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You're Reading:24 Key Benefits Of Affiliate Marketing That Everyone Should Know

24 Key Benefits Of Affiliate Marketing That Everyone Should Know

by Tasos

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Apr 8, 2015

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Last Updated: Nov 05, 2019

Today I want to lay out some key benefits of affiliate marketing for the merchants (advertisers), the affiliate promoters (publishers), and the final consumers as well. We have already discussed what is affiliate marketing and how it can be transformed into a recurring income opportunity for affiliates. We also took a look at some historical data, and we analyzed statistics that could help us predict the future of this business model.

 

But why someone would want to choose an affiliate business instead of any other business? What are the real advantages of affiliate marketing as an advertising model and what makes it different from other kinds of businesses?

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Key Benefits Of Affiliate Marketing

Key Benefits For The Merchants

1) Broader Market

A brand can attract potential customers to their online properties as a result of the marketing efforts of an in-house team or with the help of a marketing agency.

But when brands decide to run an affiliate program and let publishers promote their products and services, a whole new world of opportunities opens.

This way the merchants that allow affiliates to enter their program will get benefited from the affiliate actions. The affiliate partners will attract people to their websites offering valuable information on the products and services that people are looking for. Then, as a result, those people might be interested in some of the affiliate promoted products and by following the affiliate links will get redirected to the merchants’ websites.

As a result, those products and services will gain recognition as the affiliates will promote them not only on their websites but on forums, communities, networks, and their email lists as well. Now, these products are not only visible to people visiting the merchant’s website…are visible to a way more broader group.

2) Repeated Customers – Recommendations

Visitors that were redirected to the merchants’ websites and made a purchase, they may return if they stayed satisfied. And probably, they will share their experience with their friends and network and the real potential of this ‘Word of Mouth’ promotion is endless for brands running affiliate programs. Happy customers that share their experience help brands gain recognition and momentum instantly. It’s when a snowball effect for the businesses takes place.

3) Minimum Costs For Advertising

A major benefit for the merchants. We all know that advertising is expensive especially if you want to use traditional mediums like television, radio, or print and your budget is limited. Additionally, hiring a marketing or advertising agency is not always an option for some brands.

This is where an affiliate program comes very handy and it’s an extremely affordable solution. Brands may choose to run an in-house affiliate program by purchasing software, or by joining affiliate networks where they pay an entry fee in most of the cases, or by hiring an affiliate manager to run their affiliate promotions. The affiliate manager will recruit experienced affiliates to help brands increase their sales.

The good thing with this model is that affiliates are getting paid for their actions only if sales occur. If there are no sales, simply, the affiliates don’t get paid. A huge advantage for the merchants.

4) No Need To Hire Sales Representatives

Imagine a company having to hire and train 100 sales representatives to advertise its products in order to increase sales. How would they compensate them? Could they be able to ensure them? Probably hard, if not impossible. We all know that hiring employees is a big expense for any business. However, with this system, hundreds of publishers promote the merchants’ products without the company being forced to pay in advance

Merchants have the chance to let affiliates promote their products. No additional cost for promotions. They only have to take care of who they are co-operating with.

As an advertiser, you have to select your affiliates carefully and you have to be sure that they act inside your respective niche market ethically.

Test your affiliates websites, are they ethical with their promotions? do they invest in content marketing? are websites full of intruding ads? do they offer valuable information and how exactly are they promoting your products? do they have a strong knowledge of the product and services you sell?

But discovering affiliates with high-quality niche websites nowadays is very easy. In every niche market, there are thousands of marketers/affiliates providing value to the market and their audiences.

5) Measurable Results

With traditional advertising methods like printed material, newspapers, radio, or television, it’s extremely difficult to analyze, measure, and calculate the final performance and outcome.

Have the sales of the advertising company been increased? Which of these methods produced the best results? Has the business managed to cover the advertising costs of a particular channel, and if so, how much? was any of these methods ineffective? are some of the reasonable questions that arise.

High risk, big costs, inaccurate measurements, doubts.

On the other hand, with affiliate marketing, the merchants can track their affiliates’ actions and every campaign can be measured accurately thanks to new technologies, the marketing tools provided by affiliate networks, and the internet.

6) Increased Traffic, Leads, And Sales

Brands that run affiliate programs receive masses of traffic as a result of the promotional activities from their affiliates (publishers). In some cases, affiliates are well-established and recognized entrepreneurs operating for years with a huge following. This way, brands are able to acquire leads and referrals, and their sales increase. It’s pretty simple, no brand can get advertised so effectively without the help of an affiliate program. Without external help, that is impossible.

KEY Benefits For The Affiliates Side

7) Timetable Flexibility

Affiliates are not employees, are independent entrepreneurs and can work on their own terms. They can enjoy breaks,  days off, or weekend holidays. No apologies to any boss, no need for working a 9 to 5 or 7 to 3 work.

No clock – peace of mind.

8) Work From Anywhere

All you need to run an affiliate business is a computer and an internet connection. You can work from the comfort of your house, your office, on vacation, or during a trip. You have free time to play with your kids, you set the rules, you can enjoy life beyond work.

9) Making Money While They Sleep

Having an affiliate website running is like having a business that is open 24/7. The content on affiliate websites is accessible to visitors around the world and affiliates work on their personal timetable. Do you know a lot of businesses that can make a profit for you even while you sleep?

10) Very Low-Cost Initial Investment

The startup costs for any kind of brick & mortar business can extend to 1000’s, hundreds, or millions of dollars. Even renting a store, a warehouse, or any other business space has big-costs associated, costs that you will prepay or in other cases you will borrow money in a form of a bank loan or mortgage and that makes your investment risk.

You will find yourself frustrated and of course not in peace of mind because you have to take this money back in order to make a profit only months, years, or even decades later. Not to mention the franchise business model, where you will pre-pay very high initial costs just to get started.

But the costs of starting an affiliate business are minimal. A computer, an internet connection that you probably already have, domain names, hosting services, and maybe hiring freelancers for design or other tasks.

Are there any other businesses that can be kickstarted with such a low initial investment? With their first sales and commissions, the affiliates are probably in profit.

I was able to ‘Break Even’ in just a couple of months.

11) Minimum Operating Costs

Beyond the very low initial costs for affiliate business, there are no major operating costs either. These costs include hosting services, email autoresponders, premium themes and plugins, other software/hardware, hiring freelancers and other people. In any case, these costs are almost non-existent compared to traditional brick and mortar store expenses.

12) Very Little Risk

In the case of a business mortgage/loan, your house will be exposed if your business fails. In other cases, the prepaid costs might be lost if your enterprise comes to an end. Building an affiliate business has no risk and the only cost in cases of failure is the time you spent working and a few hundred dollars in the worst-case scenario.

Even in the case that affiliates abandon their websites/projects, they have the chance to sell their online properties for a profit.

13) No Limit On Profits – The Sky Is The Only Limit

I want to underline something very important here. Although an affiliate business has very low initial and operating costs, it does not mean in any case that this business is easy. You will have to work really hard to make a profit. There is no business model that does not need continuous efforts and commitment.

But you set the rules here. Do you need more money? You gotta work more. The more you work the higher the commissions and recognition you’ll be earning.

When you begin an affiliate business it’s like any other business. It needs some time in order to make a profit. But when an affiliate website gains traffic and momentum, things start to kick off. It’s the snowball income effect.

Affiliates are able to monetize their online and social properties in a hundred different ways, beyond the standard affiliate promotions. They make money by blogging, generating leads and referrals for other companies, selling advertising space, writing sponsored posts/articles, with email marketing, video marketing, social media campaigns/advertising, freelancing, dropshipping, with eCommerce stores, accepting donations, or selling their own products and services.

Additionally, affiliates are able to create new website businesses on the side, exploring new niches and hot opportunities in every market out there, thus expanding their reach and scaling their businesses.

14) Recurring Income For Years/The Compounding Effect

The content of publishers’ (affiliates) sites is accessible to potential customers all day long, 24/7. Imagine these online properties as uninterrupted operations with minimum maintenance costs and without the need for the publishers to be present.

In this way, affiliates in a very short period of time manage to promote dozens, hundreds, or even thousands of different products simultaneously without additional workload and without being in their workplace. I have seen advertising campaigns returning a profit for years, older affiliates talk about pages that return a profit for a lifetime. Thanks to the technologies, the Internet, and this powerful advertising model.

Imagine pages where publishers promote products as different income streams.

They all add up, it’s a compounding effect.

15) No Need For Employees

The vast majority of affiliates work solo. They don’t need employees to have their businesses running. One of the most important factors for a successful business. The cost for employees is unbearable for medium and small enterprises.

Monthly or daily salaries, extra bonuses in cases of pregnancies, holidays, special entitlements and of course the cost of their transportation or feed and training. These serious costs can prevent a business from making a really good profit.

And it is not only about costs. Imagine the cases where your customers leave unsatisfied because of employees’ bad behavior or other negative actions. Imagine the accidents and the complaints that might take place. This is a real pain.

 

Related

16) No Customer Service

Affiliates don’t need to provide customer service. The merchants take care of the customers. Affiliates only connect people with companies and earn commissions in the process. They only have to co-operate with serious merchants that offer decent customer service and support for their products because affiliates want their visitors satisfied. It’s about their online reputation.

This makes the affiliate business unique, affiliates only have to test the products they promote.

17) Unlimited Products And Services To Promote

In every niche, in every market, there are merchants that range from small companies to huge giant corporations. There are millions of products and services that affiliates can promote to their audiences. Affiliates can track down affiliate programs using affiliate networks, by making connections with companies that run their own affiliate programs, or by invitations from affiliate managers who have their own army of affiliates that support product launches or companies.

18) World Wide Web – Largest Market

Local stores can only target a small number of people that live or passing by the area. Owning a hotel (just like me) can bring you visitors from all over the world but the rooms you have is a limit you cannot bypass unless you build more.

But having an affiliate business can help you target people from all destinations at any time. Additionally, there is no limit to the number of simultaneous visitors on your website.

And the number of online visitors and buyers keep growing every day as technology is accessible to almost any country. People are looking for valuable information using the power of the internet. This is why is called the World Wide Web. This is your potential customers. The whole world.

19) Scalability, Unlimited Partnerships

Affiliates have the luxury to partner with any company they want, affiliate managers, and affiliate networks. They can promote millions of products simultaneously without having to be present, and without having to worry about customer service and support.

Affiliates can easily scale their businesses utilizing the power of emails, videos, webinars, social media, or paid campaigns just to name a few opportunities.

20) Help/Education

The affiliate business model is only growing since its inception, back in 1989. Affiliates can get help and educated on forums, networks, and communities. This is extremely important for people just getting started. In this game, affiliates are not alone. The web is full of educational resources, and very often these resources are absolutely free.

21) Work At Something They Love

Launching a business in an area that you are little interested in is the greatest recipe for failure. And I speak from personal experience here although in such cases I tried really hard. But it was not something I was passionate about and eventually, I failed. Not everybody is suitable for every job. There are jobs we like and there are ones we hate. There is no potential in having a job you dislike. Eventually, you will fail.

But with affiliate marketing, affiliates can choose their niche according to their preferences, needs, and desires. Affiliates usually turn their hobbies into businesses. When you work at something you love you give the BEST of yourself.

Key Benefits For The End Consumers

22) The Final Price Remains The Same

The final price of the products remains the same. Affiliates advertise the products at the same price the advertised companies sell. The companies sacrifice a percentage of their profits but they don’t have to spend money on advertising. They pay only for the desired results.

The final customer enjoys the same price.

23) No Loss Of Product Quality

The final product remains the same in terms of pricing, quality, and service/support.

24) Well-Informed Purchasing Decisions

Prior to affiliate marketing, consumers could only purchase products based on their knowledge, observations, and brands’ advertisements evaluation. With affiliate marketing, consumers have the chance to discover alternative sources of information.

In the majority of cases, affiliates are promoting products they use personally or products they are confident that will bring results for their audiences. Affiliates create a bond with their visitors because they are friendly, personal, they aren’t impersonal brands. Visitors get invaluable insights from affiliates using the products they’re interested in buying.

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That’s it, another article has finished, here on Web Market Support. I am waiting for your comments and thoughts. Till next time.

Tasos Perte Tzortzis

Tasos Perte Tzortzis

Marketing Specialist, Entrepreneur

Although doing traditional business offline since 1992, Tasos fell in love with online marketing in late 2014 and has helped hundreds of brands sell more of their products and services on the web.

He enjoys reading, music & arts, mathematics, chess, coffee, swimming, Audi, and playing with his kids.

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Affiliate Marketing 

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22 Comments

  1. sr software solutions

    Did you know that BY 2020 the Affiliate
    Marketing Industry is expected to be
    worth $6.8 BILLION a YEAR in the US
    alone.

    Industry-leaders like ADWORDS PAY OUT
    MILLIONS EVERY YEAR to their Affiliates.

    As an Affiliate, your job is to find
    people who want to buy a product on
    marketplace.

    When those people buy you get paid
    commission.

    It’s that simple!

    You DON’T have to develop or supply
    the products.

    Many Product Owners will
    pay you 75% COMMISSION!

    That’s INSANELY HIGH!

    OK so you might think that making an
    income from Affiliate Marketing is easy.

    Maybe you could become a millionaire
    within a month?

    Yeah right!

    Anyone who promises you that is a
    shameless scammer.

    I know what it feels like to FAIL.

    I know how much it hurts.

    IT’S NOT YOUR FAULT.

    To make consistent, daily income
    from Affiliate Marketing..

    ..you need the right tools.

    And you need the secret shortcuts.

    After 9 years of experience as
    7-FIGURE Affiliates..

    ..these guys have the tools which
    ACTUALLY WORK. And they know the SECRET SHORTCUTS.

    Reply
    • Tasos

      Thanks for your insights and for the valuable statistics. The industry is growing very fast.

      All the best for your affiliate projects!

      Reply
  2. Guy

    I got interested in that affiliate marketing thing after looking for some ways to earn money online. I discovered a few ways like making paid surveys, selling on eBay, writing Kindle books or writing for money, etc… But the easiest one, the one that is attracting me the most is doing affiliate marketing. Because like you say it is risk free and you can earn money while you sleep with it. But I’m not too sure how to go about it. You have some tips where I should start?

    Reply
    • Tasos

      Welcome Guy , indeed those methods you mention can make you some money.But I am not a super fan of surveys although I do participate in various sites mostly in order to review them.This is just a few extra bucks and not a stable business model.Selling stuff on Ebay or Amazon , as long as you have physical or other informational products that you own , it would be very easy to get listed.

      And the other two methods you mention are effective.The affiliate website method is something with more edge and goes deeper.

      I would point you to Wealthy Affiliate or Affilorama now that you are starting out.They offer superb training and plenty of resources and tools.

      Thank you for this visit and for your questions.Good luck at whatever you do.

      Reply
  3. christian wijaya

    Hi Tasos, I am glad I have found your site today. I am tired to do my work activity every day. I love the list you have written here. Are you making money from affiliate marketing also? I like doing internet marketing because I have no boss, I can set my daily schedule,. In other words, your post is really awesome and I hope you can teach me how to do it. Thanks

    Reply
    • Tasos

      Welcome Christian , sometimes we feel tired.Then it is the perfect occasion for a break.Yes , I am into the affiliate marketing business now for good , I got hooked from the minute I started.The real potential is endless , literally.You can expand your business to any possible direction.

      Thank you for this visit and for your beautiful comments.

      Reply
  4. Jay

    Awesome article! I just started doing affiliate marketing a few months ago and it is absolutely everything you say it is! I’m able to make money from home writing about things that I love and already do anyways. I know the TRUE definition of freedom thanks to affiliate marketing.

    Thanks for sharing! This was an awesome read!

    Reply
    • Tasos

      Welcome Jay , I am so glad to meet another fan of Affiliate Marketing.From the moment I got started I got hooked for good.Now I can’t imagine myself without it.I love blogging and expressing myself and therefore to expose my work and thoughts with the rest of the world.

      Thank you for visiting my blog and for sharing your experience here.

      Reply
  5. Chris

    Love the list you have produced here – it sort of reinforces why I am doing all this tiresome work in the first place!
    For me, I like the idea of finally making money when I sleep – having some sort of passive residual income stream to fall back on when I need it! Thanks so much for this aritcle – a great read!

    Reply
    • Tasos

      Hey Chris , I am glad we are synchronized perfectly on that.This business model is something I would never change.

      Thank you for participating in the discussion

      Reply
  6. Nick Coffee

    G’day,

    I am very impressed with the precise nature of the information that you have delivered. It is quite an easy to follow flow. Have you got any plans on adding some simple traffic tricks to your site or some social media guides?

    Thanks again for a fantastic site though.

    Reply
    • Tasos

      Hello Nick and welcome to my blog.I am glad I can deliver some value with this website.I have written a few articles regarding traffic and SEO but social media guides have to wait a little more.I am gathering data and measuring new tactics every day.

      Thank you for the visit and for the kind comments.

      Reply
  7. Diana

    Great post on describing the benefits of both sides of affiliate marketing; most people just learn about becoming an affiliate, and not a merchant.

    Recently I have decided to create my own product and so my role is going to change from not only an affiliate, but also a merchant.

    I agree with you that the best part of affiliate marketing is having the peace of mind that you don’t find with a regular 9-5 job.

    Thanks for sharing,
    Diana

    Reply
    • Tasos

      Exactly Diana , there are two sides of affiliate marketing.It is a great decision to create your own product.As a merchant you will have the opportunity to widen your horizons.Of course with greater power comes great responsibility , but if you manage to offer high quality and customer service you will be surrounded by willing affiliates and clients.

      The flexibility of time is an important factor for me as I tend to work mostly during late and after midnight hours.

      I wanna thank you for your visit , your meaningful mentions and I am happy you found value in this article.Additionally I wanna wish you all the best with the creation of your product and I salute your future success.

      Reply
  8. Brandi

    Tasos
    You really hit the nail on the head in regards to the key benefits of affiliate marketing. It’s really unfortunate that affiliate marketers have gotten a bad rap because in reality it is a win-win-win for everyone. The consumer finds the product they need without having to pay more, the company increases their sales and the affiliate marketer makes a living while helping people. It’s just a very good system & I feel fortunate to be a part of it myself.
    Thank you!

    Reply
    • Tasos

      Thank you Brandi

      For mentioning another one “Major” benefit of the Affiliate Marketing model , that the “price” of the final product remains the same.The customers are now better informed for the products , the companies cut a little percentage of their profit while increasing the sales and the Affiliates get their own share from the companies.

      I am glad that you are part of this business model and now it is in our hands to create an optimum “network” environment so that the consumers and the companies will get benefited to the maximum.

      I wanna wish you good strength and luck with your projects.

      Reply
  9. Rufat

    I absolutely agree with you that affiliate marketing is one of the proven and best ways to make money online. You don’t need to have any product, just find one on digital product marketplaces, such as Clickbank or Clicksure or elsewhere, write an original content around it, add your affiliate link and you are good to go. I know many successful internet marketers that are making good money through affiliate marketing and in fact, they are full-time internet marketers. I’m making money with affiliate marketing too, not too much, but I’m on the right track and I believe I will be able to go full time by the end of this year. But it’s not as easy as many might be thinking and it requires some effort to put in which will pay off later. And the best part of affiliate marketing is that you can choose any field that have interest in and you need to spend any money to promote someone’s product. But before getting involved in affiliate marketing you need to get trained in the program such as Wealthy Affiliate that wins my #1 recommendation since 2013.

    Reply
    • Tasos

      Hello Rufat

      Glad you left your insight here at this post and that you agree with me on many of my arguments about Affiliate Marketing business model.A major benefit is that you don’t have to own the products which can get you rolling your first period without having to spend money that you will need to get back later.This way you do not need to stress yourself and this can lead to better results.

      But of course as time goes by you can create your own digital products and in such cases your earnings can be multiplied.

      It’s very nice to hear that you already making ‘good money’with Affiliate Marketing and I do hope you will be working full-time pretty soon.It is not an easy job (is there any easy job really?) but this is the greatest part of any job , to enjoy the outcome of your hard worked time.It is a way that all the famous marketers follow and I totally agree about the “Wealthy Affiliate” training that is the most decent ,honest and detailed marketing education product out there.And I have tested a lot of other promising trainings that were only selling fake dreams and hope.

      Have a nice day

      Reply
  10. Keith Weaver

    Hello Tasos,

    I’m Keith Weaver and I’m glad to have found you here. This site is much better than mine. Nice job on the Logo too. I just wanted to stop by and support you by leaving you a message I see a lot of good stuff here. Keep up the good work!

    Thanks

    Keith Weaver

    Reply
    • Tasos

      Hello Keith

      It’s great to find out that you like my website and I thank you for your nice comments.You are welcome to check it anytime and I will try to give my best and publish more interesting articles.

      I encourage you to continue working on your own site because consistency will eventually drive to worthy results.

      Reply
  11. Cathy

    Hi there Tasos,

    The thing I like about affiliate marketers is the personal reviews. Commercial advertisement can sometime exaggerate the true nature of a product or service so hearing/reading it from someone’s (ordinary) point of view makes the product much more relevant to me as a consumer.

    As a new web business owner, venturing into affiliate marketing, I particularly like the low start-up cost and the work flexibility. As long as I have good internet connection, I can work from anywhere at anytime.

    Besides, I am burning with a lot of entrepreneurial ideas and going online means I can work on several niches (once I get the hang of it) at one time. This is a great way to connect with more people and offer relevant products to improve customer’s satisfaction.

    🙂

    Reply
    • Tasos

      Hello Cathy

      Thank you for stopping by and sharing your opinion here.As the internet market has overflowed with new products ,networks and services followed up by promoting commercial advertisements that in many cases are misleading for the sake of ‘money’ online visitors tend to search for personal reviews more often leaving space for the affiliate marketers to act on their behalf.Now affiliates test those products and the final consumers stay informed and they can make wiser choices.

      I really love what I am doing right now as I can work on my schedule that is not pre-set , I do not have to worry about major costs that could only add more stress to my life and I can participate in my family’s activities.

      I am very glad to hear that you have a lot of ideas for the future and that your purpose is to serve the customer’s satisfaction and experience.

      I wanna wish you “good luck” with your projects and that you stay as active as you can.

      Reply

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