The Importance of Cash Flow With Affiliate Marketing

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Affiliate marketing is one of the easiest businesses to get started with online. It

takes practically no time to get set up, and you can earn a lot of money over time.

Technically, you actually can start earning money almost immediately by

promoting an affiliate program, or even putting AdSense ads on your website. The

catch is: No matter how much money you make that first day, you are not going

to have that money in your hand… or in your pocket… or even in your bank

account for some time. In some cases it may be two to three weeks before you

actually get the money in hand. Other times however, it can take two to three

months. And it’s because of this that most affiliate marketers run into trouble

before they’ve really gotten fully started in their business.

They don’t understand the concept of cash flow.

Even if you’re not spending the cash you have on hand before you receive your

affiliate commission payments, you usually still need some sort of cash flow

available to get you through the initial startup phases.

Let’s say for example, that you decide to put up a website which is promoting a

click Bank product. You then decide that you are going to market this site using

free techniques such as article marketing. This way you won’t have to spend

money out of pocket in order to start making money from sales of the product

you’re promoting.

Now, if it takes you a full week just to get your articles approved then you may

see little to no traffic at your new website. And with little to no traffic of course,

you’re not likely to get anything in the way of sales either. Even if your articles are

approved quickly, there can still be anywhere from one to 10 days before you

start seeing traffic generated from those articles. And how much traffic you see

will depend on many different factors such as how many articles you’re writing

each day, how often those articles get viewed, and how often people reading the

articles click on the link to your website.

If it takes you just two weeks to get the first sale from your new website, you’re

doing quite well. Depending on when that happens though, it may be a full three

weeks before you actually receive the money for that sale. This means you’ve had

to maintain yourself, your website, and your marketing efforts for] at least five

weeks. And chances are, the commission you earned from that one sale will not

cover five weeks worth of either business or living expenses for you. So

essentially, you are still in a state of negative cash flow.

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