So you’ve decided to stay at home and create a home income either by choice or by circumstance. But where to start? “I know! People are making loads of money from affiliate marketing!” Well that’s what so many Self-proclaimed Internet Marketing Gurus are telling you. Let me tell you the truth.
What is Affiliate Marketing?
According to Wikipedia
Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
What Being an Affiliate Means [ Infographic]
Found this real cool infographic that will help you understand what being affiliate means and how affiliate marketing works.
Advantages of Being an Affiliate
- You can become an affiliate for most of the products and services providing affiliate programs, for free.
- No stocking of the products required.
- Principal strategy is very simple: When someone buys a product/service from your affiliate banners/links, you are paid a % as commission.
- You can run your Affiliate marketing effort completely online. So it can be a purely home based business.
- You like something, your talk about it online or offline with others. That’s human nature. And affiliate marketing pays you just for this.
Limitations and Reality Checks of Being an Affiliate
Affiliate marketing is really a very simple form of Online Home Based Business, but if you think that it’s easy money, then you are mistaken. Here are some reality checks:
- To make considerable money through affiliate marketing, you need considerable large traffic (targeted for the products and services you are recommending) to your website/blog.
- And to build that kind of traffic, either you need to learn a lot about Online Marketing, specially traffic generation. That is not only time consuming, but might cost you money to learn from authentic sources.
- If you are promoting popular products or services, there is high competition from other affiliates.
- Most of the affiliate program payout is pretty low.
- And like most professions, your earning will stop once you stop working (promoting these products and services).
In my opinion, being an affiliate is a good option, if you are looking for a way to make some money. But it’s very tough (if not impossible) to create real wealth as an affiliate.
Who Are Being Benefited Most?
Take a look at the infographic above. Who do you think are being benefited most?
- Advertiser [ Merchant]
- Affiliate Network
Because they are earning, even when they are not working.
The advertiser (merchant) created products/ services and posted it on affiliate network (or they might use their own affiliate network). Now affiliates sign up and start promoting their products/services. So the advertiser is leveraging the effort an ever growing network of affiliates, in exchange of some commission.
And the affiliate network is getting a commission for every transactions.
What if You Had the Benefit of Leverage too?
Imagine the people who are buying from your affiliate links and banners, decide to become affiliate themselves. Will you be benefited? Nope! Rather they will be your new competitors.
What if these people ended up in your team rather than turning up to be your competitor, and you could earn commission when they make some sales?
Infact what if you could also build a team of affiliates and enjoy the benefit of leverage?
Say Hello to Direct Selling / MLM / Network Marketing
That’s the idea behind MLM (Multi Level Marketing)!
Any Experience as an Affiliate?
Do you have any experience as an affiliate? I’d love to know.
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