The Pros and Cons of Affiliate Marketing
Before you start as an affiliate marketer, you should know about the good and the bad. The rewards may sound amazing, but this venture doesn’t come without risks.
Pros of Being an Affiliate
- Low startup cost. Most programs let you join for free, so costs are typically tied to how you build your audience and get referrals.
- You don’t have to make your own product or service.
- When someone buys, your merchant ships for you.
- Work anywhere with a WiFi connection.
- If set up correctly, income can be passive.
- Adds an extra revenue source for home-based businesses or anyone with a website.
For a cash-strapped entrepreneur that’s willing to go slowly, becoming an affiliate is a dream come true. You can grow as you make money, and eventually can create a higher source of income. If you’re very successful, it could even grow to be your full-time job.
But like all good things, not everything is always simply the positives we want to hear.
Cons of Being an Affiliate
- Building traffic for referrals can take time.
- It’s possible for poor tracking systems not to attribute your sales properly (you lose money).
- Bad customers to the merchant can damage your reputation and relationships.
- Zero input on the product you promote.
- The potential for a company to ‘go ghost’ and not pay.
- You have a lot of competition.
- The customer is ultimately the merchant’s, not yours.
If you commit to being an affiliate marketer, you have to understand your place in the pecking order. The brands you work with ultimately can make or break you, so you’ll need to choose wisely.
By now, you should have a better understanding of what it means to be an affiliate marketer and how you can make money doing it.
However, before we dive into the nitty-gritty details of starting out, I want to raise and answer a few questions that you need to be aware of.