Why is Affiliate Marketing Popular with Home Based Business Entrepreneurs?
by Kanaga Siva
Published on this site: June 30th, 2005 - See
more articles from this month...
The great strides made in the development of the Internet in the
recent past has enabled information to be transmitted thousands
of miles away with such ease and clarity that time and space are
hardly of any consequence to the Internet Marketer today.
Marketing Programs have literally taken over the Internet and riding
high, is Affiliate Marketing.
According to the Computer Industry Almanac "The world-wide
Internet population for 2004 was 934 million and the projection
for 2006 is 1.21 billion."
Sean Michael Kerner in an article in Click Z News quoting a spokesman
for eBay states "According to eBay their largest affiliate
earned over $1.3 million dollars in January commission, the largest
amount yet in their affiliate program's history. Their top 25 affiliates
averaged over $100,000 per month each and the top 100 affiliates
earn almost $25,000 each per month."
With this sort of statistics around, is it any surprise that thousands
of entrepreneurs especially those Home Based Business entrepreneurs
with very small marketing budgets are jumping on to the Affiliate
Marketing band-wagon!
Given below are some of the Popular reasons for this desire and
urge to do Affiliate Marketing:
- Cost Factor:
Most Entrepreneurs refrain from starting a brick and mortar business
or for that matter a Home Based Business (non internet) because
of the investment required. In Affiliate Marketing the set-up
cost is negligible with most programs being free to join and the
merchant even providing you with the tools, tips and websites.
- Pick and Choose Products:
With dozens of Affiliate Program providers and thousands of merchants
having their own affiliate programs, there are several thousands of products to choose from. You name it they have it!
In fact there are even Fortune 500 companies to choose from. The
idea is to pick and choose your niche products and promote them.
- No need for an Inventory.
The hassle of purchasing, stocking of items and storing of finished
items (in a production unit) and dispatching them are not there.
There is no need to maintain an inventory. It is all handled by
the merchant.
- No need for Employees.
In any business the wages of the employees is one of the major
expenditures to contend with. Here the problem does not arise
since the marketer himself will operate his home business and
probably get the assistance of a family member to help him.
- Necessity for Customer Service does not arise.
Customer service plays a major role in the success or failure
of a business. The advantage here is that there is no direct dealing
with the customers. The website will automatically direct the
customers to the merchants.
- Two Tier Affiliate Marketing:
An attractive feature of certain affiliate programs is that they
have a Two tier system, whereby affiliates can sign up as sub-affiliates
below them. When the sub-affiliate earns a commission, the affiliate
above him too earns a commission.
- Income without a limit.
In a paid job the salary structure has a vice-like grip over your
monthly income. Here the possibilities are limitless. Though it
is not every marketer who earns a big income, the fact remains
that avenues are all there for the enterprising marketer to make
it to the big time.
- Global Market Place.
You no longer need to restrict your market to your home town or
country. With your well chosen niche product you can sit in the
comfort of your home and target the Global Market.
- Low Risk Factor.
The risk factor in Affiliate Marketing is so small that it has
become one of the major attractions for many Home Based Business
entrepreneurs especially for those with low marketing budgets.
- Business works Right Round the Clock.
One major asset of Internet marketing is that your Website, or
in other words, your Home Based Business never sleeps. It works
right round the clock (24/7) making money from home for you.
Having indicated the above reasons for the popularity of Affiliate
Marketing, it has to be mentioned that statistics indicate that
only 5% of the marketers do make big money. It is presumed that
there are of course several thousands of marketers who make some
money, thus giving them an additional income.
As long as the top marketers in the 5% slab, continue to make their
millions and the latter continue to make reasonable amounts of money
and have the urge to emulate the top marketers, affiliate marketing
will continue to draw the attention and be popular with Home Based
Business Entrepreneurs.
Kanaga Siva has been a Marketing Manager and Business Manager
and has a wealth of experience in Marketing. He now operates his
own Home Based Business. For Articles, Resources, Tips and Ideas
to start a Home Based Business from anywhere in the World, visit
his website,
http://www.business-fromhome.com
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