Monthly Archives: April 2013

What Are The Pros and Cons of Affiliate Marketing?

Seems like every man and his dog jumps into affiliate marketing, because is can be a very good way to earn income for just about anyone who has the time and who is wiling to put in the effort to get an online business up and running.

But are they cons in becoming an affiliate marketer or are the pros to affiliate marketing out weigh the negatives? This article is a discussion on the pros and cons of affiliate marketing.

So if you don’t know what is affiliate marketing then hopefully this article will help to answer that for you.

Pros

Low cost startup

Affiliate marketing is a business that can be started with little to no money at all. I don’t know about you, but there aren’t too many businesses that can be started with little to no capital. All that is required is a website, the purchase of a domain name and some hosting.

In fact, you don’t even need to purchase a domain name or hosting as there are resources on the internet that will enable you to start for absolutely nothing. One such site in blogger.com and wordpress.com. You can start a website for free with either one of these CMS platforms.

No inventory needed

Most start up businesses require inventory. This usually means that you have to fork out a large sum of money or have a large line of credit with a manufacturer. But with affiliate marketing, you don’t have to worry about hold or warehousing any inventory at all as all of your inventory belongs to the vendor.

All you do is simply bring people who might be interested to the product and see if they buy it. And if they do then you get paid a commission for your efforts.

You also don’t have to be concerned with shipping requirements as this is all done by the vendor.

Potential to earn a lot of money

So, if you can get enough people coming to buy the product, you can potentially earn a lot of money. a know of some affiliate marketers who earn over 7 figures per month. So it is definitely a lucrative business model.

No special knowledge needed

Affiliate marketing doesn’t require any special knowledge to get started, but the right guidance can go a long way to earning your first dollars in a short space of time.

Cons

Some markets are too competitive

A lot of new affiliate marketers go right into the most competitive marketplaces when they first start out online. And after a month or two wonder why they are making any money. And the answer is because they entered a competitive marketplace.

Some of the leaders in the marketplace have been there for a number of years and know the tricks to keep them in the forefront of that space, which means that any new competitor will have a difficult time entering that space.

Can take a while to develop business

Just like any business, it can take you a while to start seeing any evidence of progress, and this is where a lot of new marketers fall by the wayside. If they don’t see anything happening over a month or two they lose interest and finally give up.

The average (new) affiliate (depending on how persistent and energetic they are) will start seeing results anywhere between 3 – 6 months. That can be a long time for newbies to wait.

No special knowledge needed

I know I mentioned this as a pro, but unfortunately it’s a double edged sword in that because there is no special knowledge required, it means that anyone and everyone can enter the marketplace.

Summary

So there are a few pros and cons with affiliate marketing. In essence, if you are looking for a low or no cost way to start earning money online then affiliate marketing could be a good way to do it.

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Learn How To Do Affiliate Marketing Step by Step

Learning affiliate marketing can be a pain in the rear if you don’t know where to start.

Fortunately, it’s not as difficult as some might think if you have the right mentor and are ready to put in the time and effort.

Whilst there are several ways to begin the process of affiliate marketing, there are really only two main things you need to become good at. Both fall under umbrella called traffic.

Traffic comes in a variety of forms, but the two main forms of traffic are paid and organic traffic.

Paid traffic

Positives

This type of traffic is instant, and can be available in large volumes which means that you could be earning money the instant your ad goes live.

Negatives

The cost of the ad can be quite high, some ranging around the $0.50 to $1.50 mark per click. And given some products convert at 100 clicks, means if your product is sells for less than $100 could mean you won’t make a profit.

Develop your own traffic

Positives

The traffic is essential free. You do have to put in the time and effort to create content that well rank in the search engines, but you only have to do it once. They more content you publish the more opportunities you have to pull in more qualified visitors.

Once this traffic has been developed it can keep producing new visitors to your offer day in and day out.

Negatives

It can take a while for the traffic to rank and therefore get visitors. For example, one of your posts could take up to a month or two to rank, so there could be not income for at least two to six months.

Offer that Converts

Whether you’re using paid traffic or organic traffic, you must always look at the product that you’re promoting to ensure that it will convert into sales. Because whilst you might have the visitors coming to see your offer, they might not purchase the anything if the sales copy is not conducive to a sale.

Stands to reason really.

That’s why it is important to select from the best affiliate companies.

To understand what offer converts the best you can just swap out offers to see which one converts the best. Once you understand the numbers then you promote the best converting product in full knowledge that you are not sell yourself short.

Vendors can show proof of conversions

Most vendors these days will show proof that their product sell well online in order to get as many good affiliate marketers promoting their products. If a vendor can get affiliate paying for traffic instead of themselves then they will benefit from it.

I always tend to promote vendor who show evidence of conversions, because it means that if they can get it to convert then I will be able to do so as well.

Follow a tried and proven process

There are a number of ways to promote products however, they are tried and proven methods available that most new folks don’t get to see. But if you can find someone who is willing to show you their proven process then go for it. Even if it might cost you a few pennies to do so.

If you can understand and implement a process and get it to work, then all you have to do is to rise and repeat the process until you have developed the income you want.

Summary

So it is best to learn this craft from people who have experience in this field. But once you become good at affiliate marketing, then it’s a case of rinsing and repeating the process over and over again until you are earning the money you want to earn.

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