Many of us keep an eye on the daily product launches on JVzoo, Warrior Plus and similar sites, looking for something new and fresh and great value as most products are when they are first launched.
With all the affiliates blasting offers to your inbox it’s kinda hard not to huh?
There no doubt about it, that some of the products on offer are quality and at such low prices that it’s just a little bit addictive to watch what's coming up and just been released.
Most of us are subscribed to multiple email lists from multiple vendors that we bought a product from previously and the vendors use these email lists as affiliates to promote each others products.
In truth that’s why they sell stuff at such low prices on places like JVzoo and WarriorPlus, it's really all about list building...as they say “the money is in the list”
Never has a statement been more true than in the internet marketing niche and specifically low cost launch model.
If you think about what it costs to get decent software built and then to sell it at 17 to 37 dollars then there has to be either very high volume sales or a back end funnel that brings in money long term.
A decent wordpress plugin coder will cost you minimum of $20 an hour, to get a web app done you are looking at @30 to $50 per hour on the cheaper end of the scale and if you want to build more complex tools (like our Alpha SEO tools) then a quality .Net coder will cost minimum of 50 bucks an hour and that at the low end of the scale.
So how are these guys able to create tools and softwares and plugins as sell them at such low prices?
Well in truth there are a handful of vendors who can do this successfully and generate 500k to 7 figures even at a ,low price point.
These guys are rare though and they normally work in teams and have a system in place that they have tweaked and perfected over the years. They also have huge affiliate support whenever they do launches too.
But there is the other side where a vendor is making 500 to 1000 front end sales and thinking they did reasonably well with their launch, but that isn't a high enough volume to make any real money.
Not life changing amounts anyway.
Lets run an example of a reasonably realistic
JVzoo type launch.
One comes to mind right now and it's priced at Front End Offer $24.95
Its a quality tool and you would find similar products outside of the JVZoo type launches selling with a monthly recurring cost which is higher prices each month than you can buy this product for with a lifetime license.
5% is deducted by Jvzoo
50% goes to affiliates that sent their traffic
If they are working as a team then what's left of the profits goes to each partner and every transaction has a paypal fee too.
So if this vendor was able to do 1000 sales at 24.95 then they have generated just short of 25 grand on that front end and although the pricing for the upsells gets higher in cost the sales volume drops significantly too.
But here's a typical scenario for a 6 figure launch which is very achievable, I have done several of them myself with and without affiliates.
So the launch makes 100k
Less 5% for JVzoo fees leaves 95k
Less 50% for affiliates, leaves 45k
Don't forget that every single paypal transaction costs money too
Now if they have worked in a team as most launches are then we need to split the profits between the team members.
But that's not all, not by a long shot!
Sales copy can cost minimum $3000 to $5000
Sales page design around $500 to $1000
Video sales scripts $500
Sales video done by a pro would cost minimum $500
Then there is the affiliate competition!
A 6 figure launch would need to attract some big affiliates that can drive hundreds of sales and to get these guys on board in volume you really need a decent prize pool of at least $5000.
It's not looking so healthy now huh?
If you split the profit between a team of three you are left with under 10 grand each.
In fact one of my launches that stands out we did $139,000 in the 5 day launch period and I walked away with just over $6000 and still had a software that I had to maintain for years at no extra cost for over 1000 new customers.
The next software that I did we generated $124,000 in two weeks without affiliates using Zaxaa (there’s no 5% fees with zaxaa if you take their monthly option of just $77.00 per month)
This is one of the reasons I no longer do launches on places like JVzoo and other main reason is that it's actually really untargeted traffic for my SEO products.
So why are these guys doing it?
It’s the list, the money really is in the list!
The vendor turns into affiliate and starts to promote to his new buyers list with offers from other vendors where he can make 50% commissions and generate 5 figures per month in affiliate commissions.
Now here’s what you need to consider…
If all these launches are happening in the same platforms and the traffic is targeted to people who are on multiple lists, then these subscribers are getting multiple emails from multiple affiliates.
In essence the list building with these launches is kinda incestious in that they all have the same people on their lists for the most part.
What does that mean for you?
Well in short it means that the affiliates are tied to the launch promotion affiliate marketing model and to generate sales it will come down to their angle, copy or bonuses.
The latter being by far the most effective.
If you take the view that a person is going to buy a product, priced at $24.95 that has no monthly recurring costs and is very similar to a mainstream tool that's costing $47 per month minimum then there is only one conclusion that you can come to... and this is the reality of the product launch affiliate business.
They will buy from someone they either like, trust or who is offering the best bonuses.
Things brings me back to the title of this post about seeing through the hype.
I spotted an email last night from a well known vendor / affiliate and he was bigging up his “best bonuses”
Turns out these 20 bonuses can be found on a PLR site that you can buy lifetime access to for $27.00
What a load of bollocks, dontcha think?
You have to see through the hype and make a list of the affiliates that you either trust or that you know offers bonuses that FIT the product that is being sold.
Forget and see past the nice graphic ecover boxes on the bonus pages, every other affiliate has the same PLR stuff too.
It's like putting lipstick on a pig.
You really do not need the 20 bonuses anyway, most of them are useless, many of them do the same thing that the main product does but has been presented with a different angle and for many people 20 bonuses causes instant “overwhelm”
There are times when I find nothing worth promoting and other times where there are 2 great product launching at the same time...
I have tested this a lot recently and tried mailing daily as a lot of top affiliates say that you should because it keeps you on people's minds
...verdict?...kinda true but it depends on other factors.
I have tested not emailing for weeks and then pop back on the scene
...Verdict...Didn't make a difference lol
I have tested hiring copywriter over 5 promos to do my email copy
Verdict...Didn't make any “positive” difference either lol (probably because you develop your own voice over time and people can sense the difference)
I have tested promoting just one product per week.
...Verdict...This did make a difference!
But Only IF…
The bonus was high quality and the bonus fitted the product I was promoting.
In fact that's not entirely true as I have promoted stuff like facebook marketing and ad products with SEO bonuses and the bonuses sold the product.
In fact I am still testing and tweaking and trying to find the sweet spot and seeing how much emailing can be done and how it affects conversions and ultimately commissions.
But I do have some takeaways that maybe useful to other affiliates and these are in no particular order, just observations if you like.
Know your audience and know what they respond to as far as bonuses
Don’t write your email promos as if your audience are idiots
If you do then that's the sort of people that you will attract
Nurture your list with training, tutorials, courses that you can give as bonuses...it lets them see real value and builds familiarity, trust and authority if you know your subject well
Keep free training to a minimum. Sounds harsh but after years of doing weekly free webinars I know that free training no matter the quality is perceived as low value. It’s better to offer the same training as a bonus for an affiliate promo.
Make sure the real value of your bonus matches the product that you are promoting...do this one thing and you hit leaderboards and win prize money
Never, EVER offer low value PLR products as a bonus and hype it up...its shows you for what you really are if that's what you do (...a money grabbing fking idiot with low morals that really cant be trusted)
Have two autoresponder services that you can use, one like aweber that delivers fast and one other...i love using mailerlite which has double the open rates of my aweber account for the same lists.
Always use a bridge page for promos that you want to do well with and lay or your bonuses and why they fit the product you are promoting
Its ok so send out a quick promo for something that you saw and hadn't planned on promoting but has great value that you really feel that it benefits your list to know about...in fact I do this often as I don't scour the JV sites for launches and often get wind of something from other affiliates emails.
Do not avoid launches as an affiliate because there isn't any prize money, if the product is good and would be a big benefit to your list and is great value then tell them about it
Also dont avoid products that have low affiliate commissions if it is actually a useful product or tool, but is low cost/low commission….In fact your list will love you for telling them about it a lot more than hyping up low value 20 PLR products bundle as the best ever bonus for popular launch
Keep an eye out for low competition nuggets… From time to time I actually go looking for low selling products, and from time to time if you do this then you will find a nugget that is a great product, low cost and just didn't get the affiliate support that it deserved
Close your bonuses after the launch has finished, you need to keep the value of the bonuses and add scarcity and urgency to the affiliate promos. If someone emails your support and asks if they can still get the bonus then simply tell them no but it may come up in a future promo...this makes sure they keep an eye on your promo emails too
I could go on but then this would turn into a report rather than a blog post.
One more thing I would like to mention more about though, is something that I do that you may want to out a different angle on.
That is using courses as bonuses.
About 6 months ago I stopped doing the weekly free training, the perceived value of free training is not good, its low and it doesn't matter about the quality of the training.
In fact I often noticed some launches doing 6 figures for stuff I had trained on with much higher quality content and insights, but also I found that some people would swipe my free training and present it as their own and hype it up to sell stuff AS MUCH AS 500 bucks lol.
Since I started doing this I keep a google doc of the courses that I want to do and these are things that I want to implement too in my own business.
For example Local marketing.
I keep a list of products that are high quality, useful, low cost, time savers and would really help for anyone doing local marketing.
So for example for the local marketing business model I created this post, which ties stuff in together and leads into a course that I will be doing next that will be step by step setting up a digital marketing agency and having these tools to help scale up affordable services that are fast and easy to do.
Now I may give away this course as a bonus but it doesn't stop there, what I am actually doing is setting up an agency for myself that will bring in money and it's also an asset that I can throw into JVzoo or warriorplus and make money and build a list with.
It's also a great way of nurturing your audience and showing that you know your subject well but that you genuinely want to help them (hope your reading this Mr 20 PLR best bonuses ever guy)
Sure it’s work and I often get behind on it too, but it is always high quality and it is always evolving too.
Just this one strategy has created multiple 5 figure affiliate promos and winning 1st place prize money against teams of affiliates that individually have much bigger email lists than I have.
Its work, but its powerful in so many ways beyond just the affiliate promo and it allows me to keep the creativity flowing and producing content at a very fast rate that generates money and genuinely helps people.
About the author
This blog is a journal documenting my thoughts, case studies, challenges and things i have learned, tweak and evolve on my internet marketing journey .