One quick way to pinpoint a lucrative market, is through affiliate marketing. Affiliate marketing basically means that you will be promoting someone else products. If a sale is made, you make a percentage of the sale. If you don't sell, you don't earn anything.
The key benefit of affiliate marketing is that it's risk free. All you got to do, is to start driving traffic to the offer. All it takes is a hundred visitors or so, and you have all the data you need to make an assessment for the offer you are promoting.
This is the best way to test a market. You don't need to spend thousands of dollars developing a product, only to find that the market is not receptive to what you have to offer. Once you find a strong offer, make plans to penetrate the market.
Everything starts from your affiliate marketing efforts. Using this simple approach, you can even test out several markets at the same time. You get all the market research you will ever need in just a few short days.
After that, simply focus more on the profitable markets. Simply scale your business by repeating what you have just done to rake in more cash.
To scale your internet business, you may wish to build a list. It sound simplistic, but list building works.
Here is an example. Let's say you start off with just one product, and you sell it for $47. When you make a sale, you earn 47 bucks. If you make 10 sales, you make $470. To make more money, you have to acquire more customers. If you don't, you can't grow your business.
Let's assume that your customer base doesn't grow. Is there a way to grow your business? You can continue to develop more backend products. That means selling more to the same customer. Each customer is worth more to you now.
A customer lifetime value is the amount of profits that you make from the same customer. For example, if he spends $1,000 with you over the course of the relationship, the lifetime value is $1,000.
Things get exciting from hereon. Every customer equals a lifetime value of at least $2000 to you. You can spend $1000 to acquire the customer and still make a profit.
To make money, affiliate marketers must repeat the sales process. A sale is made, and a little bit of money is earned, but the customer has been neglected. Build a list, and focus on serving the same customers over and over again. The cost of selling to an existing customer is much lower than selling to a new customer.
Use a simple web form to capture emails so that you can get in touch with your prospects again. You may earn 5 to 10 times whatever you are earning now.
