Like all marketing programs, affiliate marketing has several advantages and disadvantages. While affiliate programs seem to be profitable especially for bloggers and entrepreneurs, it is necessary to know the advantages and disadvantages before joining a affiliate program.
Advantages of Affiliate Marketing
Here are the advantages of affiliate marketing:
Cheap / low start-up cost: Generally, you don’t have to pay to join an affiliate program. The majority of affiliate companies will be concerned with service and product, so you don’t have to worry about inventory or warehouse.
Easy to participate: The entry barrier to participating in an affiliate program is very low. All you have to do is fill out a form. Then you can start advertising products instantly. However, it may be more difficult to participate in some programs than others.
You don’t have to deal with cargo or product returns: all you need to focus on as a partner is to advertise the merchant’s brand, product or service. Only the merchant is concerned with the product or service.
There is no need to create a service or product: As we mentioned above, all you have to do is promote to customers. Since opening your own online store will require a lot of effort, the trader will take care of everything else.
There is no special requirement: You do not need any training or licenses, as long as you can efficiently advertise partner products or services. (But these will help you build your own website!)
You make money 24/7: Just like all online businesses, you can even do affiliate marketing while you sleep!
Disadvantages of Affiliate Marketing
Although affiliate marketing looks great, it is not flawless. Here are some disadvantages of affiliate marketing:
It may take time to increase the number of referrals: It may take time for a partner to get enough referrals to earn a significant amount of money.
You must be good at internet marketing: Yes, you do not need special training to become a partner, but if you want to be successful, you must be good (at least you should know) in Internet Marketing.
Some coding knowledge is required: You even need basic knowledge of how web codes work and how they are placed to add affiliate links and ads, even to your website, blog or mailing list.
There are ad restrictions: Some affiliate programs have ad restrictions, such as not allowing email marketing or using PPC ads only with certain keywords.
Payment requirements are available: A large number of affiliate programs only pay you when you sell or earn a certain amount of money.