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Advantages of Affiliate Marketing
The beauty of affiliate marketing is that you don’t have to do everything that the vendor does and that includes the following:
You don’t have to provide customer support extensively although you do have to provide a little bit of customer support especially if you offer a bonus, meaning somebody gets it for free if they purchase through your affiliate link. So it’s an incentive to buy through your affiliate link. However having said that, the kind of customer support isn’t extensive, meaning that it’s not complex at all. You can either do it yourself or you can hire somebody to do it for you and typically in that case you don’t need somebody who has the ability to troubleshoot really rapidly, in other words it’s a lot easier to find these people or do it yourself.
We’ll talk more about bonuses and how they can help you convert more sales and ultimately beat your competition and by competition I’m talking about other affiliates that are selling the same product. But other than that you don’t really have a lot of support compared to that of the vendor.
Second advantage is this, you don’t have to update the product, I mean think about it, and this is a huge one. The vendor has to continuously update the product, if it is software you have to update the features and make sure that it’s compatible with everybody’s computer and make it work. If it’s a video course, you need to make sure that the content is updated and not outdated or if it’s an e-book or content piece, same thing. The thing about affiliate marketing is you don’t have to worry about any of that and that’s the beauty of it.
Less Start-up Cost and Operational Expenses
Third great advantage is that it takes less money to actually get started you do need a little bit amount of money but not a lot. That amount of money needs to be focused on, reviewing the product, getting traffic and making sales. It could be landing page, setting up landing pages, web hosting domains items that you use in your videos, things like that. But there’s basically not a lot of overhead as far as that, so you don’t need to have a lot of money.
Another advantage is that promoting somebody else’s products can usually take days or weeks max and I say max because a lot of times it can take days or even a day or less than a day to learn and make sales with affiliate marketing. Usually the process goes like this, you look at somebody’s product you find it you buy it, you review the product, you figure out why somebody would want to buy that product and then you figure out the weaknesses and strength, everything about it. You create your bonus and then you set up your own review site and then you can focus on traffic and conversions. At the end of the day after setting up your bonus, incentivize landing page and all that that, usually only takes about a day or a few days honestly. Now there is a learning curve of course you’re gonna need to master or get a better idea on how to drive traffic or you’re gonna need to hire somebody that really understands that area. But at the end of the day that’s really all you need to have. Once you master traffic, in fact you can sell your own products so there are many different traffic sources. You can use paid traffic or search engine optimization which is ranking on Google or ranking on YouTube. But the reality is that you do not have to worry about 20 30 40 different moving parts that the vendor has to worry about for you it’s typically like 10 or 15 moving parts or less.
Disadvantages of Affiliate Marketing
We’re gonna talk about the disadvantages of affiliate marketing so as you already know affiliate marketing is based upon promoting other people’s products right? That’s the beauty of affiliate marketing as long as you’re building a list. Back in the day, I remember when we would promote a product, we would send traffic directly to the vendor’s product and then we’ll make sales. But then we found out typically weeks later that we were sending traffic to an offer that didn’t exist or the vendor just decided to take the product down without ever telling us. This is something that happens day in and day out a lot of times there’s very a lack of communication between you and the vendor having an email that in itself can be an advantage but it can also be a scary thing at times especially if you have a product.
There’s a really good product that you’re making a lot of money and the vendor just decides to quit, so that’s why in that case there are other things that you can do. Having an email list can be an advantage but if the vendor takes at down their product that alone can be a scary thing at times, so you’re kind of living on the edge. But that’s why I said if that’s you and that’s your perspective and that’s your expectation of what’s real and what’s not, then it’s not going to become a surprise when that happens. But I will tell you that happens a lot so let me put this in perspective, vendors come and go that’s the nature of how things go in the last decade of being an affiliate marketer.
Vendor Create New Products
I’ve seen hundreds of vendors come and go and a lot of times they’ll get into these ruts where they’ll create totally brand new products. Like for example one vendor create 10 to 20 different products every single year and if you think about how many vendors there are there you could find 10 really good vendors. One of those products will eventually become outdated. So that’s if that’s the expectation that you have then great you are now aware and you’re aware of something that no not a lot of affiliates are aware of so that means that affiliate marketing often has a short term cash flow for each product so making as much as you can during that short term period of time is key. But at the same time that’s why I say you got to build your list, if you don’t build a list you’re building an affiliate marketing business that will fail. If you’ve worked really hard to produce a winning campaign, you’re either going to need to find a new vendor to replace the old, if that ever happens. So you need to make sure that you have a back-up plan or you need to work out a special deal with them assuming you’ve made them a lot of sales and say hey you know I’ve made a lot of sales for you I put a lot of time and effort into this. How can we make a deal? Maybe you can make a special deal just for my list or maybe they’re going out of business and you can just buy the whole business if it’s making you a lot of money.
Long Term Mindset
So there’s a lot of different avenues that you can take, don’t quit just think about the possible solution that there potentially is and if not you have to get into that mindset of letting go, if there is no option and this is why there is so much hustle involved and it’s more of a short term than a long term strategy. So what are lessons that you can learn before you get started well when you promote a product you want to ask yourself a few things, so ask yourself this number one are there similar vendor are there similar products with affiliate programs so if you find a product that you really like and you promote it and it does really well at that point. And only at that point begin to look for products that are similar and then approach other vendors and you could possibly promote those products to your list and say hey you’ve bought this product or I’ve showed this product but here’s a similar product check it out and see which one converts the best but while you’re doing that you’re gonna have a back-up plan it’s even better if there’s two three four different products.
Different vendors you can figure out which vendor is really willing to work with you and which vendor is not willing to work with you. Another thing we found over the years is that vendors that are willing to bend over backwards and work with you oftentimes you’re gonna be able to make more money doing that vendors that weren’t really open to working with us. A lot of times ended up being very small campaigns yes they made a little bit of amount of money but not a lot so typically you want to find at least like I said three or more really good products so that if one vendor takes their product down or they go bankrupt. You always have that back-up plan and that’s really why I’m harping on this because we’ve been in situations in the past where we promoted one particular product we’ve been really excited about how much profit it was pulling in and bam vendor takes the product down or they disappear totally and there’s no other products. So in that case you could see it as we lost all the time and effort that we put into it or you could see it as a lesson to make sure that you have a back-up plan.