Interested in affiliate marketing? I’ll share with you the affiliate marketing pros and cons without holding back so you can decide for yourself if you should get into affiliate marketing or try out something else that fits you more.
This post contains information about:
- What affiliate marketing is
- How much money is made in affiliate marketing and a look at the future
- The advantages of affiliate marketing
- The disadvantages of affiliate marketing
- My final take
- The absolute first step I think you should take if you decide to become an affiliate marketer
What is Affiliate Marketing?
Affiliate Marketing is a form of marketing where you make an arrangement with companies to promote their products and in exchange for every sale that’s made by your recommendation you’ll receive a commission.
The future of affiliate marketing
When I started out I was told by a lot of people that were into drop shipping that affiliate marketing was dying and that there was too much competition to make any real money. This all turned out to be absolute nonsense.
According to business insider since 2015 Affiliate Marketing programs have grown at least 50% every year and there is already a projection that says the same will happen this year.
In contrary to what a lot of people believe affiliate marketing isn’t going anywhere, anytime soon!
Now that I got that out of the way let’s look at…
Affiliate Marketing Pros and Cons
Pros of Affiliate Marketing
No Need To Spend Money On Marketing.
There’s a lot of risks involved in starting a business that affiliate marketing doesn’t have. You could be flat out broke and still be able to set up an affiliate marketing business. Most successful affiliate marketers their main source of marketing, for example, isn’t advertising. It’s search engine marketing.
You set up a website and start posting content on it so that your website will rank high for specific targeted keywords. The moment you’re ranked high Google will drive highly targeted traffic to your website which will result in a lot of profit.
No need to come up with a product
An important part of creating a business is coming up with a product. This is easier said than done. There are so many businesses that spent years on just developing their products and having to pivot from direction because of the reaction of their test audience. This process takes a lot of time and money.
With Affiliate marketing, you skip this entire process. You just pick a company with affiliate products that you would be interested in promoting, receive the affiliate links and start making money.
No time spent on customer service
There are a lot of ways to make money online but I like Affiliate Marketing the most because of this reason. As an affiliate marketer, you don’t go over the customer service. The companies that sell the affiliate products are responsible for that. This means all the time you would’ve spent on answering questions, hearing complaints and giving support can be spent on your marketing, making money and enjoying your free time.
Affiliate Marketing Is The Gateway To Passive Income
It seems unrealistic for most people to have passive income but affiliate marketing can make that dream very real. The moment you have a website with content that ranked high on search engines you’ll have traffic coming to that website consistently without having to do anything.
If you have built an effective sales funnel on your website everybody that lands on your website will be directed to your affiliate offers through the funnel. Not everyone will buy the affiliate products but if the funnel works well enough you’ll have more than enough money coming in.
After that, you can just sit back and relax most of the time.
You have the freedom to make money by making content about your hobbies
One of the reasons I personally was attracted to affiliate marketing is the fact that you can connect it to your hobbies and interests. The number 1 way to get ranked on search engines is to create quality content so if you pick an affiliate product that is connected to a hobby or something you find interesting you’re basically making money by creating content about what you love.
There are affiliate websites about everything. You got gamer, comic book, fitness, relationships, cooking and all kind of other websites that earn their income by joining affiliate programs and promoting affiliate products.
You aren’t trading hours for money
When you’re promoting affiliate products you’re not trading in hours for money. It doesn’t matter when you create content or when you put up advertisement. People will find your website on search engines the moment they are looking for it. If you’re an early bird you can put some hours in, in the morning if you’re a night owl you can put hours in, in the middle of the night. It doesn’t matter as long as you do what necessary.
This also means that you can do it as a side job and quit your day job the moment you earn enough money through affiliate commission.
You can work from anywhere
Affiliate marketing is as I said before doesn’t have to be done on a fixed part of the day and since everything is done online you don’t even have to be at a specific place. The only thing you need is a working computer and an internet connection. If you want to travel and see the world affiliate marketing can make that possible or if you just don’t feel like leaving the house because of the weather for example affiliate marketing makes that possible.
Cons of Affiliate Marketing
There are a lot of advantages to doing affiliate marketing but that doesn’t mean it’s good. Just like everything affiliate marketing not only has pros but also cons so let’s take a look at some of them.
You have no say when it comes to the affiliate programs
Unlike when you have your own company you don’t have any say when it comes to the company you’ve partnered up with. You can’t discuss things like product changes or getting more money per sale. You also don’t have any influence over the direction the companies take. This means if the company goes bankrupt you’re going to have to find other affiliate products to promote.
The time needed to set things up properly
You can’t get around the fact that you need website traffic to earn money with affiliate marketing. If you’re already a social media influencer with a large audience you can start cashing in right away but chances are you’re probably not a social media influencer. In that case, you’re going to have to create your own traffic stream which costs either a lot of time or money.
Affiliate marketing isn’t a get rich quick scheme. I’ve seen people work more than a year to get their first sales but out of all the people I know that went through that none of them have ever said it wasn’t worth it.
You get paid commision
There are people out there that have become millionaires thanks to affiliate marketing but more than half of the money they make goes to the affiliate companies. Most of the affiliate programs I’ve encountered give out a commission of between the 10 and 30% of every sale. I usually look for affiliate products that give a commission of at least 40% but the fact still remains that most of the money goes to the companies.
No guarantee of what you’ll make on a daily basis
Trading in hours for money costs a lot of energy and time but that doesn’t mean that the moment you step out of that you’ll have nothing to worry about anymore. With affiliate marketing, you earn money based on performance instead of hours which means if you aren’t making sales, you aren’t making money. This can take a mental toll on you if you don’t know how to deal with that.
There’s a lot of competition
The moment you decide you want to start making money with affiliate marketing and ultimately create a passive income stream you’ll not be the only one. There are a lot of people out there competing for the best spots on search engines so they can get more people on their websites and make more money. It’s important to look at the online landscape beforehand so you can make a plan about what is needed for you to succeed as an affiliate marketer in a specific niche.
One Time Customers
If you are solely relying on affiliate marketing you’ll get a lot of one time customers. They’ll buy the product you promote and afterward you’ll probably never see them again. This is a shame because most profit in business is made when companies retain their customers and they buy 2 or 3 more products.
There are ways to get around that if you incorporate email marketing but if you only rely on affiliate marketing you’ll not only miss out on the 60% of your sales but also a 100% of the sales your customer makes after they made the first sale.
My Take on Affiliate Marketing
In my opinion affiliate marketing is one of the best ways to get your feet wet when it comes to affiliate marketing. You aren’t investing a lot of money. The only thing you’ll be investing is time and because of the things you’ll learn about marketing, it’ll never feel like a waste. I know people who started with affiliate marketing and after that were very wanted because of their marketing skills.
You need to be willing to put in the time and energy. You also need to be stubborn enough not be influenced by people around you that’ll give you bad advise based on their 9 to 5 jobs and open enough to take good advice from your peers. Do these things and I’m sure you’ll succeed.
Interested in Affiliate Marketing? These should be your first steps
You’ll need training and support. 90% of people who try online marketing fail because they didn’t take advantage of these two components. Marketing isn’t something you can just jump into. You’ll need to know how people think, what makes them buy products and what scares them away.
You’ll also need support to give you feedback on what you’re doing. There are people out there that have been doing affiliate marketing for 4 years and haven’t made more than $130. You don’t want to be that person.
This why I’d advise you take a look at wealthy affiliate. They have a community with more than 1.4 million affiliate marketers and they give expert training so you can start making money as soon as possible. They also have a free course to teach you the basics.
Interested? Take a look at my Wealthy Affiliate review to see what it’s all about.
That’s all for now. I hope this helped with your decision.
See you at my next post!