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How to Multiply Your Affiliate Income Using the 80/20 Rule

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The 80/20 rule, also known as Pareto principle, has become a staple in business. This principle implies that 80% of the proceedings that a business receives stems from 20% of the clients or ventures.

It is named after a historic economist named Vilfredo Pareto. He did write a paper to display his theory and his findings. Following this, the concept has evolved and has been adapted in different industries.

The passive income market has grown in the past few decades. This rise in interest has opened up new ways for different members of the society to make money. In this regard, we have identified http://many sources of making passive income. Among this avenues that we have pointed out is using affiliate marketing. This method of generating passive income is popular and is very effective. That is if, it is executed in the right way.

To make the best of affiliate marketing we have to integrate the 80/20 rule. To do this there are a few steps that you need to follow.

But first, let us look at the:

Benefits of incorporating the 80/20 rule into your business

  1. Increased gains/profits

For a business that is yet to identify which ratio of its clients brings in what, this concept might be difficult to implement. For those who have found their way around, they can use this concept to their benefit. They can use their resources to make sure that the 20% of their customers that bring in 80% of business are well catered for. They can construct business packages that will encourage this 20% to invest more of their resources into the business.

The other efforts can be focused on making sure that the 20% of the clients that bring in 80% of the business volume keep increasing to maintain the balance.

  1. Optimize performance

Analyzing your business is crucial to make sure that this is effective. You have to be aware of which ratio of your clients is more profitable. This way you can make sure that they are cushioned and that excellent customer service is provided. When the major revenue generators are taken care of, you can turn your focus to the other group.

Promotional packages and sales are popular in maintaining and attracting more customers at this level. You can use this principle to optimize your pages. The pages that receive more attention are critical. The trick is to make sure that your customers have direct access to these pages.

  1. Introspection tool

This principle can be used to look into your business and find out where problems are. You can identify your most profitable products and figure out why they are popular. When this is done, you can formulate ways in which you can make the other products just as profitable.

Information collected from your customer service desk will shed light in which ratio of the group has problems. Tailor made solutions can then be created and implemented.

Steps of incorporating the 80/20 rule into affiliate marketing

When looking on how to incorporate the 80/20 rule into affiliate marketing, this is what you need to work through.

  1. Identify your best products/services

The Pareto principle implies that 80% of the effects are generated by 20% of causes. You need to identify which of your products are the most profitable. Identify what makes them profitable and create a business model for these specific products. Your customers know what works for them. You can peek at your competitors best sellers and make a conclusive decision on the products that attract the most affiliate revenue.

  1. Focus on the products

After discovering which products attract the affiliate revenue that you need, it’s time to work. As a smart affiliate marketer, you need to create promotional packages or advertisements that will attract more customers to these products. You can make sure that your website is ready for this traffic. More traffic relates to higher conversions. Focusing all your energy on well-performing products increase sales in the long run.

  1. Getting the upper hand

Now that you have identified the money makers it is time to leverage them in the market. Leveraging just means giving them the extra help they need to succeed. There are a few methods you can employ to leverage your product. These methods comprise of:

  • Optimize your resource pageThe resource page receives a lot of attention from website visitors. Make sure that your resource page is loaded with relevant and insightful To make your best products stand out, you can create a category that is; early visible. Terms such as ‘best seller or Recommended’ titles will work. This emphasis on the products is bound to attract a curious mind.
  • Blog about the productsBlogs are powerful tools that have access to millions of people. You can use blogs to tell people about your products and the promotional packages that are available. You can partner with other blogs just to get a wider reach.
  • Sidebars Use your sidebars to advertise your best products on different pages of your website. This way your clients are always in view of them
  • Make use of Tutorials tutorials are popular in the age where the internet You can post tutorials with links to your favorite products. Having a following that trusts you will help in making sales higher. You can recommend the products on your social media pages and leave links for people to follow.

It is proven that the combination of the Pareto principal and affiliate marketing works. It is so simple if undertaken in the right way. The secret is to make sure that your main focus remains on your top products. You can be sure that in the long run, the major revenue producing products, will be secured. It is a win-win for the smart ones in this business.

We hope this information will be of good use to you. We wish you a good time operating in the passive income world.


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