The ultimate idea, or goal, behind affiliate marketing, is to make money at any time, any place, even whilst you sleep. It is a concept that is growing in popularity and involves two parties: the business or product at hand, and the affiliate marketer.
The tactic is used to boost sales and online revenue, and it has proven effective in a number of cases, especially during 2020 restrictions which have forced many to work from home.
Affiliate marketing is a good business because of the independence, flexibility, low to no experience necessary and passive income that it provides.
More and more people are starting to consider taking on the position of being an affiliate marketer, but what does this business really entail? Keep reading to explore deeper why it is a good business.
What Is Affiliate Marketing?
Before we look at the pros and cons of affiliate marketing and ultimately explain in detail why it is a good business, let’s first deconstruct the term and find out what it means.
Affiliate marketing, in simple terms, is when a person (the affiliate) promotes a company or its product, and through this gains a part of the profit for each sale that is then made. The way in which the sales are tracked is through affiliate links to and from different websites.
Who Is Involved?
The three main parties involved in this cycle are the business or product, the promoter or affiliate, and the consumers. The affiliates are often found to be influencers or bloggers, as they usually have a large platform that they are able to reach out to.
In terms of pay, it is not always the same story. Even though generally the affiliate will get paid by a number of sales, sometimes this depends on the number of clicks or number of leads. This means that if a potential consumer solely clicks on a website and browses through, this will sometimes be enough for them to earn part of the profit.
Now that that is covered, we can look into the drawbacks and benefits of affiliate marketing.
Benefits of Affiliate Marketing
Independence and Flexibility
As was mentioned before, working from home has been becoming the norm for many. In this case, it is not only working from home but also working at times that suit you best. When it comes to your work schedule you are your own boss, giving you a lot of flexibility.
You can work anywhere, whether it is the Bahamas or your basement, as long as you have a working internet connection. You also do not have to follow any specific company guidelines, rules, or regulations since you are an affiliate. Distracting things such as maintaining relationships in the workplace, or having to follow a dress code do not apply either.
Low to No Experience Necessary
You definitely do not need to be a marketing expert in order to become a part of the affiliate marketing community. The “practice makes perfect” theory applies here, assuming that over time you will become better at running your business. You will start to identify patterns with certain companies or consumer groups, and you will apply this in the future for better results.
Additional Source of Income
One of the best parts is that you do not have to necessarily quit your current job in order to also become a part of affiliate marketing. Since you are completely in charge of your schedule, you could plan it around the job that you already have, and it can become a secondary source of income.
The same counts for if you are a student or simply looking for some extra money at the end of the month. It does not have to take over your entire day every day, but it could, this is entirely up to you.
Passive Income
Going back to the idea of making money whilst you sleep, this is definitely a possibility. Once you have gotten into the ins and outs of affiliate marketing, and once you find out how to maximize profits you will find yourself opening your bank account in the morning and seeing additional funds.
Drawbacks
No Control Over Competition
It is natural that over time you will become better at being an affiliate, however, it is also true that you will have no control over your competition. It might just be that somebody advertising the same business or product as you have a bigger influence over its network, in which case you will have no control over it.
Profit Is Not Guaranteed
Closely connected to the reason stated above, having strong competition ultimately means you will not have as much profit. It is highly unlikely that you will earn nothing, however, competition does not make this any easier.
You should assume that your skills and income will improve as you move forward, but hurdles along the way such as these are definitely possible.
Is Freelance Really For You?
As relaxing and perfect as it might sound for some, a freelancing business can be a true nightmare for others. Some people need the structure and rules of a workplace and working in a team, whether it is at home or at the office. You might need to think twice before you dive into the position of a freelancer.
Conclusion
To summarize, there are clearly numerous reasons why affiliate marketing is a great path to choose. It is flexible when it comes to schedules, you are in full control of where, when, and how you work, and you do not need to have prior knowledge or experience to start in this field.
Truly, all you need to become an affiliate is a working internet connection and an interest in some additional income. There are, however, some things that you should consider before you take on this role.
You have no control over your competition, and this could have an effect on your profit. Since it is often influencers and bloggers that pursue affiliate marketing, they will have a larger reach over their audience. This won’t mean that you will not earn anything, but it might be less than what you expected initially.
Lastly, a freelancing position is not cut out for everybody. If you are someone who thrives on order, structure, and lots of communication, this might not be for you. Affiliate marketing is definitely a good business, for those who fit the criteria.