Are You Losing Money With Build A Niche Store?

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OK, I’m in my 4th month of seriously using BANS and focusing solely on BANS business promotion.  Last month I earned $295. I just ran some numbers and it turns out that $295 was based on $6,427 in sales. So, my little sites generated $6,427 in purchases? When I do the math that equals a little over a 4.9% commission rate. Now the question is, am I losing money by referring buyers to eBay instead of other more high paying affiliate programs?

To answer that, one thing has to be made known. People buy on eBay for price and availability. I have to ask… Would I have generated that many sales if those items were full price? The obvious answer is no. Clearly people buy on eBay over full price retailers because of the discounts they get off literally the same merchandise.

So, the quick answer is no. You are not losing money going with BANS because chances are those sales would not have happened if they were confronted against full retail prices.

However, the long answer is not that cut and dry. I still think that snooty buyers are somewhat turned off by eBay. They don’t want to buy someone’s hand-me-down or a second hand item. They are willing to pay online retail to get that fresh out of the box item. So, for them it is critical that you give them an out. You have to give them an area of your site that is full dedicated to the snooty. The snooty zone.

In the snooty zone you will have all of your direct CJ, Amazon, Linkshare links to the items you feature on your site. That way they can click and be shot over to a retailer that they may feel more comfortable buying from.

So the point is, cover your basis. Use BANS for the thrifty shopper looking for a deal. Use your regular affiliate links for your snooty shopper.

Posted in: Build A Niche Store Tips August 2008

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