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.
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.
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.
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.