Episode 56:Make Money Online Mailbag: This Is Your Fault

Summary

A mailbag episode where Nick and Kai work through listener questions on qualifying clients, premium pricing, speaking engagements, affiliate marketing, and client gifts. Several concrete frameworks surface across the answers: a two-step intake process, price anchoring with a high-end offering, and a 4-to-1 content-to-pitch ratio.

Highlights

  • Kai’s client intake runs two stages before a call: a website application form (Wufoo or Gravity Forms), then a secondary qualifying form, then a go/no-go decision. On the call he runs 5 to 7 fixed questions including ‘How do you make money?’ and ‘Why me, not someone else?’
  • Nick started invoicing family for malware removal as a teenager and they stopped asking fast. Kai’s version: free work goes to the absolute bottom of his list with no due date, paying is the only way to move it up.
  • Nick ran a $30,000 productized SaaS redesign offering for a year and got one client. His argument: a premium item anchors everything else upward, the way Prada’s $300 t-shirt justifies a $2,000 bag. Kai adds that an old proposal is the fastest source of copy for that sales page.
  • Kai’s advice on speaking: beginners should take any free slot, pay their own travel, and make getting a recording the top priority. He paid a friend $100 and lunch to film a university talk. He once contacted an author about speaking at a conference and got back a quote of $50,000 a day plus travel.
  • Kai credits Nick’s sales results to a 4-to-1 ratio: four educational or entertaining pieces for every pitch. By the time Nick mentions something for sale, the audience either wants it because it solves a problem or wants to support someone they already like.
  • On affiliate marketing: Kai puts a non-affiliate link next to every affiliate link so readers can choose, and offers an exclusive bonus, templates, a screencast, a checklist, to people who sign up through his link. He only promotes tools he already pays for. Nick’s explanation for why affiliate marketing feels gross: trustworthiness is missing, and the Wirecutter works precisely because it is ‘unbullshittable.’
  • Kai’s minimum viable client gift: 10 copies of a book you loved, a handwritten note, mailed out. A consultant sent him a tin of cookies at Christmas and he wrote a thank-you while eating them. His main point is that the habit needs an SOP or it stays an intention.
Read the transcript
Nick

I love it. Yeah, Kai loves it. I look at it and I’m like, wow, these are shocking. Here’s the first one: qualifying clients and being picky. That’s not a question. That’s I don’t know what to do with that. I am picky with my clients. it is good to be picky with your clients because that way you view you get viewed as a more premium service. and you flag as somebody who does not take crap so easily. Those are both very useful skills that you can leverage for your existing clients, that you can garner respect from them and set boundaries effectively. Being picky also maps into your positioning quite effectively because you are establishing a set of clear criteria as to what constitutes a successful client engagement. If you’re just asking anybody to come in the door, you’re going to get very few decent leads, and you’re more likely to get leads that don’t actually resonate with what you want. Put another way you’re not controlling your message.

Kai

One thing I see most people struggle with when it comes to qualifying clients is how do I get started with this? And there’s a lot of different ways you could do this, but what I find is the most effective is a two-part process. Part one is Set up an application form on your website using WooFoo, Gravity Forms, whatever form service you want, and have that be the primary way somebody gets in contact with you. And kick them over to a qualifying application after that. I mean, think about how doctors treat you when you go to the doctor’s office. You don’t show up and say, I have a broken elbow, give me some pain pills. You show up, you fill out an intake. Form, you answer questions, they diagnose you, they qualify you as a patient before you could even work with them. And it’s important to have something similar set up. So, what I recommend doing is Have that intake process defined. Somebody fills out this application, they get redirected to the secondary application to tell me more about their business, and then I go no-go on calling them. Once you’re on that call with them, have a list of five to seven questions that you ask them. Just go-to questions. My personal favorites are like Tell me about your business. How do you make money? What’s the number one issue you’ve experienced over the last two months? How can I help? Why me? Why not someone else? Questions that help me understand why they’re seeking me out. And also. What exactly is the problem that they’re trying to solve by talking with me, by applying to work with me? I put together some thoughts on this and some starting resources to help people who want a client intake process and a client qualification process get started at ClientintakeCheatsheet. com. We’ll drop a link into the show notes, but you just give me your email address and I’ll send you over some nifty resources on getting started with a client intake process.

Nick

Next question. Friends and family asking for free stuff. This isn’t a question. I guess the actual question is what happens when your friends and family ask you for free stuff? I’m gonna begin with a story. Um so I started um I I I grew up really antisocial, shocking exactly nobody and so at like family reunions I’d be in the corner on my grandmother’s computer doing shit. And eventually, people started realizing that was the computersman. And so they started asking me questions about how to computers. And I was like 10 or 11. And so I would be, you know, initially generous. And then once I grew up and got to be 12 and 13, I turned cynical and started listening to the band’s 9-inch nails and tool. And so, my recommendation to you, dear listener, is listen to those two bands a lot while playing Doom Death Match. That’s going to get you into the right mindset for the actual recommendation that I’m about to provide. Which is start invoicing your friends and your family. I started establishing and charging an hourly rate for me to clear malware. Malware is apparently something when you buy a PC. And things happen on the PC because it’s not an actual useful tool in any way. I’m going to get so much angry email. Fuck him. Um kid hamack. It doesn’t break unless it does, which it did last night to my partner. Anyway Um, they’re going to buy these PC things and then they’re going to get malware on them, and then they’re going to ask you, dear computersmen, to unmalware the malware. Um and uh And then I have to call up Russia and ask them really nicely to get rid of the malware for me. And then I charge them for that. And once I started doing that, they fucked off pretty quickly.

Kai

Yeah, I agree. If you establish a price, people suddenly start saying, oh, it’s not free. I’m going to go somewhere else. And putting a price in front of somebody is the quickest way to discourage them. I mean, we give the same advice to consultants and freelancers who say, I get a lot of people applying to work with me, and like 10% of them are real people or real projects. A lot are just tire kickers. What should I do? Our advice is: you know, put a price in front of them, have a road mapping session. Say, great, it’s this much money to get started. People will either walk or decide to work with you. It applies the same way when it comes to friends and family asking for free stuff. One thing I do is Occasionally, I will do a free project for a friend. Like, friend is a website. They’re like, I can’t get the thingy to do the thingy. Can you help me? And I’m like, sure, it’ll take me 10 minutes, and I love you. But what I tell them is, if I’m doing this for free, it is lower than the lowest priority on my to-do list. I cannot give you a due date. I cannot give you a will be completed by date. It’s going to be the, I’m bored and procrastinating and want something to procrastinate on, so I’m going to do this thing now. It might be in two months when I get to it. The only way to make me pay attention to it. is by having it be a paying project. So again, I think it all circles back to if you present them with that cost, then it’s either going to be a cost in terms of time and attention, this is going to get none of my time and attention. Or cost in terms of money, you’re buying my time and attention, you get better results. I honestly thinking about it, when’s the last time a friend or a family asked me for free stuff? It’s been a long time since somebody said, Hey, Kai, can you do this like web thing for me? It doesn’t happen that often. I think it’s more of a fear than something that often happens. But wrapping up on this one, if friends and family are frequently asking for free stuff, say, Great, it’s X dollars or X dollars an hour. Here’s my PayPal. And congratulations, you just made money, or congratulations, you don’t have to do free work.

Nick

Yeah, just don’t bother. Libraries exist in order to teach old people how to DML wire their computers at this point and fill out forms on the Internet. So send them there. Having a premium service as a consultant, when do you have this versus purely productized offerings versus do you productize it? That’s all that’s three questions. It’s too many questions. You tried to get away. Is this the White House? It’s like a three-part, four-sub-part question. Oh my God. Having a premium service as a consultant, your consulting should be a premium service, shouldn’t it?

Kai

Well, at the same time, like we talk a lot about productized. Consulting, and when do you offer like that Cadillac option? So you’ve got Draft Revise, you have Revise Express. Does it make sense to have like, here is the thirty thousand dollar I only sell one of these per year because that’s how many I want to sell option, both as a price anchor and also to offer as a premium service to clients who show up and say, we have the budget, we want the full service option.

Nick

Right. So I think the deeper question is, do you offer a premium service as a productized service? Because what I kind of personally believe is everybody’s got a high enough price. If I go, say, to like a fancy famous consultant like Alan Weiss or somebody with $2 million And I’m like, here, just bespoke service me. He’s going to take it seriously, and then I’ll pay him, right? Like, everybody’s got their price. But it’s not like he productized it and we’re developing a roadmap together. Me too, right? Like somebody just came in the door a couple of weeks ago and was like, Hey, Nick D, I want to do design research. I’m like, great. It’s going to cost you, and I know they’re serious, but like, right? But it’s nowhere on my site, there’s no draft this thing that I’m doing. So I think that’s kind of the question. Like is it appropriate to make this into a productized consulting service? And the answer is maybe, and I haven’t had an insane amount of personal success in it. Like I have had success, but like I had Draft Foundation for a year or so where I did like a full board redesign of your SaaS app. That got one client. Now, that one client was worth $30,000, which is great, right? Like, I’m not about to shun $30,000 at all. But it also only had the one client. And after that, I was like, what on earth do I do with this? Do I just have it there as an anchor? Now that’s an interesting notion. So if you don’t know a lot about price anchoring, we should probably do a whole episode about this at some point. But like one of the things It’s like if you walk into Prada, really, what do you buy at Prada? Handbags, shoes, like leather goods, that sort of stuff. But they also have t-shirts at Prada. You know they have t-shirts at Prada? I had no clue. I’ve never been in a Prada story. Okay, so you and I actually should go to NMA at some point and go into Ferragamo and Prada and Barney’s just to think about luxury pricing because. It’s instructive. It’s actually really interesting. They have $300 t-shirts in Prada. Now, does anybody buy the $300 t-shirts in Prada? Now, if you are insane and made of money, maybe you will, right? Like, they obviously make them to get purchased. But prod aren’t exactly known for t-shirts, right, or socks or whatever. What they have is a $300 T-shirt in order to justify the $2,000 bag, right? Now that goes in both directions. You can have, there’s an Italian menswear company called Katan, K-I-T-O-N. They’re from Naples. I think they’re from Naples. And they make um they make suits and they have a lot of Author Acts stuff, but they’re mostly known for their bespoke stuff. The reason they’re known for their bespoke stuff is they have something called I believe it’s the K50 or K twenty, something like that. And it literally takes a tailor, like something like six weeks of hands-on consultation and multiple fittings in order to build this suit for you. And it’s the best suit you will ever encounter in your life, and it costs like $50,000. They make eight of them a year. Right? It’s not exactly like they’re doing this in Gangbuster sales. In fact, I don’t even have to sell the eight of them, right? They probably do because people are insane. But they’re doing that in order to anchor the pricing upwards on their other offerings, right? Knowing that they do that allows them to charge $10,000 for an off the rack. Now think about that with your consulting offering. So I think there’s value in just putting it up there. But like Do you want to be spending an insane amount of money making a product funnel that ladders up to that? No, you want to keep be getting more people for your freebie stuff so you can get people in the bottom. Because A, there’s more signal and B, it’s more interesting, and it’ll probably make you more money.

Kai

And I think on the benefit of having, I fall on the side of wanting to have a premium service on my website, even if it’s You know, 2,000-word, 1500-word, 1,000-word sales page I wrote, describing what it is, apply here button, even if nobody ever buys it. It lets me point to it to say, I’m available for large-scale six-month engagements that look like this and start at this five-figure price point. Do you want to talk about this? Excellent. Fill this out. And I think it. Positions me and price anchors me well for all the other things that I sell. And even if nobody goes for that option, it’s similar to the most expensive bottle of wine on the menu. It’s going to make everything else look. Slightly cheaper or a lot cheaper in comparison. And I think there is a benefit to having that. One trick I’ve seen used and am planning on using is If you write a proposal for a high-priced service offering that could act as that premium service offering, essentially white label that proposal, turn as much of that content from that proposal into the sales page on your website as possible. And say, I am available for this type of work. It starts at this price point. Apply here. And now you have that premium offering available as a consultant. You might not ever sell another one, or somebody might come and knock and say, I need that exact same thing, or a very similar thing. And you’ve already defined it, and you don’t need to do the proposal song and dance again. So I think there are, I think, on the balance, there are more benefits to having something like this set up than negatives, but it could go either way. It might be a stylistic choice. Yeah.

Nick

All right, next question. You’re going to have a good answer to this one. What are your first jobs? Ooh, jobs with an S? Oh. Just well, my first job and your first job.

Kai

You have to list all of them like, um, no. I was a lifeguard for two years with the city of Eugene. This was my first actual official job. I had no idea. Yeah, they trusted me. It was that’s Did you save any lives? Well, metaphorically, emotionally Literally, as no. I did not take any lives, so Cool. But no, I was a lifeguard for two years and I quit to work at the local Magic of the Gathering card shop and hustle Magic cards for the next four years of my life. it quickly laddered into doing a thing that is not lifeguarding. But no, for two years I was a lifeguard. Yeah. So mine.

Nick

How about you? I talk a lot about how one of my earliest jobs was I was a cash register at the second busiest McDonald’s in the state of Illinois for two and a half years during the launch rush. We set records nationally, like multiple times. And it was insane. I’m not going to tell you about that. I’m going to tell you about my actual first job, which happened shortly before this. Which was comically ill-fated. I worked uh for a photography studio, actually. I um And I was big into photography in high school and grade school and, you know, still am, but I kind of keep it on the quiet these days. And I was like, fuck, there’s a photography studio right in DisplayNs, which is like a mile from my house. I’m like, I should go for that. It was like 14. It was the only place that was like, we’ll take 14 year olds And I’m thinking, like, I get to be the apprentice of a photographer. This is going to be great. They’re going to use the Hasselblad and look like Elvis Costello and everything. Got some bad news for you. They put me in the telemarketing department and made me cold call people for wedding photographs. I had no telemarketing experience, and I was going through puberty, so I sounded like the Krusty Burger guy in Simpson. And I lasted four days. It was a precipitous failure. There is no way to sugarcoat this. And that was my entrant into working life. I have so many questions. They threw the paycheck at me out of contempt, handwritten as I was walking out the door so I wouldn’t ever have to come back. Oh, this is beautiful. And that was that’s why I’m better as an independent worker than as a probably scarred be enough. My therapist would have a fucking field day. On that job.

Kai

Do they have lists of people who are about to get married where you’re cold calling and saying, like, hi, this is Nika? The answer to this might be no. I’m just curious. Are you about to get married?

Nick

No, they found people who were like. On a registry somewhere, and then got their contact information. So I got to congratulate them on getting married. That’s wonderful. Then they hated me. They told me to never.

Kai

They really didn’t enjoy it. Speaking of speaking to people, let’s talk about speaking engagements.

Nick

Hi, that was the worst transition we’ve ever done in a podcast’s history. I couldn’t even make it all the way through. The next question is. Speaking engagements. When and how? Um, Kai, you answered this one first. I’m horrible at this.

Kai

So I think there is a good question about Scopy. Are we talking about podcast-type speaking engagements or speaking at conference-type speaking engagements?

Nick

Let’s just keep it straight to conferences because podcasts, you should pretty much always say yes and always do it for you.

Kai

Yeah, always be podcasting.

Nick

For conferences unless it obviously doesn’t fit with your positioning. Like if the international macrame podcast wanted me on for revenue generating A-B testing. Probably not. It’s a backlink. Actually answered the question, Kai. What speaking engagements and conferences?

Kai

Speaking of engagements at conferences, I think part of it depends on what your level is as a consultant. If you’re a beginner to intermediate consultant, I think You want to be approaching conferences and be doing free speaking engagements. Pay your own way, pay your travel. They might have you pay the ticket. It’s a huge level up in terms of getting you in front of potential buyers, getting you in front of audiences. Being able to say, Hey, look, I spoke at this conference. Ideally, they’re recording the conference, either the video or just the audio, and you’re able to leverage it as an asset you could share with your audience. At that beginner to intermediary level, I think it’s very valuable to be taking any speaking engagements you can. Local meetups, local conferences, smaller conferences, conferences where you have to pay your own way, but you’re doing a 15-minute lightning talk because It lets you cement your positioning and further demonstrate your authority to that target market. As you level up as a consultant, two interesting things happen. One is more people start approaching you to speak at conferences. The other is now you’re able to start saying, excellent, my fee to speak at a conference is. You pay my travel, or you pay my accommodation, or you pay this much money for me to actually show up, or I only speak at keynotes. So, you’re as your authority grows, you’re able to leverage it into yes, I’d love to speak at your conference. if it meets these criteria. I emailed one very successful author about speaking at a conference I’m organizing in 2017. And he responded back and he said, We’d love to. I only do the keynote, and it’s $50,000 a day plus travel. And I was like, Thank you so much. we will email you back later. And we did not email back because that was more than the budget for the entire conference. But you hit a level and you’re able to come back with that type of response. But for the average listener of the podcast or people who are saying, I haven’t spoken at a conference before, When should I start taking these speaking engagements? I think the earlier you start, the better. Start reaching out to local meetups, local organizations, local Get togethers of any type and say, Hey, I’m a consultant who does XYZ and helps this type of person solve this type of problem. Can I teach your audience something new? Essentially, the same pitch I tell people to use when approaching podcasts. Use that for any local group of Audience members that match your target market, and see if you could give, you know, a 15-minute lightning talk at a local meetup or speak at a local conference and level your way up from there. But the most important thing of all, see if there’s a way to record that video or record that audio. I’ve gone as far as when speaking at the local university, hiring my buddy and saying, Hey, I’ll buy you lunch and give you $100. Show up with your video camera. And just videotape me talking, and like we have a wireless lav mic, so we get decent audio. And that was great. Like, I got a 30-minute video out of it of me giving a presentation on topic XYZ. That is the most valuable thing that could come out of a speaking engagement. Ask the conference organizer or ask whoever is organizing the engagement: will this be recorded? If they say no, ask, can it be recorded? If they say no, ask, Can I bring my own person to record my speaking segment? You really want to get that as an asset because that’s a very valuable asset to have.

Nick

Yeah, you always want something recorded. Actually, somebody came over to my house to interview me the other day and was not going to record it. And I literally pulled out my iPhone and pulled up voice memos. And I was like, we’re recording this. You’re going to rev. com. Here’s 50 bucks.

Kai

Like, that’s perfect.

Nick

Like, like, you have to go that far. And, and I don’t start the interview. Like, you know, it’s this is something that goes on the record. As somebody showed enough interest in you that they literally wanted to interview you. Like. Please, for the love of Pete, capitalize on that. You know, like, that’s definitely something you want to be thinking about.

Kai

One other thing I’d add as you’re getting started with this, if you’re like, I haven’t ever done a speaking engagement before, what should I do? Find local meetups and organizations. Again, find them, outreach to them and say, hey, are you looking for somebody to give a talk on a topic? I’d love to. The dirty secret is, people who organize regular events or recurring meetups like that, they’re really hungry for content. So if you show up and say, I know things about X, I would love to teach your audience a thing about X, would you like me to? Chances are they’ll say yes, we’d love you to, and then boom, you’ve got a speaking engagement and you could level up from there. I started out speaking to Classes of 15 to 20 students at the University of Oregon. This past year, I was presenting to 400 to 600-person rooms at larger conferences. Leveling up happens, leveling up takes time, but start with outreach and say, I’d love to talk about this thing. Would your audience enjoy hearing me talk about this thing? And over a few years, you’ll level up to larger and larger events. I have a close colleague who just broke into, oh wow, they emailed me and they said, We could afford to pay you $X,000 to speak at this conference. It’s not even a keynote. It’s just a one-off talk during the day. And her reaction was, I would do it for free. They offered me money, I’m going to say yes. And I was like, take the money, take the money, and be happy.

Nick

I mean, yeah, if they’re going to offer you money, don’t be like, oh, actually, you’ll do it for free. Like. I mean, life lesson. Don’t talk people down in a negotiation. Like, who are you? Like, what podcast are you literally listening to right now? Lose money online with Kai and Nick. Squander money online.

Kai

Have I ever told the story? This is perfect for a mailbag episode: how I accidentally lost. $200 on Google AdWords, but got 10 gigabytes of storage space free on Dropbox. So I started running Google AdWords, targeting the keyword Dropbox using my affiliate link back when I was a college student, figuring like, Hey, the clicks will be a couple cents each. Some people will sign up, and I get bonus space for everybody that signs up. It worked perfectly. In a day, I had maxed out the referrals for my Dropbox account, but I forgot to pause the Adverts campaign. And I didn’t realize this until two weeks later. And like I had a multi-hundred dollar bill for this. It was net loss. Net loss by far. But a fun experiment and a fun one-off thing that worked well. But that’s the story of how Kai lost money online.

Nick

Um I’m gonna shuffle it up a bit. Ask Nick how he makes buying his services so addictive. I’m at least 85% sure that no one has ever become addicted to any of my services. Or even the act of buying them. Because if you were addicted to them, first off, if you’re buying a service, then I get to meet you. And if I meet you, then I know you’re addicted to something. And I can kind of tell an addict. So I don’t think that that’s happened. But also, I don’t make enough money on services to necessarily convey the sense that they might be addictive. More broadly, I would be subject to severe governmental regulation if my services happened to be addictive or were found to be broadly addictive and might be investigated by the FBI or. some sort of black organization that’s not documented anywhere. If you’ve ever read the book, I would have to I would tell you, but then you would have to be destroyed by me, I believe is the title of it. Um it lists most of the black services that exist in the the the government. Um and I don’t want to talk to them. I fear them. Next question is how I make them also so addictive. So maybe they’re only a little bit addictive, but I think addictive is kind of a binary. How do I make only slightly addicted? I’m afraid I don’t know how to answer that bit of the question. By writing and educating people, coming up with ideas that people actually want to buy.

Kai

I’d add to it, you do a very great job of balancing educational and entertaining content with pitching content. I often tell people, Shoot for a four to one ratio. So, four pieces of education or entertainment, one piece of pitch. You go way heavy on, like, I’m sending a weekly letter, and it’s education, and it’s entertainment, and it’s teaching people. And then you’re like, by the way, I just made a course on A-B testing. If you want to learn more about it, here’s the sales page. And next week, we’ll be back to our regular scheduled thing. People have received so much value from your free content, from your educational content, from your entertaining content. By the time it comes to the pitch, it’s like, oh, the guy who I love made a thing. I’m going to buy that thing. So I think. You make your services so easy to buy, let’s say, so addictive to buy, because you provide so much value throughout. The lifetime of that customer that when you do launch a new thing, they’re like, Of course, I want to buy it. Maybe I want to buy it just to support Nick because I love his letters. Maybe I want to buy it because it solves that business problem I’m experiencing. There’s that wonderful snark market essay, Stock and Flow, by Robin Sloan, where he talks about stock being the large pieces of Content we put out into the world. This is the movie, this is the book, this is the course, and flow being the small, more ephemeral pieces of content. My tweet, my Twitter stream, one-off email newsletter, maybe smaller pieces of content, more consumable content. You have great flow and you have great stock. And I think that leads to people saying, I love the stuff I received from Nick for free. Oh, he bought something that’s paid that he’s been working on for the last six months. Of course, I’m going to buy it.

Nick

And that’s how you get addicted to how great I am. Next question. This is the penultimate question. Best way to pitch affiliate programs slash services to your audience and not come off too much like an affiliate.

Kai

This is a good one. I don’t do affiliate programs, so I have no idea how to answer this question. So The best way is to make it seem organic and natural by having it be organic and natural. So let’s say We’ll use a real example here. I just switched from using one outreach tool to a new one, reply, reply. io, reply app. The branding is confusing. So I just switched to using reply and I emailed them and we had a call and they were like, hey, we could give you a discount code if you want to share it with your audience. And I’m like, that’s awesome. And so within my outreach course, within my book, The Outreach Blueprint, different articles I write where I talk about, you know, how to do outreach and say, you know, the tool I’m using right now is Reply. I include that discount code. And that discount code could be linked to an affiliate program. In this case, I said, let’s max out the discount percentage. I don’t care about any affiliate bucks. But I think by having it naturally fit into that content, so it’s not, let me tell you about an affiliate thing I like. It’s, hey, this is how I do this thing. This is how I solve this business problem. I happen to use this tool. Here’s an affiliate link to it if you want to sign up for it. Small tactical things I see people like a lot, people doing that I like a lot are: when you include the affiliate link, immediately next to it, also say here’s a non-affiliate link. And just let people choose. The folks who would say, oh, I don’t want to click on an affiliate link, they’d Google for the site anyway, and you wouldn’t get the affiliate buck. Put that link in front of them as a choice of yeses, and it decreases the chance of you coming off as an internet marketing affiliate person. I also think it’s valuable to think about. Bonuses you could include. So, if you do do sort of a canonical affiliate write-up, let me talk about how much I love the service. The call to action is sign up with my affiliate link. Well, anybody could create something like that. What’s valuable is saying, hey, here’s a bonus I’ve put together that’s exclusive to people that sign up through my affiliate link. When you sign up, forward me a copy of your receipt, or once I see you in my affiliate dashboard, I’ll know you have signed up. Once that happens, you’ll get this exclusive bonus. Maybe it’s a collection of templates you put together. Maybe it’s your getting started checklist. Maybe it’s a screencast you recorded. Whatever it is, it’s something that adds more value to them. So you’re essentially saying, hey, we both know, you click on this affiliate link, I’m going to get a couple of bucks. But as a thank you for me getting a couple of bucks, I’m giving you something of value. And if you make that as a product, something that you create once and could release as many times as you want, you don’t have to worry about fulfillment down the line. It could be as easy as. Somebody forwards a thing to you, you forward them that thing right back with the bonus you promised them. And that’s how I’d say how you want to pitch affiliate programs or services and not come off too much like an affiliate. Add value wherever you can.

Nick

So I got a question. Why do people get squicked out about affiliate stuff? Is it because it’s like.

Kai

You’re like, marketers have rent the internet.

Nick

Yeah, I think it’s because there’s like a grossness connected to it that’s like Like what we talked about in the first ever episode of the podcast, where the term make money online is dominated by horrible, what was it? The um Samurai Forum, something. Warrior Forum. Warrior Forum. Fuck them. Those people. The Warriors are all screwing it up. Is that is that a fair assessment?

Kai

Yeah. Yeah. It’s seen as, I think, affiliate marketing is seen as an easy way to launch a business, but not have to create a product yourself. Hey, I’m repping somebody else’s product. The problem of product creation is taken from me. But the downside is: well, you’ve got a bunch of me two people shilling the same offer, and there’s nothing that stands out or interesting about it. I mean, I could go to site one or site two and get the same exact affiliate pitch. Well, what’s valuable for me as a consumer deciding to sign up? So I think that paradigm has turned people off to the idea. Of affiliate marketing, where they’re presented with like an affiliate pitch. Let me tell you about this wonderful thing that somebody else has, and you counter that by adding more of your own unique value. This is my teardown of how I use it. This is. My workflow for using the tool. This is my screencast for getting started. These are the templates I use on every outreach campaign. Go sign up for the thing, and I’ll give you this in exchange. And that becomes more of an exchange of value. And you’re recommending a tool that you actually use, that you could show proof of you using, and that you’re helping somebody get started using.

Nick

I’m going to make one more point and then we’ll move on to the last question. But I think this might be because I worked for a client that basically makes most of its revenue on affiliate fees, like the wirecutter, right? And people. Trust the wire cutter because they’re pretty unbullshittable, right? Like they put everything through this rigorous research analysis. And my sense is that people view like a typical affiliate tit-for-tat campaign as Cronyism that doesn’t necessarily hew to quality. Right. And so the like actual The trustworthiness is missing from it. And I think that, you know, to be as impartial as humanly possible about this. a large portion of why the wirecutter happens to be so successful about all what they do is because, again, they’re unbullshittable, right? Like you have to have a quality product and they have to flag as trustworthy for the entire conceit of the business model to work, or it’s going to break down and you’re not going to want to go there anymore. They’re going to get deranked on Google. They’re going to be viewed as untrustworthy. And they’re going to probably lose most, if not all, of their business.

Kai

Yep. Yeah, I’m looking at the wirecutter’s best cheap in-ear headphones to replace your stock earbuds. This is a 22-page article reviewing. Uh, done done done a dozen plus. I can’t say the number in here, but there’s a lot on this photo. A dozen plus versions of In ear headphones, like they put a ton of time and effort into creating this content. You see this and you’re like, wow, this is value. I’m going to buy their pick. And that trust is immediately built.

Nick

Yeah. I mean, My theory, and this is not substantiated from a lot, um, is that people they go to like the page that they’re they’re trying to find on the wire cutter, like best in ear headphones, right? And they see the thing that’s being recommended and they look at the size of the scroll bar and they’re like, wow, that’s a tiny scroll bar and they zip down and up and they’re like, wow, that’s a lot of content. And then they buy the thing.

Kai

You just describe my entire workflow whenever I read the WireCons recommendations. I’m like, oh, this is a long page. Oh, the number one pick, that’s in my budget.

Nick

Okay, buying it now. I’m. I’m upgrade. I’m pretty good. Exactly. I’m I’m great actually. I’m gonna buy the fucking upgrade pick. Oh, it’s $800. That’s too much. I’m gonna buy the downgrade pick. You know, like, that’s that’s just like, and it’s this very like lizard brain mentality. And I mean, I buy stuff in the wire cutter all the time. So, like. And I haven’t worked with them for over a year now. So just to be abundantly clear, but but yeah, that’s kind of like kind of the thing driving it.

Kai

One thing I to go deep on affiliate marketing unintentionally on this mailbag episode, one thing I love that they do here in the table of contents, the first one is why you should trust me. And we’ve got three paragraphs here talking about. The author’s background and experience. And these are like dense graphs, talking about the author’s background and experience and how they did this review process. And that builds trust. It’s not. I’m Joe internet marketer by this thing. It’s like, you know, I actually have run an audio testing facility for years. Since starting with the wirecutter, I’ve reviewed hundreds, more than 400 different pairs of headphones. You’ve got some bona fides at that point. Like, I’ve probably touched less than 400 pairs of headphones in my life, and I ran a business selling iPhones. Like, this person has handled more unique types of headphones than I’ve touched headphones in my life. That is. Credibility building right there. And at that point, it’s less of, oh, this is an affiliate site, and more, I’m reviewing cool things, and I happen to be monetizing it through affiliate marketing.

Nick

Yeah. One other thing that Wirecutter has as of recent is like, what gives me the right to do this? And it’s like, well, I’ve been reviewing headphones for 35 years and I’ve been covering them since Computer Shopper was a phone book. You know, and so there’s that. And to bring it back to the affiliate marketing question, I think a large part of why I don’t do it is because, man, I don’t have the fucking time to go through the wire cutter process and nerd out on the 5,000 things. And then I’m probably going to come to the conclusion that the thing you approached me with is terrible and that I need to go with your competitors. I don’t even know this person and they might not even like me because I run a podcast called Make Money Online and that’s weird. And so, right? Like there’s so the whole relationship breaks down when you realize, like, actually, I kind of don’t want to support your thing.

Kai

I found the most personal success in terms of enjoying promoting them with affiliate programs when it’s a tool I use and love and recommend. And then I discover they have an affiliate program. And so it’s like. Listen, I’ve been recommending this for six months. I discovered that they have an affiliate referral thing. I’m still going to recommend it. I’m just going to include that link in there too. Like, I love the shit out of WP Engine. All of my sites are on WP Engine. Whenever a friend’s like, Do you have a recommendation for a WordPress hosting site? I’m like, you should use WP Engine right now. Sign up for them or sign up through my affiliate link, and I’ll love you forever. But either way, go sign up for WP Engine. They do it right. And I think when you find a product that you have that level of just frothing at the mouth love for, that’s when you know it’s a good product to recommend to your audience and not to come off too much like an affiliate. Like. At some point, I will probably write like the 10 reasons why I love WP Engine for hosting my sites and will never use anything else. And it will include affiliate links in there because I’ve used them for, I think. Three years now as a company, like I’ve paid them thousands upon thousands of dollars. I love them to death, and I’ll recommend them to everyone buying with my affiliate link or not.

Nick

We’re done talking about affiliates. Final question is not a question. It’s literally four words long, and we’ve already discussed it on a previous episode.

Kai

I can’t remember this episode.

Nick

We didn’t dedicate the whole episode, but somebody asked me what my thoughts were on you asked me what my thoughts were on giving gifts to clients. And that’s what question is. It’s just giving gifts to clients. Um and I uh Yeah, I give gifts to clients somewhat frequently. One-year anniversaries, something we had to fight through particularly hard. I cook lunch for people all the time. I try to be reasonably generous. But Yeah, I think it’s important to maintain relationships with people and towards that end giving gifts to clients is quite valuable. I don’t have much else to say beyond that.

Kai

I hired a consultant recently for a client project, and the consultant sent me a tin of cookies for Christmas. And I was like, This is the sweetest thing ever. And I’m shoving cookies in my mouth, writing the consultant an email. Thank you so much for the cookies. I deeply appreciate this. And, like, it’s a nice gesture. And I’m sure, me as a lifetime value of me as a client. Orders of magnitude greater than the cost of that tin of cookies. But that tin of cookies, that built a lot of goodwill. That’s me saying, like, I enjoy these cookies. This was wonderful. Thank you. So I think it’s a net positive to send gifts to clients. I think The hardest part, said as somebody who has for years now had the intention of becoming regular at doing this, is building that habit and building that standard operating procedure. I think step one is. Like, figure out what the minimum viable gift is. This is a book I read this year and really loved. I wanted you to have it because I appreciate you as a client. P. S. How is business? You have a letter. You could get it printed at your Kinkos or your FedEx. You have 10 copies of a book you enjoy that you bought off of Amazon. Stick it in a thing, handwrite a little thing, send it to them. Great, you’ve now sent a gift to a client. SOP that out and have it as a regularly recurring thing. And the next time you have an idea for something interesting to send to people, it was the holidays. I’ll send them a Christmas cookie gift basket. Great, run the SOP against that and build that habit. I think giving gifts to clients can be wonderful because it plays into getting referrals, reactivating old clients, and turning them into ongoing clients, generating new business. It could be a money maker for you, but there’s a lot of logistical behind the scenes. You don’t want to accidentally become a dropshipping business that you need to figure out. And the more readily you SOP it out, the more well you define it, the easier it will be. to do on a recurring regular frequency?

Nick

Um that’s it. Our mailbag’s done. We did it.

Kai

It’s empty.

Nick

End of episode.

Notes