Affiliate Basics: Advantages and Disadvantages of Affiliate Marketing

What is Affiliate Marketing?

Well the idea is a simple one. You are the ‘middle-person’. Affiliate marketing is a type of marketing strategy that involves you (the Affiliate) actively promoting and connecting someone else’s product, service, or sites to customers. You are in the middle, connecting customer and seller.

The reward for your service? You, the affiliate, are rewarded a commission each time a sale has been completed.

Advantages of Affiliate Marketing

Easy Setup

An affiliate needs to:

  • Sign-up with an affiliate program

  • Pick a product

  • Paste your tracking code to your website

  • Wait until a customer makes a purchase of the product

You earn commissions with each sale whenever a user make a purchase on your site.

Low Overhead

As an affiliate marketer, your primary responsibility is to connect customers to the product you have selected.

  • You do not carry stock or inventory.

  • You do not have to facilitate or provide customer service.

  • You do not deal with tracking or shipping.

The merchant takes care of the fiddly logistics.

Freedom

Anywhere, Anytime – With a computer and internet access, you can work anywhere in the world in any timezone.

Passive Income – Once everything is set up, with the right strategy/plan you can be generating income 24 hours a day.

Disadvantages of Affiliate Marketing

Working Alone – Most affiliate marketers start out as a one-man army.

Choosing the Right Product – You want to select a product that sells, product research can be time-consuming.

Not a Get Rich Quick Scheme – There is no magic to affiliate marketing. You will not get rich overnight.

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