It seems like everyone is making money online these days. Every day there is a new person claiming to be raking in the big bucks because they opened an online store, so it is natural for many of us to wonder about starting our own.
Anyone who has done any background research into this will know that there are many sources and courses online toting one method or another, but what are the actual pros and cons of each? Here, we will seek to explore the benefits and drawbacks of the best online business models.
Affiliate marketing is a performance based system by which a promoter of a product, or ‘affiliate’, gets paid a commission on sales that they have influenced. When done correctly, affiliate marketing is a highly lucrative source of income. Affiliate marketing is a popular way for many to make money online, and it is easy to see why. It is easy to set up and requires no initial investment. You don’t even need to run your own website in order to start affiliate marketing as you can utilize free blog websites and/or social media platforms such as Instagram, Twitter or Pinterest in order to promote products.
Another benefit is that you do not have to dedicate any time or resources to designing a product of your own. All you need to do is simply pick something that you feel consumers will buy, and promote it. Affiliate marketing is also very flexible; you can run your business from the beach, your bed – wherever you feel most comfortable.
But there are drawbacks. Affiliate marketing as mentioned, is a commission based system. Commissions vary between products and profit margins are usually slim, meaning that to be successful, one needs to generate large numbers of sales or go for high margin products. Another con is that affiliate marketing requires patience; no one ever gets rich overnight. You need to build up a following, have large numbers of people who regularly see your work, whether it be blog posts, posts on social media etc.