Internet marketing economics is a subject I really wish someone had called to my attention when I was picking a niche, so I wanted to spend a little time discussing a few simple Internet Marketing economics that are important to understand to be able to choose the best products to promote.
The cheaper the products in your industry are, the more you have to sell to achieve a certain monthly income. This can be a problem because it means you need more traffic. The more traffic you need, the less likely that income is achieved.
On the other hand, the higher the commission, the fewer products you have to sell. For example, if you’re selling a product worth $300, and receive a 5% commission from each sell, you’ll earn $15 per product sold.
On the contrary, if you’re selling a $10 product, and receive a 5% commission from each sell, you’ll earn $0.50 per product sold. You’ll need to make fewer $15 commissions to hit your target income than the $0.50 commissions. Thus, you’re much more likely to succeed and make a decent income off a lower amount of traffic selling the $300 product than the $10 product. In this scenario, the best product to promote is the more expensive one.
Another factor to consider when choosing products to promote is a commission’s percentage. For example, a $30 product that gives you a 70% commission ($21) will pay more than a $300 product that gives you a 5% commission ($15). For the same volume of traffic, you’ll sell more of the lower-priced product than the higher-priced one because of the lower barrier to entry. In this scenario, the best product to promote is the less expensive one. This is usually the case for digital products.
Don’t try to sell a high number of low-percentage, cheap products. Instead, try for digital products that have higher percentage commissions. Sell physical products that cost $50 or more and give lower percentage commissions.
Another monetization opportunity to consider is going into industries that offer free trials you can refer people to. It costs visitors nothing and you get paid per person who signs up and submits their lead information through your affiliate link.
There are actually many different industries that use free trials, such as movie streaming services, credit repair, insurance, mortgage, and even supplements.