Affiliate marketing allows companies to reach market segments that they would not normally reach. These in turn creates more sales for them and expands their business. In this process there are three stakeholders, the seller, the marketer and the buyer. By buying from an affiliate marketer buyers get to learn about the product in detail before committing to a purchase.
Once everyday users click on your link they are directed to the web page of the given company’s product or services. If these users decide to buy the product then the company pays you a commission.
In this type of unique win situation the company gains sales that they would not have gotten without you as an internet marketer. The company would also benefit from a one time buyers to repeat customers.
You as an affiliate marketer gets a commision for finding the products, offering details to the buyer and promoting them to the right people. Your earnings will depend on your ability to facilitate sales online.
Pros of affiliate marketing:
Little to no capital needed to start your business
In this type of business earning money online requires just a small amount of capital. It only involves sending traffic (customers) through your affiliate links. This can be done using social media like Facebook or Instagram accounts.
Building your own website is also an effective way to direct customers. Most beginners are worried if this type of effort is worth it by not being a computer tech. In actuality building a website is easy and cheap. It usually runs under 30 dollars.
Product or service creation is NOT needed
Traditional businesses normally requires you to build your own product, make prototypes, test it in the market before making any money. Extensive amounts of capital and huge amounts of time are needed before your business can actually start making profits. Making back your capital needs to be done before your profits come. This is also not guaranteed.
Tradition business models require trial and errors before they can be successful thus increasing the risk factor. Affiliate marketing allows you to start a business with minimal risk.
With affiliate marketing, you don’t need to risk your capital, time and other resources. Because you are promoting other peoples finished goods and services, your whole focus is on the sales of the product.
Marketing materials and sales funnels are not needed
Even though your whole business is to promote products you do not need to do much because each company will create marketing materials for you. They have marketing staff that do all the heavy lifting for you including text links and email copies for you to use.
Your job is to only present these marketing materials to the visitors of your website or followers of your social accounts.
Affiliate Marketing does not require experience to launch your business
Experience certainly puts one at an advantage for they have exposer and know what the market needs and have experts to design products that meet customers needs.
With affiliate marketing you can start without any experience. Most of the information about the business can be learnt through free and premium online resources. There is of free information online to learn basics about the business.
You do not provide customer services or delivery of products
This part of the business is handled by companies that own the product and services. After the sale, the company facilitates the delivery and provides customer support to people having difficulty with the product. Businesses lose money when providing this services.
In affiliate marketing you do not need to deal with this part of the hassle. As the marketer you only focus on making sales by helping both the customer with information and the seller of the product make a sale.
Cons of Affiliate Marketing:
Affiliate Marketing is not a “Get rich quick scheme”
Most beginners enter the industry with very limited information that cause them to make mistakes and end up giving up. They think that this business model will be easy as building a website to make them money fast. This often leads them to fail and not make any money.
You need to have the mindset and resolve to do this for the long haul to be successful. Your online marketing strategies will require a lot of work in the beginning. You must be ready to be investing in at least two hours a day in your business marketing methods.
Putting in consistence effort enables you to scale your business upward.
Approaching this business marketing aggressively by putting calls to action usually end up turning off potential customers. It begins to appear to them as a scam. This type of approach also causes your pages not to show up in any search engines.
Many google queries are in question form because most people go to the internet to try to solve a problem and not with the intention to buy.
As an affiliate marketer your job is to identify problems that your product tries to solve and create content that provides answers to those problems. Make sure that the product you are offering solves those problems and it is then after that you can push for a sale.
Making too much hype for a product
In an attempt to get peoples attention most marketers make outrageous claims to make a sale. For example, you could see ads about a weight lose product promising you to lose 100 pounds in one month. Or make a million dollars overnight. These marketers are usually selling a pipe dream to the audience.
As a result your visitors avoid you and your business suffers a natural death. Your visitors question your trustworthiness and the product you are offering
Instead you should provide valuable information about the product or service. You can do this by creating content comparing it to other products in the market.
Lack of focus on one project
Most beginners become distracted with other business ideas while working on one project. This causes them to divide their time too thinly jumping from one project to another leaving all halfway done.
Lack of focus from one business campaign often leads to no results in any project thus leading to frustrations and eventually quitting all together.
You should only act on other business ideas after you are done with your current campaign or if you completely abandon you current campaign. It is more effective to put your campaign on one campaign at a time.
Fully devote yourself for a given time and don’t allow other distractions. Write them down and revisit them later.
Relying on one traffic source.
Lack of enough traffic severely affects your sales. Traffic is the life of your business. Apart from google there are other places online to find traffic.
New social media apps can be a good place to find new traffic. Think of ways to funnel this new traffic to your website.
Not partnering with others
Most beginners think that they can do this by themselves by trying to save costs. As an affiliate you should let others do the tasks that are not related to sales. You should hire other people to do them for you. For example, you could outsource content creation if you are not much of a writer.
This will allow you to focus your time on the marketing part of the business.
Online marketing efforts
keeping in mind the above pros and cons this should help guide you as you begin this type of home business for the long term success of your business. The bulk of your success however comes from your online marketing efforts.
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