Affiliate Marketing Pros and Cons

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Every business has its own pros and cons. It’s just the way it is. A business that may be perfect for one person may be terrible for someone else. The same goes for affiliate marketing. Affiliate marketing is where a person creates a product and has others market that product for a percentage of the profits for each product sold.

Thousands of people generate an income using Internet affiliate marketing programs. There are many positive things about affiliate marketing online as well as a few negatives.

Pros

Affiliate marketing owner
One pro to using affiliate marketing for the owner is you have more people promoting your product and you are reaching out to people that was never possible before. Another pro to using affiliate marketing is you have the ability to generate a mailing list that you can use in the future for new products or information that you want to share.

Affiliate marketer
A pro for the marketer would be the fact that you don’t have to create the product, maintain the site, answer questions, or send out products. Another pro for marketers is the fact that you can find many products that are perfect for your target market and share them with those people without doing any research to find them.

  1. They are free. You don’t need to pull out your credit card when looking for internet affiliate marketing programs. Virtually all affiliate programs in every niche are void of any registration costs.
  1. High income potential. Because you are dealing with the web your income level becomes significantly higher.

 

Cons

Affiliate marketing owner
One of the biggest cons for affiliate marketing is the time it takes to update your site, introduce new products, find affiliates, and pay them. Another con is that you have to deal with affiliates that are upset when payments come in, you also have to deal with affiliates when a product is returned and you have to take the income back, and you have to deal with people that want a refund on products they are unhappy with.

Affiliate marketers
A con to being an affiliate marketer is that you don’t have control of the product or service that you are marketing. So in essence, if someone is unhappy with the results of the owner, they may come to you and want you to do something about it. Another con for an affiliate marketer would be the lack of products to promote to your target market. If your target market is very tight and you have an unusual target market you may have a hard time finding products to promote to them.

  1. Traffic Generation. Although the affiliate marketing registration and start-up is easy to begin with, it is a real challenge to make up sales and to see profits in this program. The main reason for this could be the traffic lag for the websites.
  2. Hidden Costs. Even though internet affiliate marketing programs are free to join, actually building and maintaining the business comes with mounting costs. There are web hosting expenses, advertising fees, and software or hardware purchases to run the business and keep ahead of the competition. All these expenses can quickly eat away at your finances.
  1. Little support and training. While there are a few internet affiliate marketing programs that offer training and/or support the vast majority do very little to help their affiliates promote and sell their products and services.

This is a big problem since most people who begin affiliate marketing have little or no experience in selling and marketing. Without training it’s inevitable that the affiliate will struggle and in worse cases fail and give up. This is one of the reasons why only a mere 20 percent of affiliates make the big profits. The majority make less than 500 hundred dollars a month.

Before you jump into internet affiliate marketing programs it’s important to weigh the pros and cons. This way you can determine whether or not you will be successful.

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