Affiliate marketing is a good way to make money online, but because the affiliate industry is unregulated, and anyone with the skill to set up a website can become both a merchant and an affiliate, there are a lot of myths and misconceptions about the industry.
Read on to find out some of the biggest myths plaguing the industry.
Myth 1: Affiliate Marketing is Easy
Setting up an affiliate website is easy, and it does not take a lot of effort to pay your hosting bills through affiliate marketing. However, if you want to turn your affiliate marketing venture into a business, rather than a hobby that pays for itself, then you will need to put a lot of time and effort into researching your niche and building traffic.
Myth 2: Affiliate Marketing Can Generate a Passive Income
How many times have you seen advertisements for affiliate programs that hint at the possibility of passive income? These advertisements promise that you can “Earn while you sleep”, and “Free yourself from the 9 to 5 grind”. While it’s true that a successful affiliate website won’t die if you fail to update it for two or three days, affiliate marketing is hard work and your websites will lose traffic if you stop working on them.
To succeed in the affiliate marketing business you must keep nurturing your websites and working to find new revenue streams, just like any other form of self-employment.
Myth 3: Affiliate Marketing is Just Advertising With a Different Name
This myth is one that merchants in particular should learn to ignore. Advertising and affiliate marketing are completely different things. With advertising, you pay up-front to run your campaign, and the campaign could be a complete failure or a resounding success. You may choose to pay your marketing team or PRs a bonus if the campaign is successful, but if you negotiate a flat fee then that’s all you pay no matter how the campaign turns out.
With affiliate marketing, you pay based on results. This means that you can choose to have a huge army of affiliates, and if some of them generate no sales that doesn’t matter. If your affiliates generate a huge number of sales, then you will have to pay them a lot of commission, but you won’t mind because your profits will have increased to match.
Myth 4: You Need to be Rich to be Successful
Starting an affiliate marketing business isn’t free, but it certainly isn’t expensive either. You will need to spend money on hosting and a domain name, and if you want to make big money you will need to invest in advertising too, however you can get started on a small budget and re-invest any profits to grow your business over time.
Myth 5: The Affiliate Marketing Industry is Already Saturated
Competition is fierce in the affiliate marketing industry, but that does not mean that there is no room for new websites. You will have to work hard to carve out a niche for yourself, but it is possible to become a successful affiliate. Choose a tightly focused niche and establish yourself as an expert in that niche. As a small business, you cannot compete with the companies that run huge, general portals but you can excel on a smaller scale.