What Is Affiliate Marketing? Pros & Cons of Affiliate Marketing

As the world is progressing fast on technological grounds, it is extending further on business grounds as well. Internet has provided merchants all around the world to expand their businesses. Internet has made the world a global village, with this globalization we are interlinked to each other. Same like this brands and merchants are able to connect with the people all around the world.

To expand the businesses globally, merchants tends to take the advantage of marketing. Affiliate marketing through internet have doubled up the sales opportunities of merchants. Also the website portals that offers affiliate marketing also benefits for providing such services. Besides SEO, SEM and Social ads, affiliate marketing deals with amounts paid for only fixed value for each visit (pay-per-click), registration (pay-per-lead), or for every purchaser (pay-per-sale). This saves the cost of ineffective conventional marketing paid by the merchants. Affiliate marketing work best for merchants paying exactly the amount of marketing required for effective advertising.

Pros & Cons of Affiliate Marketing:

However there are pros and cons of digital affiliate marketing as well. Starting with the pro of affiliate market:

  • Advantages:
  1. Merchants gets the opportunity to display their product and services on bigger platform. It also helps to target huge audience resulting in increased customers and more sales.
  2. Merchants do not have to wait for customers or launch their products in the area where their products are in demand. However they may launch their products and services and new customers in need of that product will automatically reach them.
  3. A merchant’s is likely to be more relaxed while working, he may work on his scheduled time despite of being standing in his outlet for whole day.
  4. Affiliate marketing also enable to produce more earning opportunities by offering wide range of several packages according to the budget of the merchants. Providing web publishers and website domains might extend the business.
  • Disadvantages:
  1. If a merchant is not aware of the service provider and the standard of his work quality. His reputation is definitely in danger. If the incorrect or wrong material is displayed in the ads of the product or services, it will severely damage the reputation of the merchant.
  2. Since you are not connecting with the merchants face to face, it might happen that a merchant may leave the campaign mid-way without paying for the services.
  3. Since the internet has made the world a global village, with the increase in technology the crime rate have also been increase. The affiliate marketers are in danger while providing services to the merchants as it may turn out that the links and commission could be hijacked or stolen during the process.
  4. Affiliate marketing is a bit risky as well. Merchants may promise to pay high commission in return of affiliate marketing but after starting the process it may happen that merchant transfer less amount.

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