Everyone talks about how affiliate marketing can change your life when you start making big money.
But what happens when the cash stops flowing?
Affiliate marketing can be feast and famine sometimes.
After all, you're usually at least partly dependent on someone else's platform — Google, Facebook, what have you.
There are things that could go horribly wrong and diminish or even halt your cash flow.
A change in Google's search algorithms could get your site penalized, killing your SEO and leaving you stranded without an income stream.
Or Facebook could change their policies, or even delete your account.
Again, this could have serious consequences, and that kind of thing is really hard to fix.
Plus, some things can sell for a while, then peter out over time.
Someone out there made a lot of money with fidget spinners, but chances are, they're not making nearly as much these days as they were when the fad was at its peak.
In a recent blog post, affiliate marketing expert Charles Ngo offers some sage advice on how to make the right preparations while you are making money, so if the worst case scenario ends up happening, you won't find yourself scrambling to pay your bills and keep your business going.
What To Do When You’re Making Money
Ok so now you’re making money. Congrats!
The most important mindset to have is to have this sense of urgency.
There are no guarantees in this industry; the only guarantee is what’s in your bank account after taxes.
Here are some things you should be doing once you’re crushing campaigns.
1. Diversify Within Affiliate Marketing
There’s a term in business called the concentration of power.
It’s where too much of your business relies on one thing.
If you’re a YouTuber, what happens if YouTube shuts your business down?
If you’re all in on Facebook, what happens if FB bans your accounts?
“But Charles, everyone always talks about focus!”
You should laser focus when you’re starting off.
But once you have momentum, then your job should be to go on the defensive. Expand your team so you can handle different traffic sources or campaigns.
2. Diversify Outside of Affiliate Marketing
The average millionaire has seven different streams of income.
I know that supercar is tempting, but it’s always going to be there.
You know what’s better than Lamborghinis?
Peace of mind. Finance security.
Not having to go back and get a job in digital marketing because you blew your whole wad on a 500k car.
Some forms of passive income: investing in businesses, real estate, buying web properties, index funds, cryptocurrency, etc.
Think of your wealth like the pantheon.
[image source: Charles Ngo]
Each income stream represents a pillar. If a pillar or two comes crashing down, then the building still holds.
I also have affiliate marketing coursesthat generate revenue. I max out my retirement savings every year, etc.
It brings me peace of mind knowing I have income coming in other than just campaigns.
3. Ride the Momentum
[image source: Charles Ngo]
If you’re crushing a campaign then it’s NOT the time to travel.
Milk that shit as hard as possible.
A competitor might discover your campaign.
Be aggressive and make your money while things are hot. Don’t assume the campaign’s going to last forever.
4. Keep Your Life as Lean as Possible
I know it’s tempting to upgrade your life.
Trust me, hold off as long as possible
As soon as you upgrade your condo or your car, then the rest of your life needs to be improved.
I remember the first time I built an “office.” All the offices asked me for $3,000 a month. I didn’t want that kind of overhead.
Instead, I rented a two bedroom apartment and put all my employees in there. It was $800 a month.
That’s $2,200 a month extra for campaigns!
Affiliate marketing can change your life by bringing in more money than you've ever dreamed of.
But it can also turn into a nightmare when something goes wrong. Planning for the worst is essential, especially if you're relying on this as a full time source of income.
You can read more about how to navigate the “feast and famine” aspect of affiliate marketing in the full blog post from Charles Ngo.