Affiliate Marketing: Advantages and Disadvantages

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Affiliate Marketing is one of the gateways to digital entrepreneurship. From a content producer’s point of view it’s an interesting strategy to broaden your audience and get more conversions. For affiliates, it is a way to start their journey without necessarily producing or a possibility of strengthening the relationship with an already consolidated audience by offering new content.

But since everything in life has a good side and a bad side, let’s give you some tips on the advantages and disadvantages of Affiliate Marketing. Come on?

What is Affiliate Marketing?

Affiliate Marketing is an outreach strategy inserted in content marketing that, in turn, is part of digital marketing. An affiliate promotes products, which can be physical or digital, in exchange for a commission that can be for sale or other criteria.

Click here to learn more about the affiliate programs.

The commission for physical products varies between 10% and 20% and for infoproducts (whose production cost is much lower) can reach up to 80% in some cases.

If you already have a blog, the main means used in affiliate marketing, or a social network profile that already has a considerable audience, promoting other people’s products can be an opportunity to associate your niche expertise with a possibility of financial return.

But, if you have not yet taken the first steps in digital entrepreneurship, learn a little more about the advantages and disadvantages of affiliate marketing.

Advantages of Affiliate Marketing

The internet is already consolidated as the most used means of communication around the world. And every day more people are consuming online, which is boosting infoproduct sales. And as we know the internet is a “store” open 24 hours a day, 365 days a year. Selling while you sleep is one of the advantages of affiliate marketing. See others below.

Low investment cost

This point must be analyzed from two angles. The first investment that comes to mind is the financial one. If we compare any physical business with an online one, the monetary value invested in digital is certainly much lower. And this is also true for physical products, after all, you don’t need to buy them to resell. Just provide the link through which the person can complete the sale and their commission drops into the account. That simple.

Another savings to consider is time. Some people have more and others less talent to develop a quality infoproduct. Be it an online course, an e-book or others. The time you would use to prepare the material can be reverted to hours to promote a good product that is already available.

Does not require academic training

Knowledge is essential in all areas of life. This is no different with digital marketing that grows and evolves every day. However, being your own boss it is no longer necessary to present an academic degree to become a successful entrepreneur.

Allows remote work

Another sign of the times is the culture of digital nomadism. Working online allows you to be physically anywhere in the world. You can have a blog, a YouTube channel, and profiles on social networks and also promote products from each of these platforms. So another advantage of affiliate marketing is that it allows you to work remotely.

Extra Income Opportunity

You don’t have to leave everything behind, buy a motorhome and go around the world if you don’t want to. Affiliate marketing is also a good opportunity for extra income. You can work on campaigns and outreach in your overtime.

Allows you to serve multiple segments

The variety of products available is wide. There is certainly one that you and your audience can relate to. And it doesn’t have to be just one. They can be products from related or complementary segments.

Disadvantages of Affiliate Marketing

If everything in life has pros and cons, it is easy to conclude that this is also true for Affiliate Marketing. As we mentioned above having knowledge changes any game in your favour. And the lack of it is often the cause of what we’ve listed below as the disadvantages of affiliate marketing. Keep reading and be prepared to enter this area without surprises!

Do not control the products offered

If on the one hand, it is good to have a product ready to dedicate your time to promotion rather than production, on the other hand this can lead to customers not being satisfied with what was purchased. Therefore, extensively research the producer’s history and what is sold to avoid linking to something that does not add to your audience.

Don’t get paid instantly

This is the flip side of being your own boss. Now, the responsibility for financial planning is yours as well. Different affiliate marketing platforms have different payment systems. In this case, in addition to knowing the product that will be sold, look for information about payment terms. While some release on the same day (not at the same time) others can take up to 7 days to make the payment. More important! Stay away from the ones that don’t pay. There are platforms that, unfortunately, are known for not honouring payments.

Not having a fixed salary

One more factor to consider for your financial planning. Not having a fixed salary can be good as it does not limit your earnings and, in a way, reflects your dedication to the enterprise. But it can be bad because the conversion is not always proportional to your efforts. Self-employment has its ups and downs, but that shouldn’t stop you from trying. You will certainly learn a lot about yourself and about subjects that you may not have been interested in before (such as financial planning), but which are vital to the health of your business.

Competition between affiliates

If you are reading this article, you are most likely considering becoming an affiliate. Just like you other people have had or are having this same thought. Depending on the platform chosen this means that competition will be quite high within often limited niches. In these cases, whoever most dominates digital marketing tools tends to do better.

Lack of producer/platform support

This is where it all starts and ends. From the content producer’s upload to your payment. That’s why it’s so important to know each one well before joining. In addition to the deadline and payment history, include in your checklist if the producer offers support materials for dissemination, if it has quick support for your doubts if the platform allows tracking of sales and if it has quality control over the products offered.

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