Is affiliate marketing the right choice? Of all the various online business models, affiliate marketing is the most popular, and there are many good reasons. But is this a model that will work for you personally as a person? Like any business model, affiliate marketing has its pros and cons.
If you are not very well versed in the model and work with its strengths (and yours), then you can just waste your time and possibly miss the best opportunities. Of course, there are many people who have mastered the model and have received great success from it. This is definitely one of those areas where knowledge is power, so read on to find the good, bad, and just the ugly side of launching an affiliate site.
1. It is Super Affordable – Is Affiliate Marketing The Right Choice
Compared to other types of business, the initial costs are almost ridiculously low. In some cases, depending on how you intend to work, your direct costs will be to purchase a domain name and hosting. Not only that, but you don’t have inventory to fill in, no inventory levels to maintain, don’t worry that your products are spoiled or outdated before you can sell them. You never have to deal with customers, and you don’t have to worry about the crazy world of credit card delays or be blocked from your PayPal account.
2. You Must Be Prepared To Work Hard (or pay someone else to do this)
Newcomers to affiliate marketing often think that it will simply “ask and forget” about the deal where they build a website, place advertisements, and then wait for the money to flow into their account. The reality is diverse.
You have the choice to design your own website and create your own content, or you can pay professionals to complete one or both of these tasks. Even with professionals at work, you still do not have enough time to be lazy, because you need to monitor the performance of your site and make the necessary adjustments to keep it profitable.
Your other choice is active or passive advertising. In the latter scenario, which is fancifully the most popular, you simply add some ready-made advertisements from your partner or Google. There are several problems with this method, namely:
- You may not always know or be able to control which ads are served. Sometimes this can create inappropriate, insensitive, or even offensive impressions of the audience. For example, you may be politically inclined to enforce stricter gun control laws, so you create a blog about this topic. Somewhere there is some kind of great killing fun, and you know that your readers will want to know your views, so you will definitely create a blog post about this. The ad server then analyzes your page, detects key keywords, and serves ads for instructions on how to convert your rifle to fully automatic or huge discounts on extra capacity magazines.
- Ads can sometimes be ugly and may not match the design of your page.
- Advertising can be poorly designed and significantly slow down the page load time.
- Many users have software that blocks ads, which means that you lose 100% of the potential revenue of these visitors. These users – not entirely without justification – are outraged by the fact that their bandwidth is “stolen” by ads that they don’t even care about.
- Moreover, users do not pay attention to advertising and simply do not see them. This is due to the fact that the display of ads is exaggerated, and many affiliates use the same advertising providers, so users see the same ads on the site after the site. This greatly reduces the likelihood that they will click on an ad on a reliable site.
This approach relies on large volumes of traffic for success, and it is not always easy to achieve. Even when you get traffic, you cannot be sure that users will click on ads, and you should not ask them to do so.
Then, assuming the user clicks on the ad, many advertisers do not pay for clicks these days, they just pay direct sales commissions. Suppose that 1% of your users do not want to click on the ad (and this is a generous figure), then 10% of these users actually make a purchase, you convert 0.001% of your traffic.
That’s why an active model is better, although it requires more work from you or your content producers (and if you hire people to write for you, you will definitely pay them more for this work than for working under a passive model).
With an active model, you create advertisements, and they are usually in text form embedded right in your copy. This in itself is a form of art and requires great writing skills to be effective. However, this approach offers several advantages over the passive affiliate model:
- Does not rely on high volumes of traffic
- Users cannot block ads or not see them
- Ads are related to the interests of the user, and the user actively interacts with the content
- You can control the wording and style of the ad.
- You decide which products will be sold to give you the best chance of getting a commission.
3. It Takes Some Time To Create The Momentum
If you are not the most inventive marketer in the world, your site is unlikely to be an instant hit. You will have to work patiently and smartly, create the next one, and gradually succeed. Because of this, you should not be too discouraged if you do not earn much in the first few months when you work in the business. It takes time, but if you have done a good job, you should be rewarded for it in the end.
4. To Maximize Potential, You Need To Combine
Do not make a general mistake in thinking that you only need to make an affiliate site to make money. You either need to combine it with other successful business concepts on the Internet, such as direct marketing or delivery rollback, or you need to create several affiliate sites.
You can use part of the profit from the first site to finance the creation of content for the second and subsequent sites. One site that brings $ 100 to $ 200 per month will not bring you the most comfortable life, but if you have 10 or more sites that will be at one time, you will be in a great place, even with the fees that you pay yours to writers.
Affiliate marketing is usually a slow starter, and this is not the lazy way of wealth that many people think of. But if you are ready to make the necessary efforts and work on creating high-quality sites with good content, you can make quite decent money from it after a while, creating enough audience so that your efforts begin to pay off.
Affiliate marketing will certainly not be suitable for everyone, but in any case, he is confident that alternatives are alternatives, like work or unemployment. Since this is such a low-risk business model, there is no harm in giving it an opportunity if you are already considering it.
If you are looking forward to starting affiliate marketing then read this: Affiliate Marketing: A Comprehensive Guide for Beginners