Why is Affiliate Marketing Popular with Home Based Business
Entrepreneurs?
by Kanaga Siva
Published on this site: August 31st, 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 and for other recommended Programs to make money
from home, visit his website, http://www.business-fromhome.com
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