Advantages and Disadvantages of Affiliate Marketing

online incomeAffiliate marketing is a joint and mutually beneficial business partnership between merchants and website publishers whereby an affiliate gets compensated for every sale that a visitor makes based on the efforts of the publisher. Working as an affiliate of an advertising company means that you agree to the terms and conditions for you to be honored as a member.

An affiliate has to work smart to get paid. Payments made are not actually the same. Rates typically differ from one site to another and terms and conditions apply as well. I have five years of experience working as an affiliate for among the best platforms on the web. My affiliate journey started from a simple lawn care www.lawncaredecaturga.com, in Decatur, Georgia. You can see the simplicity of this site, and affiliate marketing can be this simple. The progress we have made from this point has been enormous and you too can achieve the same with proper guidance.

Before we embark on the pros and cons of affiliate marketing, it is good we look at the various models presented by this marketing approach, as each has its advantages and disadvantages.

Models Used in Affiliate Marketing

  1. PPS Model

The pay per sale model is used when an affiliate marketer is paid a specific rate each time a customer purchase one of the marketed products from the merchant. The main advantage of this type of marketing model is the huge potential for income with successful sales. However, the major disadvantage is that the affiliate marketer is not paid anything for their efforts that do not result in a sale.

  1. CPC ModelPPC

The cost per click is a model whereby affiliate marketers are paid a specific rate per click. In this type of model, the publishers place the merchant’s advertisements on their website and receive payment each time one clicks on these advertisements. Its main advantage is that it is a straightforward approach, and the affiliate marketer gets paid irrespective of if a customer makes a purchase or not. The main disadvantage is the low payout rate and the need to generate a high level of traffic to the advertisements.

  1. CPA Model

The cost per action model uses a slightly different formula where the affiliate marketer is paid a set amount for a specific action. This action can be any agreement such as a product being purchased or a form being filled. This model may also be referred to as pay per lead. The main advantage of this model is that a customer does not necessarily have to purchase a product in order for the marketer to get paid. Its main disadvantage is that it is more difficult to obtain this type of opportunity as merchants only for those with high-traffic websites.

Pros of Affiliate Marketingonline business

  1. With this form of marketing, merchants can sell their products or services to a larger number of customers determined by an affiliate’s visitors. Merchants do not have to spend time searching for new prospects, and they get help in opening new marketing channels.
  1. Affiliate marketing offers a very cost effective way for merchants to market their products and services. They only pay the affiliates when a sale or lead gets generated.
  1. Website owners and publishers are presented with a relatively easy and effective way to earn money from their sites. They have an easy way of earning commission from customers’ purchases.
  1. Affiliate marketing can be started with a very little investment. All that is needed is a computer, Internet connectivity, and a hosted website. For the website, a domain name and a hosting company are required, and you are good to go.
  1. As an affiliate marketer, you do not need to keep a stock of goods or worry about customer support and other related e-commerce activities. The merchant handles these issues.

Disadvantages

  1. Sometimes, hackers and link hijackers can hijack affiliate links and steal the affiliate commissions.Internet scam
  1. There are cases of dishonest merchants who may promise high commissions but subsequently, reduce those commissions. Some may even go to the extent of closing their programs without paying the publishers.
  1. With an aim of attracting new customers, dishonest affiliates may make some false and misleading information or claims about a product. In such cases, the merchant may lose potential customers.

Before you consider venturing into affiliate marketing business, think about how you would benefit based on the advantages and disadvantages discussed above. Weight things carefully before you make the final decision. In case you feel this form of marketing is not the right tool for you, then you can find other online was of making money. There are equally other methods that can help you generate traffic, pull income and visibility for your products and services.

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