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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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Is Affiliate Marketing Saturated In 2015?

This is a question that I hear a lot in Internet marketing circles.

The reason people think that affiliate marketing is saturated is because there is just so much competition in the marketplace.

Competition usually comes in the form of where marketers advertise.

There are usually two main forms of advertising, these are referred to as Paid traffic or Free traffic.

Typically what an affiliate marketer does is to present offers to people who are searching for information on a given topic.

If they get the thought process right and there is a high level of relevance between what the person is searching for and offer that is presented, then there will be a high rate of conversion.

This is where the problem starts and where the market can get saturated.

You see, when marketers find a good source of traffic then, they all jump on the band wagon and advertise in the same space.

Stands to reason – right?

If one of your competitors in making money advertising in a certain space, then chances are, if you advertise the same product in the same space you will have similar success with conversions as well.

Paid Traffic

Ultimately what happens with paid traffic is that the advertising space becomes crowded as more and more advertisers start to advertise in the same space. This in turn drives up the advertising cost, given advertise costs is bid driven.

So what used to be a profitable advertising space, slowly becomes less and less profitable as new advertisers start driving up the price.

But there is a way to overcome this problem with a little creative thinking , which I will go into soon, but of course we need to also address saturation from organic sources or free traffic.

Organic Traffic

Okay, so let’s talk about organic traffic.

Sounds like a really good idea.

No one wants to pay for traffic, but is free traffic really free?

And can you have a point of saturation the same way as paid traffic?

The answer is yes.

And although free traffic sounds like a good way of making money, it does take a lot of time and effort to rank for competitive terms in the search engines.

And as more and more webmasters start to rank for certain “money” keyword terms, it causes a keyword term to become more and more competitive making it difficult to rank in the same space thereby becoming saturated.

So are new affiliate marketers doomed from the start?

Overcoming Saturation

So the way to overcome saturation is to look outside of the norm and go for related terms.

Most affiliates are lazy, and won’t do the work to find related terms, which then opens up an entire business to those who are.

Your focus should be on your visitors “mindset” over everything else. Learn more on how to overcome a saturated market at StealthSecrets.com

This will then help you to discover untapped areas in your chosen niche.

If you want to learn how this process is done then read this.