To earn passive income in a regular manner and reap benefits in long run affiliate marketing is one of the best method. But let me tell you, it is not before you reach a certain stage. And to reach that “certain stage” you will have to work very hard and industriously in the initial phase. If everything goes right and in a planned manner you can generate regular money in a long run. Affiliate marketing as a marketing tool is beneficial to the publisher as well as an advertiser.
- How affiliate marketing benefits the publisher
The publisher can benefit by affiliate marketing if he has his own website.
Virtually no investment – For the publisher the only expense he has to make is the cost of setting up his website and maintenance that he has to pay, which is practically next to nothing. So whatever the publisher earns it is his profit.
Very low operating costs – All the business have fixed costs for running their businesses. Like electricity, phone/mobile, rent and other expenses which are on monthly basis. For affiliate marketing monthly expense is website subscription fee for hosting website. The fixed costs which he incurs can be easily covered.
Making money 24 hours – The business is open 24 hours and 7 days a week as there is no physical store or business. No time limit or restriction on working. No employee costs. People can visit website any- time and the visit can result in lead generation or sale. In other words, publisher generates income even when he is sleeping.
The whole world is the market place – Internet is a marketplace for the publisher, which is open 24×7 and is not restricted to any geographical area. The publisher is visible and actively present every time, this increases his ability to sell without country boundaries or time limitation.
Hardly any risk involved – Since the publisher does not have to invest huge money in stock or warehousing hence his risk of losing money is almost zero.
- How affiliate marketing benefits the advertiser
Advertiser’s favor web-based marketing as there are many benefits like advertising is cost-effective, measurable, targeted, and flexible.
Performance based – Advertiser has to pay (PPC model) only when his ads are clicked and bring in successful sales. He has to pay depending on the performance of the affiliate marketer and the quantity of traffic.
Low initial cost – Start-up businesses because of the budget constraint do not have much money for advertisement. The businesses do not have to bear the cost of setting and maintaining the website. They simply purchase an affiliate solution and has affiliate’s website for their advertising needs.
Extra exposure and traffic – The ad publisher place the ads on the site which brings in traffic to the advertiser. Not all traffic will bring sales but the advertiser gets an additional page view for free. This also creates awareness of the advertiser’s product and services and improves his page ranking.
Low cost of operation – Once the affiliate program is set up the advertiser has just to approve new affiliates and anticipate for the sales to start coming in. The affiliate network will provide with text links, banners, and other advertising material to the publisher which in turn will automatically record successful sales. As far as affiliate gets his payments the advertiser’s advertisements will keep on running indefinitely.