One of the best ways of making money online is through affiliate marketing. It involves promoting other people’s products as an affiliate. All you need to do is direct customers to the sales page of the product. Whenever someone you have referred buys, you are paid a commission. Affiliate marketing has several advantages, as well as disadvantages:
1. No investment in creating products
Creating products can take a significant amount of time, effort and money. The best thing about affiliate marketing is that you don’t have to get involved in creating the product. Once you have signed up with an affiliate program and placed affiliate links in your blog or site, you can start selling. Since you are not spending any money on product creation, you can begin making profits from your first sale.
2. A wide range of products to promote
One of the best things about being an affiliate is that you have a wide range of existing products to choose from. You can therefore find the specific products that would be ideal for your target market. In addition, you can focus on the products which pay the highest amount of commission.
3. Customer service is not your responsibility
Customer service can be a very demanding task, especially when dealing with many clients or complex products. The good news is that affiliates are not responsible for customer service. When prospects visits the sales page and make a purchase, the merchant handles all the inquiries and complaints thereafter.
4. High income potential
Even though affiliates are paid only a fraction of the sale, you can still earn a very high income from affiliate marketing. This is especially the case when you generate a high volume of sales. You can also make good income by promoting multiple products from different merchants.
5. You can promote complimentary products
If you create and sell your own products, you could also consider selling other complementary products as an affiliate. For instance, if you create and sell web templates, you could decide to promote web hosting services as an affiliate. This will provide an extra stream of income.
1. Loss of control
A major downside of affiliate marketing is that you don’t have control over many things. This includes the product’s features, price, updates or sales page. If some of these things are not handled well, they can end up having an adverse effect on your business and reputation.
2. The customer belongs to the seller
Being an affiliate basically means that you are helping the merchant build a list of buyers. While you are only paid once, the merchant will continue making repeat sales to the customer in future. This means that as an affiliate, you will not benefit from any future purchases.
3. Selecting the right products can be difficult
When it comes to affiliate marketing, selecting the right product is crucial for your success. However, with the wide array of products out there, it can be a daunting task to choose what to promote. This is why it is important to carry out some research before making a decision.
4. Competition with others
When you choose to promote a certain product, there are probably many other affiliates doing the same. As a result, getting the attention of prospects could be difficult.
Before venturing into affiliate marketing, take time to weigh the pros and cons. If carried out properly, it can become a lucrative source of residual income.