What Comes First? The Chicken or the Egg?
What Comes First? The Chicken or the Egg?

The Chicken = Affiliate and The Egg= Vendor; What Comes First?

There’s a big debate between whether a new marketer should start off as an affiliate or as a vendor.
Many marketers can successfully drive traffic to affiliate offers without having a list. This is
usually because they know how to pay for traffic or have an audience in their pocket (for example, a
popular YouTube channel). Those in this situation will often find it better to start as an affiliate.
However, those without a large following or who do not know how to get quality paid traffic, will likely be better off
creating a product first (vendor). So, what comes first for you?

The Product Creator

The product creator does exactly title implies; develop content to sell or that is used to teach a course that is sold.

The toughest part of being a product creator is choosing what product to create. You must examine
the audience whose problems your products will solve. Then you need to pick a backend webinar. Next, you must
design a product that compliments the webinar. From there you can launch the product and build your
list in the process. If done correctly, the product creator can build a nice list AND pull in some great sales. Bonus...the product creator is ALSO building a relationship with his/her subscribers. Additionally, the more products (quality products) that the product creator develops and sells, the more he/she is looked at as an expert in the field.

The Affiliate Marketer

An affiliate marketer drives traffic to a vendor's sales page. This is an important part of a vendor's success because the vendor can leverage the affiliate marketers' lists. The more affiliates, the greater reach! It is low-cost advertising.

The affiliate marketer benefits from this relationship by having a product to sell to his/her list, without the time and expense of creating a product. The amount of commission varies from one launch to another, but there is definitely money to be made by doing affiliate marketing. The downside to doing affiliate marketing vice product creation is the amount of profit is less. The positive side to going this route is you build relationships with vendors and your name gets out there. You will benefit from this when you do your own launches. People will recognize you and will be more apt to support you.

My Recommendation

I believe that it’s almost universally better to start your Internet Marketing business as a product creator, then transition to affiliate marketing afterwards. My thought process is that first, you’re building a sellable asset. Everything that you make, from the product itself, to the list of customers, to the website itself is a business asset that can be sold.

Second, a product launch can be done for the purpose of putting hot leads into a webinar, where you are the affiliate. This is known as a “loss leader” strategy.

Finally, building a list that you can monetize with affiliate offers is the natural by-product of a product launch. You’ll be able to quickly shift over to affiliate marketing anyway.

The Relationship

Do you see what we are doing here? The product marketing and affiliate marketing really go hand-in-hand. Although I recommended that you should begin with product creation, there really is NO right or wrong way to do this. Everyone's situation is different and what works best for one person may not work as well for the other.

The real key here is understanding that this is a symbiotic relationship. Both the product creator and the affiliate marketer benefit from the work done by one another.

To learn more, check out the resources below!

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