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Affiliate Marketing - Is it Good or Bad?

By: Matthew Eigbe

Read More About Affiliate Programs

Affiliate marketing requires the affiliate to recommending someone else's product to another person and getting paid a commission when that person buys the product. Affiliate marketing has its advantages and disadvantages both for the product owner and the affiliate. Product in this context includes services.
Advantages
Product Owner
Reach Extension
Affiliate marketing enables the product owner reach a much larger market than he would have been able to sell to all by him/herself. This is because many people canvass the product in different places, pshing to sell as much as they can since their commission is based on their sale.
High Return on Investment
The return on investment would be high because the product owner does not invest much in selling and distribution. Imagine the cost if the product owner were to take over the task of selling their product to all consumers/users. The cost would be so high that the business would fail.
Free Time
The product owner does not spend time selling the product. The reources thus freed could be used for enjoyment or creating other products. If the new products are successful, then they can only grow richer and richer.
Affiliate Marketer
Start-up Ease
It is easy to start affiliate marketing because there is no product creation involved. All you need do is select a suitable product and sign up for the aiiliate programme. Your equipment are your computer, an internet connection and your grey matter.
Multiple Streams of Income
An affiliate marketer who is really ambitious can sign up for more than one product thereby open up several sources of income. In no time this could lead to financial freedom.
Quit Regular Employment
Being your own boss as well as being able to work from the comfort of your home are some of the yearnings of employees. Affiliate marketing helps you realise these benefits.
Disadvantages
Product Owner
Huge Logistics
If the product is a physical product, the logistics of delivering it to customers would be huge and complicated. However, this aspect of the business could be outsourced. There fulfilment houses that can handle tis aspect of the operations.
Cost of Sales
They may not have much direct selling cost but the amount paid out as commission to affiliates and the ciost of engaging merchant houses could be substantial. The bottom-line takes a hit from these costs.
Affiliate Marketer
Selling Expenses
It takes money to make money, the saying goes. So even though start-up cost is low, the affiliate marketer must invest in advertising, list building and other promotional methods in order to make it big.
Learning Curve
It is not enough to just sign up and go to sleep. The affiliate marketer must learn how sell on the world wide web.The need to learn internet marketing methods is not dispensed with merely . The impression of plug-and-play given in the sales copy is often not correct.
What do you say? Is affiliate marketing beneficial or not beneficial, a blessing or a curse? You, dear reader, are the judge.

Article Source: http://depositarticles.com/

Matthew Eigbe is an internet marketer, making a full living from his internet business. Check him out here www.myrichharvest.com

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