Be Careful of the TRUTH!

Yes, he certainly IS an Internet millionaire. How did he accomplish that on the Internet? Simple, he launched a company that offers good quality products and services and he got a bunch of other people to sell these products and services for him. Offering only a paltry 20% commission on the products and services that this army of people sells, he and his company keep the largest share of the profits and they probably got VERY wealthy on the efforts of their sales force. Smart man, smart company. Naturally, there is nothing wrong with this. In fact it is very clever. After all, THEY launched the company; any of us could have tried to do the same thing, but we did not. I only have one problem with this scenario. Contrary to the email hype that is published by this individual and his company, YOU CANNOT GET WEALTHY selling their products and services. There is no way possible for you to get wealthy using this system and I can prove it.

Here is the arithmetic to review. Say, for example, you become a dealer, re-seller or affiliate for a particular company that sells a product or service that costs $1,000.

Product Sale price: $1,000 Commission: $200

What level of income would you have to earn to consider yourself wealthy? For me, I would say that achieving a six figure income by working on the Internet would be considered wealthy. I believe that any reasonable person would agree that an income of that level could be equated to the term wealthy. How many sales would you have to make for this company to achieve that? If you were selling the product above you would need 500 sales per year or nearly 10 sales per week. I do not know any individual on the Internet who could achieve level of sales for a product priced at $1,000. By the way, even if you accomplished this incredible feat, you would have to duplicate every year since there is no residual income. Some re-seller programs offer residual income (when people renew the product or service for example) but the attrition rate is often very high and the residual income decays. In this scenario, you will be selling for the rest of your life if you wish to maintain that level of income.

So, perhaps we can place a more reasonable number on it. For many of you reading this article, even $2,000 extra income per month would be simply wonderful. For that you would need ten sales per month which is still incredibly tough.

So, why not sell something that costs $2,499 and earn $500 per month? Some companies do that as well but even then you must sell one of their products each week in order to meet that level of income. After having worked in Internet sales in May 1998, I assure you that it is no easy task to accomplish. Most of you cannot ever accomplish it.

By the way, I also run an affiliate program myself but offer a whopping $1,000 per sale because I know what it takes to motivate a sales force and frankly I believe in handsomely REWARDING the people who do most of the work.

It is my opinion that if a company tells you that you can get wealthy as a dealer, reseller or affiliate, they are NOT telling the whole story. It is simply sales hype to get you join their program and sell their products and services. If you even sell ONE product per month, that is more than cost effective for them. Of course up to now I have been referring to FREE dealerships and re-seller programs. Avoid ANY program that asks you to pay for the right to re-sell their stuff. When they charge a fee to be an affiliate or dealer, what they are telling you is that they KNOW that it is hard to sell their stuff and so they want to collect funds from you to cover their costs at setting up your dealership or re-seller site. In some cases they just want to make money off of you and do not care if you make sales. They know that most people cannot sell and so at least they have earned SOMETHING off of you.

So, what is the point here? You will NEVER get wealthy (by anyone’s definition) by selling other people’s stuff. You must sell your OWN products and services and hire an army of affiliates to re-sell YOUR stuff. I have not read or encountered any Internet guru who would disagree with that.

That does not mean that affiliate programs do not work. They do. But you must be realistic about them and understand that the cash flow from them is directly proportional to the work and marketing effort you put into it. I receive income from various affiliate programs all the time but I could never live off of the income it generates. But if I get $50 to $100 a month on affiliate programs, WHY not cash the checks? . Now, when I sell my OWN products and services, however, I make a whole lot more money for about the same effort.

I hope that you see the point. To summarize: When companies are telling you that you could earn a ton of money, get wealthy, or even get rich by being their dealer, affiliate, or re-seller, they are misleading you. You COULD, certainly, but as you can see from the discussion above, it is highly unlikely. Now, if a company tells you that you can supplement your income by selling their goods, that is a much more honest approach.

So, if YOU wish to get wealthy, then I can tell you that the MOST IMPORTANT thing about making money on the Internet is owning the rights to your own products and services. Why? Profit Margin! When you are expending a ton of advertising resources in exchange for a paltry 10% or even 30% commission, your profit margin just does not make it worth while.

We all must expend resources to expose our product and service to potential buyers on the Internet. It is called advertising. This advertising expense reduces our net profit. As an ordinary affiliate of someone else's product or service, you can still make money, but not enough to satisfy the typical home business owner.

Now suppose that YOU owned the rights to a particular product or service. If your actual cost to offer this product or service was low enough, your profit margin would be only moderately reduced and the profit POTENTIAL significantly higher! You have a choice before you. You can choose to remain an affiliate forever, or you can choose to own the rights to your own product or service.

When you OWN the rights to your own products and services, whether it is an e-book or a "digital" product like traffic, you can afford to hire affiliates, run loss-leader promotions and STILL keep a fair portion of the income.

In other words, since you are enjoying a comfortable profit margin, you have the luxury of creating residual income through a network of affiliates or you can deeply discount the sales price of your product/service so that you encourage orders without reducing your income significantly. How do you do this? By OWNING a product or service that is uniquely YOURS.

What products can you own or obtain the rights to? Lots of them are available, like E-books, etc. And of course, IF you have excellent writing skills, you can author and sell your own stuff. Not many of us can do this. There are also companies out there who sell the "resale" rights to their product but realistically since they are selling "resale" rights, you will have competition all over the world.

Owning your own Internet based FREE Lottery will give you exactly what you need. As the Owner, you will be able to sell traffic! Traffic is one of the most sought after products on the Internet today. Some experts will tell you that it is simply KING!

Now even if you are an Internet marketing enthusiast or a newbie, you MUST realize that there are literally millions of websites in the world today that are depending on Internet sales to sustain their business. The Network Marketing or MLM websites alone number in the multi-millions. Since NONE of these sites usually get traffic on their own, YOU stand to service the needs of these millions of business owners. Think about that for a minute. Here YOU are with TRAFFIC to sell and there THEY are with NO TRAFFIC. Sounds like a good business match!

Of all the things that I have worked over the Internet since 1998, my own Lottery game has earned me the most money. YOU CAN DO THE SAME THING!

For more info about owning your own Internet Lottery game, just fill out the form that you find on this page: http://www.yourlottosite.com/moreinfo.htm or contact me and I will be glad to get back to you.

Meanwhile, remember that even when some people are telling you the truth, they may be misleading you!

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Article by Mark D. Petersen-Overton, Mark is webmaster of http://www.profitstation.com http://www.profitstation-isp.com is the manager and Marketing Director of Your Lotto Site at http://www.yourlottosite.com and assists his wife, Lotte with their free Lotto at http://www.all-prizes.com

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