Want to become an affiliate marketing pro? The Ultimate Affiliate Marketing Affiliate marketing disadvantages’ and learn from the experts. Learn how you can benefit in this article or contact your account manager for more information.
More than 15,000 advertisers rely on affiliate marketing for part of their revenue today. Spendings in the US alone for affiliate marketing reached 4. 8 billion dollars in 2016 — outperforming the Belize economy twice over — and affiliate marketing has been predicted to reach nearly seven billion by 2020. These facts validate that affiliate marketing is in good health and continuously evolving. But what is it all about? Let’s first put it simply: what is affiliate marketing and how does it work? Affiliate marketing by definition is a performance based business in which revenue is generated by independent marketers called affiliates who earn a fixed commission paid only when sales are made, leads are confirmed, or any qualified action takes place.
This idea is based on revenue sharing — read more about it: Affiliate Marketing for Dummies: 5 Tips to Help You Start From Scratch. Being an affiliate publisher means having absolute freedom to build your online presence. It’s your independent call on when or where your job gets done, how you reach your customers and optimize the whole marketing process. Affiliate marketing is apparently the easiest online business model to start earning passive income online. On the other hand, it also might happen to be a tough one. All the challenges are on you and performance relies on your determination, approach and the affiliate strategy you choose to follow. All in all, the whole game is about earning a satisfying cut of sales.
Like everything under the sun, affiliate marketing involves both advantages and disadvantages. If you’re wondering how to start with affiliate marketing, explore opportunities and challenges, then this business enables you to have a smooth start. Let’s dive into my affiliate marketing pros and cons list. It’s a big incentive to get your share, isn’t it?
It’s just the matter of your decision. You don’t need to be a marketing expert right away to become an affiliate. The great thing about affiliate marketing is that you can learn along the way, testing various organic or paid campaigns. Also, there are plenty of ways to run and manage affiliate marketing programs. You work online so that you can do it from your home well enough and then you only have the basic electricity and ISP subscription costs to cover. Optionally, there are additional expenses related to setting up a domain, web hosting operator and also some minor costs about designing layout, etc. Over time you can think of renting a desk at a co-working space, but this is your decision after all and depends whether you are going to miss the office environment or not.
All in all, you are a freelancer, so there are no costs for hiring staff, customer service or inventory costs involved. You can do it as a side project and see what you can squeeze out of it over the few first months. Also, you don’t need to stick to one affiliate marketing program. While each tool belongs to the same business niche, they serve to manage different online marketing activities, so they complement each other. This way you add beautifully diversified software products to your portfolio, and one can outperform another. If one product proves to be difficult to sell, the other might be much easier, more profitable and act as a solid backup. Such an approach will mitigate the risks of failure and maximize the opportunity to earn a favorable income.
Be careful and don’t put all your eggs in one basket, so that you keep your marketing portfolio diversified. Fortunately, as an affiliate, you don’t need to bother about that. All you care about is your commission, so anytime you get a post-sale query, you just pass such requests on to the merchant’s customer service team and wash your hands clean of the entire matter. Apart from that, customer service is your call, and no one is going to impose this on you or expect it from you.
Whether it’s in the Bahamas or a picturesque Italian village — you decide where your office is located. You can work everywhere as long as you have, obviously, an Internet connection. Does this concept speak to your imagination? As a freelancer, you don’t need to follow any company regulations according to monthly or weekly reports or manage other people from a team that also can get problematic to handle at times. The opportunity to make a passive income means to earn money while you sleep. Wouldn’t it be great to wake up in the morning, open your laptop and just discover additional revenue in your account?
The fruits of your hard work. It’s accessible for you to wake up in the morning like this once you get a deeper understanding of what affiliate marketing is all about. You can set up an affiliate blog and post regularly about a given niche, come up with affiliate emails or create PPC campaigns. You can even use social media and platforms like Quora to market your affiliate products. Furthermore, you can combine all your organic and paid marketing activities into a cross-channel campaign if this suits you best. The best part of it are the costs, such as laptops and mobile phones, which can be claimed as tax write-offs.