And we continue. The $36,000 we allocated to this campaign should produce approximately $180,000. From this we are going to put a mere 40% into our next affiliate ad campaign – that’s $72,000. Now we should have about $145,000 in the bank.

But we’re not done yet. That $72,000 should reap around $360,000 in profits. We’ll take 80% of our profits, or $288,000 and reallocate a mere 20%, or $72,000, into a new affilaite advertising campaign.

By now you should have about $433,000 in the bank.

This time you have earned about a $360,000 profit return. We are going to

If you look around you’ll find that the Guru’s seem to do it without effort, yet if you talk to the average affiliate marketer their statistics at best roller-coaster and at worst stay the same or decline over time.

The answer, in a nutshell, is simply this: the unsuccessful or stagnant affiliate doesn’t invest enough money, or time, back into marketing.

But if we're talking about money, you might well ask: how do you know how much to invest back into the business? Well, fortunately there is formula you can use to make sure that you are always continuing to make more money as a marketer.

Let’s use an analogy to get started on this. Lets suppose that you just bought yourself a brand new Mercedes. It’s in your driveway and draws the attention of anyone who happens by. It’s beautiful, and sleek, and fast. But let’s suppose you aren’t willing to put fuel in the gas tank. You love the car, but you aren’t willing to invest in it.

You are going to go nowhere. You’ll only be able to dream of driving this sleek vehicle though country lanes, past your best friend’s house, to social gatherings, etc. The reality though, will be that you and your car will stagnate and you will get little pleasure from it.

It’s the same with some affiliate marketers. They have some great affiliate or other program they could be making lots of money with, but they don’t want to put money into the one vehicle that will make them a profit – marketing.

Let’s say you can make a commission of $3,000 every time you make an affiliate sale. And let’s say you made your first sale. Suddenly you have $3,000. Should you go out and spend it on a new flat screen TV? Or should you reinvest it in marketing your business?

I’m sure you know instinctively what the right answer is. That’s right, you should re-invest it.

Here’s why.

Let’s say you put that $3,000 straight back into a marketing campaign. This can easily produce 3 – 6 sales. That’s $9,000 to $18,000 profit!

Let’s be conservative and suppose you profit $15,000, or a factor of 1:5. Here’s what we are now going to do with that $15,000 to guarantee our continued success.

The Affiliate Marketing Formula (you may want to make separate notes to keep track of how this system works)

We are going to take the original $3,000 and put it in the bank, and reallocate 80%, or $12,000, back into a new affiliate marketing campaign.

Given the same 1:5 profit factor this marketing investment should conservatively produce about a $60,000 profit return.

Next take out 40%, or $24,000 and reallocate the remainder, 60%, or $36,000 into your next affiliate marketing campaign. This will mean you now have $27,000 in your bank account (less money to eat).

And we continue. The $36,000 we allocated to this campaign should produce approximately $180,000. From this we are going to put a mere 40% into our next affiliate ad campaign – that’s $72,000. Now we should have about $145,000 in the bank.

But we’re not done yet. That $72,000 should reap around $360,000 in profits. We’ll take 80% of our profits, or $288,000 and reallocate a mere 20%, or $72,000, into a new affilaite advertising campaign.

By now you should have about $433,000 in the bank.

This time you have earned about a $360,000 profit return. We are going to t

Let’s use an analogy to get started on this. Lets suppose that you just bought yourself a brand new Mercedes. It’s in your driveway and draws the attention of anyone who happens by. It’s beautiful, and sleek, and fast. But let’s suppose you aren’t willing to put fuel in the gas tank. You love the car, but you aren’t willing to invest in it.

You are going to go nowhere. You’ll only be able to dream of driving this sleek vehicle though country lanes, past your best friend’s house, to social gatherings, etc. The reality though, will be that you and your car will stagnate and you will get little pleasure from it.

It’s the same with some affiliate marketers. They have some great affiliate or other program they could be making lots of money with, but they don’t want to put money into the one vehicle that will make them a profit – marketing.

Let’s say you can make a commission of $3,000 every time you make an affiliate sale. And let’s say you made your first sale. Suddenly you have $3,000. Should you go out and spend it on a new flat screen TV? Or should you reinvest it in marketing your business?

I’m sure you know instinctively what the right answer is. That’s right, you should re-invest it.

Here’s why.

Let’s say you put that $3,000 straight back into a marketing campaign. This can easily produce 3 – 6 sales. That’s $9,000 to $18,000 profit!

Let’s be conservative and suppose you profit $15,000, or a factor of 1:5. Here’s what we are now going to do with that $15,000 to guarantee our continued success.

The Affiliate Marketing Formula (you may want to make separate notes to keep track of how this system works)

We are going to take the original $3,000 and put it in the bank, and reallocate 80%, or $12,000, back into a new affiliate marketing campaign.

Given the same 1:5 profit factor this marketing investment should conservatively produce about a $60,000 profit return.

Next take out 40%, or $24,000 and reallocate the remainder, 60%, or $36,000 into your next affiliate marketing campaign. This will mean you now have $27,000 in your bank account (less money to eat).

And we continue. The $36,000 we allocated to this campaign should produce approximately $180,000. From this we are going to put a mere 40% into our next affiliate ad campaign – that’s $72,000. Now we should have about $145,000 in the bank.

But we’re not done yet. That $72,000 should reap around $360,000 in profits. We’ll take 80% of our profits, or $288,000 and reallocate a mere 20%, or $72,000, into a new affilaite advertising campaign.

By now you should have about $433,000 in the bank.

This time you have earned about a $360,000 profit return. We are going to

Let’s say you can make a commission of $3,000 every time you make an affiliate sale. And let’s say you made your first sale. Suddenly you have $3,000. Should you go out and spend it on a new flat screen TV? Or should you reinvest it in marketing your business?

I’m sure you know instinctively what the right answer is. That’s right, you should re-invest it.

Here’s why.

Let’s say you put that $3,000 straight back into a marketing campaign. This can easily produce 3 – 6 sales. That’s $9,000 to $18,000 profit!

Let’s be conservative and suppose you profit $15,000, or a factor of 1:5. Here’s what we are now going to do with that $15,000 to guarantee our continued success.

The Affiliate Marketing Formula (you may want to make separate notes to keep track of how this system works)

We are going to take the original $3,000 and put it in the bank, and reallocate 80%, or $12,000, back into a new affiliate marketing campaign.

Given the same 1:5 profit factor this marketing investment should conservatively produce about a $60,000 profit return.

Next take out 40%, or $24,000 and reallocate the remainder, 60%, or $36,000 into your next affiliate marketing campaign. This will mean you now have $27,000 in your bank account (less money to eat).

And we continue. The $36,000 we allocated to this campaign should produce approximately $180,000. From this we are going to put a mere 40% into our next affiliate ad campaign – that’s $72,000. Now we should have about $145,000 in the bank.

But we’re not done yet. That $72,000 should reap around $360,000 in profits. We’ll take 80% of our profits, or $288,000 and reallocate a mere 20%, or $72,000, into a new affilaite advertising campaign.

By now you should have about $433,000 in the bank.

This time you have earned about a $360,000 profit return. We are going to

Let’s be conservative and suppose you profit $15,000, or a factor of 1:5. Here’s what we are now going to do with that $15,000 to guarantee our continued success.

The Affiliate Marketing Formula (you may want to make separate notes to keep track of how this system works)

We are going to take the original $3,000 and put it in the bank, and reallocate 80%, or $12,000, back into a new affiliate marketing campaign.

Given the same 1:5 profit factor this marketing investment should conservatively produce about a $60,000 profit return.

Next take out 40%, or $24,000 and reallocate the remainder, 60%, or $36,000 into your next affiliate marketing campaign. This will mean you now have $27,000 in your bank account (less money to eat).

And we continue. The $36,000 we allocated to this campaign should produce approximately $180,000. From this we are going to put a mere 40% into our next affiliate ad campaign – that’s $72,000. Now we should have about $145,000 in the bank.

But we’re not done yet. That $72,000 should reap around $360,000 in profits. We’ll take 80% of our profits, or $288,000 and reallocate a mere 20%, or $72,000, into a new affilaite advertising campaign.

By now you should have about $433,000 in the bank.

This time you have earned about a $360,000 profit return. We are going to

And we continue. The $36,000 we allocated to this campaign should produce approximately $180,000. From this we are going to put a mere 40% into our next affiliate ad campaign – that’s $72,000. Now we should have about $145,000 in the bank.

But we’re not done yet. That $72,000 should reap around $360,000 in profits. We’ll take 80% of our profits, or $288,000 and reallocate a mere 20%, or $72,000, into a new affilaite advertising campaign.

By now you should have about $433,000 in the bank.

This time you have earned about a $360,000 profit return. We are going to take out another 80%, or $288,000 and stick it in the bank, allocating a meager 20% to our next affiliate ad campaign – that’s $72,000 back into direct marketing. We’ll now have around $721,000 in our bank account.

And if we do the same thing again, using 20% of our profits for advertising costs, we’ll end up with around $1,900,000 (over one million dollars) in the bank.

The outcome

Now, although I can’t guarantee these exact figures, they are consistent with marketers who use this system. These are the people you read about in the sales ads and in magazines and ezines. These are the marketers who seem to be doing the impossible. Fact is, their success is inextricably linked to marketing and the way they allocate their profits.

And you don’t need to have a $3,000 affiliate product markup. This formula will work with $300 or $3000, or anything in between. Don’t worry about the figures, concentrate on the formula.

Bottom line. You will come out far ahead of the crowd financially by employing this approach to your marketing efforts.