The Pros and Cons of Earning Money with Affiliate Programs

Written by Angela Wu

"I don't have a product. I don't even have a product IDEA!"

This is one ofrepparttar most common concerns I hear from people interested in starting a business onrepparttar 102583 Internet. It's obvious that you need to sell either a product or a service in order to make money.

That's where affiliate programs come in. Many beginners start online by joining affiliate programs; you sell another company's product or service for a commission. Affiliate programs are available in practically every market you can think of. If you want to see what I mean, visit to view an extensive list of affiliate programs.

Affiliate programs are a convenient way for people to get a 'jump-start' online withoutrepparttar 102584 time, effort, and money necessary to create a product of their own. However, they're not a 'perfect' solution. Here's a list ofrepparttar 102585 positives and negatives to building an affiliate business...

Negatives to affiliate programs:

- You have to sharerepparttar 102586 profits. You earn a commission, which typically ranges from a measly 5% to a generous 50%. The rest ofrepparttar 102587 money goes intorepparttar 102588 company's pockets.

- You pay all marketing costs. The company is providing you with a product or service to sell; it's your job to actually makerepparttar 102589 sales. This is no easy task, unless you're a natural-born marketer! You can choose to use only free methods of advertising... but these methods aren't necessarilyrepparttar 102590 most effective. Marketing can get expensive -- and you pay for your own marketing, regardless of whether or not it results in any sales.

- You can get 'sidelined'. Building an affiliate business is hard work; if you intend to eventually market a product of your own, you may find thatrepparttar 102591 affiliate program is taking up too much of your time.

- You're atrepparttar 102592 mercy ofrepparttar 102593 company. You rely on them to pay you on time - or at all. If they decide to change commission rates (usually to lower them!), you typically have no say, except to cancel your affiliate contract. And finally, ifrepparttar 102594 affiliate program decides to close shop - well, you're simply out of luck.

"Be an Affiliate Site AND a Sales Site"

Written by David McKenzie

Are you just a sales site reselling affiliate products and services?

You have probably seen sites that are selling a product or service and noticed that they also offer an affiliate program you can join. There is often a little link atrepparttar top left or atrepparttar 102582 bottom ofrepparttar 102583 site that says “Affiliate Program”.

Not only can you buyrepparttar 102584 product or service but you can sell it as well and earn a commission.

Well, how about usingrepparttar 102585 same concept for your affiliate programs. How about setting up your site like this but not actually developingrepparttar 102586 product or service yourself.

You can with 2 tier affiliate programs!

Not only can you earn commissions throughrepparttar 102587 sale of products or services at your site directly, you can sign up 2nd tier affiliates to earn commissions for you as well.

Many ofrepparttar 102588 best affiliate programs offer ‘2nd tier opportunities’. You should make sure you join ones that do.

How should you design your site to accommodate sales AND affiliates? There are 2 ways to do this:

1.If you have a number of products or services you are selling at your site then underneathrepparttar 102589 affiliate link to BUYrepparttar 102590 product or service haverepparttar 102591 “join affiliate program” link. Most likely your affiliate program will provide you with 2 different affiliate links.

Cont'd on page 2 ==> © 2005
Terms of Use