Why Affiliate Marketing Is The Best Business Model?

There are several reasons why Affiliate Marketing is still the best business model.
And the good news is that it grows.

So if you are an aspiring affiliate marketer or just a person that wants to find the best business model to make money online let me share with you some information and facts.

Why Affiliate Marketing Is The Best Business Model?

Here are the most essential reasons, and in the following article, I am going to break them down, for you;

Back in 2016 I knew I wanted to do something with internet marketing but was not sure what path to choose.

By the process of elimination, I found out that Affiliate marketing might be the one.

And there is more to it;
The thing is once you know how to make money with affiliate marketing, you have doors opened to additional sources of income.

Towards the end of the article, we are going to back it up with real statistics that prove that affiliate marketing is the best business model.

Please Note:
It is an opinion backed up by knowledge experience and statistics.
Since I don’t know you personally I can’t claim that this business model will suit you as well.
But if you have not tried it, it definitely is worth trying.

Freedom

Why Affiliate Marketing Is The Best Business Model

The very first reason why I decided to do Affiliate marketing was the freedom.

You have your own schedule and as an affiliate marketer, you can work from any place you want (as soon as it has an internet connection).

Basically, you are your own boss, and if you are tired of going to 9-5, this might be the best move.

Well, I admit that there are some pros and cons of being your own boss, but if you are reading this article I am sure you can overcome the disadvantages pretty quickly.

Freedom also means, to be involved in work that you love, that makes sense and people appreciate.
That is the best fuel and people that are successful in affiliate marketing love what they do.

They often claim that money is just secondary.
I can relate to that.

You Don’t Sell Anything

You know that affiliate marketing is a business model where you only connect people with the product they search for.

Why Affiliate Marketing Is The Best Business Model?

When they follow your affiliate link and make a purchase, you get a commission.

But you don’t need any storage room to keep the product.

You don’t have to deal with suppliers.

Just make sure to provide an honest opinion about the specific product or service.

In theory, you don’t have to deal with customers either (or potential customers).
But since your blog post has a section for comments, you might here and there interact with your audience.

Why Affiliate Marketing Is The Best Business Model?

But it is always beneficial to engage with your audience on your website.

Almost No Investments

Many business models require investments upfront.

With Affiliate marketing, you need almost none (maybe a little bit a few hundred to start with):

  • A couple of hundred for training
  • A few bucks for hosting (some platforms/bundles offer hosting as part of their training)
Why Affiliate Marketing Is The Best Business Model?

If you have a budget you can start paying for the traffic and that requires an additional budget.
However, with no experience, this is not recommended.

So in order to get organic traffic, you need to invest your time and energy.
You need content on your blog.

This will take some time and your energy.
Also, it must be properly structured so it is easy to read.

But as already mentioned once you love what you do, everything goes smoothly.

No (Or Low) Maintenance Costs

Your business is your website.

The only cost for running this kind of business is a proper hosting service that costs $20 to $100 per year.
In case you have some troubles, the hosting company should provide support (for free).

So make sure to select a good quality hosting service.

Why Affiliate Marketing Is The Best Business Model

But other than that maintaining your website (or Youtube channel) doesn’t require any money.
It sure requires your attention and time.

In my particular case, I pay about $15 for hosting. The support is available 24/7 and is very responsive (I get feedback within minutes).

If you are about to start a blog or a website, you should know at least 5 things before creating a website.

I personally pay $15 per year for hosting this very website.

The price you see on the image above $49th/month is the price for non-Wealthy Affiliate members.

Why the discrepancy?
Let me make it clear:

Premium Membership within Wealthy Affiliate costs $49 per month. That includes step-by-step training on Affiliate Marketing, where students can learn

  • How to set up a website
  • How to drive free traffic to the website
  • How to monetize the website in the long term

For the Premium Members, the hosting is just $15 per year (yes per year).

Regarding the cost of maintenance, affiliate marketing is the best bang for the buck

Passive Income(?)

Why Affiliate Marketing Is The Best Business Model

It is a great source of passive income.

Why the questions mark?

Because it is not entirely passive income. You have to put your work first .. and I mean a lot.

And once you get a consistent amount of traffic – then yes, you really get paid while you sleep.

But again this doesn’t go forever. You need to keep coming up with new content.

Or – and that is a better approach:

Outsource the work!

Have a guy that creates the content for you.
Instruct him how to do it well, and you can spend only a few hours per week overseeing the work.
And enjoy the full-time income.

Scalable

Why Affiliate Marketing Is The Best Business Model

Once you reach certain traffic and have the income you can scale up the business by:

  • Paid traffic
  • Outsource the work (already mentioned)
  • Youtube

Please note that in the image above, the rising curve shows organic traffic only.

Once additional sources of traffic apply, the curve might be even steeper.

As a result, you have an additional Source of Income.

What is even better is the income from the Ads.

Yes, the (annoying) ads on the website are believe it or not a great source of income.

Mediavine Income

Just to give you a clue:

50,000 visitors per month (doable within a year) can earn you $1,500 to $2,000 per month. This is on top of your affiliate marketing income.

Cons Of Affiliate Marketing

In the beginning, I mentioned that Affiliate Marketing doesn’t work for everyone.

So let me also briefly share some disadvantages of Affiliate Marketing.
Even the person that is thinking about going on this path should be aware of the cons.

1) Driving Traffic

It is advisable to learn how to drive organic traffic.

It is nothing that you can’t learn, but it requires a bit of patience and consistent effort.

But once things are done well, you can expect to have consistent traffic within 8 months.

2) Some niches oversaturated

It is true that in certain fields of industries there is higher competition. That’s why it will take longer to get consistent traffic.

But it is not always about which niche is the most profitable.

It is more about what niche you prefer, and where you feel comfortable with content creation.

3) Not seeing revenue for the first months

This is obviously related to the points above.

Just would like to highlight the fact, that if you don’t see an increase in traffic within the first 4 to 5 months, don’t panic.

It is actually quite normal.

Traffic to new website

It takes a while until Google notices new sites.
But after that, the number of visitors usually doubles each month (to a certain point).

4) Don’t Rely on One Affiliate program only

Once you see consistent traffic, you can apply for more affiliate programs.

You increase the chances of getting paid and lower the risk of losing income.

Still, if you have questions about affiliate marketing the chances that you find the answer here is pretty high:

Let’s go over some statistics/facts

1) Google Trends

You are probably familiar with Google Trends.
It shows what people have searched for.

It is based on

  • Location
  • Search term
  • Interest over time

Let’s use the term Affiliate Marketing, worldwide in the past 5 years to have a nice overview:

Why Affiliate Marketing Is The Best Business Model?

We see that the searches for affiliate marketing rise.

Just out of curiosity let’s compare the term with another business model, called drop shipping.
(BTW, Salehoo is a good company to check if you are interested in drop-shipping)

Why Affiliate Marketing Is The Best Business Model?

The searches for drop shipping are on the rise as well, but overall, slightly above 50% compared to affiliate marketing.

2) More than 80% of Affiliate Marketers claim to make more than $20K per year

According to medium.com and pol statistics from the STM forum, a lot of affiliate marketers make more than $40,000 per year.

Why Affiliate Marketing Is The Best Business Model?

Still, quite a lot make more than $1M per year.

Why Affiliate Marketing Is The Best Business Model?

Pls, note that the people are involved in business for more than 5 years and they gained a lot of experience.

5+ Years?

Does that sound like a long time?
This is not a get-rich-quick scheme.

In fact, there is no real business model where you can start making hundreds of dollars per day on autopilot.
Sure a lot of companies/courses/software and fake Gurus claim that they have found a “loophole” and you can take advantage of it …

But Come on. This is all Nonsense.

Be realistic.
How long does it take for your job to make $1M per year?

Please try to be open-minded and see the big picture.

With that being said, it is quite normal that in your first year as a newbie you won’t make a dime.

But at the same time, you might hit $1,000 a month within 10 months.

My point is that Affiliate marketing is still very viable if it is done right.

3) Affiliate Marketing spend in the U.S.

Why Affiliate Marketing Is The Best Business Model?

According to Statista, more and more money is spent “using” affiliate marketing links.

Since 2015 the amount spend on Affiliate marketing doubled.

Why Affiliate Marketing Is The Best Business Model?

Also, more and more people have access to the internet (faster internet), so the potential is huge and it will grow in the next few years.

4) Amazon has the biggest Affiliate Program

Why Affiliate Marketing Is The Best Business Model

According to Influence Marketing Hub Amazon associates dominates the sector with about 50% market share.

In other words, it is very easy to promote Amazon products.

Why?

Because Amazon is well-known and people tend to buy from a source that they are familiar with.

In your review, describe the product (choose the one with good ratings) and have a link saying, Check Price On Amazon.

When people follow your link and purchase anything within 24 hours after clicking on that link you get a commission.

Note:
Please that you have to identify yourself as an Amazon associate.

Why Affiliate Marketing Is The Best Business Model

As per the Amazon Associate website;
(In case you can’t read the text from the image above):

To comply with the Federal Trade Commission (FTC) regulations, your link-level disclosure must be:

  1. Clear – A clear disclosure could be as simple as “(paid link)”, “#ad”, or “#CommissionsEarned”.
  2. Conspicuous – It should be placed near any affiliate link or product review in a location that customers will notice easily.  They shouldn’t have to hunt for it.”  

BTW.
It is very easy to become Amazon Associate.

Choose the right industry (or also called niche) and you can start making money within a few months.
With your own blog.

Or if you prefer YouTube, you can do so as well.
Ideally both.

5) Online reviews have a huge impact on purchase decisions

AccCto Qualtrics, more than 90% of consumers (of age 18-34) rely on online reviews.

Why Affiliate Marketing Is The Best Business Model

What does it mean for you as an aspiring affiliate marketer?

Reviews are a great source of traffic and thus potential revenue.

People that write reviews are read to buy. They have their credit card right next to the screen.. They just want to be pointed in the right direction.

This is a great opportunity for you to write an objective and honest review about the product (or service) within your niche.

Make sure it is honest and unbiased. Even if you promote a product with a lower commission, your task is to make the customer happy.

Think in the long term – You want him to come back to your site.
Or even better – You want him to share the article with others.

Is Affiliate Marketing the Right Business Model For You?

We have covered the most important aspects of why affiliate marketing is the best business model.

Tell me, is this what you are going to do?
What business model did you try?

Also if you disagree with the statement, and you think that there is a better business model, please let me know in the comment section, below.

I would love to hear from you and will provide you with feedback (within 24 hours).

Thank You For Reading,
Mike

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FAQs

Is affiliate marketing a good business model?

Yes, Affilaite marketing is a great business model since it doesn’t require any significant costs.

There is no need to deal wit customers nor suppliers. Simple, pick a niche, describe the product highlits the pros and cons and when person purchase the product via your affiaite linked you get a commission.

Why affiliate marketing is the future?

A lot of companies go online and affilaite marketing is a way how to let wide range of people to know about the particular product or service.

In the end of the day it is a win-win situation for all involved parties:

  • Merchant sells product without paying for adertisement
  • Customer is happy because he or she did research, learned more and based on that made a purchase
  • Affilaite marketer made commission

Why is affiliate marketing better than MLM?

In affilaite marking, you don’t have to chase people. You don’t have to sell very specific product that you are not interested in.
Most importantly you don’t sell any dreams.

In affilaite marketing you simply inform the potential buyers about products within a niche that you like.
Potential customers look for the information and if you know how to deliver that right data you earn commission.

It is a great source of passive income in the long run.

What are the benefits of affiliate marketing?

Once you have established an audience, you earn while you sleep. You can outsource the work and work only a few hours per day or per week.

You are not limited to any place or time; meaning you can work from any place in the world (if there is a internet access) and you can work anytime you want.

For beginners – Affilaite marketing as a business model that requires only a few bucks up front.
In worst case scenario it is necessary to pay for the course, but there are many courses that cost less than $1,000.

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