Here is another sentence that will make you sick: the money is in the list. You may get tired of hearing it, but it gives you a slap for a reason: it’s the truth! First, we answer the question “What is a list?” and then go into more about why you need to build a list.

A list in Internet marketing terms is a database of contact information for potential customers. Imagine you have a product or you promote gardening products and someone subscribes to your list. They are now a prospect that you can market to until they unsubscribe from your list.

So, why is it so important to build a list?

Let’s say you start our as an affiliate marketer. You find a niche that you really like and start working on what you’ve learned about generating traffic to your affiliate links.

During a 30-day period, 5,000 potential customers who is interested in your niche goes through your affiliate link to the product owner’s site.

They also buy, yes! You receive a commission of 50% with a conversion rate of 2%. This means that 2 out of every 100 people you sent bought the product. Your share was $26.00 (for example). In this example you just made $2,600 this month, FANTASTIC!

But you are leaving money on the table. Those are only 100 people who bought out of your 5,000 clicks? Now these people are now on the list of the owner of the product, not your own list. So, what that list owner is going to do is send them more offers in the coming weeks.

After all, they are proven buyers. In the next 30 days, those buyers will spend money for the products that complement or complete the original one that they bought. That money goes to the owner of the product, not to you. This is because he has decided to build a list from the beginning.

There’s a better way to build your business.

A better way to build and online affiliate marketing business is to start with a list from the first day. Do not send traffic from a single person to hit your affiliate links without first acquiring the name and email address. Make sure to set up your business system to create an email list.

You can have unlimited lists for different niches using a simple tool like Aweber or GetResponse. These email autoresponder services costs around $19.95 per month. Every day you can log in and see how many people have registered to be on your lists and you can create automatic messages to send them and convert the list into multiple sales in the future.

Why should the affiliate product owner get to earn money from the person over and over when you’re the person that brought them the customer? Start to build a list first and you will be on the fast track to success when building your online affiliate marketing business.