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We all want to be happy. It's the most fundamental desire of all human beings. Happiness ultimately depends on just two things...
* Our health -- without which life can be utterly miserable and meaningless.
* Our relationships -- because whatever resources we need, the right relationships can provide them for us.
Both our health and our relationships can be undermined, even destroyed, by a single, common threat... s-t-r-e-s-s.
In today's world, stress is due mostly to two things...
* Not enough money.
* Not enough time.
If we had enough money, we'd have plenty of free time. And if we had enough time, we could earn enough money.
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THE MODERN HEALTH DILEMMA
To illustrate how lack of time and money create the kind of stress that destroys our health, we only have to look at what happened in the twentieth century.
In the first half of last century, the major causes of death were diseases like influenza, tuberculosis, diphtheria, diarrhoea, whooping cough and typhoid fever. All contagious, microbial infections.
In the second half of the century, through advancements in medical and scientific knowledge, very few people in developed countries died of these illnesses.
Instead, the major killers -- apart from tobacco, alcohol, automobiles and abuse of drugs, prescribed or otherwise -- were cardiovascular diseases (heart attacks, strokes), cancer, diabetes and other lifestyle-related conditions.
All of them avoidable or controllable, and almost all of them related to improper diet and lack of exercise.
In other words, self-inflicted.
It's absurd! At a time when we know more about proper nutrition and how to produce it than ever, our diets and stress levels are life-threatening! Our immune systems are under constant attack from both our physical and emotional environments, and our health and relationships suffer.
Almost half of all modern marriages end in divorce, most due to the stress of money worries. Suicide rates are at an all-time high. The health care system is under constant strain.
Television and magazines are full of lifestyle programs and features. But the awful reality for most of us is that we have no real lifestyle and little or no quality of life.
Why? What's gone wrong?
The simple answer is that we're trapped in a vicious cycle, trading time for money.
We have no leverage. We're conditioned by our culture, our education system and by the experiences and concerns of our parents and grandparents, to be obsessed with security, even at the cost of our freedom of choice.
We were taught, from the time we were small children, to get a good education so we could get a good, well-paying job (preferably working for the government or a large corporation), work hard, pay for our homes, then retire on "the pension."
So we trade our freedom of choice and quality of life for the illusion of security in low-leverage jobs, where we exchange a fixed amount of time for a fixed amount of money. If we want to increase the money we earn, we have to increase either the amount of time we work or the value of that time. The problem is, we don't control either -- our employers do.
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THE ILLUSION OF "SECURITY"
Nobody really believes in "job security" in the twenty-first century. Yet we still seek the illusion of security and the instant gratification of reciprocal income because we've been conditioned to see it as the "safest" path.
When our illusion of security is shattered by "retrenchment," "down-sizing," "early retirement" and other euphemisms for unemployment, especially in our 40s and 50s, and we realise that we're unlikely to find another job, we're left with no option but to go into business for ourselves.
The problem here, of course, is that 90% of all small business owners fail because, despite being skilled at what they did as employees, when it comes to running a business, they know next to nothing.
In other words, we're very good at working IN our businesses, but we're seriously ignorant when it comes to working ON them.
We've been educated and conditioned to think and act like security-obsessed
* employees * consumers and * imitators,
not like free-enterprise
* entrepreneurs * marketers and * innovators.
So, when faced with management and marketing decisions, we default to thinking like employees, consumers and imitators!
Why is this such a lethal mistake?
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THE LAW OF SUCCESS
The Law of Success is deceptively simple:
"Do only the right things for only the right reasons."
If you do, you can't make a mistake. (Think it through carefully. It's true.)
The problem, of course, is KNOWING the right things to do and the right reasons for doing them. Few people ever do. Fewer than 10%, in fact. Those are the harsh statistics, especially in business and investing.
You either know the right things and the right reasons, or you don't.
There's no point guessing. Apart from the fact that you only have a 50% chance of being right at best, your conditioning will push you in the wrong direction when choosing. You're more than likely to seek the illusion of security... and do what everyone else does.
Yet we know that 90% fail.
Doing what everyone else does is really nothing but a guaranteed formula for failure.
So ignorance -- the No. 1 killer of all small businesses, world-wide -- has us doing the right things for the wrong reasons, the wrong things for the right reasons, or the wrong thing for the wrong reasons. If we do manage to do the right thing for the right reasons, it's mostly due to good luck, not good management. So we can't duplicate it!
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THE FRANCHISE TRAP
Too often, we "buy ourselves a job" by exchanging our savings or job payout packages -- putting our homes and other assets at risk -- for a franchise.
In reality, we become branch managers who accept all responsibility and risk for the success or failure of our branch of the franchisor's business. It's the franchisor who enjoys the real security!
While the survival rate is slightly (and only slightly) higher for franchisees than for other "self-employed" people, surveys of franchisees show consistently that few, if any, are satisfied or happy, and most regret their decision within the first year.
The reality is that we get exactly what we had in a job -- the illusion of security in exchange for our freedom of choice. Except, this time round, we pay a much higher price. We stand to lose everything.
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THE "SELF-EMPLOYMENT" SNARE
There's no more deadly mindset than that of being "self-employed." The term gives itself away, if you think about it.
The only real difference between an employee and a "self-employee" is the degree of certainty enjoyed by the latter. An employee may only suspect that his or her employer is an incompetent ignoramus when it comes to running the business. The "self-employee" can be absolutely certain of it!
All jokes aside, the truth of the situation is horribly real Few of us know what we need to know to survive (let alone prosper) in our own businesses. In fact, it's been estimated that if only 10% of small business failures could be avoided, we could eliminate unemployment and our national debt within three short years!
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IS THERE AN ANSWER?
If we're ever going to free ourselves from the bondage we're in, and enjoy more money, more free time, better health, better relationships and more happiness, at the same time avoiding stress and the high risk of failure of going into business for ourselves, we have to find better solutions, and better ways of implementing them, doing only the right things, for only the right reasons.
Is this realistic? Can it be done?
Yes... but!
There are some tough realities to be confronted before you'll find and recognise solutions that will actually work successfully for you.
As always, there are plenty of counterfeit "solutions" on offer, and you'll only avoid becoming yet another victim by knowing what to look for and what to avoid.
* For the "Baby Boomers," the realities are doubly harsh because we're only just coming to grips with the realisation that much of what we've been led to believe since we were kids is pure fantasy.
* There's no security in life, other than what we create for ourselves.
* The old-age pension didn't exist before our parents' generation. It's unlikely to exist much beyond their generation either, because there will be no-one to fund it for us.
* We've been encouraged to spend and incur debt, not to save.
* Our tax system actually penalises us for saving and building security, and rewards us for going into the right kind of debt.
* Previous generations had larger families to rely on for support during their relatively short retirement years. Our generation is the first in history to be able to voluntarily limit the size of the next generation -- so their capacity to support us is severely limited.
* Our generation is the first in history to practice "granny parking". We off-load our old people into 'care' centres where we tell ourselves "they'll be better off" (what we really mean is WE'LL be better off!). We've taught the next generation NOT to be willing to take care of US in old age.
* Our parents, and their parents, started working at 15 and retired at 65. So they worked -- and SAVED -- for 45-50 years and spent 5-10 years in retirement before dying at 70-75. That's TEN years of working and saving for every year of retirement.
* Our generation started work at 20-25, and retires at 55-60. So we work -- and spend -- for just 30 -35 years and we'll spend 25-30 years in retirement before dying at 80-85. That's a mere TWO years of working and SPENDING for every year of retirement!
Scary stuff, isn't it?
We're facing a "fate worse than death" -- living too long with too little money.
But enough of the gloom and doom. It's not too late for us to do something about this depressing outlook.
But we need to exercise real care, and learn to recognise the counterfeits that lie in wait for the ignorant, fearful, gullible, greedy, lazy or selfish.
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THERE'S ONLY ONE REAL SOLUTION FOR MOST OF US
If the underlying cause of most of our stress is the exchange of time for money, then the answer is to break all connection between our time and our income.
There's only one way to achieve that result -- leverage. And the best kind of leverage is residual income.
We have to create or find ways to work less and earn more, because we don't have enough free time now to be taking on another job or investing more time!
The only way for us to achieve this kind of leverage is by going into the right kind of business, for all the right reasons, then doing only the right things for only the right reasons to make that business successful.
Easier said than done, certainly. But if you know what to look for, and how to go about it, the risks are dramatically lower.
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BASIC BUSINESS REALITIES
* It costs money -- LOTS of money -- to buy or start a conventional business.
* You still have a 90% chance of losing everything through ignorance!
* A business with a duplicable system is a much safer choice, because you can duplicate the system over and over again, at little or no cost.
* A business system that offers both reciprocal and residual income is the best choice of all, because it allows you to earn reciprocal income quickly and predictably, while building long-term, residual income through the process of duplication.
* A business system that allows you to invest "sweat equity" -- time and effort -- rather than money, is the most desirable option of all, because it allows you to turn your investment of time and effort into cash!
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WHY MOST OF US HAVE NO REAL LEVERAGE, SO WE NEVER ENJOY RESIDUAL INCOME
We spend our first 20 or so years getting an education (geared to produce consumers, employees and imitators), then we get a job and begin to climb the corporate ladder. The income curve creates the illusion of financial security because of its steady rise.
Once we reach our 40s and 50s the stress increases alarmingly. Mergers, acquisitions and other changes in the corporate environment increase the risk of "downsizing" (job shedding -- unemployment!) and bringing in younger, better educated replacements. Redundancy, retrenchment, early retirement (whatever euphemism we choose to call it) means a nose-dive in income if we fall victim, or dramatic increases in our stress levels if we somehow manage to survive.
If we go into business for ourselves, most of us end up working longer and harder -- for less money! -- than our own employees.
Eventually, we retire. Either way, it's a steep drop to the kind of income level we had when we originally began -- in our 20s!
Any way you look at it, it's hardly what you'd call "lifestyle."
There's a better way. And it takes only a fraction of the time, with no sudden drop in income.
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HOW NETWORK MARKETING'S 4-STAGE PLAN CREATES TRUE RESIDUAL INCOME
The whole point of residual income is to sever all connection between our time and our money, so that we can work less and earn more -- the one thing we can never do in a job. We build an income stream... and it continues to produce income for us, endlessly. It's like growing an orchard...
1. We prepare our soil to make it fertile for the seedlings we'll plant. We create a safe environment.
2. We plant the seedlings in the soil we've prepared.
3. We nurture and protect the growing trees until they begin to bear fruit.
4. When the trees mature and spawn more trees, we enjoy more fruit than ever, with minimal time and effort required.
In other words, we do a lot of work for very little reward in the early stages, then earn a lot of income for very little work once we're established.
After the initial preparation stage, when we're learning and improving our knowledge and skills, we enjoy exponential growth in our income as our referral network expands rapidly.
As our people mature and become independent, we earn residual income in the form of royalty overrides on sales created by their organisations. And because it's a business, the income continues, even after we're gone.
So our loved ones can continue to benefit from our achievements.
By the way, those royalty override payments to us come from THE COMPANY'S share of the wholesale price, NOT from our downline team's share of the profits!
The residual income just keeps coming -- and growing. And, because it's tied to product prices, it's protected against inflation and other economic forces that usually undermine the value of superannuation and other investment-based income.
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WHY IS NETWORK MARKETING SO MUCH SAFER, BETTER AND SMARTER?
By intelligent purchasing, using the direct sales model, we can break the lose-win cycle of the Money-Go-Round (see previous Report) and eliminate most of the costly middlemen, and save on the cost of products and services we buy direct from the manufacturer or supplier.
Instead of spending $100, we only spend $70. So we immediately save on the purchase price. In this example, we save $30 up front - a substantial and genuine saving!
The manufacturer or supplier receives the full $70 we pay - and saves on marketing and distribution costs, trade credit, bad debts, advertising, etc.
When we introduce new customers and distributors direct to the manufacturer or supplier, we receive royalty override bonuses on their purchases from the extra $40 received by the manufacturer or supplier, month after month. As long as we all keep buying and introducing new customers, our residual incomes will continue to grow, year after year. And, because our income is tied to product prices, it's protected against inflation, too.
It's simple, low-cost, low-risk and intelligent. And it makes clever use of our lifelong conditioning to make sure we comply with the first two critical principles of income security and wealth creation...
Principle One:
The only true financial security we ever have is what we create for ourselves.
Principle Two:
We only create financial security doing what we know.
(Learn more about the Seven Principles of Income Security and Wealth Creation here...
http://www.incomesecurity.com.au/principles
What most of us know best is what we've already been conditioned to become...
* EMPLOYEES -- we know how to work hard, even if we don't know how to work smart or save effectively.
* CONSUMERS -- we know how to buy, and how to spread the word about a good deal to our friends.
* IMITATORS -- we know how to do what everyone else is doing, and how to share good news with others.
Can you see how these skills and attitudes equip us for success in a business system that's designed to put them to work so we can all share the benefits?
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AN ENTIRELY NEW CONCEPT IN BUSINESS SYSTEMS
Network marketing is the ONLY Fourth Generation system of business. Most others, including franchising, are FIRST Generation systems. (There are almost no Second or Third Generation systems, just First Generation counterfeits.)
This means that network marketing is based on very different principles to conventional business systems.
There's not enough room here to discuss all the differences in detail, but here's a brief summary of the major differences to help you recognise some of the reasons why it's so much safer, better and smarter.
1. Conventional Business 2. Network Marketing ------------------------------------------------------------------------ 1. Based on competition (Win-Lose*) 2. Based on co-operation (Win-Win) ------------------------------------------------------------------------ 1. Relies on dependence 2. Relies on independence and interdependence ------------------------------------------------------------------------ 1. Values money and uses people 2. Values people and uses money ------------------------------------------------------------------------ 1. Creates financial and time bondage 2. Creates time and financial freedom ------------------------------------------------------------------------ (*A counterfeit - Win-Lose is really Lose-Lose posing as a win to fool you, until the loser wakes up to reality and ends the relationship.)
In summary...
Network marketing is the most effective, enlightened, ethical, equitable and egalitarian form of free enterprise ever to evolve. But ONLY when it's operated by people who are just as effective, enlightened, ethical, equitable and egalitarian. That's because Fourth Generation systems of any kind will only work on Fourth Generation principles and practices.
You can learn more about Fourth Generation principles and practices here (download and print the free white papers available at the site, especially in the section on Network Marketing)...
http://www.fourthgeneration.org
Discover how to put powerful Fourth Generation principles and practices to work in your network marketing business by taking advantage of The Profit Clinic's FREE online training system, available here...
http://www.FREEcoachingonline.com
Learn how to properly analyse network marketing businesses so you can choose the right one for you, for all the right reasons.
For your free copy, please go to:
http://www.profitclinic.net/reports
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John Counsel is the founder and CEO of The Profit Clinic, a leading management consulting, training and publishing firm in the international direct selling industry. Based in Melbourne, Australia, John is Australia's top-selling author on network marketing and a popular trainer. His network of free training and resource web sites is one of the most respected in the industry, world-wide. Contact him at john@profitclinic.comVisit his FREE coaching service at http://www.FREEcoachingonline.com
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ForMor International - Protector of the Part-timer If you are looking for a stable, family owned MLM company, that have been around for 9+ years, but is still a REAL ground-floor opprtunity, offering really great products, from vitamins to The Cloth - and if you don't want to build a huge group to get paid $1000/month - 20-30 people is enough due to the pay plan with 15% level 1 and 45% level 2 etc. - then you NEED to take a serious look at ForMor International. Read the article by Todd Bates below and you will understand what I am talking about. http://www.formor.com/100161
In network marketing, several progressive companies are changing and evolving to meet the challenges of today's marketplace. There have been many changes in the industry throughout the fifty plus years of network marketing. Finally, the evolution of compensation plans is such that part-time and full-time distributors can both benefit.
If you know much about the industry, you realize that part-timers really have NOT done very well from a profitability standpoint. Of course, don't discount the personal growth, health benefits, relationship-building, serendipity aspects they get! Come on now, I'm kidding! It's time that part-timers succeed FINANCIALLY in the business. In the May 1994 issue of Upline ® magazine, Richard Poe, the author of Wave 3, was asked, "Is there a wave 4, Richard?"
His perceptive reply was: I think the next frontier of Network Marketing involves the compensation plans, where everybody will realize that comp plans can evolve, that they can be more--I don't want to use the word 'fair' in a socialistic sense, but that can be more money available to rank and file distributors who are doing a moderate amount of work." That's just what a compressed compensation plan does.
It makes more money available to "rank and file distributors" (the part-timers) and compensates them for their part-time efforts. What a concept--part-timers making money in network marketing! Who wouldn't want that to happen?
Compressed Compensation Plans
Compressed compensation plans are NOT two-level plans. You and I both know that a two-level plan would not make sense. At least not according to the principles of the theory of network marketing. We want to take advantage of duplication, geometric progression, and alot of people doing a little bit each.
There are "heavy hitters" who want folks to believe that ForMor’s compressed plan is only two levels. I have been with ForMor since the very beginning in 1996, over those years I have seen this plan pay me thru over 20 levels of downline members.
When people call ForMor a two-level plan, they either are trying to deceive or they just don't understand how it works. ForMor’s compressed compensation plan "concentrates/compresses" a large portion of the bonus override percentage payout into the top three levels.
That benefits the part-timer and the full-timer. For those who desire a six figure income the plan pays 3% though four generations of diamonds. Combine that with the world wide bonus pools, and phase one and two of the plan and we have the most powerful and balanced plan in the industry!
"Really Helping the Industry"
Poe was not the only writer to identify and be sensitive to the needs of part-timers. In the January to April 1998 issue of Profit Now newsletter (formally known as MarketWave), Chuck Huckaby, the publisher, writes in his "Most Common New Comp Plan?" comments:
"While record numbers now believe in MLM as a legitimate alternative to traditional business and franchises, I believe record numbers of people are experiencing frustration at being unable to make one thin dime in their MLM business!...The trend for comp plans to direct more money into the first 3 levels continues to appeal to distributors....From my own personal conversations with distributors, this type of plan seems to really be helping the industry....But not all companies are convinced of the wisdom of this straightforward approach."
Are the companies, and let's add the "heavy hitters." not convinced of this straightforward approach because it's fair for part-timers? Do they not like it because it forces them to share the wealth with the "little guy"?
If they would take the time to consider that the purpose of network marketing is to enable part-timers to enhance their quality of life with a part-time, home-based business income, wouldn't they like a plan that would accommodate part-timers? Well...not if it's at their expense! Nice job, Chuck! Way to say it so well.
Justification for Compressed Plans
Do you need more justification for the brilliance of ForMor’s compressed compensation plan than that it's designed for part-timers to make significant money on the small group of distributors that part-timers are actually able to accumulate as they work the business on a part-time basis?
Some 95% of the people I work with are part-time! It's great to know the compressed plan works so well for them when they work well!
This is guilt-free network marketing!
If you're a part-timer, don't worry about the "heavy hitter." If they don't like the ForMor’s compressed concept, let them go do some other plan. But do you understand why they would be putting the compressed plans down?
You're right, they want the part-timers to join their programs. If a "heavy hitter" likes a program, there's a good chance it's well-designed for the "heavy hitters" and the company...but at whose expense?
Len Clements, from his book Beyond the veil in the article "Kissing Up to the Heavy Hitters," provides some insight and further justification for compressed compensation plans:
"Of the over 1,000 MLM distributors we have surveyed over the last three years, we asked what the primary motivation was behind their involvement in MLM. Fifty-one percent said 'to make money,' 46% answered 'to have free time,'....We also asked specifically what income level they wished to achieve in their MLM opportunity. Amazingly, over 86% claimed they would have been satisfied with only an extra $250.00 per month, or to only replace their current family income ($2,500 to $6,000 per month), but have one person work 20 flexible hours a weeks (sic) to achieve it rather than two working 40-50 hours fixed."
That's pretty good justification for the concept of compressed compensation plans being designed for part-timers to make between $250 to $6000 per month. Len Clements adds,
"So why are so many comp plans designed to pay out $100,000 to $500,000 per month to a handful of heavy hitters, and leave thousands of others broke and disgusted?"
Great question!
We who promote ForMor’s compressed compensation plan have figured this out!
Protector of the Part-timer
Appropriately-designed compressed compensation plans are a protector of the part-timer. ForMor’s compressed compensation plan is specifically designed to help the part-timer make money and be successful. Over 95% of the people get into network marketing because they want to make money and some 90% are part-timers.
If our part-time people can develop a positive cash flow in their first 90 to 120 days, then we can have them with us forever. And even though full-timers make huge money with ForMor’s compressed compensation plan, they do not make money at the expense of the part-timers.
The concept is a beautiful win-win- win relationship. ForMor Internationals compressed compensation plan is great for network marketing because until the part-timers can make a respectable and consistent income, this industry won't reach the heights that it's capable of! I love network marketing! I love ForMor’s compressed compensation plan!"
You can certainly see why I also love the compressed compensation plan. It's the wave of TODAY and the future! Take advantage of the wave! Come ride the wave!
About the author: Todd R. Bates is the former National Marketing Director for ForMor International, a global Network Marketing Company. He is fully committed to network marketing and firmly believes that the industry must continue to move in the direction of simplicity and fairness for part-time networkers. Prior to network marketing Todd was a Sales Mgr, Sales and Marketing Trainer, and top sales rep for Coleman Spas, Hot Spring Spas and Sundance Portable Spas. ForMor International experience: ►1997 Started in FMI and built a multi-million dollar business ► 2004 Todd sold his organization and took the corporate office as National Marketing Director. ► 2005 Left Corporate to go back to the field with the DPA and Cardio Pack. ► June 2005 made rank of Platinum Diamond, the highest position in the company. Todd lives in Conway, Arkansas five miles from the ForMor International world headquarters with Sophia and their three children, Angie and Jonas and Anthony. Todd can be reached at his office 501-764-0982 or cell phone 501-269-0289 or email at mlmpro1963@aol.com Hotline: (800) 444-5295
Below are some of the tools I personally use and recommend. These tools have passed my test, which isn't easy. If you would like to recommend a tool you use daily with great results, please send a note to the editor.
One of the hottest and fastest growing aspects of marketing online is the Associate Program process. Actually some are called "Associate", some "Affiliate", and others may be called "Partner" programs. For purposes of this discussion, we will call them Associate programs since they all basically refer to the same concept.
You associate yourself with an existing company and receive a commission for any sales you generate. There is no better way to setup multiple streams of income for yourself. AND, they can be setup for little or no investment on your part! It's a great way to start a business on the Internet with a very small budget!
Many online entrepreneurs are part timers with limited time and most of that may be devoted to marketing their single product or network marketing program. If you are in this situation and you need to increase your monthly income, your solution may be the use of one or several Associate programs.
Even full time marketers know the power of these programs. We are involved in a number of them and can vouch for their powerful income potential.
Many of the programs furnish you with personalized web sites, banners, sales material and other marketing aides. If you have your own web site or page you can very easily place a banner, button or text link to the company sales site or your personalized site that they furnished.
One of the reasons these programs are becoming popular is that in most cases, everything is made up for you already, all you have to do is become an Associate, add the link to your page or site and you are off and running. In many cases your personalized web page is already set up with meta tags and can be registered with the major search engines very easily.
With personalized URL's to the Associate sites you can also use the URL in ads, newsletters, free-for-all link pages, etc. This will create more traffic and sales. In addition, you can advertise the Associate program and use your own web site or page URL and create even more traffic to your own site. This gives your primary products/services more exposure.
You don't need a large budget to create these additional income streams. Many of the Associate programs are free. Others can range from a one time $25 to $150. Over 50% of the Associate programs we are currently involved in had no charge to become an Associate.
Commissions can range from $10 to $65 per sale. A number of programs pay you a set percentage of total sales. What also makes these programs so nice is that they take care of the ordering process, credit card processing, shipment and customer service.
Most also will notify you immediately by automatic email when a sale is made under your ID. So all you have to do is get potential buyers to the sites. Most programs pay monthly, some quarterly.
My philosophy is this. If I can relate a particular Associate program product or service to my site in some way, what do I have to lose. If I can use it to create more traffic to my site, Great! If I can make some additional income, Great! If I can do both, Tremendous!
The author, Joe Reinbold, is the creator/owner of The Entrepreneur's Home Business Link at http://www.homebizlink.com and publishes a free weekly email newsletter "Home Income Quarterly E-dition" which is dedicated to assisting online marketers. For a free subscription just visit www.homebizlink.com/newslt.htm
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