Affiliate Marketing: Is It The Right Choice For You?
Of all the different online business models out there, affiliate marketing is the most popular, and there are many good reasons why. But is it a model that is going to work for you personally as an individual? Like any business model, affiliate marketing has its pros and cons.
If you don’t really understand the model and work on its strengths (and yours) then you could just waste your time and probably miss out on better opportunities. Of course there are many people who have mastered the model and have had enormous success with it. This is definitely one of those areas where knowledge is power, so read on to discover the good, the bad, and the downright ugly side of running an affiliate site.
1. It’s super affordable
Compared to other business types, the start-up costs are almost ridiculously low. In some cases, depending on how you are going to operate, your only direct costs will be to buy a domain name and a hosting deal. Not only that, but you have no inventory to fill, no inventory levels to maintain, no worries about your products aging or becoming obsolete 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 backups or your PayPal account.
2. You must be willing to work hard (or pay someone else to do it)
Newbies to affiliate marketing often think it’s just a “forgettable deal” where they build a website, post some ads and then wait for the money to be deposited into their account. The reality is vastly different.
You have the choice of designing your own website and creating your own content, or you can pay professionals to perform one or both of these tasks. Even with professionals at work, you still don’t get time to be lazy because you have to keep track of your site’s performance and make the necessary adjustments to keep it profitable.
Your other choice is active or passive advertising. In the latter scenario, which is bizarrely the most popular, just add some pre-made ads from your partner or Google. There are a few problems with this method, namely:
You may not always know or be able to control which ads to show. This can sometimes cause inappropriate, insensitive, or even offensive impressions on your audience. For example, you may be politically inclined to enforce stricter gun control rules, so you create a blog on that topic. There’s a major killing spree going on somewhere, and you know your readers want to know your thoughts, so you’re faithfully making a blog post about it. Then the ad server analyzes your page, detects the most important keywords, and displays ads for instructions on how to convert your gun into fully automatic or big discounts on additional capacity sheets.
The ads can be ugly at times and may not fit your page design well.
The ads may be poorly designed and introduce significant delays to your page load time.
Many users have ad blocking software which means that you will lose 100% of those visitors’ revenue potential. These users find it – not without reason – resent that their bandwidth is ‘stolen’ by ads they don’t even want to see.
In fact, users don’t take into account the ads and just don’t see them. That’s because ad serving is over the top and many partners use the same ad providers so that the users after site see the same ads on the spot. It significantly reduces the chances of them clicking the ad on your site.
This approach relies on large traffic volumes for success and it is not always easy to achieve. Even when you receive the traffic, you are not sure that users will click on the ads and you should not ask to do so.
Assuming a user clicks on the ad, many advertisers today don’t pay for clicks, they simply pay direct commissions for the sale. So suppose 1% of your users make the effort to click on the ad (and this is a generous figure), then 10% of those users actually make a purchase, converting 0.001% of your traffic.
This is why the 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 you do for work under the passive model) .
With the active model, you create the ads, and they are usually in text form, embedded in your copy. This is an art form in itself and requires great skill in writing to be effective. Still, this approach offers a number of advantages over the passive partner model:
Don’t rely so much on high traffic volumes
Users cannot block or see the ads
The advertisements are relevant to the interests of the user and the user is actively involved in the content
You can determine the text and style of the ad
You decide which products to market to give you the best chance of earning a commission.
3. It takes a while to build momentum
Unless you are the most ingenious marketer in the world, your website is unlikely to be an instant hit. You will have to work patiently and smartly, build a followwork, and gradually success will occur. Because of this, don’t be too discouraged if you don’t earn a lot in the first few months of being in business. It takes time, but if you did it right you should eventually be rewarded for it.
4. To maximize potential, you must combine
Don’t make the common mistake of thinking that you just need to create an affiliate site to make money. You either need to combine it with other successful online business concepts such as direct marketing or drop shipping or create multiple affiliate sites.
You can use a portion of the profits from the first site to fund content creation for the second and subsequent sites. One site that puts $ 100 to $ 200 a month won’t give you the most comfortable life, but if you have 10 or more sites for you at one time, you’re in a really good place, even with the fees you’re on your writers pay, are taken into account.
Affiliate marketing is usually a slow starter, and it is not the lazy way to get wealth that many people think. But if you’re willing to put in the effort and work to develop high-quality sites with good content, you can make quite a bit of money after building enough audience for your efforts to pay off.
Affiliate marketing is certainly not going to be right for everyone, but in any case, it certainly beats alternatives such as having a job or being unemployed. Since it’s such a low-risk business model, it doesn’t hurt to give it a try if you’re already considering it.