Advantages and Disadvantages of Affiliate Marketing

Affiliate marketing has advantages as wel as disadvantages, so read on to find out if this is something you would like to do. As a big part of their income over 15,000 advertisers depend upon affiliate marketing. Based on a study affiliate marketing is used as a tool to reach consumers with persuasive goods. This happens due to increased expectations for relevant and compelling content.


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Your current job compared to an online job. With an online job you can:

As many as 84% of publishers turn to affiliate marketing to get new opportunities. And also to generate more revenue for their sites.

In 2016 spendings regarding affiliate marketing outperformed the Belize economy twice. Predictions say that affiliate marketing will reach 7 billion as soon as 2020.

You can tell by these facts that the affiliate market is always evolving and very healthy. But how does this affiliate marketing exactly work?

By definition, affiliate marketing is a performance-based enterprise in which independent marketers referred to as affiliates generate revenue. When a qualified action is taken, they earn a fixed commission, which is paid only when a sale is generated, a lead is confirmed, or any qualified action is taken. Revenue sharing is the basis for this idea.

Affiliate Marketing at Finabud

We can inform you regarding all kinds of online based income: 

Becoming an Affiliate Marketer.

On behalf of a vendor, you as an affiliate marketer, will becoming an independent promoter of a selected product or range of products from your chosen niche. You will have the absolute freedom to build your online presence, being an affiliate publisher. When and where your work is completed is your independent call. How do you optimize the entire marketing process in reaching your customers? I bet that sounds good or not

Earning a passive income online is obviously the easiest business model to start earning a passive monthly income. It’s a high-profit industry with low costs. But it can be tough, on the other hand. It all depends on your determination, strategy and approach that you follow.

It’s all about making a nice amount of sales. But like with everything also affiliate marketing has some disadvantages and advantages. Things like how to start with affiliate marketing will be explained on other pages of this website. But first let’s take a look at the pros and cons of affiliate marketing.

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What are the benefits of affiliate marketing?

1. Billion-dollar Business.

In the beginning of this post I already mentioned that affiliate marketing is a very benificial billion dollar industry. I’m saying that this also seems to be the main advantage. Isn’t this a big incentive to be sharing with other people?

2. Low-Cost business access.

The lack of barriers to easily at low cost access the affiliate marketing business industry is definitely one of the main advantages. It is just a matter of deciding to start or not. The only thing you need to do is to produce a website to start your affiliate marketing. After that you then choose an appealing niche and some products that will fit the market of your choice. Sign up at the affiliate marketing website, and you can start.

3. No Expertise Needed (because practice makes you perfect).

To be able to start as an affiliate does not require you to be an expert in marketing. The nice thing is that you can learn all aspects of affiliate marketing while testing several paid or organic campaigns. It is also possible to apply, manage and run other affiliate marketing programs at the same time. That way you can identify what works best and brings you the most benefit by leveraging your previous marketing experience. Then repeat the success pattern by optimizing and repeating it for results.

4. Low Investment Costs.

To begin with compared to other industries, the cost of investing and running an affiliate business are very low. Because it is all done online you are able to work and earn money at home, and therefore you only have the costs of a ISP subscription and the electricity. Other optional expenses are web hosting, the setup of a domain and the layout like a theme. But only if you decide to build a affiliate marketing website.

It is your decision, though over time, to consider renting a small office in a co-working space. But that depends if you like a office environment or even miss it. All in all, since you are a freelancer, there are no costs associated with hiring staff, customer service, or inventory.

5. Side source of income.

Quitting your current job is not necessary to start a business as an affiliate marketer. Try it as a sideline income project and see what you can achieve in the first few months.

6. Convenience and Flexibility.

Conveniently, you can create multiple flexible campaigns on different affiliate sites and landing pages to continually sell your affiliate links. That way you can optimize the successful ones, abandoning the poorly performing ones.

Sticking to one affiliate marketing program is also not necessary. From your chosen niche you can select several products from your chosen niche. Or you can promote on a daily basis by trying different niches if you’re not sure which one you want.

As an example you could install a chat plugin in your website, and begin to promote it if they have an Affiliate Partner Program. Beside that, you should also enrich your website with MailChimp. On top of that you can add several other marketing tools if they offer an affiliate marketing program.

6a. Different online marketing activities

While each tool belongs to the same business niche, they serve to manage different online marketing activities, so they complement each other. This way you add beautifully diversified software products to your portfolio, and one can outperform another.

Each tool will complement the other to serve different online activities of marketing in the same niche. One can outperform the other, thus adding a beautifully versatile software product to your portfolio.

Should one product prove to be not easy to sell, then the other could perform much better , acting as a backup. Don’t stay on a sinking ship. So if a program does not work good enough then you should just leave it.

An approach like this can reduce the risk of failure and maximize your chances of earning a lucrative online income. Be careful, to keep your marketing diverse by not putting all your eggs in one basket.

7. Customer service is not your issue.

Sometimes it can be a problem to retain customers and manage customer service related issues. Fortunately, affiliates don’t have to worry about such issues. Any question from a consumer can be passed on to the merchants customer service team. They will take care of answering the question.

If you like to create user-generated content underneath your reviews, then it’s a good idea to answer product related questions.

Nevertheless customer service is something that no one will impose on you or will expect you to do.

8. The Independence.

A strong incentive is also the flexibility to shape the working environment independently and at one’s own will. It’s your decision where the location of your office is, be it in the Bahamas or in a scenic Italian village. As long as you have an Internet connection, you will be able to work anywhere. Does your imagination appeal to this concept?

It’s extra nice with so little bureaucracy. Company regulations do not apply to freelancers. You alone determine all the rules, so you don’t have to worry about the relations between companies. You can if you like work in your pajamas. No more distracting things that are present in a loud office.

9. Marketing materials are available by the vendor.

Promotional materials and banners are usually made available by vendors, so you do not need to produce them.

10. Passive Income benefits of being a affiliate marketing while you sleep.

Receiving a passive income is the other strong beneficial characteristic to become an affiliate marketer. This is the opportunity to earn a passive income, i.e. to earn money while sleeping.

Imagine waking up in the morning and discovering more money in your account. This is the fruit of your initial hard work.

It is all within reach to be able to wake up in the morning and get a better understanding of what is all about with affiliate marketing.

11. Best benefits of affiliate marketing with a blog.

In order to market your affiliate marketing programs you can can have different ways. You can for instance set up an affiliate website blog when you posted on a regular basis articles in any given niche. But you can also market your affiliate products on social media and platforms.

12. Developing a business the costs.

You typically do business as an affiliate partner and must develop your business. The costs, such as computers and cell phones are the best part, they can be reported as tax write-offs.

13. Flexible working schedule.

Working at home and having a online business means that you have flexibility scheduling your on Daily working hours. That way you have always time in case something unexpected happens like your family’s or friends birthdays. Heaving a home based business will make sure you always have time for such things.

In case of a vacation, it is always your decision when and how many days you want to take.

14. Performance based income advantages and disadvantages of internet marketing strategy.

Performance-based income can be a disadvantage but also a benefit. The affiliate marketing business will itself will verify if you are any good at online marketing and specifically in what kind of campaigns. Are you good at online reviewing? Or is writing articles something that you are more successful at. Maybe you feel more comfortable creating revenue with paid campaigns.

This will reveal itself later on. For those who are persistent and and know how to work, success will be the reward.

The most essential factor is persistence, This is because in order to create enough traffic you need time to create and make money with it. It will take about 6 months to one year after you start affiliate marketing to see results. By that time you will see if your efforts have created enough money on the table.

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The disadvantages of affiliate marketing.

1. You don’t control affiliate marketing programs.

Affiliate marketing programs are not your you’re property of course. But your customers could have the impression that you are, and that could be a disadvantage of the internet marketing. But you are not responsible for the content of it.

This way you have to respect the rules and conditions and you are completely dependent of the rules of the merchant. Some programs may look very attractive at some times, but could turn less profitable at the end. Or maybe the terms and conditions are not what the customer likes. In this case unfortunately you are not able to change the terms yourself.

The only thing you can do is to wait for the merchant to change the conditions or rules.

2. Competition will vary depending on the industry.

Depending on the kind of industry you will see that the competition will vary. Things to like low investment, high profit and no need for expertise are strong benefits in joining an affiliate marketing business. That is the reason why many people want to start with affiliate marketing. Almost anyone can be successful and join such programmes.

This will also no create a very fierce competition when targeting the same niche. This is a significant disadvantage and dangerous to your performance.

This should not make you afraid of it. and you have to remember that also your competition is not perfect. So you have always have the possibility to become better than your competition. That’s the part where persistence and hard work will turn into profits.

3. Returning customers.

Once a sale is made buy a customer he probably will not return to you again to make a purchase.

The customer might go directly to the affiliate vendor and repeat his purchase there. That is completely normal in the affiliate business. That’s why you have to create new leads over and over again. An exception is an affiliate program that will create recurring commissions.

A couple of affiliate marketing programs at clickbank are offering recurring programmes. Programmes will create fixed recurring affiliate commissions. A good example of such an affiliate program is LiveChat.

This will mean that you will receive a 20% commission every month for years, for as long as the customer will stay with the product.

4. No guarantee of income.

Performance based income can be a very nice opportunity, but has also a high amount of risk. There is no guarantee that the work of an affiliate marketer is easy and that you will make a good amount of money from the beginning. You have to face the challenge and put maximum effort in maximizing this opportunity. Overall, predicting the amount of money you will make is extremely difficult.

5. Freelance jobs are not for everyone.

In order to feel comfortable with a freelance work style job like this will take a special personality. Loneliness can in some circumstances be an obstacle. But such a mental condition can be minimized and be overcome. Just don’t shut yourself off from the rest of the world in your home. For example you could find an outdoors working space where you have to go everyday.

A coffee shop are nice places where lots of people do their remote work in your city. So just discover what looks the best for you and your needs.

Recently, a space where co-working can take place, has become more and more popular. People just like you can rent a space or desk where they do their freelance work. You will create new connections especially if you are a social person.

6. Spammy affiliate approach.

Spam it’s something that now and then we’ll be associated with affiliate marketing campaigns, and that is many times not very untrue. Misleading content are the products of short sighted affiliate marketers. They expect a small amount of money in a quick way.

Beware that your days are numbered when you step into this kind of black hat method of affiliate marketing and false ways of advertising. You will always lose your credibility but also and even worse you will put at risk the merchants reputation.

Affiliate campaigns containing spam will lead to a breakup of a cooperation on the side of the vendor. And that will mean the end of any commissions coming to you. It is always better to produce quality than quantity like spam always is. Because quantity will always bring you recurring income and revenue.

Act legit and be legit, because it will get you the trust in the world of affiliate marketing.

7. Possibility of hijacking your affiliate links.

The possibility of hijacking affiliate links will not happen often, and the major part of all affiliate marketers will not do this. But there are cases where fraudsters will take someone’s commission by hijacking their affiliate links. Getting it back will prove almost impossible. Let’s hope that those kinds of affiliate scams will not target you.


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Conclusion of advantages and disadvantages of direct and online marketing.

So far my list of pros and cons regarding online affiliate marketing. Conclyding, I hope you will have a good and better understanding about the advantages and disadvantages in this business after reading my article. You should be able to decide if this kind of job is what you want to do.

You will notice that the benefits outweigh the disadvantages. I strongly would like to suggest that you Purchase a course to be successful. I got on the path of affiliate success and SEO by following the best course available. I have put the banner on this page. Following this course will guarantee complete success in even the most competitive markets.

I have tried to be as complete as possible writing this article. However, should I have skipped an aspect or if you have a question, then please contact me and let me know.

Live good and prosper starting is Affiliate Marketing!