Internet Marketing

The Advantages and Disadvantages of Affiliate Marketing

Affiliate marketing is a great business to start earning money online. This is a mutually beneficial partnership between merchants and website publishers where the publishers promote the merchants’ products and get commission. The amount earned may be based on per click (pay per click), per registration (pay per lead) or per sale (pay per sale). But, just like any other business, affiliate marketing has it’s own advantages and disadvantages.

The following are some advantages of affiliate marketing:

  1. Through affiliate marketing, the merchants can sell their products to a larger number of customers. They do not have to spend time in searching for new prospects. It helps the merchants to open up new marketing channels.
  2. For the merchants, affiliate marketing offers a very cost effective way to market their products and services. They have to pay the affiliates only when there is a sale or when a lead has been generated.
  3. Affiliate marketing offers the website owners and publishers an easy way to earn money from their sites. All they have to do is to put some banners advertising the merchants’ products/ services, on their sites. They can earn a commission whenever somebody purchases something from there. So the only thing which the website owner has to do for earning money, is to drive traffic to his/her site.
  4. Affiliate marketing business can be started with a very little investment. You have to spend money only for domain and hosting. At the beginning, you can use different free methods to promote your website. After you start earning money, different paid methods of advertising (such as PPC) may be used.
  5. The affiliate marketer does not have to keep stock of goods or to worry about customer support, accounting or other e commerce related activities. These are all handled by the merchant. The affiliate only works as a commission agent.
  6. Anybody having a computer with internet connection can work as an affiliate marketer. The affiliate marketer can either work part time ( and maintain his day job) or may work full time and become his own boss. He can work from his home.
  7. You can earn money from affiliate marketing 24/7. Your affiliate website works for you even when you are sleeping.

The following are some disadvantages of affiliate marketing:

  1. Sometimes link hijackers can hijack affiliate links and steal affiliate commissions.
  2. Some dishonest merchants may promise to pay high commissions but subsequently reduce the commission rates. Sometimes they may even close down their programs without paying the affiliates.
  3. To attract new customers, dishonest affiliates may make false and misleading claims about the products. In such cases, the merchant loses potential customers.

Now as you can see advantages of affiliate marketing are more important and the advantages, why don’t you think about starting to learn and enter the affiliate marketing world? If you are already an affiliate marketer, do you have any other advantage or disadvantages that you can share with us?

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6 Comments

  • Reply
    Davor Gasparevic
    December 23, 2009 at 15:24

    That first advantage is definitely the worst, if merchant doesn’t pay, you will find another one, and if affiliate lies, you can still gain trust from your customers.

    I had my “trips” to affiliate marketing, but I feel I am just not ready for that yet, because a lot of technical stuff like creating websites, maintaining, fine tuning and everything else is still something that I struggle with.

  • Reply
    M. Wiseman
    January 12, 2010 at 12:51

    Really good post. I like vantage point. I’m going to pass a bit of time exploring your web site. It would be good if you plan to write some more about this.

  • Reply
    Mariano Kuziel
    January 18, 2010 at 06:50

    Great tips you have on your site. I am a new blogger and learning to write effective contents. I had started to jot down notes so the idea will not slip out when I sit in front of the com.

  • Reply
    Jenae Cales
    January 21, 2010 at 01:17

    I liked your post alot. I recently started college and in need of some cash. This program seems very promising. It might be what Im searching for. I need to do some more research now on google. Thank you again for this awesome post. I will check out the rest of your site

  • Reply
    Sheldon
    December 6, 2010 at 00:58

    I really do like your post. I Recently got into affiliate marketing and it looks real promising. I believe you can make some good money with affiliate marketing, but make sure you do some research. Just do your homework. Keep up the good work…

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