In my last installment I told you how to find products to promote in your affiliate marketing business. Now it’s time to investigate the next step, finding someone to sell products to (Oops! I did it again!). And keep in mind that these two steps do not necessarily need to take place in this order; finding your audience or “niche” can be your first step if you prefer.

In Internet affiliate marketing the term “niche” (pronounced “neesh” outside of the US) refers to a targeted group of potential customers, typically a subset of a larger and less well defined group. For example, people searching for “jazz guitar lessons” would be a tighter niche than people searching for “guitar lessons”. And capturing those searchers is what this Internet affiliate marketing is all about; to wit…

A Google search for “guitar lessons” (using the quotes to closely define the search) turns up 2,460,000 competing pages. Your efforts as an Internet affiliate marketer will focus on rising to the top of Google’s search results (getting on page 1) and the fewer competitors the easier it will be to do that. Winning a top spot for “guitar lessons” is highly unlikely.

A search for “jazz guitar lessons” produces only 31,900 competing pages; there’s a Google rankings battle you have a chance to compete in! Let’s look at a few other potential related niches and their search results:

• Online guitar lessons: 259,000 (3,000)
• Online jazz guitar lessons: 133,000 (35)
• Free online jazz guitar lessons: 63,400 (<10)
• Free online jazz guitar lessons for beginners: 0 (0)

Based on the information I’ve given you thus far it would appear that winning a Google top ranking for “free online jazz guitar lessons for beginners” would be a cakewalk—and in fact it would. However, the numbers in parentheses shed another important light on the niche selection process; they are the number of inquiries for that search term each day. And as you can see, no one searches for that term so getting Google’s #1 ranking would be meaningless to your bank account (though admittedly a boost for your ego). You can find numbers of searches as well as competition data and a host of other valuable information by visiting Google’s Free Keyword Tool here: Google Keyword Tool.

Now I have to go sell some cars or cut the grass or something, so I’m going to cut this post short. But there’s plenty more to learn regarding niche selection, so stay tuned for part two.

Having read the first two parts in this series on Internet marketing you are likely woozy with anticipation of the riches soon to befall you as a successful affiliate marketer (I’ll explain that term in a minute). And you are likely also in the dark as to where to start.

The first question most aspiring marketers ask is, “What am I gonna sell?” Good news—there are more products for you to choose from than there are in a Wal-Mart regional warehouse. And there are scores of sites on the ‘Net that represent producers of products (i.e., Neverblue Ads, Azoogle Ads, Commission Junction)that span the gamut of human consumables. And those producers are eager to find savvy “affiliates” (one who affiliates himself with the producer’s product and attempts to sell it to the final consumer) to market their wares and often pay commissions in excess of 60% of the sell price. Let’s take a look at the King Kong of affiliate networks, Clickbank.

Go to the top of the Clickbank homepage and click on the “Marketplace” link. Now look under the “Categories” heading and click on “Health and Fitness”. then be sure to sort by “Popularity”. The first product will be a popular and profitable one.

Under “Stats” you’ll find some interesting things about the product. $/sale tells you how much you’ll make every time you sell the product. %/sale is the percentage of the sale price you’ll receive. Now look at “Grav:” (gravity). The gravity of a product is a representation (Clickbank does not reveal their formula for calculating gravity) of how many affiliates have sold the product and how recently those sales have taken place. Most consider a gravity between 75-100 to be ideal; enough sales to warrant an effort to promote the product without too much competition.

Now click on the product’s title (it’s printed in red at the top of the ad). This will take you to the product’s sales page and you should spend some time investigating it. Your job as an affiliate is to drive traffic to that page—and then your job is done. It is up to the product manufacturer to create an effective sales page that converts interested “lookers” into buyers. And when he does, you get paid a commission; 24hours a day, 7 days a week, 365 days a year…

In the first part of “An Internet Marketing Primer” we looked at the one of the traditional ways of putting products into the hands of hungry consumers; the retail store. The cost of doing business is high—rent, utilities, insurance, advertising and help add up to a big fat “nut” that needs to be cracked each month before Mr. Entrepreneur can begin paying his own rent, utilities, insurance, etc.

The personal cost is high, too. The retail store will be open 60+ hours per week and the owner will likely be there the vast majority of time the store is open. And when he’s physically free, his mind will remain incarcerated as he worries about his store. Now, let’s look at how I make money on the Internet selling a similar product.

Here’s my storefront, and in it you will find the guitar instruction books that I sell: http://electric-guitarlessons.com.

“Rent” for my store currently runs about $28/month. That’s its share of what I pay for hosting the site and my Internet access fee; that cost will drop as those two fixed expenses are spread over more sites as I build them.

I wrote all the articles and reviews on the site, and it took me about 20 hours to do that. While I acknowledge that my time is valuable, I spent $0 cash constructing my storefront.

I market my site using my knowledge of the best free Internet marketing techniques; keyword research, search engine optimization, link building, article marketing, directory listing, etc. Notice I said “free”; my monthly marketing expense runs $0. (Yes, you can spend money, and lots of it, marketing your site and one day I will explore that option. But for now I use the best free Internet marketing techniques.)

My hours are what I want them to be. I can build a site, choose a niche to market to and appropriate products, write product reviews/reports and articles (content) whenever and wherever I feel like doing it. My goal is to launch (build and market) one site per week; I’ve never actually counted hours because I love what I do and who punches an “I’m having fun playing golf with my buddies” time clock?

Once my storefront is running efficiently I can pretty much leave it alone and it will continue to earn money for me for months, or even years, to come. If I want to spend two weeks, or two months, in Aruba the groundwork I laid will continue to draw a hungry customer with credit card in hand to my site. If I am sitting on the beach or lying asleep in my bed and an aspiring guitar god in Istanbul decides to purchase “Jamorama”** from my site, I get paid.

So how much is one of these sites worth? Of course that’s impossible to say; build 10 sites and eight of them may be duds. But let’s use Jamorama for an example. The course costs $49.95 and pays a 75% commission; that’s about $37 to me. Let’s say that I sell a product 4 times a week; over a 30-day month that averages out to about $20 per day. I’m now making $600/month, or $7200/year; hardly a living but remember, I have 10 sites! So if I average $20/day on 10 sites I’m now making $72,000/year.

Remember, it takes me a week to build and market a site. So that means that every site I build earns me a $7200/ year raise. If I build one site a month for the next 12 months I will have given myself an $86,000 raise which when added to the $72,000 I’m currently earning from my sites will give me a total income of nearly $160,000—now we’re getting somewhere!

No, I am not doing this kind of business—yet. But now that I know how to do it I assure you I will. It has been a long and arduous task coming up with the tools, techniques and business model that has put me in a position to begin living the lifestyle of an Internet entrepreneur. The path to enlightenment is fraught with wrong turns, dead ends and charlatans. In coming articles I hope to share with you what I’ve learned in hopes of providing you with the freedom and independence that we all so desire in our lives—stay tuned, or better yet, subscribe.

**The link to that site contains a code that tells my affiliate that it was me who sent you to his site. That way, if you buy his product he knows to pay me. Go ahead, click on it; I don’t mind!

“So Old Dog, what are you doing these days?”

“Since I lost my job I’ve been learning the intricacies of Internet marketing.”

“Oh yeah; I have a friend who does that.”

I believe people when then tell me that; but I do not believe that they have any idea of what I do.

Selling books and guitars and baby clothes and advice as to how to get your ex back over the Internet is a slight shift on a paradigm that’s existed since Eve sold Adam on the apple idea. But there’s a whole new world of Internet marketing out there, and if you’re interested in improving your lot in life I encourage you to read on.

Let’s start with a quiz; how many of these terms can you define?

Search engine optimization, both on-page and off-page. Google AdWords. Google AdSense. Pay-per-click. Pay-per-view. Pay-per-action. Affiliate marketing. Affiliate network. Clickbank. FTP. Domain name. Website (I thought I’d throw you a bone!). Have you heard of ‘GoDaddy’? Do you have any idea what the do?

As you can see there is a whole new lingo that represents a whole new way of doing business.

And while I’m somewhat familiar with most variations on Internet marketing I’m going to focus on the one with which I’m most familiar, “affiliate marketing”. Let’s look first at the old way of marketing and then we’ll have a look at the way I do business on the Internet.

I’m a guitar player and I’ve built a website (http://electric-guitarlessons.com) to sell guitar instruction courses under this new paradigm we’re discussing. Here’s how to do the same thing the “old way”.

First you need to find a product or two; shouldn’t be tough, there are plenty of publishers and book wholesalers to help you find a few good-selling titles. Now you need a place where customers can come and buy your books. So you rent a storefront for, let’s just say, $1000/month.

You’ll be open from 9-6 Monday through Saturday and 12-5 on Sunday, but you can’t be there every minute of every day so you’ll need to hire some help. Let’s bring in a part-timer, say 20 hours/week @ $10/hour. That’s $800/month, and don’t forget that you’ll need to contribute 7.5%, or $60 of your money to her Social Security .

Then there’s the light bill, heat and AC, and don’t forget insurance; I’ll be conservative and estimate $500/month. You’ll need to bring customers through the door (that’s called ‘marketing’!); again, I’ll estimate advertising and marketing expenses conservatively at $500/month. So it looks like you’ll need $2410 just to open the door. With a typical wholesale>retail markup of 40% you’ll have to sell about $6000 worth of $20 mguitar instruction books to break even; at $20/book that’s 300 books, or 12 each day.

You will need some start-up cash, of course. There’s inventory to purchase, fixtures to buy and everyone who provides service to you is going to want a deposit in the unlikely event your business doesn’t fly. I don’t think $7500 is far-fetched at all.

All this expense is worth it to you, of course, because you know you’ll be one of the fortunate “two-thirds of new employer establishments [that] survive two years, and 44 percent [that] survive four years” (from the US SBA).

And no more punching the clock; no more answering to “the man”; no more “yes boss”, “no boss”.

Also no more time to play guitar or golf, no time for vacations, no time to play with the kids…you have abusiness to run, after all! I’ve worn the shoes of “business owner” and trust me; even in the best of times its like wearing a very large stone around your neck.

In Part II of “An Internet Marketing Primer” I’ll show you how I sell guitar instruction courses. I guarantee that you will be awakened to a whole new way of thinking about and doing business. If you haven’t already, I encourage you to click on that orange “Subscribe” button on the upper right of this page.

During the November prior to my emancipation I’d begun building a website based on a book I’d written called “Conversations with Katherine.” It is the story of …

“…a middle-aged man’s struggle to overcome the debilitating lack of self esteem bequeathed him by an abusive step-mother. It is a vicarious account of the author’s own journey back to sanity and the lessons he learned along the way.”

More than any other thing in my life I felt compelled to build this site; indeed I’d been enlisted by a Higher Power to share my experiences in order to bring comfort, hope and reconstructive methodologies to others whose lives had been derailed be child abuse. During the writing of the second half of the book I’d learned an important lesson; I didn’t need to know how anything was going to turn out. I only needed to take the next step (which was always apparent) and have faith that I’d ultimately be led to a destination that was right for me.

This is a truth that I carry with me everywhere, and anytime I get agitated or worried about how a seeming challenge will be resolved I remember to simply take the next step with faith that by doing so the next one will be revealed and in due time, the successful resolution to the problem will come about. Then one day during an infrequent Internet surfing session (LMAO!) I stumbled into the world of Internet marketing. (Come on! I don’t care how good you are at putting one foot in front of the other; eventually you’re going to stumble!)

If I had to write a small classified ad for a class to teach Internet marketing it would read something like this:

“Work from home. Earn Ferrari money in 10 hours a week. For more info call toll free, 1 800-BULLSHIT.”

It’s like never seeing a fish and then getting thrown into a school of herring; fish are suddenly everywhere. Google “Internet marketing” or “work at home” and you’ll find tens of thousands of pages promising you to show you the way to make your fortune while working in your pajamas. There are blogs and forums to help you, courses for sale and experts to teach you, guide you and take your money every step of the way as you get ever closer to living the life of a rock star. The problem becomes this: among all these thousands of herring which are worthy of packing in cream sauce?

Amidst all the ballyhoo one thing became apparent; Internet marketing was viable and do-able. I knew that if I could learn what to do and how to it I would never again have to answer to a superior, I could repair the financial damage that years of frustrated and misguided career efforts had caused and I could win the one prize I coveted most—freedom. So I set about learning the intricacies of Internet marketing.

In the posts that follow I’ll try and help my readers find the pony that lies amidst the pile of manure* that comprises the bulk of Internet marketing information. It’s a jungle of misinformation and outright chicanery out there; add to that the fact that the mechanics of getting a site up are like reading Arabic to most old guys like me. But stick with me and soon you’ll be confounding your friends with tech-speak terms like “search engine optimization”, “keyword research” and “HTML tags”. And if you hang around long enough you may even learn how to make some money while sitting at the kitchen table.

“What do you think you’re doing?” the psychiatrist asked.

“With all this manure,” the little boy replied, beaming, “there must be a pony in here somewhere.”