Website Building

The 5 Reasons Entrepreneurs Buy An Affiliate Marketing Business

Let’s get one thing straight, the word “entrepreneur” is not a job description.

Dictionary.com states that an entrepreneur is:

“a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.”

I don’t think this tells you the whole story.

To me, being an entrepreneur is a calling. It drives people who want more out of life and it requires a combination of attributes; who you are, your skills, and your experience.

It is not a job. It’s something that gets under your skin and excites you for your whole life – whether your change careers or not.

Now that we agree on that I want to share with you the top 5 reasons that entrepreneurs are buying affiliate websites.

Affiliate marketing is arguably one of the easiest online businesses to get started. If you’ve checked out the difference between building your own affiliate website from scratch, or purchasing a “done for you” site, then you’ll be aware that there are pros and cons for each decision.

Let’s go ahead and explore the motivation of entrepreneurs who buy (instead of build) websites.

1. Time and Money

Benjamin Franklin, (universally recognized as one of the smartest men of his age) is quoted as saying that “Time is money.” While this was true in Franklin’s time, in the world of online business, “Time is money” takes on a whole new level of importance.

Think about it. Time is the one thing in life that we can never get back.

Unlike money, it’s a finite commodity.

It typically takes 10,000 hours to become an expert in something that interests you. That’s nearly 5 years if you are doing it full time. While this is a constructive use of your time, you’d better have a job while you’re learning!

If you’re already an expert internet marketer, buying a ready-made affiliate site makes perfect sense.

You can scale and grow your portfolio of niche sites without having to complete all the research, content writing, and technical aspects that go into starting a new site.

Remember what Franklin said; “Time is money”. Well, this saves approach saves a huge amount of time and is a great way to scale your business.

The best entrepreneurs focus on the particular activities that will generate the best return on investment for their time.

Here’s one example:

If you could add an extra $100.00 an hour to your bottom line by increasing sales volume, which of these tasks would you focus on?  Would you spend your time learning keyword research or would you concentrate on improving your sales and marketing strategy to realize that income sooner?

A smart entrepreneur understands that it’s possible to achieve both objectives at the same time. If they earn that $100.00 and then pay someone else $25.00 to do the keyword research, then they’ll ultimately be $75.00 per hour better off.

Ben Franklin would approve!

If you’re not an experienced affiliate marketer then buying a ready-made affiliate business puts you on the fast track.

In 2019, the complexity of owning an affiliate website continues to grow.

Due to changing technical SEO requirements, the necessity of creating engaging content and the burden of producing in-depth keyword research, creating your own affiliate website is far more difficult.

Entrepreneurs appreciate the time and cost-saving benefits of purchasing a ready-made affiliate site.

This means they avoid most of the common mistakes made by beginners and it allows them to concentrate on growing revenue from day one.

It’s like the difference between preparing your own Wontons or ordering delivery from your favorite Chinese restaurant. The former is a learning curve that takes time and a lot of practice – with no guarantee of getting it right. When you order from the experts you know you’ll receive a quality product every time.

Entrepreneurs find the right balance between their time, their skill set, and money. Buying an affiliate marketing business provides that balance. 

2. Generate Immediate Cashflow

The CEO of AmeriMerchant David Goldin has this to say:

“The No. 1 reason people fail (as entrepreneurs) is, they run out of money.”

On the surface that seems obvious. Nonetheless, successful business owners understand the importance of cash flow.

There are different categories of cash flow but, in simple terms, it represents the amount of money that you have access to right now.

In a traditional business, the demands on your cash are numerous. Just think about the cost of buying and holding products, physical overheads – like warehouses and shop fronts – and the additional staffing costs associated with those operations.

The great advantage of online business is that many of those costs are eliminated.

With an affiliate marketing business, there is no requirement to hold and store products at your own expense. Think about those savings.

Purchasing an affiliate site that is already making money means you have no delay in generating revenue. You know where (and how much) cash is moving in and out of that business from the start.

It’s immediate cash flow!

Entrepreneurs who buy businesses know that a ready-made affiliate site will allow them to generate immediate cash flow and give them the fastest growth potential because much of the work is complete.   

3. Diversify Investment

It doesn’t matter what your level of investment is right now. The fact is that great entrepreneurs never depend on a single source of income.

Well, maybe Warren Buffet is an exception, though he still doesn’t invest all his money into only one particular stock.

Irrespective of the amount of money you have to invest in your next business now is always the best time to think about the strategies you want to adopt in the future.

Buying a ready-made affiliate marketing site is a great option to consider!

In order to diversify your income, you need to spread your risk over multiple opportunities. This also mitigates risk and any instability that may occur in other markets.

Buying an affiliate business is a great way to diversify your portfolio and they are far easier to scale up in the online world.

Forward-thinking investors are now allocating a much larger proportion of their funds to online investment. There are numerous excellent options because affiliate sites are readily available in almost any niche.

Entrepreneurs, whatever their budget, know that diversification is key.

4. Opportunity

The methods an investor chooses to evaluate opportunity vary; however, the following factors are always constant. As you will see, a ready-made affiliate site ticks all the right boxes.

Market size:

One of the most important factors entrepreneurs use to evaluate a business opportunity is the market size.

I know the competition out there is great and this may be a concern for some of you. It is worth remembering that this competition also proves that affiliate marketing is very lucrative for many people.

For those of you questioning whether affiliate marketing still has potential as a business in 2019, here are a few facts I uncovered for you:

** Affiliate marketing is worth $12 billion and is growing rapidly

(Source: IAB)

** Annual affiliate marketing spending is projected to hit the $6.8 billion mark.

(Source: Digital Global)

** In less than a year, the search interest for “affiliate marketing” grew by 44%

(Source: Google Trends)

** 15% of all digital revenue is accounted for from Affiliate Marketing

(Source: Business Insider)

** Affiliate marketing spending is bound to grow by 10% in the next few years

(Source: Forrester Consulting)

** Together with email marketing, Affiliate Marketing is one of the largest sources of online income, accounting for over 15% of all e-commerce orders in the USA and Canada

(Source: Business Insider)

As these figures show, affiliate marketing is growing impressively and shows no sign of slowing down anytime soon.

No wonder the demand for affiliate websites is increasing among investors and entrepreneurs.

Innovation:

A business owner with marketing skills is usually forward-thinking and on the lookout for the next innovation to occur.

Today, innovation is evident in the more advanced applications of technology in e-commerce, e.g. the use of AI. There is potential to capitalize on these technologies and strategies to lead the way in innovation.

Automation is set to streamline the process for both buyers and sellers in new ways and this will impact consumer consumption as we know it.

Entrepreneurs see these technological and marketing innovations as a chance to further refine and develop an affiliate business. Learning and adapting to these changes will be difficult for those without a high level of technical expertise.

Professional companies providing “done for you” affiliate sites are experts and will be among the earliest to adopt relevant new technologies. As a buyer, this provides you with real opportunities to capitalize on what comes next.

Focus on Improvement:

There is always a way to add value to any website or online business.

It can literally take only one great piece of content, a new product or a great feature to get noticed, shared, and propel you to the top in your business niche.

Good entrepreneurs will do their research, find those gaps, and exploit them.

If you take a look at most affiliate sites they are often poorly designed and not optimized for traffic and conversions.

These sites are often created by their owners. They are not poorly designed because the owner was lazy. In fact, many will have spent large amounts of time and money doing their best to create something special.

In spite of this, they generally don’t succeed because they’re not experts in either the technology or the market.

Buying an existing affiliate marketing business is an opportunity for an investor to start with a site that is designed by professionals in the industry.

These sites stand out. They are already SEO optimized, have a certain amount of content and provide the entrepreneur with room to build on those advantages.

5. Potential for Return on Investment – ROI

It may surprise you to learn that your affiliate site can become a sellable commodity.

While many online entrepreneurs hold onto their sites as an asset that generates cash daily, some have sold their affiliate websites for high six and seven figure prices.

Investing in affiliate websites is now a reliable, secure, and potentially lucrative way to invest your money.

The return on investment for these businesses is improving all the time.

When you buy an affiliate website you begin with a pre-determined amount of investment. You can then build that asset according to your aims.

You can test a new market, or use your knowledge and skills to innovate in a certain area. You may even acquire a site that is complementary to your existing business in order to capitalize on the synergy between the two.

There are numerous unique ways to improve the value of your asset and you are in control.

One additional benefit of an affiliate marketing site is that you can keep it separate from your other businesses.

If you choose to buy a personal finance site, for example, savemoney.com, you’re not directly tied to that affiliate website.

You would never sell a website bearing your own name because it’s directly associated with you.

However, if you wanted to sell your affiliate marketing website, there is nothing standing in your way.

So, there you have it, the 5 reasons entrepreneurs buy an affiliate marketing business.

 

Do you have other good reasons for buying an affiliate marketing business? Let us know in the comments below.

Thinking of buying an Affiliate Website? Alpha Investors offer you the chance to get your questions answered and to discuss the exclusive deals available right now. If you’d like access to these unique opportunities or want more information, simply click here now.

About Andrej Ilisin:

Founder and CEO of Alpha Investors. Has a great passion for building stuff / online businesses. When he’s not in front of his desktop, he’s either at the gym or playing basketball. His wife doesn’t approve… duh…

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Zach Zorn

Zach Zorn is the owner of Money Nomad and an enthusiast of all things tech. Zach has extensive experience creating and managing niche review websites. In 2018 one of his websites was acquired by a private equity firm, igniting his passion even more. Zach also runs an Amazon FBA business that has given him experience with customer service, product manufacturing and design. While in high school Zach helped design several successful app’s for Disney. When not on the computer, Zach is most likely off the coast of San Diego or Baja fishing for saltwater game fish.

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