On the one hand, it’s a business skill that’s easy to learn and has a very low barrier to entry to get started.
On the other, this accessibility means that many people who start new affiliate businesses never take the time to develop an affiliate marketing business plan for their site.
This, in my mind, is a huge gap that needs to be addressed.
Benefits Of Having An Affiliate Marketing Business Plan
Firstly, I want to point out why I think developing a clear plan is essential to running a successful affiliate site.
I think of my affiliate work as I would any business. I invest my time into building an asset that provides me with residual income in the future.
Like any businesses, there are lost of costs and benefits to consider.
Would you ever consider starting a construction company or a law firm without thinking through all of the steps involved? Probably not. The same is true with internet businesses.
Having a business plan in place will help you plan the primary objectives for your site and a timeline to work from. This will give you a better idea of how and when to evaluate your progress, as well as keep your day to day actions focused and productive.
It also helps you step back from the day to day grind and understand the big picture about why affiliate marketing has such a huge potential.
How To Develop Your Plan
When you’re developing plan, I always recommend you use a “Plan Backwards, Act Forwards” approach.
This means that when you’re setting your big picture goals and milestones, you need to envision where you want your company to be in the long term. If you can envision your success 1 year or 3 years from today, you’ll be able to work backwards to see how you can bridge the gap between achieving those goals and where you are today.
I always use 1 and 3 year timeframes because studies show that individuals tend to consistently overestimate what’s possible in 1 year, but underestimate what’s possible in 3 years. Using both of these metrics helps find a realistic balance you can attain.
I also recommend that you not only evaluate the fundamentals of the company (eg: financial projections, growth marketing strategy, etc) but also look at what additional education or training you, as a business owner, need to develop.
Click here to learn more about extrapolating affiliate financials, or click here to figure out what skill sets you need to develop to be successful.