AFFILIATE MARKETING PROS AND CONS

Much has been said about the immense benefits of affiliate marketing. But like everything else, it has its ups and downs too. While the advantages are many, there are some disadvantages too. Let me give you detailed information on affiliate marketing, so you are totally prepared with the knowledge, in case you do consider going in for this field.

The good news first! Let us deal with the up-side of affiliate marketing.

Advantages of affiliate marketing:

If you want to become an affiliate, starting an affiliate marketing business is easy, as the initial costs are very low. You can start signing up with free affiliate programs which are easily accessible on the Net. You only need to have your own website to work with this business. As a start, you have to place ads for the merchant you decide to affiliate with. You could also search other relevant sites to place the ads in. Gradually, you could even move on to placing banners and images of the company’s products on your own website and then concentrate on increasing traffic to your own site.

The best thing about being an affiliate is that you do not have to think of selling your own products. So the tension of creating, maintaining, stocking and preserving your product, creating and maintaining sales figures and so on, is completely discounted for you. You only have to concentrate on selling your merchants’ products and make good money with it!

You can even choose to affiliate for many companies at a time, thereby earning that much more income.

Starting as an affiliate is a great training ground for you, as it will let you know all the ins and outs of the business. This knowledge will come of great use to you if you want to start off your own online business someday in the future.

As a merchant or advertiser, you stand to gain with affiliate marketing too. You get to cut down heavy costs of conventional advertising and can find a huge platform for pulling in relevant traffic towards your site.

Regular advertising is very expensive and does not guarantee profits either. There is no specific section of people that you are targeting here, so you can never predict the outcome of your business.

With affiliate marketing, you are assured of targeting a specific section of people interested in your product.

Another advantage is that you only have to pay for sales performed, so the advertisements are free for you till the time your affiliate generates a profit for you.
If you use bulk email software, you can’t suffer losses through email marketing. The most important disadvantage, of course, is that you will never get the amount of profits you will, if you sell your own product. If you choose to be an email, you will have to see that you only associate with companies that will pay you a minimum of 20-25% commission for your efforts.

Some unethical companies or merchants could just shut shop without letting you know in advance and without paying you your dues. Many such merchants offer great returns, but give you the slip when it comes to payment.

If you are not careful, you might unwittingly get caught in a scam with some fraudulent company, which uses spamming, hijacking and so on.

If you are a merchant, you could be the target of false leads and sales generated by the affiliate. This means you might get tricked into paying them for work they never did in the first place!

If the affiliate were to use unethical advertising, making false and exaggerated claims about your products or services, you will lose potential customers who showed initial interest in your services. You should always approve an ad that your affiliate writes for you, before giving him the permission of placing it on relevant sites.

Conclusion
There will be pluses and minuses in everything. In spite of all the pitfalls, affiliate marketing is still a good business option and will yield great results if you are ethical and careful with your dealings.

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Comments

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