In this episode of Start A Business With Startup Daddy, I talk about Affiliate Marketing.  It is a type of home based business that offers flexible hours and location, as well as leaving plenty of time in your day to spend with your family or to pursue other interests.

I explain what affiliate marketing is, the different types of affiliate programs, where to find and apply for affiliate programs, and where to go to learn more about it.

Places I mention in this podcast episode:

• Warrior Forum
• Amazon.com Associate Program
• Clickbank.com
• CommissionJunction.com
• Google Sync

Download the Mp3 file

Ready, Fire, Aim! This is how most people start a home based business. This is how most people start any business; how most companies launch a product. This is how I did things when I first started along my entrepreneurial path, and let me tell you, it is one of the most expensive and important lessons you can learn. You have probably heard, “People don’t plan to fail, they fail to plan.” It’s true, and if you are even thinking about starting a business, you better remember it.

So where do you start? A business plan, right? Wrong! This is very important, and I will get into that later, but the place to start is your idea to start a home based business in the first place (or any business for that matter). Let me tell you about one of my flops.

I was about 25, and I moved back to New Orleans to pursue a business opportunity that eventually fell through. I had just sold my first company, and I was rich. After paying off a bunch of debt, I had about $10 thousand in the bank! Listen, when you’re 25, and that is more money than you have ever had before, you think you’re rich. I put the whole thing into spray mace (pepper-spray) distributorship. This is a self defense spray, and since New Orleans had such a high crime rate, and was at the time, the murder capital of the US, I thought I had a no-brainer here. I was very wrong.

Long story short, I finally threw out about half of my INITIAL inventory investment about ten years later. Maybe the people who were interested in carrying something to insure their personal safety were all carrying guns, I don’t know. What I do know, is that I will never invest my time or money into a venture again, without first testing to see if there is a market for the thing.

It is far easier to find a market and provide them something they want, than it is to have a product and find a market for it. Notice I said, want not need. It helps to be a member of your market too. It is not a requirement, but it sure makes things easier and more interesting if you can relate to the people you are trying to sell to.

A good way to start, is to think of a product or service that will make your life easier, better, more fun, exciting, you get the idea. Do some research to determine if other people are looking for it. Search online for the product or service, and see what comes up. Do some keyword research (If you don’t know how, I will get into how to do keyword research in a future post). Search online forums for groups that represent your market- just add “forum” to the description of your group in your search. See what they are talking about. Can you help them?

This is finding a niche. Identify a market and identify something they want. If you do that, you are onto something. Remember that people are more likely to purchase something they want, than something they need. This is why it is more dangerous to walk into a Best Buy than a Farmer’s Market. Don’t, “Ready, Fire, Aim!” Take careful aim and you will exponentially increase your chances for success.

If you don’t have a pet, you may not be aware of how enormous the Pet Industry is. Even if you are a pet owner, you may not know how much money Americans spend on their pets each year. According to a BusinessWeek cover story from August 2007,

• Two-thirds of US households, 33%- 71 million homes, have a pet.
• This is up from 64 million, 10% just five years ago
• Americans spend $41 Billion a year on their pets – that’s billion- with a “B”
• This has doubled in the last ten years
• Spending is expected to hit $52 billion (a 25% increase) in 2 years.

Some more telling statistics:

• 42% of Dogs share a bed with their owners
• 30% of pet owners buy their pet birthday gifts
• 31 million dogs & 39 million cats received holiday presents last year

Has this got your attention yet?

Pet Smart is the largest pet retailer in the Unites States. Their service business is now $450 million a year. This grew from less than 1% of revenue in 2002 to 10% in 2007. They now refer to pet owners as “Pet Parents” in their marketing. They obviously understand that about a third of the people who have pets, think of them and treat them like human members of the family.

Expect some of the trends in how we spend money on ourselves to transfer to how people spend money on their pets. Premium pet food, like organic, vegan, and Kosher is increasing market share. The tainted pet food scare last year served to help this segment of the market. Some businesses experiencing growth recently:

• Luxury pet “spa” groomers
• Pet “hotel” boarding facilities
• Dogie daycare
• Designer pet attire

People have shown the willingness to spend big money on their pets. You should definitely be looking to find a way to accommodate them in the coming year.

I am sure there will be thousands of articles about predictions for 2008, but that is not going to stop me from adding my two cents. I am going to talk a lot about having multiple streams of income as I guide you along your path of entrepreneurial success. You need to have a main business, sure, but you must also have multiple source of “passive income”. These are little ventures or projects, that take some work in the beginning, but then generate income over time with no more work on your part. A How To book or e-book, sold through a website, is a great example of passive income. This is that, “Make money in your sleep,” thing you hear so much about. So from time to time, I will suggest a Hot Market that you should consider starting a business, or at least a sideline in.

Today, I am going to talk about the Senior Market. For an in depth look at statistics for the aging population in the U.S., see the website for the Department of Health and Human Services Administration on Aging. Here is a quick snapshot of what you will find:

• Of the approximately 300,000,000 people in The United States, 12-15% (about 37,000,000) are 65 and over.
• Over 50,000,000 are 60 and over.
• So it is expected that by 2030, 20% of the population be 65+

Is that a big enough market for you? You may have heard the term, “Sandwich Generation.” This describes the millions of people that find themselves responsible for the care of both their children and parents at the same time. Expect an explosion of businesses that provide assistance to these people. Will you be one of the businesses that are already established when this explosion hits? You better be. This is not a generation that grants its trust easily. Creatively providing services to make life for seniors more satisfying, comfortable, stimulating, and fun can make you rich. Making life easier for the “Sandwich Generation” can also make you rich.

• Health Care, Medical, and Fitness Services
• Home delivery of everything from groceries to prescriptions
• Social and Educational Activity Services
• Distance Learning

These are just a few examples of businesses that will experience growth.

Senior housing, and businesses that provide ways for seniors to stay in their own homes longer, already are, and will continue to be in great demand.

It has been my experience that the best Home Businesses are service businesses. No stock, or inventory, far better hours than retail, less labor concerns, and far less tax and regulatory concerns than product businesses. Have a good, creative way to provide a needed service to the senior community, and you will be rewarded with loyalty, word of mouth advertising, and a fulfilling way to earn money.