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Other than that, for me, I don’t see the other “cons” mentioned as cons.
I would love to see any business that has a payment guarantee, this just simply doesn’t exist.
And, affiliate marketing having a bad name to some people who don’t know about it, is not exactly our problem either.
What To Expect
Although affiliate marketing itself can’t get saturated, you should be competitive.
Nobody goes into a real business not being competitive.
There will be affiliates out there investing more time & money than you, so at least be competitive in the space.
If you’re not, you will probably fail or not do very well at least.
It’s definitely not easy at the start, but it gets easier as you go along.
And, once you start making some money, you will start to learn about putting your effort into long-term strategies that will prove to be the most profitable.
Pros & Cons Of Affiliate Marketing (For Businesses)
For businesses, there are also some similar benefits in using affiliates as part of the businesses marketing strategy.
The main issue for businesses comes with “spammy” affiliates that can damage the businesses brand.
Pros For Businesses
Cons For Businesses
Low-risk marketing strategy
Passive marketing strategy
No-cost marketing strategy
Potential brand damage
Potential legal issues
Risk of abuse
Pros Of Affiliate Marketing For Businesses Explained
As you only pay when the affiliate makes a sale, or in some cases refers somebody to take a specific action (email opt-in, etc.), affiliate marketing is very low-risk.
It’s a marketing strategy that is:
No-cost (apart from maybe getting setup)
This kind of marketing strategy can have tremendous value to smaller businesses with lower budgets, as well as bigger companies.
The business itself is not investing more time and/or employees into marketing but is making more sales.
If you are not investing more resources into marketing, but still are making more sales, you are in a very good position.
As you grow the affiliates for your business, the sales will increase too without having to put more resources into marketing.
Cons Of Affiliate Marketing For Businesses Explained
The main con that affiliate marketing can bring to your business is spammy affiliates.
Not only can they damage your brand and reputation, but they can also actually throw off your sales tracking & retargeting pixels.
This can be a huge problem, as it can stop potential buyers from making a purchase, as well as throw off your advertising campaigns.
If you have affiliates who just spam their links all over the internet, message random people (in an unpolite way) and reply to random people’s social media posts with an affiliate link to your product or service, it can damage your brand.
And, also if they use spammy traffic methods such as:
Buying from Fiverr
Some Solo ads (There are good solo ad providers too)
This will throw off your pixels, sales tracking, and just about anything you track on sales pages.
You will also spend money advertising to people with no interest in your product.
The other risks include:
Abuse (i.e people buying through their own affiliate link and stuff like that)
In terms of legal issues, you will want to have clear T&C’s (I assume) and stuff like that.
This is not legal advice, I am not a legal adviser, laywer or anything else related.
However, most affiliate programs have this, and I of course always see them, so I would assume you need something similar.
In these T&C’s you can also create rules on how your product should be promoted, that the affiliate has to stick to.
How To Mitigate The Cons
Mitigating the cons for businesses is pretty simple, but it depends on your size.
Something that you should consider is having a closed affiliate program if it’s available to an audience where there are a lot of beginners.
For example, if you have an affiliate program on ClickBank or similar marketplaces, you should probably make it a closed affiliate program.
It kind of depends on what sort of skill level the affiliates that will look for your affiliate program.
Keep in mind, you may not even have to do this sort of stuff mentioned below, but it’s worth looking into depending on your industry and the skill level of your affiliates.
Closing The Affiliate Program
Usually, a lot of people from a “make money online audience” are beginners and do spammy stuff.
If a lot of people finding your affiliate program are from like a spammy “make money online” sort of audience, then you should definitely consider having a closed affiliate program that asks for stuff like:
Social media platforms
etc. (i.e web presence)
This will mitigate the risks of spammy affiliates, as you will be able to see who is joining your affiliate program.
You will also want to research this sort of stuff which I can’t really help you with.
It’s maybe even best to go see a lawyer relating to this sort of stuff.
Another thing that you could do is look at other affiliate programs in your industry and see what sort of rules they have, just to get an idea for your own business.
What To Expect
Just make sure that you are aware of how your affiliates are going to be promoting your product/service.
Make them agree to an affiliate agreement that forbids them to advertise in ways you don’t want to.
By doing this, you should be able to expect nothing negative from having affiliates.
If you get a spike of not converting traffic, look into where it’s coming from and find out why.
Pros and Cons Of Affiliate Marketing (Overall)
Overall, I think affiliate marketing only has pros.
If you take away the specific stuff such as potential spammy affiliates, or on the other hand shady affiliate programs, you are really only left with pros.
Every business in the world wants more customers and the affiliates? They will always want to make money.
It’s a match made in heaven.
Anybody saying things like affiliate marketing will go soon, or that it’s not a real business model straight up has no idea of what they’re talking about.
It’s common sense really.
Affiliate Marketing Pros and Cons: Conclusion
As you have seen throughout this article, affiliate marketing can have huge benefits for both affiliates and businesses.
I hope that this article has been helpful in your decision on how you want to use affiliate marketing, or whether you want to start/use it.
If you did find this article interesting, helpful, or useful make sure to share it and/or leave a comment!