Affiliate marketing is the type of marketing that is based on income generated by marketers (affiliates). These people earn a fixed amount of money when they make potential customers take some qualified action, for instance, order some products. In this article, we will break down everything you need to consider while deciding on whether or not to start affiliate marketing. To have a better understanding of Affiliate Marketing, we would recommend you to read our recent article on this topic.
Benefits Of Affiliate Marketing
Easy To Start: Low Investment Costs
Affiliate marketing is a pretty easy industry to join, namely because there are no barriers to entry. In the beginning, the necessary expenses of the affiliate business are almost non-existent compared to other industries. All you need to do is to promote products using various strategies. The benefit here is that you do not invest in creating and developing content or products. The work is done online, therefore there is no need to rent an office or a working space. Most of the affiliate companies offer a free starter package that lets newcomers start the affiliate programs. Another way is to start with writing posts on different free blogging sites. Over time you can think of buying and hosting a domain for your own website. All in all, you are a freelancer, so there are no additional costs for hiring staff, customer service, or inventory costs involved.
You Don’t Need To Be An Expert
You don’t need to be a marketing expert right away to become an affiliate. Learn along the way, testing various organic or paid campaigns, and picking the best ones. Also, all marketing materials are usually provided by vendors. There is no need to produce banners or any promotional materials. You are all set.
Countless Opportunities And No Limits
Affiliate marketing is growing rapidly with unlimited opportunities. A study carried out by Forrester Consulting shows that affiliate marketing reached a profit of nearly 7 billion dollars in 2020.
The main reason for this is that there are no limits. Use every method imaginable to reach the desired result. For instance, you can use social media and platforms like Quora to market your affiliate products. Furthermore, consider combining all of your organic and paid marketing activities into a cross-channel campaign if this suits you best.
Large Marketplace and Extensive Products
One of the main benefits of being an affiliate is that you will get a lot of products and services all through the marketplace. From there, feel free to choose and focus on those products that pay the highest amount of commission. The more popular products you have chosen, the wider marketplace you can have.
In addition to this, you could have chances to promote complementary products apart from the main products. All of this gives you the opportunity to extend your earnings.
No Responsibility For Customer Service
Oftentimes, managing customer service-related issues can get problematic and take immense amounts of time and effort. Fortunately, all that affiliates really care about is commission. Whenever you get a post-sale question or issue, you can just pass it on to the merchant’s customer service team.
It is a little different if you want positive reviews under your content, which can significantly boost your SEO. In this case, you should be ready to quickly reply to product-related questions that appear under your posts.
At first, you can start with affiliate marketing as a secondary source of income. It doesn’t require you to leave your current job.
Although it seems that affiliate marketers get a small portion of revenue from each sale, affiliate marketing has enough potential to generate even more sales. Just remember that success comes to those who work hard and do not give up.
Flexibility, Convenience And Independence
As I mentioned earlier, you can create multiple campaigns on different affiliate websites. With time, you can abandon the poorly performing links and optimize the successful ones. No one can force you to stick to one marketing program or product.
As a freelancer, you don’t need to follow any company regulations. No reports or teamwork to handle, no issues with company relations. You set your own rules.
Disadvantages Of Affiliate Marketing
Takes Time to Make Considerable Profit
As almost in every area of marketing, becoming successful as an affiliate does not happen overnight. On average, it takes about 18-36 months to start earning a real income from affiliate marketing sites, and only if you work on it on a daily basis. Building an audience, getting ranked, gaining trust, and finding credible partners takes some time. That is why affiliate marketers mostly run their business on the side.
To sum up, affiliate marketing is not a solution if you need money quickly. It is a long-term business strategy.
Overwhelming Variety Of Products
Finding a company that produces high-quality products can be more difficult than you originally thought. Working with large companies is quite overwhelming. The majority of experts recommend always sell the items that offer the most commission, but oftentimes those items can be out of the affiliate’s interests or expertise. Even after deciding on a category, there will sometimes be thousands of items available to promote. Choosing the right ones is pretty daunting. However, having a variety of products to choose from can also give you a market advantage. You just have to do a lot of research and understand your reader’s preferences perfectly.
Discipline, Hard Work, and Being All By Yourself
Unlike traditional jobs, there is no established agenda, routine, or guidance in affiliate marketing. You do the work completely by yourself. You set your own goals and stick to them. The only person you are accountable to is yourself.
This can be hard, even for people who have a lot of self-discipline. Especially in the beginning when you aren’t making a lot of income, it is quite challenging to stay motivated. You have to deal with technical problems you may not understand, and figure them out by yourself. Affiliate marketing can be a lonely job. And luckily, I’m not the only person who thinks this way. You can always meet other affiliates and team up.
No Negotiations over Commissions And Unsuccessful Affiliate Partnerships
Commission rates are often set by the company and are non-negotiable. Though most companies offer a sliding scale whereby you will make a higher percentage if you drive more traffic, you still won’t be able to gain more money for your work while in a long-term partnership, despite consistently bringing in great customers for them.
The other big challenge is to find a good partner, otherwise, you will be left with a company that can decide not to pay you for the work or may even go out of business.
If you are still not scared of affiliate marketing after reading this article, then congratulations, it is definitely for you. To start successfully, I highly recommend you to read our article about The best Affiliate Marketing strategies and thrive:)