic, successful years behind us and have attracted some of the greatest, most successful and most reputable minds including Brian Tracy, Jack Canfield and Robert G. Allen.

Starting off on that high note, today I would like to clarify one of the most common misunderstandings about what we do and how we do it… Because apparently a lot of people see us as the magic bullet to their “CB Info product” or some other new business they’ve started.

And don’t get me wrong: it’s really great that this happens. And you know what? Sometimes we can be a magic bullet.

But I just want to manage your expectations about that. So here’s how client selection process actually works.

First off, in order for us to be able to introduce you to super affiliates in our niche, you would need to have what it takes to impress those super affiliates. Otherwise we make the introduction and they don’t want to promote you. There’s not much we can do about something like that, is there?

So, you might ask — what does it take to impress super affiliates? Why would we want to make introductions, and why would they want to promote you?

Here are some of those things. Yes, there might be some exceptions. But in general, you should meet at least the following criteria:

#1 Reputation and track record

You should have stellar, international reputation in your niche for at least a few years. You should have at least one international best-selling book, maybe one on the New York Times list. If you want to connect with an “A” player, having what we call “a household name” obviously helps. You should be an “A” player yourself.

It’s pretty simple: if you’ve been around for a while and you have a track record of success, there is a better chance that our partners will be interested in working with you.

#2 A list to reciprocate with. Oh no, wait, it’s the other way around. You have to go first…

You should have a fresh, cleaned, well-nurtured double opt-in list of at least 100,000 people, with an average open rate of above 15%. These people should recognize your name as someone who constantly gives them a great value.

However, no promotion in the JV space comes for free. “JOINT” venture doesn’t mean “you promote me at your own cost and I collect the money”.

It means “I promote you some, and get your attention and trust. Puts me on your radar. Then I build a relationship with you. And then maybe I ask you to promote me, if and when I have an offer that might be a good match for your list, and I can prove to you that the offer works. Then I wait for a half a year or a year until a space in your email calendar becomes available, and maybe you’re willing to send something out to a fraction of your list to see if my offer converts.”

I know a lot of people who are reading this will be disappointed now: you see we’re not handing out free lunches after all. Sorry, it just doesn’t work that way. Why would someone with a big list want to put their reputation on the line for someone they don’t know, with no track record, no list, no numbers to support their claims and no relationship at all?

#3 Solid marketing, with data to back it up

You should have solid marketing for the offer you’re looking to promote, with conversion tracking, affiliate tracking, and numbers tracked to the back end of the funnel. The existing media buying data for the product should be well in excess of $500,000, and you should be ready to provide proof of the ad spend and the conversion rates behind the offer.

For some reason, a lot of people think they can get affiliates to promote their offer without having properly tested their funnels, or having done media buying for themselves before.

That, from an affiliate’s point of view, is almost like “scamming” them into allocating their budget to your business, so you get to test your ideas and your marketing for free and get to optimize it on their dime.

Why on Earth would they do that?

#4 An existing relationship with us, based on trust

We are in the relationship business. Why would we want to make any introductions if we don’t know that you’ll do as you say?

What if I don’t have these yet?

That’s perfectly fine. We can help you get there. But just to be clear, let me tell you the first thing about the whole affiliate business:

Business owners who believe in this model need to really read through and understand this article realize the point I’ve made in this article.

There are lots and lots of good businesses around, but only a few people who know how to make them scale using direct response marketing strategies.

That means, the way regular business owners think about the “affiliate model” is generally flawed from a business continuity standpoint.

If you use affiliates to scale your business, you’ll experience the following:

– You’ll create “spikes” of income whenever you’ve found an experienced media buyer who managed to find some good campaigns for your offer. But the gravy train will eventually run out of steam. And then the spike is over, and you never knew how the affiliate drove traffic in the first place, so there’s no way you can fix the problem. It’s a major business risk for you!

– You’ll end up with a high touch sales job that can not be outsourced. Affiliates need relationship building, handholding, personal phone calls from you. You need to take them to dinners, throw events for them, write specialized copy, create contests and make them feel very special… Otherwise, they’ll simply pull the plug on you and promote another offer for the other guy in your niche, who goes out of his way to do all that!

The Alternate Approach

So here’s the conclusion. Although I have had the pleasure to work with Robert G. Allen, who has personally made over $265 million with a CPA based business model… I wouldn’t recommend anyone trying to start out with the affiliate model. I recommend considering a different approach.

First off, the JVBroker.com media buying team sells about 2 million plane tickets every year. We use wholesale traffic systems that retail advertisers can’t really get an account on due to prohibitive minimum monthly ad spend requirements.

To make a long story short, we can help you with strategies to build and optimize a funnel, and scale your business as far as it goes.

If you don’t have a good funnel yet, or if you’re not sure, then you can simply schedule a complimentary session with me and ask for feedback on it. I’ll share some thoughts based on my experience about what needs to happen in order to make it work for you.

Sometimes we can even help with the implementation, assuming you have the budget for it.

Or…

If you have a larger budget, and you really want to skip some steps and jump to the affiliate model…

No problem. Let’s assume:

#1 You don’t have a big list,

#2 You don’t have a household name or track record or reputation,

#3 But you do have marketing and a business that works, and you have the budget to work with us.

We have seen this combination before, where our client insisted on the affiliate model.

It’s possible to do this, given you have the right resources and time for it. If you match these criteria, get in touch with me using one of the options at the bottom of this page and please schedule a session with me.

Otherwise, click here if you want to grab some mind-maps on how our media buying processes and marketing strategy sessions work… And feel free to get in touch with me using one of the options at the bottom of this page!

ABOUT BEN RACZ

As an established expert in many genres of online direct response marketing, Ben has worked as a strategic consultant, copy chief, PPC campaign manager and Product Launch Manager for some high profile direct response clients in 21 different countries.

Having worked on campaigns with New York Times bestselling author Robert G. Allen, success expert Brian Tracy, and Chicken Soup of the Soul creator Jack Canfield, Ben personally wrote Standard Operating Procedures on campaign management and media buying based on $500 million worth of advertising spend.

He became a marketer after managing a private intelligence firm for over a decade and being Director of Security at LogMeIn, Inc. in his previous career. Ben’s strengths are lead generation, PPC consulting, marketing audits, sales funnels, strategic planning, product launch management and deal-making.