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Home » Internet » Affiliate-programs » Advantages or Disadvantages of Affiliate Marketing Programs

puroking
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Advantages or Disadvantages of Affiliate Marketing Programs

Submitted by puroking
Thu, 12 Feb 2009

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Affiliate marketing is an internet marketing practice where a business rewards affiliates for each customer that purchases something on their site. Affiliate marketing has been impacted by the rise of blogging and interactive online communities. Affiliates are now able to get closer with their customers and have a more personal relationship. This is one of the best forms of marketing if used efficiently and ethically.

Now that you know what affiliate marketing is, what are some of the advantages?

1. Affiliate marketing boosts sales and opens up new marketing channels.

2. Merchants only have to pay their affiliates when a lead has been generated or there has been a sale, which is cost effective marketing.

3. Marketing allows smaller companies the chance to expose their products on websites that already have a great number of people looking at them. Affiliate sites also benefit from this type of marketing because they receive a commission for every sale they make for their website.

With all the advantages, there are about as many disadvantages. Some of the disadvantages are:

1. Affiliates may mislead or falsify advertising in order to get the sales commission. The affiliate may make promises regarding the product which are completely wrong or exaggerated. If this happens the merchant will usually receive complaints and potentially lose customers.

2. Merchants could promise high commissions to get new affiliates and then lower the commission rate a couple of weeks after getting the new affiliates.

3. There are link hijackers that hijack the affiliate link and then get paid the commission that the affiliate is suppose to be getting paid.

4. Dishonest merchants can close down their program without telling the affiliate and without paying them their commission.

There are many advantages and disadvantages to internet marketing affiliate programs, most of which have been listed in this article. No matter what the disadvantages are though, affiliate marketing is one of the best forms of marketing available on the internet today and is a great way for you to make money. If you are looking for a way to make extra money and help others market there business, affiliate marketing is right for you.

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