Affiliate marketing is the easiest way of getting started with online marketing. Since you are marketing other people’s products, you don’t need to create any products on your own. If you find the right products to promote, you can make a lot of money.
Of course, like everything else affiliate marketing has both advantages and disadvantages. First let’s quickly explain what affiliate marketing is. As an affiliate, you get paid a commission every time you make a sale. In other words, affiliate marketing is performance based.
Generally, you send prospects to a sales page that belongs to the product owner. You have a special link, your affiliate link, to the sale page, with your unique identifier. Everyone who goes to the sales page via your affiliate link gets tagged and if they buy something you have made a sale.
There are a lot of affiliate programs on the Internet, covering both physical products, which require shipping, and digital products, which are downloaded from a website. Typically, the commission on physical products is much lower than on digital products. The latter has the advantage for the seller that the sale can be completely automated, after the payment has been confirmed the customer gets instructions how the product can be downloaded.
Two of the most popular affiliate programs are ClickBank and Amazon.com. ClickBank only deals with digital information products and the affiliate commissions are often generous, typically 50% or more. Amazon has both physical and digital products, the affiliate commissions are much lower than by ClickBank, typically between four and seven percent.
As mentioned earlier, it is easy to get started in affiliate marketing. In some cases, you don’t even need a website. This means that you can test new niches and get a feeling for if it something for you without spending a lot of money on creating products. Within a niche, you can promote different products. It is also possible to build a list as affiliate marketer, even if you generally can’t know who is a buyer.
But there are some disadvantages as well with being an affiliate marketer. The main disadvantage is that you don’t have any control. The product owner is in control and it is also the product owner who can build a list of buyers. Affiliates also need to check that the product owner is honest, otherwise they may end up only getting partially paid or not being paid at all.
Getting paid is not a big concern if you are a ClickBank or Amazon affiliate but affiliate programs run by small and unknown companies are more risky.
If you are a product owner, getting affiliates to promote your products is an excellent way of building a list of buyers. If you have a product funnel it can even be worth paying affiliates 100% of the initial sale.
Here you can learn more about being a ClickBank affiliate.