I. Industry Overview & Market Growth
The private label bottled drinking water industry is a growth sector with double-digit growth and profit opportunities for entrepreneurs. But like most opportunities, care must be taken to seek out and exploit the most profitable niche in the private label business.
A recent market study examined the growth and potential of the custom bottled water market and concluded:
“The bottled water industry grew about 10% in 2005, while carbonated soft drinks revenue is essentially flat,” says Gary Hemphill, marketing director of BMC. “There are a couple of things driving the market sure, people like to have a tap water substitution, but it’s really driven by people’s demands for a healthier alternative to the wide array of beverages on the market.”
Private label water is the fastest-growing segment of the overall bottled water market, and its future growth is considered by many to be explosive.
II. Branding & Promotional Value
Custom label water combines the purity of refreshing drinking water with consumable advertising that is designed to an individual customer’s specification. The water is popular, and the branding message, if designed properly, serves to promote business.
Almost every company in the United States can benefit from custom label water bottles with a branded message. The opportunities are huge, the market is largely untapped, and the private label product is viewed by customers as a cost-effective, powerful way to promote a brand message.
III. Business Model: Structure, Entry & Strategy
The private label business model consists of a number of interrelated parts, including research and development, manufacturing, marketing, and sales. Much of the bottled water business, however, requires significant amounts of capital and has high barriers to entry for most entrepreneurs.
Nevertheless, with the advent of the internet and e‑commerce, an aggressive sales-focused entrepreneur can develop a substantial, profitable private label business through affiliate programs and custom bottled water platforms.
IV. Affiliate Program Fundamentals
A. What Are Affiliate Programs?
Affiliate programs are revenue-sharing programs between an entrepreneur and a company that manufactures and sells a custom product or service. Affiliates are rewarded with referral payments for sending customers to the manufacturer’s website.. The process works as follows:
- The affiliate places links on its site to a particular manufacturer’s website.
- When a visitor clicks on the link and makes a purchase t,, he affiliate earns a referral fee that is a percentage of the total sale.
- The best manufacturer websites have automatic payment mechanisms and real-time accounting.
B. Planning & Strategy for Affiliate Success
But an efficient affiliate marketing site requires planning and work. Many affiliates believe they will be able to just put up a website, establish some affiliate links, and sit back and wait for streams of cash to start coming in. Care must be taken, however, er to be truly successful. Consider the following:
- What type of website should you have to make money through affiliate programs?
- What are the best affiliate programs for a home business?
- How will you effectively market your site and the underlying product?
- How can you find niche affiliate programs?
Similar to other facets of developing a home business, careful planning is needed to map out a profitable strategy for building a home-based business using affiliate marketing – a strategy that will allow you to build income through content in a sustainable, month-after-month way.
The issue is, what are the steps required to develop an income-producing affiliate marketing water bottle site that generates consistent, substantial revenue?
V. Execution Guide: Five Critical Tips
Tip Number 1: Selecting the Right Manufacturer
Align With a Manufacturer That Produces A Quality Product With Unique Features and Manages a Robust Affiliate Program.
As any good salesperson will tell you, a high-quality product is mandatory for sales success. Look for a company that manufactures (resellers add little value) a quality product that is recognized as different in the marketplace. There are many types of water in the market, but purified water is recognized as the highest quality.
After identifying a manufacturer with a quality product offering, choose one with a robust affiliate program. This should include at a minimum:
- Commitment to affiliate success
- substantial commission plans
- a website that allows for easy ordering and accrual, and payment of commissions
- support for marketing, selling, and booking of orders
Tip Number 2: Deep Niche Focus
Avoid the tendency to mass market and shoot at the flock. Mass marketing is beyond the scope of most companies and entrepreneurs. There are many profitable niche markets that have significant growth potential. Identify a niche, understand the buying patterns of that niche, and penetrate the market.
Some examples of niche markets: hotels (small and large), health spas, gyms, car dealerships, organizations, and health clubs, to name a few. Almost any organization is interested in promoting their brand cost-effective way.
This strategy fits within the wider private label business approach.
Tip Number 3: Eye‑Catching Affiliate Website
One of the advantages of an affiliate program is that a profitable business can be developed with only a nominal investment. Given today’s technical level of internet development expertise, the creation of an attractive website is easy and cost-effective.
The critical part of the wewebsiteowever, is the creation of a focused message presented attractively.
Following the creation of the site, establish a banner link with the chosen manufacturing partner that will direct affiliate inquiries to the site for order creation and commission booking.
The manufacturer’s site must be able to design and produce labels, provide powerful e‑commerce features for order booking and shipn t a, nd include a facility for the booking and payment of affiliate commissions.
Tip Number 4: Structured Sales Strategy
A clear sales strategy is the most effective path to success and profits in the private label business. Identify in writing the target niche, strategy to penetrate that niche, buying patterns, target prospects, and sales collateral.
Then implement the strategy in an organized manner and make adjustments as needed. Remember the old sales adage: Always Be Closing.
Tip Number 5: Customer Follow‑Up & Retention
Follow up on all orders and provide feedback to customers. As part of any effective sales effoteffortw-ups are critical to maintaining customer service and securing repeat orders.
One of the most powerful aspects of private label water sales is that happy customers tend to be repeat customers.
A long list of satisfied customers will generate a steady stream of repeat orders and significant cash flow.
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