What is Affiliate Marketing?
Affiliate marketing is basically an online business model that allows anyone interested to make money online by selling other people’s products. It can either be a physical product or digital.
The money made selling other people’s products online is known as “affiliate commission”, which is usually paid by percentage depending on the affiliate program you are using.
Affiliate programs are networks that manage the business of bringing the product owners and you the affiliate marketer together.
Affiliate commissions vary from one affiliate program to another. For example the affiliate commision of physical product affiliate programs ranges from 5 to 20% and for digital products ranging from 10% up to even 75% and more.
Pros & Cons Of Affiliate Marketing
The Pros of Affiliate Marketing
Easy to Join
Affiliate marketing is an attractive option because there are very few barriers to entry. Anyone can become an affiliate marketer, including you!
Experience Isn’t A Requirement
Anyone can become an affiliate marketer because you don’t need any experience or expertise but the fasted way to success is by learning the ropes through an affiliate training program
Low Operating Costs
The costs to operate this business model is minimal. Most affiliate programs are free to join.You will however incur expenses related to setting up a domain and a web hosting.
No Dealings With Customers
Because you don’t own the products and services that you recommend, you don’t have to worry about dealing with customers.
You will have a huge amount of flexibility because you are working for yourself.
As a self-employed affiliate marketer, you can work from anywhere in the world. You can work while commuting on public transport, or in the doctors waiting room.
Earn Passive Income
The ability to earn a passive income is what draws the majority of people to affiliate marketing. This means that you can literally earn money while you sleep.
The Cons of Affiliate Marketing
As an affiliate marketer you don’t own the affiliate marketing programs that you join. You are thus entirely dependent on your merchant’s rules, conditions and the commissions that they choose to pay you.
Tools & Resources Needed For Affiliate Marketing
To be able to run any type of business both online & offline , You need tools and resources to run the day to day operations. For Affiliate Marketing you need just 3 essential tools to operate.
1) Keyword Research Tool
To find a profitable niche for your affiliate venture, the very first critical tool that you are going to need is a keyword research tool.
keyword research tools allow you to find out how many searches a specific word is getting on the search engines. This lets you know if people are interested in the niche that you are thinking about pursuing.
2) A Domain Name
A domain name is the address to your website. It is where people will go to find you online.
If you are using someone else’s platform such as YouTube or social media to make money as an affiliate, you are at the mercy of the companies that own the sites for your income.
If you want to follow this business model, I highly recommended that you have your own web property, that will give you more control over your business.
3) Website Hosting
A web hosting is the property that your website will be located on. It’s very important that you have a web hosting that can support all the visitors to your website.
Okay, now you know basically what you absolutely must have to run a successful affiliate marketing business.
With all the knowledge and tools it can still be challenging if you don’t have a proven process, which is where training courses comes into play.