I can't decide how I feel about affiliate-type programs. They seem to be the current fad in all real estate type marketing right now, and some of it is really making me angry. One guy's "Make Millions" system in particular has been offered to me via email, Facebook, and Twitter so many times by so many DIFFERENT people that I've about had it with all of them and am close to disconnecting myself from ever last one of them. Anyone want to wager a guess about whether or not I'll buy this training system?
Its like a pseudo-direct marketing/MLM system, which I've never been fond of personally anyway. Not to say that they aren't valid products or methods of selling, Warren Buffet has one and even Trump is getting in the game. Its just the SHOVE IT IN YOUR FACE attitude with no regard for the relationship (or often product) that I can't stand. I myself recently joined a direct sales company for the first time, more for the product than the opportunity to make money, but I can't and may never bring myself to hawk it to every last person I meet. Talk about a big turn-off for your friends, huh? I do believe in the product though, and will talk about it if someone first expresses a need or interest in it.
But back to the fad of affiliate programs in real estate investing. I can see how it is a tremendous opportunity for some people to "cash in" on someone else's product and make some extra money. And most of us do need extra money. And of course, the someone else that created the product essentially gets free advertising, paying only a small fee to the hawker after a sale is closed. Genius. Really, a great system in theory.
What happens in reality though is that everyone in investor clubs and on the internet is out there shouting about everyone else's programs, systems and software. It turns into meaningless noise that leads to confusion about the motives of the hawker and makes many of us sick. Even some of the Facebook groups I'm a part of and joined for sincere networking and information sharing are apparently nothing more than a group founded by someone that wanted to bombard more people with their affiliate links. Gee, thanks for the group, I joined because I needed more stuff to delete from my inbox.
Maybe I'm just old-school. I still appreciate the idea that companies who want to make money need to invest money first in their product, employees and advertising. Isn't the saying that you have to spend money to make money? These affiliate programs may be the wave of the future, but to me they seem like a shallow attempt to get around that rule and make some quick cash. I very well may be wrong, but I don't think this fad will last. I also seem to remember that during the DotCom bubble many new businesses on the internet thought they were geniuses for getting around that same rule, and we all know exactly where 99% of them are now.
On the other hand, I know the value of first hand recommendations too. In fact, I recently found out that one of my successful real estate investor acquaintances learned from a particular system that I then looked up online. I've known this person for a time now and he'd never mentioned it before. Guess what, the system has an affiliate program. He didn't feel the need to SELL me on it, but his passing mention was enough for me to consider the program seriously. THAT's the power of an affiliate program in my eyes. When someone who uses the program and actually does recommend it to a few friends out of the sincere desire to help those friends, then it is great for the company to say "thank you for your belief in us and for trusting us with your friendships" with a small referral fee. I will gladly listen to my personal friends and value their advice much more than some stranger that sends me a Facebook message or mass email 3x a day about their "INCREDIBLE OPPORTUNITY."
So are affiliate programs good or bad for this business? Are they the future of advertising or is it just a fad to make a quick buck? I'm no expert marketer, and prefer to sit on the fence for a while, judging how the wind is going to blow on this particularly fast growing phenomenon and whether there will be any integrity left in selling if it blows one way. What do you think?
Its like a pseudo-direct marketing/MLM system, which I've never been fond of personally anyway. Not to say that they aren't valid products or methods of selling, Warren Buffet has one and even Trump is getting in the game. Its just the SHOVE IT IN YOUR FACE attitude with no regard for the relationship (or often product) that I can't stand. I myself recently joined a direct sales company for the first time, more for the product than the opportunity to make money, but I can't and may never bring myself to hawk it to every last person I meet. Talk about a big turn-off for your friends, huh? I do believe in the product though, and will talk about it if someone first expresses a need or interest in it.
But back to the fad of affiliate programs in real estate investing. I can see how it is a tremendous opportunity for some people to "cash in" on someone else's product and make some extra money. And most of us do need extra money. And of course, the someone else that created the product essentially gets free advertising, paying only a small fee to the hawker after a sale is closed. Genius. Really, a great system in theory.
What happens in reality though is that everyone in investor clubs and on the internet is out there shouting about everyone else's programs, systems and software. It turns into meaningless noise that leads to confusion about the motives of the hawker and makes many of us sick. Even some of the Facebook groups I'm a part of and joined for sincere networking and information sharing are apparently nothing more than a group founded by someone that wanted to bombard more people with their affiliate links. Gee, thanks for the group, I joined because I needed more stuff to delete from my inbox.
Maybe I'm just old-school. I still appreciate the idea that companies who want to make money need to invest money first in their product, employees and advertising. Isn't the saying that you have to spend money to make money? These affiliate programs may be the wave of the future, but to me they seem like a shallow attempt to get around that rule and make some quick cash. I very well may be wrong, but I don't think this fad will last. I also seem to remember that during the DotCom bubble many new businesses on the internet thought they were geniuses for getting around that same rule, and we all know exactly where 99% of them are now.
On the other hand, I know the value of first hand recommendations too. In fact, I recently found out that one of my successful real estate investor acquaintances learned from a particular system that I then looked up online. I've known this person for a time now and he'd never mentioned it before. Guess what, the system has an affiliate program. He didn't feel the need to SELL me on it, but his passing mention was enough for me to consider the program seriously. THAT's the power of an affiliate program in my eyes. When someone who uses the program and actually does recommend it to a few friends out of the sincere desire to help those friends, then it is great for the company to say "thank you for your belief in us and for trusting us with your friendships" with a small referral fee. I will gladly listen to my personal friends and value their advice much more than some stranger that sends me a Facebook message or mass email 3x a day about their "INCREDIBLE OPPORTUNITY."
So are affiliate programs good or bad for this business? Are they the future of advertising or is it just a fad to make a quick buck? I'm no expert marketer, and prefer to sit on the fence for a while, judging how the wind is going to blow on this particularly fast growing phenomenon and whether there will be any integrity left in selling if it blows one way. What do you think?
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Hi Melody,
ReplyDeleteI don't have a problem promoting other people's products as an affiliate, but only if I believe it is something my readers can benefit from.
Everything I sell on my site is either something I have purchased myself and give a thumbs up to, or something that has come highly recommended to me by other investors(that I know and trust) who have used the product. I won't promote a piece of crap on my site, no matter how well it converts.
I also have a HUGE problem with people just blasting out product after product for the sole purpose of making a sale. I have too much respect for my readers to do that.
Steph
The good thing about the Internet is that it brings us so much closer to everyone around the world. The bad thing about the Internet is that you find out real quick that the vast majority of people are of no interest to you. As annoying as spam is to everyone, the reason people do it is because it's cheap to setup and someone, somewhere will buy the product. The same applies to affilate programs. If you communicate to enough people, someone will buy just because you communicated with them. The days of big startup costs and "it takes money to make money" are over and have been reduced to what appears to be a big "in your face" marketing blitz. The competition for your dollar is more intense than ever.
ReplyDeleteIf relationship building is more your style, than be aware that you're not going to make big bucks with affiliates.