So you see a bunch of affiliate marketing gurus that say they make millions of dollars a year, but this is not the norm for most people that get into affiliate marketing. In fact, I have read that only 5% of people who do affiliate marketing stick with it and earn any kind of real money from it. So, has anyone out there that is not a "guru" had any affiliate marketing success? I am trying to decide if it is worth it to get my hopes up that I can make any real money from it.

I am right there with you on the so-called gurus who make millions of dollars and live in mansions and have their own jets misconception. I have come across several of them that brag about what they have and what they make but then their products absolute suck and don’t tell you anything!

Here’s my story and I am an average everyday guy who was able to quit my 9-5 job (or should I say 3-11 job) to become an Internet marketer. I went to a technical school and learned computer repair and was able to get a job at a help center for a computer software company. I worked from 3-11 and I never saw my wife who worked from 9-5.

The job paid ok (enough to pay the bills) but the hours were killing me and dealing with some of the callers we got, soon wore on my nerves. One of the guys I worked with told me about affiliate marketing and he was getting into it part-time to make some extra money on the side. I was interested and started to look into and decided that it was something that I could part-time as well.

It started out slow at first with a few hundred dollars here and there. But then my wife got pregnant and I knew that I had to make more money in order to support all three of us. I put in every second of every day making my sites and promoting them. I did article writing, SEO optimization techniques, and researched every internet marketing strategy guru I could find.

That’s when I came upon Matt Bacak’s site www.mattbacak.com and was blown away by his insight and techniques. I learned from his newsletter that I could spend a lot less time and put my sites on auto pilot and still have them make money. The amazing this is is that he was totally right and now I am making nearly six figures a year.

If there is one guru out there that is worth listening to, it is Matt. He has made his millions, but is still humble and willing to give out invaluable nuggets of advice to anyone who will listen. I highly recommend him as a mentor. I did and it paid off big time.

I got as far as the P/E ratio but now I’m stuck with how to get the actual stock value if no dividends are paid.

I also know that the ROE is going to be my required rate of return for the same reason. I just am not able to generate an actual stock value like I would be able to using the dividend growth model. Am I missing something here?

Please help.

As far as PE is concerned, what you probably want to ask yourself is, what good is knowing the PE of a stock? There are no emphirical formula that calculates what band of PE constitutes overweight or underweight. PE gives you a very crude and somewhat uncomparative figure that attempts to say whether a stock is "expensive" or not. However, the thing is, being "expensive" does not mean that it will drop in price one day. It has already been proven from the LTCM disaster that the "Mean Reversion" theory do not stand at all.

It is like looking at a Bentley as having a high PE and a Honda as having a low PE… does that mean that the Bentley is about to go on sale and that a Honda will one day cost as much as a Bentley? Certainly not.

PE ratio, like many other fundamental indicators, are merely a representative of facts and figures that are openly available. It always tell a more meaningful tale when combined with other fundamental and technical analysis methods.

Personally, I retired at 28 years old by trading the stock markets and still trade today for the past 11 years and I have never once included PE in a decision making process. I take an occassional glance at it just for fun but never allow that to govern the decisions that I make nor the actions that I take.

As for trying to value a stock using EPS and ROE, you probably want to know that neither EPS nor ROE forms the basis of the price of a stock on an exchange.

There are 2 main components to the value or prevailing price of a stock:

1. The Par value. By par value, it means the value of the company based on its current assets and its income ability right now. It is the raw value of a company factored into the individual share prices. Usually, this is a minor component of a stock value. It is like a bottle of coke costs $1 at par value.

2. The Perceived Value. By perceived value, it means that on top of the par value of the stock, people think it is worth more than that and continues to buy the share at higher and higher prices up to where they think it should be worth… this is usually much much higher than the par value. This is like that same bottle of coke selling at $3 at a major league game.

There is no real way to calculate the par value of a stock and the only emphirical measure of the par value of a stock is by the exchange on the very moment it is announced to be listed. The moment the stock goes on list, it is immediately affected by the percieved value and usually soars skyhigh on its first listing day. After that, its par value has very little significance as the value of the stock continues to soar or drop based on the way people see it. That is why calculating the "Fair Price" of a stock or the "True Value" of a stock is something that simply cannot be done easily and even if it is somehow achieved, you will always find yourself in a situation where the list price is far far far higher than the "true value" as perceived value forms the biggest part in the price of a stock.

Hope this helps.

http://www.mastersoequity.com

http://www.optiontradingpedia.com

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I really do not know if I fully understand this question. There is a super fine line between what is a "marketing guru" and an obvious shyster who portrays his/herself as such.

Most successful "Marketing Professionals" are not in the lime light, and make their money by Marketing products to… consumers of such products, as opposed to Marketing an idealistic way of self promotion.

Most so called "Guru’s" stress the point that you need their Secret information. Most anyone who is privy to search, and has time to do so can alleviate the cost, thus becoming your own "Guru."

Sound confusing? It only takes a lot of time and therefore patience!