Why Target The Affluent?
As you know this website is primarily a resource center for finding big ticket affiliate programs that will pay you the highest commissions available.
But if you take a step back you’ll discover that there’s a much more important element of this website and that is preparing you to become affluent yourself. Let me explain…
One of the keys to becoming wealthy in affiliate marketing is helping as many as your customers find what they’re looking for and convince them to buy from you. When you get them to buy from you once your goal is to make yourself the go-to person for them in whatever niche you’re helping them in. If you help enough affluent people find what they want you’ll quickly notice yourself becoming rich because we’re focusing on higher end goods and services. Remember what Zig Ziglar said:
You will get all you want in life, if you help enough other people get what they want.
But to get affluent consumers to buy from you consistently you’ll need to tailor your approach to meet their lofty needs. To sell to the rich you need to learn not only how to find rich buyers but understand how they make their buying decisions. The process is different than the way most people buy things and if you don’t have an understanding of this process you will fail.
So Why Target Affluent Buyers?
It’s where the money is. Since affluent customers have much higher levels of disposable income they’re more likely to follow through on their buying decisions. Did you know that the affluent market segment accounts for nearly half of all retail sales? “Affluent and wealthy households represent 10 percent of total U.S. households, but account for 50 percent of all retail sales and 70 percent of all retail margins.”1*
Ok cool, but do affluent consumers buy stuff online?
Does that get your attention? How about the fact that affluent consumers represent a much higher average lifetime value to you the digital marketer if you sell to them and continue to make them happy.
If you become good enough at selling to the affluent you have a very good chance to become rich yourself. Affluence is as much about mindset as it is about skill, perseverance, and even luck. Since this market segment is underserved, people who understand and learn how to get good at selling to people with alot of money can make themselves indispensable to the clients they serve. Once you become the go-to-guy/gal for your clients they will buy from you again and again because once they like you and trust you they’ll soon depend on you.
When you get enough affluent clients buying from you on a regular basis, you too will become rich.
What About Luxury eCommerce As A Whole?
2014 was a record year for the luxury market segment with over $1 trillion dollars in sales and this growth trend is poised to continue this year. Internet sales of luxury goods is still in its infancy but is poised to explode in the next decade. As an affiliate marketer this is the area that excites me the most. Listen to this:
“Ninety percent of luxury purchases, which some analysts say is a $300 billion industry, still happen in stores, according to Forrester Research (FORR), but that’s skewed by the limits of acquisition placed on most high-end shoppers. The real business failing, says Forrester analyst Sucharita Mulpuru, is that “there are a lot of affluent people who are intimidated or annoyed by shopping at luxury retail stores.” And who can blame them? Mulpuru recently advised a brand whose executives admitted that one way they interact with shoppers is by writing down descriptions of the outfits they wear into the boutique. A computer would never side-eye your ratty T-shirt like that. “A lot of rich people are also busy,” Mulpuru goes on. “They’re not all ladies of leisure with infinite time to shop.”*
The new frontier for luxury market sales is the internet. More and more products and services targeted to affluent buyers are becoming available through ecommerce. This is a trend that affiliate marketers are foolish to ignore. The affluent have more money to spend than ever and are turning toward online sales at an increasing rate. Smart luxury goods companies will understand the importance of affiliate marketing and will continue to roll new programs out.
If you focus your efforts toward learning how to sell to the affluent this year you’ll be way ahead of your affiliate marketing competitors still trying to sell low end products to people who don’t have alot of disposable income to spend.
The Future Of Selling To The Affluent Online
With sun setting on the baby boomer generation the next wave of affluent consumers will be the Millennials. According to the Ipsos Mendelsohn Affluent Survey there are currently just under 12 million millennials age 18-30 living in U.S. households with annual incomes exceeding $100,000 (which is the minimum income defining the affluent market). Many Millennials that represent this segment are being raised by wealthy parents.
The best thing about Millennials, as an internet marketer, is that they prefer shopping online. Unlike the baby boomers, their generation grew up with the internet and all of the rapidly-evolving technological toys (smart phones, pads, etc.) making them quite comfortable buying things online. Millennials love to spend their disposable income on technology, entertainment, and travel
According to research by Unity Marketing, the Millennials will take over as the largest generational segment in the luxury consumer market around 2018-2020. It would be wise to learn more about this emerging market segment and look for opportunities to help them find what they’re looking for online.
Selling to the affluent takes some homework…
If you would like to start that work now
Click Here and start selling to the affluent.
This program is not cheap but you’ll need to spend some money to properly infiltrate this market and this program is worth every penny.
- * Microsoft Advertising
1. eMarketer, September 2010 (The 2010 Survey of Affluence and Wealth in America)
2. Nielsen @Plan Q4 2011
3. eMarketer, Feb 2012 (Reaching the Affluent Market Online)
4. IAB, July 2011 (Affluent Consumers in a Digital World)
5. iProspect/CNBC.com, May 2012
** Businessweek: Luxury Brands Are Stupid to Snub the Internet