Disadvantages Of Affiliate Marketing

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Affiliate Marketing is an exciting business model for many people who are just jumping in the field of internet marketing and online business. There are many advantages of affiliate marketing so that when the first jump into internet marketing, the business model is also the choice of me. One of the main reasons is because at that time I did not have my own product. Being an Wealthy Affiliate reviews makes it easy for you to sell something without having to create or own your own product which is often a challenge for people just starting out. Income thousands of dollars per month, not something surprising at the moment.

Although affiliate marketing seems like a dream business model (no need to create your own product, no need to deal with administration, customer etc) but actually affiliate marketing also has shortcomings. Here are some of them:

First Deficiency: Your Income Depends on Others

When you become an affiliate marketer, you are promoting a product or service belonging to someone else. There is usually a registration process where you in principle must agree with the rules of the game. Let’s say you promote a product from merchant A, where you have created a website that promotes products from A. Then you also work hard to use various traffic strategies that bring enough visitors to A merchant’s website so that sales happen. You start enjoying your work by earning commissions on a monthly basis from the merchant A.

But one day, merchant A might change their minds where they want their product price to be more competitive so they have to reduce cost. One of them is probably done to lower the affiliate commission or even remove the system affiliate. If that’s the case, then your income will be directly Free Falls and all your previous efforts to promote merchant A to be in vain.

The Second Deficiency: You Do not Build An Asset (Customer Data)

Whereas in the business world, you must realize that the most valuable asset is the Customer Database. A business that has a customer database will make the business grow for the long term because you can usually promote other products or get repeat orders from existing customer data. So as an affiliate marketer who only brokers traffic (supplying traffic to a merchant) you do not have a customer database that you can use

for your business development (unless you do a List Building strategy).

About the author

Viola J Wolfson