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Now that you’ve heard of affiliate marketing, you’re probably wondering if it’s a viable business model. Or perhaps you’re curious about the amount of effort required to earn money through affiliate marketing.
This brings us to the crux of the matter. Is affiliate marketing worth the time and effort?
Affiliate marketing is well worth the effort if you want to build a sustainable online business. You can easily scale an affiliate marketing business by leveraging established brand names without creating a product or providing customer support.
Now, let’s take a closer look at:
Listed below are
Five reasons why affiliate marketing is worthwhile even in 2021.
Some disadvantages of affiliate marketing as a business model
Five Reasons Affiliate Marketing Is Profitable.
Affiliate marketing is a highly effective business model. I wanted to provide an honest assessment of why you should continue pursuing affiliate marketing as a means of promoting products and earning commissions.
The following are some of the reasons why affiliate marketing is still profitable today.
1. With Affiliate marketing it is Possible
To Have A Stable Income!
Affiliate marketing, when done correctly, can become a reliable source of income. The most effective way to mitigate the risk associated with an affiliate marketing business is to concentrate on diversifying your marketing channels.
Several marketing channels that I recommend for driving traffic to affiliate offers include the following:
Blogging – Create your own website and leverage the power of SEO to drive traffic from Google and other search engines (Search Engine Optimization). If you’re interested in learning SEO, check out this post I wrote about the best free SEO websites and YouTube channels.
A YouTube channel will significantly assist you in de-commoditizing your content. As the face of your brand, you can begin to cultivate a sense of community and trust, which will make it significantly easier to sell information products in the future.
Podcast – A podcast is an excellent way to connect with your audience during times when they are juggling multiple tasks. It’s an excellent way to ensure your audience always has content they can listen to on-the-go.
Email List – Your email list is a valuable asset. It’s an excellent way to engage a cold audience and share your latest content as it becomes available.
2. Residual(Passive) Income
Affiliate marketing is frequently considered passive income, and I agree.
Passive income, in my opinion, is defined as income generated from work performed upfront that requires only a minimal time commitment to maintain the same level of income.
Affiliate marketing, by this definition, is a form of passive income. Particularly when compared to a consulting firm.
Thus, the only thing required to begin earning affiliate commissions is to consistently create high-quality content over time.
3. Startup costs are extremely low and super scalable
When you compare affiliate marketing to starting an offline business such as a restaurant, you will quickly realise how low the startup costs are for affiliate marketing.
You can start a YouTube channel, a Facebook group, or a blog for next to nothing if you use affiliate marketing techniques.
Business Model That Is Extremely Scalable
When starting an online business, you have two primary options for generating traffic: organic search or paid advertising.
In contrast to consulting or any other type of active job, affiliate marketing does not directly exchange time for cash.
This means that all you have to do now is create more content or invest more money in profitable advertisements in order to scale your business and generate more sales.
4.Working from home or virtually anywhere
with an internet connection is possible.
Working from home is a significant advantage of affiliate marketing and is likely one of the reasons you’re pursuing it as an online business.
The benefits are obvious, and you can work and travel from virtually anywhere.
5. Make No Product –
simply focus on Driving Traffic!
My favourite thing about affiliate marketing is that you can get started right away.
It’s not like making software or anything else because the product is already made.
All you have to do now is drive traffic to your affiliate offers.
Affiliate marketing has three disadvantages.
While there are numerous benefits to affiliate marketing, there are a few drawbacks that must be addressed. These drawbacks include the following.
The following is a list of the disadvantages of affiliate marketing that I came up with.
1. Affiliate programmes have the potential to reduce commissions.
When it comes to affiliate commissions, Amazon is a company that is well-known for reducing them.
In some cases, they have even reduced commissions by more than half for their affiliates after only a week’s notice to them.
If you are solely reliant on affiliate marketing and Amazon, or any single affiliate programme, you should think about expanding your reach by promoting additional programmes.
The more you can diversify your income streams, the better prepared you will be if and when an affiliate programme reduces commission payments.
2.Affiliate programmes may be terminated for a variety of reasons.
Not only can commissions on affiliate programmes be reduced without notice, but affiliate programmes can also be terminated entirely without notice.
Fortunately, if you choose the right affiliate programmes, which I will discuss later in this post, this will not happen very often.
3.It is difficult to track return on investment and sales.
Because you have complete control over the sales process when you sell your own digital or physical products, you can easily track the return on your investment for your company.
4.Last Thoughts: Is Affiliate Marketing any good ?
For those of you who are unaware, my opinion is that affiliate marketing is a worthwhile endeavour to pursue as part of your online business.
Eventually, once you have established a substantial income through affiliate marketing, I would recommend pursuing the creation of a digital product to sell on your own.
This eliminates the possibility of affiliate programmes going out of business or reducing commissions. Even though you’ll have to put in more effort up front before you start seeing any sales, it’ll be well worth it in the long run to diversify and spread out your income streams.
In the event that you’re interested in more posts on affiliate marketing, you can continue reading by taking a look at some of the recommended posts listed below.
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About the Author:
Div Acharya, Founder, and Managing Director at DigitallyDiv strong believer and want nothing more than seeing you and your brand become amazingly victorious. With an MBA degree from Swinburne University Melbourne in tow and a great passion for digital marketing & Social Media Marketing, She is here to stay & grow!. She comes with a passion for helping people gain their confidence in Online Marketing.