In my 5 years of internet marketing I’ve seen countless of complete newbies fall in the same trap over and over especially in the warrior forum ( Internet marketing forum). This is probably the only business model they know about, because a ton of internet marketing ebooks, home study courses, guides etc teaches the same exact business model. It was most probably their first introduction to internet marketing ( Like it was for me too)
But I can almost guarantee that 99.9% of the beginners here fail to build a proper online business with this business model alone. (This 99.9% figure is considered optimistic)
Here is the main problem with affiliate marketing
- You Don’t own the customers – Most business is made trough REPEAT customers! Whatever commission cut you make , the product owner is going to make much more later on because of the continuos flow of products he/she can sell to the customer YOU brought in !
- You Only get paid ONCE! – Related to point #1 above.. You may be commissioned say 75% for the front end product you sold but you’ll never get the commissions for future sales.
- Sometimes you don;t get the commission (Cookie cutter affiliate marketers)– What if you done all the hardwork introducing a potential buyer to the affiliate product, done all the marketing ,email followups and just when they are about to make a purchase, they do a quick google search (or youtube) and click on some other affiliate link and makes the purchase… You earn nothing from your effort!
- The offer may no longer exist – Happens far more often than you think! – You build a solid campaign promoting this one single offer only to realise that one day the offer no longer exist because the advertiser has pulled the offer.
- The Payout can be reduced at anytime – Most affiliate marketers use paid traffic to make money, and so they need to find a positive balance between their paid advertising and their returns/payouts. A reduction in payout can sometimes cause a campaign from profit to loss. Again this is something you have ZERO control over.
- Excessive competition – If the product you’re promoting is popular, chances are you’ll have a ton of other competitors promoting the same offer. Your site or marketing would normally be just like everyone else’s offer (You probably have no Unique Selling Point)
So you’re probably thinking in you’re head now, so I should avoid affiliate marketing? My answer is no. You can still do affiliate marketing but make that as a small part of your online business model.
What you should be focusing on is building your own line of information products and other services you can offer to your potential buyers or clients!. Having your own information products can guarantee you a better success online and it is actually far easier than you think it is.
I hope this helps!