Reseller? would/how would this work?

Discussion in 'General Marketing' started by darrens, Feb 19, 2009.

  1. #1
    Hi,

    Over the past 4 years i have built a couple of web sites selling products that have been collected from distributors from all over my country.
    Its been a great success over the years and now i want grow the business much bigger.
    I can not nor do i have the time to keep developing new sites and promoting them to make them successful. I have done this for the last 2 years and i know how long it takes.
    My thought is to concentrate on building the sites and let other seo people work on the promotion and deliver in the traffic.

    Im offering ...

    - free hosting
    - free use of my domains
    - a share of the profit from each enquiry/sale (60% to you)
    - free support of the site

    All that is needed is to promote the sites and then depending how good you are at this will return in a % of enquiry/sale generated.

    Anyone have any thoughts on this? is it something that could work? would this type of arrangement work?

    Just trying to get a feel of weather this would work or not?
     
    darrens, Feb 19, 2009 IP
  2. rjmwx81

    rjmwx81 Active Member

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    #2
    It's called a "joint venture" and people do it all the time, with varying degrees of success. You just want to make sure that the people you bring on board are serious about marketing, and know what they're doing. Likewise, you need to offer a large enough incentive (and have a unique enough niche!) to make it worth your partners' time.
     
    rjmwx81, Feb 19, 2009 IP
  3. darrens

    darrens Peon

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    #3
    well its a massive industry online (not adult) with thousands of web sites.
    i know other resellers offer affiliate products in the same industry but you only get paid a % of the sale ... like commision on a sale where i want to pay on enquiries ... so if the product owner does NOT make a sale because they are 'poor sales' person? or maybe they didn't reply to an email then the rseller does not get penalised for this as they still earn as the site generated the enquiry?
     
    darrens, Feb 19, 2009 IP
  4. rjmwx81

    rjmwx81 Active Member

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    #4
    Ah, in that case, it's basically a type of affiliate program known as "pay per lead." There are plenty of people doing that, but it's risky.

    Lets say I get 1000 people to inquire about the product. You'd then owe me for each of those people. But, if your conversion rate is 10% (which is really high), you'd only get 100 sales. You have to make sure that your product is priced so that those 100 sales give you enough money not only to pay me, but also to give you a profit.
     
    rjmwx81, Feb 19, 2009 IP
  5. darrens

    darrens Peon

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    #5
    yes totally agree.
    So do you think affiliates would be interested?
    are there any big affiliate networks like DP out there where i can go and bounce ideas around?
     
    darrens, Feb 19, 2009 IP
  6. rjmwx81

    rjmwx81 Active Member

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    #6
    All of the large affiliate networks (Azoogle, CJ, Neverblue, Hydra, etc.) have cost-per-lead programs. You'd have to sign up as an advertiser instead of an affiliate. Usually they charge a pretty hefty deposit just to get started.

    A smaller network might be less expensive, but then you'd have fewer affiliates promoting your product. There really are a huge variety of options for you to look at. Your best bet is to probably chat with an experienced affiliate manager, whether it be at one of the big networks (like I mentioned above) or one of the smaller networks (I've talked a couple times with the guy who runs Lidango, and he always has good advice.) He's on here from time to time, I'll see if I can find his user ID and you can PM him.

    Edit: His user name (surprisingly enough) is Lidango. lol...I should have remembered that.
     
    rjmwx81, Feb 19, 2009 IP
  7. teo123

    teo123 Banned

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    #7
    Just try to learn as much as you can from people in the know.
     
    teo123, Feb 19, 2009 IP
  8. darrens

    darrens Peon

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    #8
    Thanks Guys.
    Are there any big forums like this one but for affiliate people?
    want to ask the people who are affiliates before i do anything.
     
    darrens, Feb 20, 2009 IP
  9. rjmwx81

    rjmwx81 Active Member

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    #9
    Well, there's an "Affiliates" section here in the discussion area of DP. You might start there. I'm sure there are other boards out there, but I don't know their names.
     
    rjmwx81, Feb 20, 2009 IP
  10. Lidango

    Lidango Peon

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    #10
    Hey Guys John Fisher from lidango here... If you need any personal advice please feel free to get my contact info from lidango dot com

    Happy friday :)
     
    Lidango, Feb 20, 2009 IP
  11. rjmwx81

    rjmwx81 Active Member

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    #11
    I recommended earlier that he get in contact with you, John, since you gave me such good advice a couple weeks ago. :)
     
    rjmwx81, Feb 20, 2009 IP
  12. TVS TELEVISIONS

    TVS TELEVISIONS Peon

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    #12
    Sounds like you want to set up a typical JV or affiliate program. Check out clickbank/commission junction and look at how their publishers have set things up for more ideas.
     
    TVS TELEVISIONS, Feb 20, 2009 IP