Why is Affiliate Marketing One of the Most Cost-Effective Ways to Start an Internet Business?

Affiliate programs are forms of Internet advertising that rewards the affiliates (or agents in the physical world) for driving traffic to the advertiser or for other transactions. The advertiser pays the affiliate to place a link on their website, and the affiliate sends traffic to the advertiser in return. The payment is similar to commissions to agents who help you make sales on behalf of the owners or the advertisers.

The agents or affiliates love it because affiliate marketing is the fastest way to start their Internet business and it allows them to make money from website visitors without having to worry about shipping and payment processing.

The products from the affiliate owners are usually information products such as electronic books (eBook) and software that can be delivered as a file that is then downloaded directly to your customers' computers. They could be repeatedly reproduced and downloaded and sold at no cost.

The following are some reasons why web marketers are so excited over affiliate marketing as a form of Internet advertisement.

1. Low Cost

With so many emails and websites or sales letters screaming at them daily in their email in boxes with advertisements guaranteeing all types of Internet business opportunities with each one claiming theirs to be the ultimate solutions, it is understandable that many potential Internet marketers would be hesitant to part with their hard earned money to buy an e-book or an online subscription due to the uncertainties of such claims.
In affiliate marketing, you don't have to invest a lot financially to start pulling in profits.

2. No Inventories To Worry About

There is no need to keep and manage an inventory as this would be taken care of by the merchant. This eliminates the usual stress of having to manage the product inventory which needs substantial amount of cash to maintain and control.

3. Income Through Leverage

Many wealthy people earn their income through various leverage strategies which allow them to make money while they're sleeping, meddling with hobbies, or having vacation in far away places such as the beautiful beaches in Hawaii or the tropics.

Affiliates could simply drive traffic to the merchants' websites without having to sweat after having provided them your ad copy and links.

4. Globalisation

You are dealing with an unending global market place. All you have to do is study, research and select a niche product or service and prepare all the necessary marketing tools for your affiliates to direct traffic from just about anywhere around the world to your website.

5. Low Risk factor

The main reason for most successful Internet marketer's extensive use of affiliate marketing is the low-risk nature of the program. This is especially attractive to those with low budget for advertising.

6. Getting Paid While You Sleep

This system allows you to "recruit" thousands of "salesmen" who are willing to work for you 24 hours a day and 7 days a week. You could switch your business to "Autopilot" mode so that you could continue to earn money whether you're awake, asleep or holidaying.

However, although you may have an excellent product or service you won't get many targeted visitors to your site to make any reasonable sales if your site is not well ranked by the search engines. Optimizing your keywords (or keyword phrases) and reciprocal linking (link exchanges) are two of the internet marketing strategies which you should first look into to make your site more visible. If these steps are followed your affiliate marketing journey would definitely lead you to a successful Internet business.

John Woon (Sung-Liang) is a successful Rubber and Latex Consultant and Internet marketer. To become a successful Internet marketer and start making money from home within 6 months, please go here:

http://www.johnwoon.com

http://www.johnwoon.com/blog

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