Business Plan – Essential Elements-2

Essential Elements of an Affiliate
Marketing Business Plan – 2

There are four essential elements for an Affiliate Marketing Business Plan. They are:

  1. Goals & Objectives
  2. Market Research & Analysis
  3. Financial
  4. Promotion & Marketing

This post will deal with item number two; Market Research & Analysis.

Market Research and Analysis

You need two basic tools to do a Market Analysis. 1Google and a 2keyword database. Wealthy Affiliate offers a keyword database titled JAAXY.

Take one keyword for your Niche that you will be building a site containing content of your Niche and enter it into Google Search. This will give you short phrases or “long tail keywords” to enter into the database JAAXY. This will give you a screen that looks like this:


Below are the acronyms numbered above:

  1. Keyword = One of the phrases from the google search
  2. Avg = The average number of searches
  3. Traffic = Visits to your site if you are ranking number #1 or really close to it.
  4. QSR = Quick search results – Competing websites for this exact keyword
  5. KQI = Keyword quality indicator – Green = Great, Yellow = Okay, Red = Poor
  6. SEO = Search Engine Optimization – A score based on traffic and the competition.
    The higher this score, the more likely you are to rank for this keyword
  7. DOMAINS – Availability of Domain Names now in JAAXY so you can decide on your site name.


You can save your searches and your lists of keywords, access affiliate programs so that you can monetize your products, and Brainstorm. Brainstorming your business name, your domain name and your most effective keywords.

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Revenue Projections

Now you should be able to offer some projections as to how many of what you might sell of the products you will be monetizing from the traffic you are driving to your site via SEO. If you rank and receive organic inbound leads, you should have 14.6% percent close rate vs outbound leads (such as direct mail or print advertising) have a 1.7 percent close rate, according to Eric Siu for Search Engine Journal.

Now the actual conversion to sell percentage is broken down by the industry you are blogging about. The overall average percentage of visit to lead is 16%. But your lead to sale rate breaks down as follows:

  • Media or Publishing: 20 percent
  • Marketing agency or consultancy: 20 percent
  • Education, training, nonprofit: 18 percent
  • Technology (hardware, software, IT): 15 percent
  • Manufacturing, construction, consumer goods: 15 percent
  • Professional service (financial, legal, etc): 14 percent
  • Retail, commerce, wholesale distribution: 11 percent

The quality of your content is what turns that lead into a sale. The number of your pages for your site matter to google for ranking your site high and the number of landing pages that you have all play a part in how successful your site can be.

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The Math of the Revenue Projections

A good estimate for the amount of visitors to your site in a month could easily be 1500 people. Multiply that by the percentage that fits your industry, I will use 20% for Media & Publishing. Multiply that by amount that your products sell for, for an example we’ll say we have products ranging from $25 to $50. And the sale of each is about half and half. 1500 people x .20 = 300 people converting to sales. Half of your leads buy a product at $25/ea so that would be 150 people x $25 = $3750. Half of your leads buy a product at $50/ea, so that would be 150 people at $50 = $7500. Total for the month would be revenue of $11,250.

If you are an affiliate marketer you receive a percentage of this revenue. That amount would be determined by your commission percentage offered by the company whose products you are selling. This would be your Gross Profit. Your Net Profit would be your Gross Profit minus your expenses to market and sell the products. So this is how you would come up with your projections of revenue for your business plan. We will get into the accounting end of this in another article.

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To Summarize

To summarize, you must decide on a Niche. This being the industry you will be researching and monetizing on your site. Once you have done this, and found some keywords that will rank you on the search engines in the top five, then you can look at the products that people have available in your industry to place an affiliate link to on your site within your high quality content. You can even do a market share analysis (at least a good estimation of it) by looking at your competition and the products they offer with how their site is ranking as well. You will also be able to note the differences so that you will know what your site does differently than your competition and that can be a selling point.

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What do you think? Please let me know in the comments below.

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