Affiliate marketing is one of the most famous forms of digital marketing. It works on the basis of commission and is one of the most profitable ways to make money online.
Many online companies who sell products offer an affiliate program. This enables their business to grow more and to reach out more to the common people. As this form of marketing offers a good amount of commission, a lot of people grab this opportunity which, in turn, helps the companies to grow in terms of business.
It can be concluded that with the help of affiliate marketing, the business grows in an exponential way which was, otherwise, meant to progress in a linear way. Affiliate marketing works in a simple way. One can join an affiliate program, pick a product to promote and share its link via social networking sites. When someone makes a purchase through shared links, the affiliate marketer can earn a handsome affiliate commission.
The benefits and importance of affiliate marketing include the fact that it can be a great tool for entrepreneurs and start-up businesses to help their business flourish. Through affiliate marketing, common people get to know a variety of products and brands. In this digital era, it is a boon for a lot of companies, and also to those people who earn a good deal of commission from it. As it is a digital form of marketing, people can work at ease from their home too! Where unemployment is surging day by day, it provides a source of income for many unemployed people.
There are many affiliate marketing benefits for companies such as growing in popularity, time-saving on marketing, increase SEO, limited start-up costs, targeted traffic which aid their business to grow and reach out to common people.
The pros of affiliate marketing can be listed as follows:
- Affiliate marketing is performance-based. The better you perform, the more you earn. This keeps the marketers motivated.
- It helps broaden the audience for the company, especially for the start-up companies.
- It even results in more customers without spending much time in searching for them and hence results in more sells.
- An affiliate marketer can work any time and anywhere he wants.
- Marketers do not need to be an expert to pursue this business. It is a low-cost business opportunity where you just need electricity and internet connection.
Apart from being beneficial, there are certain pitfalls or dark sides of affiliate marketing like discontinuation of an affiliate program or product. When the company discontinues its affiliate program, it can be a devastating occurrence for any affiliate marketer. Sometimes the products are discontinued or become out of stock as well. It can take a lot of time to make a good amount of money and even the commission rate changes.
The cons of affiliate marketing can be listed as follows:
- There is no guarantee of expected revenue for an affiliate marketer.
- Spammy marketing campaigns are sometimes associated with affiliate marketing.
- The marketers are entirely dependent upon the merchant’s rule.
- There is a huge competition for marketers due to the low costs of investment and high-profit opportunities.
- Sometimes the affiliate links are hacked so that the hacker gets someone’s commission.
- Apart from these, there are geo-targeting, compliance and tracking issues for affiliate marketers.