| By :
Jeff Schuman
In this article I want to talk about how to make money online using the concept of loss leaders. I was just talking to the Schwan's guy about how one of their chicken products is a loss leader. It's a quality product that they sell lower than the competition in hopes of getting people to buy more of their products. Wikipedia defines a loss leader as a product sold at a low price, at cost or below cost, to stimulate other profitable sales. This got me thinking about using this strategy for online home business opportunities. My Affiliate Power Site does this. This is an affiliate program that sets you up with your own affiliate site coded with ID numbers for various ways to make money wirh affiliate programs. In reality most of affiliate marketing is a loss leader for their affiliates. They give you everything you need for free to get started. You provide marketing expertise and drive traffic to your website. When the website visitor completes the required action you earn money. This is really a win-win-win situation for your website visitor, yourself, and the affiliate merchant. Affiliate marketing is a business model that really allows you to take advantage of loss leaders in numerous ways. Think about other ways you can incorporate this philosophy into your own online home business. Email marketing immediately comes to mind. You offer something for free in exchange for your visitor giving you their name and email address. This is the basics of list building. You then follow up with your subscribers to build relationships. Over time begin to offer them products that you hope they will purchase. One thing you could do is sell a product at cost or below on your blog. Drive traffic to your blog with the idea that they can purchase more of the things that you sell. This is a good strategy for generating blog traffic, sales, and repeat visitors. If you do any type of ecommerce you can of course really take advantage of this strategy. Today people are very price conscious and do spend time researching things online before they make a purchase. Set yourself up with a niche website that sells products that relate only to your niche. Promote products at cost or below, and when your website visitor arrives offer other things that you bundle into a package to increase your sales and profitability. If you spend time studying ways to incorporate loss leaders into your online home business I am sure you can come up with more ways to make money and build your email list.
|
![[Valid RSS feed]](http://www.articlesbacklink.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
