Last Updated on September 6, 2024 by Jan Barley
Starting An Affiliate Marketing Business Needn’t Be Complicated Once You Know What To Do
You might not consider the pros and cons of affiliate marketing, but there’s a lot to unpack before you start promoting your first offer.
I started this journey in late 2023, driven to learn digital marketing. Affiliate marketing falls under an enormous umbrella within the digital marketing space.
I began by selling master resell products, but I don’t want the responsibility of setting everything up myself, including payment processors.
Affiliate marketing has become a popular way for anyone to earn money online. Still, like any business model, it comes with advantages and challenges.
Sadly, many people give up on affiliate marketing because they make the typical rookie mistakes that lead to getting no sales.
Affiliate marketing is surprisingly simple to understand, but it takes time to make consistent income.
This article explores the interesting pros and cons of building an affiliate marketing business to help you decide if it’s the right path for you.
Pros of Affiliate Marketing
I love affiliate marketing, and I hope you love it, too. There are so many aspects in its favour that even total beginners can enjoy.
#1: Low Startup Costs
One of the most appealing aspects of affiliate marketing is the minimal initial investment required. Unlike traditional businesses, you don’t need to create, stock, or ship products.
Your main costs are setting up a website and potentially investing in marketing tools.
I pay £6/month for WordPress hosting and $27/month to Systeme for marketing tools.
You need a professional website with a custom domain because most merchants won’t entertain partnerships without one.
The only exception is if you are a social media influencer with a significant following.
Additionally, later, you might want to join Journey by Mediavine’s ad revenue program and earn passive income.
#2: No Customer Service Hassles
One of the biggest hassles with selling digital products is dealing with customers. They aren’t always reasonable.
You’re not responsible for product fulfilment or customer service as an affiliate marketer. The merchant handles these aspects, allowing you to focus on marketing and content creation.
Freedom from responsibility was the primary factor that fueled my interest in pursuing affiliate marketing.
#3: Flexibility and Location Independence
Affiliate marketing gives you total freedom to work from anywhere with an internet connection. You can set your hours and build your business around your lifestyle.
Once you start earning recurring income, you can live life like one big holiday.
#4: Passive Income Potential
Once you’ve created content, set up your affiliate links, and targeted traffic sources, you can earn money 24/7, even while you sleep. This passive income aspect is particularly appealing to many aspiring entrepreneurs.
Still, let’s not beat around the bush. You won’t start making affiliate commissions immediately. It takes commitment to consistently create content on your chosen platforms, such as your blog, YouTube, TikTok, social media or communities.
Content creation might sound like an easy job, but it can be tricky to stay motivated when you’re not seeing financial results. You must push through if you want to make affiliate marketing your full-time income goal.
#5: Diverse Product Options
Whatever niche you are in, there are countless affiliate programs available. You can choose products aligning with your interests and audience needs. This diversity allows you to create multiple income streams without depending on a single product or company.
It’s essential to choose affiliate partners relevant to your niche. Otherwise, your offers may confuse your audience. For example, I promote marketing tools, digital products like Threads UNLEASHED, courses, hosting, AI tools, and software that I use or have used.
The Cons of Affiliate Marketing
There are some disadvantages to affiliate marketing, although, in my opinion, they are easy to overcome.
#1: Fierce Competition
The low barrier to entry means many people are trying their hand at affiliate marketing. You become a blur in a crowded marketplace, which can be challenging, especially in popular niches.
The SaaS (software as a service) industry is highly competitive, though it’s one that newbies often target because it typically pays well and offers recurring income.
If you choose a competitive niche, try to create something unique around your offers that draws people’s attention.
#2: Lack of Control
You don’t control the products you’re promoting, their pricing, or the overall customer experience. If a merchant changes their affiliate program terms or discontinues a product, it can directly impact your income.
Your ONLY job is getting traffic to the merchant’s page. After that, it’s their job to convert viewers into buyers. Sadly, many merchant websites are informational without considering the psychological reasons people buy.
#3: Commission Volatility
Affiliate commission rates can change without notice. A program that once offered high commissions might reduce rates, affecting your earnings potential.
My advice is not to put too many eggs in one basket. Have multiple offers with a variety of merchants.
#4: Delayed Gratification
Building a successful income-generating affiliate marketing business takes time. It often requires months of consistent effort before seeing significant results, which can be discouraging for those seeking quick profits.
My first affiliate commission was $11.38. Honestly, it felt like winning the lottery! Somebody had taken the time to read my article, click the link and buy a product.
Getting my first sale kept my motivation going.
#5: Constant Learning Curve
The digital marketing landscape is constantly evolving. Staying competitive requires continuous learning about SEO, content marketing, and emerging platforms or technologies.
Think on your feet and study analytics. Find what content drives traffic to your affiliate offers and adapt your approach.
Sometimes, merchants make poor decisions that upset their customers or affiliates. Always be prepared to switch to an alternative merchant if the offer is not beneficial to potential customers.
Is Affiliate Marketing Right for You?
Affiliate Marketing Can be – And Should be – Fun
A “certain type” of person enjoys and sticks with affiliate marketing because it can be tedious initially.
To see if affiliate marketing will suit you, consider the following questions:
- Are you patient and willing to put in consistent effort without immediate rewards?
- Do you enjoy creating content and engaging with an audience?
- Are you comfortable with the idea of selling and promoting products?
- Can you adapt to changes in the digital marketing landscape?
- Are you self-motivated and disciplined enough to work independently?
If you answered yes to most of these questions, affiliate marketing could be a good fit for you.
How to Choose the Best Affiliate Merchants
These tips are the ones I learned the hard way!
#1: Affiliate Network Or Affiliate Program?
Affiliate networks like Impact, Partnerstack, JVzoo and Clickbank have thousands of products, but they’re the first place most newbies start looking for affiliate offers.
Therefore, you’re not standing out promoting these offers.
Affiliate programs are independent of networks. You approach the merchant, and they approve and provide an affiliate link.
Some merchants partner with networks, such as SurferSEO with Partnerstack and Ubersuggest partners with Impact.
#2: Recurring or One-Off Payment?
100% recurring for me.
What’s the point of working hard to drive traffic to an offer paying 20% one-off commission when you can divert attention to an affiliate offer paying 20% monthly recurring commission?
Systeme.io is one of the highest paying programs. It pays a staggering 60% recurring lifetime commission. Some affiliates in the Systeme community are making considerable monthly income.
#3: How Much Commission Does the Merchant Pay?
Many novice affiliate marketers think Amazon is the best place to start affiliate marketing.
Amazon affiliate program pays 3-4% commission. You’ll have challenges making enough money to live on unless you’re selling high-ticket items.
Even with a high ticket item, imagine selling a $2k product and getting paid $60 for your efforts.
My minimum criteria is 20% commission. Ideally, I choose merchants with high commissions, like Systeme.
#4: Does the Merchant Pay Lifetime Commissions?
Ideally, choose a merchant that pays lifetime commissions because that starts working towards building a significant passive income.
#5: How Long Does the Merchant Track Cookies?
365 days/year is the preferred cookie tracking.
#6: Does the Merchant Have Analytics?
Detailed analytics helps you stay motivated when you can see that you’re driving traffic to your offers and from where.
#7: Does the Merchant Offer Instant Affiliate Approval?
Most merchants don’t offer instant approval. They want to check that you have some experience and a live website with relevant content or active social media channels.
Some affiliate networks have filters so you can search for merchants offering instant approval.
My Top Tips For Starting Affiliate Marketing
- Only represent merchants whose products or services you have used or that have excellent reviews (I always search on Trustpilot)
- Publish at least twenty blog posts before applying to merchants
- Attach your website to Google Search Console and Google Analytics so you can regularly assess which pages get the most traffic
- After #4, optimise your top-performing pages and interlink to relevant content on your website
- Pin blog posts on Pinterest to drive more traffic (anticipate 3-6 months before seeing results, but Pinterest is a goldmine for affiliate marketers)
- Build an email list. You can have up to 2k subscribers on the Systeme free plan
- Don’t settle for anything less than 20% commissions
- Always choose recurring commissions
- Join an affiliate marketing community
- Start a YouTube channel
Conclusion
Affiliate marketing is a genuinely fantastic way to build recurring passive income. It takes a lot of work initially without results, so be prepared for the long game.
The best time to start is today. In 12-24 months, affiliate marketing could replace your full-time income.
There are also spin-offs, such as teaching others how to become affiliate marketers or creating courses that you can promote to your YouTube channel subscribers, email list, and communities.
Remember, success in affiliate marketing doesn’t happen overnight. It’s a journey that requires persistence, strategy, and a genuine desire to provide value to your audience. That said, affiliate marketing can be a rewarding and profitable venture if you’re willing to put in the work and play the long game.
Disclaimer: There are affiliate links on this page. If you make a purchase, I may receive a small commission.
