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Pros and Cons of Internet Affiliate Marketing

Nov 13, 2007
Affiliate marketing is a co-operative effort between the merchants and online publishers or affiliates. It works in a way where the affiliate is rewarded for every customer or visitor that is brought into a chain. Internet affiliate marketing is a double edged sword. Its business model gives many advantages to its user, but it also has its trouble spots. That would be true for any business model, but especially for affiliate marketing, because it is relatively new and not a mature business model. Though, it has been around for at least 20 years, it is still an infant as compared to traditional marketing whose rules are well established.

Thrills and chills

The advantages of affiliate marketing are many fold. The greatest advantage that you gets is that you get to be one's own boss. This independence is in a limited sense. One is still governed by the business itself and the larger business environment. Once the affiliates are chosen and working efficiently, then the person can be assured of some income 24/7 even when sitting at home. Affiliate marketing has a multiplying effect as now there are several hands doing one work with little direction and in most cases self direction. One does not have to be present in the same geographical location in order to run the business.

The affiliates can be spread in any geographical location and grow your business. In a sinister way, it is akin to a spider sitting at the center of its web waiting for prey. You have the freedom to enjoy one's life because the business can be run at one's own pace. You have the freedom of working for oneself. It can provide for one's retirement day so that one can live in the autumn of one's life peacefully. It has a low start-up cost as compared to some other businesses and one can start even on a shoe string budget. One can stay where one wants and live in the lifestyle one wants. One can also work from home. One can work as much as one wants or when one wants. Its flexi-working hours at its absolute peak. One can take a break and have a fun time vacationing while the money continues to flow in.

There are several disadvantages in internet affiliate marketing as well. If you signs up with too many affiliates, too fast, you might face a problem running the business. It is difficult to get the business organized and running. The set up and running costs are also very high. Sometimes the affiliates engage in false advertising and put misleading information to get a commission. These are very harmful to your business in the long run.

Customers hold the mother organization responsible for everything and not the affiliates. If customers approach consumer protection courts then it is a very big problem. The affiliates might suffer if the merchant closes down the business without informing the affiliates. In the final count you must weigh both the pros and cons before getting into this business.
About the Author
Stephen C Campbell (MBA, MSc, MCIM) is a business consultant and internet marketer who has conducted business throughout Europe, Far East & U.S. Learn
more about internet marketing at

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