Are you an affiliate marketer and looking for the right place to establish your business? Take Hong Kong a serious look!
Today, we will analyze the affiliate marketing business model. Let’s see how well it fits for a Hong Kong company establishment.
What Business Practices Does An Affiliate Marketer Do?
First, what is an affiliate marketer using? For the most part, it is all online – no physical presence needed anywhere. This is why so many internet marketing experts attract to it.
Here are a few of the main roles and asks.
Benefits Affiliates Get With a Hong Kong Company
So now, you’re an affiliate marketer and wondering why Hong Kong? Let’s dig into some reasons.
Great banking system
Multi-currency account, HSBC most of the time. English language and can login from anywhere via online banking and do mostly everything remotely.
Offshore tax status option
You can elect for the offshore status of a Hong Kong company and pay 0% corporate tax to the IRD (internal revenue department). Just need to make sure that you can prove you have no operations, no staff, no clients in Hong Kong. We suggest that you’re either 100% offshore or 100% on-shore (domestic).
Low corporate tax
Even if you can’t qualify for offshore tax, the corporate tax rate is already really low at 16.5%. So if you don’t mind that lower than global average number, you can setup your office and operations locally in Hong Kong.
Great place to pay contractors from
Most likely you’ll have Asia based staff and contractors. And it may spread out between Philippines, Thailand, Vietnam, and other locations. Having a HK company and business bank account, you can send money out to them quick and cheap. Much easier and cheaper than most US banks and other locations in the West.
Some of the drawbacks may be that it is hard to get approved for a bank account in Hong Kong with a 100% pure affiliate earning business model. The banker may see it as a high risk business model. You’ll have to build up a case to show your financial stability and upstanding business practices.
Main Features You’ll Need
So what accounts and banking solutions will you need and use? Besides of course the company setup and government documents, you’ll need:
Business Banking
No bank, hard to have a business in today’s world. You’ll need a way to receive the affiliate income and then be able to send money out to cover your operations. The operations will be human capital like your expertise and the staff and contractors.
Paypal
You’ll need to get a Paypal hong Kong account setup. This is because, most likely, some affiliate will pay you by Paypal. You can also use this to send money to your contractors in other places in the world. You’ll need to verify the account with a HK bank account, but could get it started first while the bank is being process. Related: Paypal Hong Kong guide
Bitcoin
This is another great one in Hong Kong. You can use ANXbtc.com and get an account there. They have a pre-paid debit card you can use for online purchases. Also may be easier to pay contracts in various countries with tougher banking.
Company credit card
Because you’ll be operating online, you’ll need a business credit card to purchase online travel, SaaS (software as a service) tools, and other business expenses. Probably most of your expenses will be paid by credit card.
How It Will Work
So once you get these tools in place, this is how it will go along.
You’ll be blogging by the beach in Thailand. You drive traffic to a new affiliate offer from your email list. Close your laptop and then take a swim in the beach. Checking your affiliate account later you’ll see you got 10 customers and a payout of $150 USD. Not bad. The next payout cycle the affiliate company Paypals you the $150 bucks to your Hong Kong Paypal account.
You repeat this for another offer, and this one makes a direct bank transfer to your Hong Kong business bank account. Its much better because you can immediately use that to pay the credit card bill. You later in the month wire money to your developer in Vietnam who is helping you with a new WordPress membership system.
Repeat this next month.
Seems pretty sweet, right? Hong Kong can be the center of all this action, and you can operate like a pro in Asia as you travel between various countries – traveling and working.
What Do You Think? Hong Kong Corporate Structure Good For Affiliate Marketers?
I hope today helped you out. Are you an affiliate marketer? Operating as an individual still and looking for a country to establish your business? I’d love to hear your thoughts and opinion from today.
Or maybe you’re a big time affiliate and have a company setup somewhere else? Things working out fine? Or are you looking to re-structure the business to Hong Kong. Another interesting idea is I have an investor friend who would love to talk to you. He has a Hong Kong restructuring program and he’ll put some money in and work with you as you develop it – check it out.
Hong Kong is a great place to do business. We will have future articles about other business types, and please share your comments, concerns, and suggestions below.
To our mutual success in business!
