2017-03-01 00:00:00 Website English Discover the major benefits of affiliate marketing. Affiliate marketing lets you take an existing successful product and market it to a new... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Small-business-owner-poses-for-photo-in-store-room-discussing-affilliate-marketing.jpg https://quickbooks.intuit.com/ca/resources/website/3-benefits-starting-affiliate-marketing-business/ 3 Benefits of Starting an Affiliate Marketing Business

3 Benefits of Starting an Affiliate Marketing Business

2 min read

Affiliate marketing is selling someone else’s product and earning a cut of the revenue. It is a great way to start an online business. If you like a product or a retailer, you should check if it has an affiliate program. Once you join your program, you can add affiliate links on your blog, email list, or social media feeds while you discuss the benefits of the product.

Shoestring Budget

Affiliate marketing is a beneficial relationship for both parties. The seller of the product gets more exposure for the product without any additional marketing expense. You can sell a product that you believe in without gaining the risk, cost, and time to developing it on your own. With no product development, your only expense is a domain name and hosting, which generally costs less than $100/year. Most affiliate marketers start off with a blog that is oriented toward a specific niche. Down the line, you may have additional expenses if you decide to invest in marketing on search engines or social media sites.

Unlimited Product Choice

Another major benefit of affiliate marketing is that you are free to choose from a nearly unlimited amount of products to promote. This lets you find something that you really believe in, because your potential buyers can to detect your enthusiasm. Although you are not designing the product, you can choose a product you like and that you personally use. For example, Amazon’s affiliate program, Amazon Associates, gives you access to nearly 30 million products for sale. In fact, most websites have affiliate programs for physical and digital products. When you sign up as an affiliate, the website gives you a special way to link to their products. If a customer clicks on the link from your website, social media, or email, it places a cookie on their computer. If the customer buys the product through your link, you can earn a commission.

High Commission Rates

Each merchant has its own rates and payout system for its products. Typically, there are tiers that you can climb, and you can earn higher rates if you sell a higher volume. Typically, commissions are lower on physical products and much higher on digital products, such as software, e-books, and online subscriptions. This is because the additional cost of producing another digital unit is close to zero, while the cost of producing another physical unit in addition is significant given inventory and shipping costs. You can find many digital products to sell through affiliate marketplaces like E-Junkie, ClickBank, and DealGuardian. These marketplaces also provide relevant information, such as the number of people who buy the product after clicking the link, reviews, ways to track your sales, and payment distribution. They also come with guidelines for marketing the product and approved images that you can use when marketing the product. Affiliate marketing’s main benefits are its low cost, availability of products, and high commissions. In a way, it is a shortcut to a business without the risk of product development. Instead, you can market a product that already works. It is a great choice for someone who wants to start learning about selling online.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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