Affiliate Marketing: The Pros and Cons
The affiliate marketing business model is essentially the online version of a commission paid salesperson. You choose a company’s services or products to market online. When somebody buys that service or product from your advertising, blog post or website, you get paid a commission from the company. Here are a few of the good and bad points of having an affiliate marketing business.
Some Good Points.
1. Anyone Can Be An Affiliate.
The good thing about being an affiliate marketer is that you don’t need to be an internet expert or have a diploma in computer studies. It does not matter what age you are, your qualifications or where you live. Everyone can start an affiliate marketing business provided that they have access to a laptop or computer and the internet.
2. You Don’t Have To Create Your Own Product.
In order to profit online you don’t have to create your own product. Some affiliates make a lot of money without products of their own. You market other peoples’ products and services and get a commission for your work. There is a substantial choice of services and products that you can sell from actual physical products that are shipped to the customer’s front door to digital products that customers can download instantaneously to their computer.
3. No E-commerce Problems.
One of the great ways that affiliate marketing works is that the product owner takes care of all the payment systems, so there’s no need for you to sort out payment processors or e-commerce shopping carts. They organize the deliveries, manage the customer support and basically take care of the whole sales process.
Some ‘Not So Good’ Points.
1. Too Much Choice.
Choice is a fantastic thing but too much choice can overwhelm you. There are an almost endless variety of affiliate programs and, if you’re not careful, you can lose track of what you’re doing, who your prospective customers are, and spend money on advertising that does not produce results.
2. You Don’t Know Your Customer.
In the purest form of affiliate marketing, when you send a customer directly to a product owner’s website you may never know who that customers actually is. You don’t know how to contact them or how to get them to buy from you again.
You Have No Customers Of Your Own.
If you have a basic affiliate marketing business without your own list of customers, you are effectively building someone else’s business and not your own. You are pushing customers to them who may buy again and again. But you will only get the commission for the first sale.