The Negative Side Of Affiliate Marketing

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The Negative Side Of Affiliate Marketing

Luckily or sadly, there is no single way to market affiliates. If you have a website and want to make money as an affiliate marketer, this can be done on the basis of revenue-share, CPA (cost per action) or CPL (cost per lead).

Revenue share is just a great way to say you’re selling the goods of a retailer and earning a profit. For instance, you could become an Amazon Associate and promote any of its thousands of products that you would earn a commission of 4 per cent.

CPA offers These are offers that you put on your website and you make money when someone takes the necessary action. One of the best payments for these offers is eHarmony, which currently pays $4.75 for each person visiting your website and filling out their form.

This is where you create leads for a merchant, as you might imagine. This usually takes the form of an application that the visitor has to fill out to earn revenue on your website. Perhaps the most popular of these is a request for credit cards or requests for quotes for auto insurance.

You could always make a combination of these three, of course.

The drawbacks With affiliate marketing, there are a lot of people making a lot of money. Nonetheless, you need to be mindful of some drawbacks before you dive in. First, you don’t have any control over your merchants ‘ programmes or products. You might hear that a rival has a much better offer, but you can’t do anything to get your dealer to change his bid. You will make the same deal as thousands of other affiliate marketers for that matter, making it very difficult to stand out from the crowd.

Intense competition While one of the best things about affiliate marketing is how easy it is for other marketers to sign up for a programme, it is just as easy. Nonetheless, irrespective of which products or services you choose, you can count on the fact that thousands of other affiliates around the world will be providing the same programme or products. The competition level is going to be very high. And you’re going to compete with highly skilled people who are traffic management experts.

Unpaid until the sale is made Another drawback with affiliate marketing is that you only get paid when a sale is made and you have no influence over the sale. You’re taking all the risk of marketing. You can send a lot of traffic to a retailer, but you don’t receive anything if it loses the deal due to a bad bid. In other words, you end up paying for the errors of the dealer.

The middleman The network becomes a middleman when you do retail marketing through an affiliate network. It will provide lots of good reporting and monitoring resources, but it will take a share of the revenue you have generated. Therefore, operating through a network decreases the level of contact with your merchants.

A direct partnership These are the reasons why many affiliate marketers choose to have a direct partnership with their merchants or merchants instead of going through a network of affiliates. Marketers who are able to generate a good traffic level that turns into a merchant’s sales can often negotiate better terms and conditions. Moreover, they earn more revenue from each sale as they don’t have to share it with a network of affiliates.

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Please note that this post contains affiliate links and any sales made through such links will reward me a small commission – at no extra cost for you

 

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