As I mention in almost all of my articles, 97% of Internet marketers never make a cent online. I mention this simple fact because it has a lot of power--it has the power to completely discourage people who are not succeeding, and it also has the power to encourage those same people who are failing to learn, so that they can succeed.

In this article, I will teach you exactly what it means to build Internet capital goods--and how it relates to entering that top 3%. When you finish reading this, you will have complete faith that you can succeed and you will understand exactly what it will take to do so.

So what are capital goods? You know that regular businesses purchase capital goods to increase production. You know that industrial businesses operate some of these capital goods to produce goods that they can then resell for profit. You know that capital goods can be land. They can be factories. They can be machinery. They can be people. . .

So how does this relate to marketing your affiliate program? It's quite simple--in order to succeed, you must build a large pile of Internet capital goods and then use them to pull in customers and retain them.

Most affiliates do not understand this concept. They start out with a boilerplate gateway webpage--that everyone else who sells the same product also uses--and then they use that page in conjunction with paid advertisement and hope for success. In almost every single case, they never make more than a couple sales, give up after 3 months at the absolute most, and then move on to the next opportunity.

If you do a simple analysis of successful affiliate program marketers (which, for practical reasons, will be easiest if you do it through websites), you will find that they either a) have purchased Internet capital goods and advertisement with a lot of money or b) have an enormous amount of Internet capital goods. (You can test this yourself by checking the top listings in search engines for any keyword combination).

What does this mean for you? It means that you either a) are already rich and can purchase that land, factory, machinery, and workers immediately (website, product rights, advertisement, etc) or b) you need to start building these Internet capital goods or you are definitely going to fail within 3 months.

So how do you know what is and isn't an Internet capital good? An Internet capital good is an item that, once you build or purchase it, will constantly add or create value for your business. This includes links, content, dynamic scripts, free tools that your targeted audience can use, and mailing lists that you can consistently offer your products to.

If you are not making an effort to build these Internet capital goods, you are the Internet equivalent of real life business that purchases frozen pizzas from the supermarket next door, heats them up in a microwave, and then tries to sell them. On top of that, your store has no napkins or condiments or tables or chairs or pizza boxes. Everyone must sit on and eat off of the floor.

Would you want to purchase pizza there? No, you would get it at the supermarket frozen at a cheaper price, or you would go next door, where they make it and then bake it in an oven, where you could sit down at a table in a chair.

Take the time to understand this point: If you want to succeed, you absolutely must either have money to buy your land, store, table, chairs, and oven--or you must build them yourself.

Fortunately for Internet marketers, you have a huge advantage over regular businesses--you can build all of these Internet capital goods; you do not need to pay for any of them.

You can build every Internet capital good I have mentioned above for no cost at all. And you will if you want to succeed on a limited budget. So setup your links. Make quotas; reach those quotas every week. Build content. Find legally reusable expert articles and add them to your website. Build pages that offer free tools to your customers. Use free advertising methods advertise this page as a useful stand-alone (which happens to be linked to your related website). Setup a free content ezine or marketing list that is related to your website. Register with free directories to get customers.

All of these Internet capital goods will not only draw customers to your business through a multitude of sources, but they will also retain customers that come to your website through free or paid advertisement by giving them the option to get free information or use free products.

As every marketing study has indicated, multiple impressions of a product increase a person's chance of buying it--and multiple contacts with a salesperson increases the conversion rate. By retaining customers you will both increase the impression of your product and expose them to your sale copy, which will dramatically increase your conversion rates.

If you get nothing else out of this article, please remember this fact: the only way to successfully build and expand an Internet business is by building Internet capital goods and staying around until you have enough to constantly draw and retain customers. If you do not have the money to purchase these capital goods, start building them today for free or you will probably be ready to give up in about 3 months.