The 1 Deadly Flaw of Affiliate Marketing

On the surface, affiliate marketing sounds like an ideal business model to make money online. However, you’ll find that the model has a deadly flaw when you look closer. Do you know what that flaw is? You better or it might cost you your life savings.

The basic affiliate marketing model sounds great on paper. There’s only three simple steps.

  1. Select an affiliate product to promote
  2. Buy traffic to send to the sales page

I’m sure you’ve all heard stories of affiliate marketers spending $10K a day to make $20K? It sounds great doesn’t it? Many people get into affiliate marketing thinking it’ll be their road to riches. Most will end up losing all their money because they fail to realize the one deadly flaw in affiliate marketing.

The Customer Doesn’t Belong To You!

When you make an affiliate sales, you get a nice flat commission for your effort. The only problem is that one time commission is all you get. What you don’t get is the customer. He belongs to the guy who paid you the affiliate commission. He will then go and sell additional products to the customer and you won’t see a dime of it, even though you were the one who brought him the customer.

Real businesses are built on repeat customers buying more and more stuff from you. How long do you think you can stay in business by using a business model that tells you to spend money on advertising to get a customer for someone else?

The Big Money Is In The Backend

Here is a secret to making money online. The big money is not in the first sales. The big money is in the sales after the first sale. The problem for you as an affiliate marketer is you only get paid on the first sale. Have you ever wondered why there are affiliate programs that pay 100% commissions? It’s because they’re making a killing on the backend, which they don’t have to share with their affiliates.

The backend income is the reason why successful affiliate marketers eventually develop their own products for affiliates to sell. My products include IM John Chow, Blogging with John Chow, WP Blog Videos, and Work From No Home. I pay affiliates 50% when they make a sale, and I am happy to do so because the customer belongs to me and I get 100% of the after sales.

The problem with creating your own product is it’s very time consuming and expensive. The sales letter alone for Blogging with John Chow cost over $10,000. Then there’s the video production team, the content creation team, the affiliate manager, customer support, server and affiliate software cost, etc. Unless you have a substantial amount of money to put up, and a well known brand/name, you’ll end up losing more money than doing just the affiliate marketing model!

Fortunately, there is an alternative model that combines the low start up cost of affiliate marketing and gives the same benefits of being a product producer.

Licensing The Rights To A System

Instead of being an affiliate of a product/system and earning only on the front end sales, you can license the product and own the customer so you get paid on all sales for life. My Online Business Empire (MOBE) is a perfect example of this.

MOBE has a normal affiliate program that pays 50% on their front end products. However, you can purchase a license and become a MOBE Licensee. As a MOBE Licensee, you get 90% commission on the front end and 50% on all backend sales. Most importantly, the customer belongs to you for life. Any future sales, whether made the next day or a year later, will result in a commission to you. It’s like having your own system, but without the $100,000 start up cost.

To give you an idea of how powerful this is, I like to share my personal case study. I am a MOBE Licensee. I purchased a license shortly after meeting Matt Lloyd (MOBE’s founder) at a mastermind in San Diego. In the first six month as a licensee, I made this much:


Unlike the Licensee Right program, MOBE has a normal affiliate program that doesn’t cost anything to join. If I was just a MOBE affiliate, and not a MOBE Licensee, I would have made this much: $12,238.75.

Do you see the power of the backend now? Do you see how much money you’re losing when you promote affiliate products that pays you on the first sale only? Wouldn’t you rather be a MOBE Licensee than an affiliate?

In many ways, MOBE is even better than producing my own products. Not only is the license so much less expensive than producing my own stuff, but MOBE has something that I don’t have. A phone sales teams. The phone team calls up my leads to offer them additional products and services, and I get 50% of all sales, for life. Imagine having your own phone sales team working for you. That’s what a MOBE License offers.

Want To Learn My MOBE Secrets?

I will be revealing how I made $128,804.40 in six month with MOBE at the Supercharge Seminar in Chicago on July 19 – 21. Tickets for this event cost $297 per person. However, Matt is offering free tickets to anyone who joins MOBE before Friday, April 26.

To get the free $297 pass to the Supercharge Seminar, you have to pay upfront for your MOBE License. While MOBE does offer a payment plan, it will not come with a free Supercharge Seminar pass. Buying the license upfront is definitely the best deal.

My Additional Bonus

In addition to the free $297 Supercharge Seminar pass, I’ve created an additional bonus package to make becoming a MOBE Licensee a no brainer. All John Chow dot Com readers who enroll as a MOBE Licensee between now and Friday, April 26 will receive the following:

  • A Brand New Apple iPad 4 (worth $499)
  • My original Blog Profit Camp program loaded onto the iPad (worth $597)
  • Complete Blogging with John Chow system with Automation Empire module and lifetime access to Blogging Done for You module (worth $598 per year)
  • Lifetime access to my WP Blog Videos training (Worth $1,164 per year)
  • A pass to the Home Business Summit (worth $197)
  • A review on John Chow dot Com to promote your product or service (worth $500)
  • Access to my Inner Circle Coaching program (worth $1,164 per year)
  • 2 hours of live coaching at the MOBE mastermind in Cabo San Lucas (worth $4,000)

That’s over $9,000 of additional bonuses. To get my bonus, all you have to do is enroll as a new MOBE Licensee.

Enroll In The MOBE Licensee Program

Then forward me a copy of your receipt. You must use the above link in order to show up in my MOBE control panel. If you don’t show up, I can’t send you the bonus. You will get instant access to the entire Blogging with John Chow system and WP Blog Videos. You’ll get the reminder of the bonus after the 90 day refund period. Even if you refund the license, you can keep Blogging with John Chow and WP Blog Videos as my gift to you. You have nothing to lose and everything to gain.

To find out more about MOBE and the MOBE Licensee Program, watch this webinar that Matt did showing how he scaled MOBE from $700/month to over $300,000/month in less than 18 months. He also laid out the plan on how he will scale to $20 million this year. Most of that money will be paid out to licensees.

Remember. The free Supercharge Seminar pass, and my additional bonus of an Apple iPad 4 and over $9,000 of my best products ends this Friday April 26, so take action now. I look forward to helping you with your MOBE business.

Enroll In The MOBE Licensee Program