The Dangers of Affiliate Marketing?

homeriscool · Mar 29, 2022

Hi all, I'm interested to know what your thoughts are about affiliate marketing?

I've built a few affiliate sites (and made good money) but I've also sunk $$$$$$ into one particular site and at the moment it's making peanuts.

Don't get me wrong, this particular site usually makes decent money but it can be seasonal.

What are your thoughts about doing this?

Is it a long term business plan or long term suicide?

After all, I am selling somebody else's products and services.

What happens if they go out of business?

Bedazzle · Mar 29, 2022

I think affiliate marketing is a great business model because you just get to sell someone else product and don't have to worry about customer service but if they go out of business, I say you create your own product and sell it on your website

VortexAlpha · Mar 31, 2022

homeriscool said:
Hi all, I'm interested to know what your thoughts are about affiliate marketing?

I've built a few affiliate sites (and made good money) but I've also sunk $$$$$$ into one particular site and at the moment it's making peanuts.

Don't get me wrong, this particular site usually makes decent money but it can be seasonal.

What are your thoughts about doing this?

Is it a long term business plan or long term suicide?

After all, I am selling somebody else's products and services.

What happens if they go out of business?

If you manage to be really successful in the affiliate marketing business and if you manage to catch some tricks, it won't ever be something completely risky for you. Of course, this business just like many others carries some risks and sometimes things don't go as expected but that's just a phase and an indicator that something in your methods has to be changed or that you should maybe target some other niche, but it surely doesn't mean you should give up. As for your question, what would happen if the company whose products you are selling stops working, you will just find another one to promote, you have today a bunch of affiliate networks with their own offers, so you don't need to be worried there won't be anything else to sell and promote. As someone who is a long time in affiliate marketing, I can say it's a pretty secure and good choice.

Eiffel · Mar 31, 2022

homeriscool said:
Hi all, I'm interested to know what your thoughts are about affiliate marketing?

I've built a few affiliate sites (and made good money) but I've also sunk $$$$$$ into one particular site and at the moment it's making peanuts.

Investing in only one site could be a risk.

homeriscool said:
Don't get me wrong, this particular site usually makes decent money but it can be seasonal.

What are your thoughts about doing this?

Is it a long term business plan or long term suicide?

The second risk is if you are using only one affiliate program. Amazon Associates is supposed to be safe if you follow the rules but I know people who have had their accounts shut down for no apparent reason. But one of the bigger affiliates even managed to get it back, though by using legal force.

homeriscool said:
After all, I am selling somebody else's products and services.

What happens if they go out of business?

If you are in a broad niche, you will find alternate affiliate programs. If your content answers questions that your visitors might have, and provides useful information your content will always attract traffic. Traffic is king, and you can monetize traffic by using a variety of methods.

FromAfrica · Mar 31, 2022

Affiliate marketing is cool OP

just focus on lead building, while you are promoting other people products, don't forget to be building your own active and buyers list

More important, don't depend on just one affiliate products and link, get many. as many as possible. Cheers

homeriscool · Mar 31, 2022

VortexAlpha said:
If you manage to be really successful in the affiliate marketing business and if you manage to catch some tricks, it won't ever be something completely risky for you. Of course, this business just like many others carries some risks and sometimes things don't go as expected but that's just a phase and an indicator that something in your methods has to be changed or that you should maybe target some other niche, but it surely doesn't mean you should give up. As for your question, what would happen if the company whose products you are selling stops working, you will just find another one to promote, you have today a bunch of affiliate networks with their own offers, so you don't need to be worried there won't be anything else to sell and promote. As someone who is a long time in affiliate marketing, I can say it's a pretty secure and good choice.

Thanks for your helpful answer. Its always encouraging to hear positive words from someone who has been affiliate marketing for years.

oxidogonzo · Mar 31, 2022

Affiliate marketing, like others have already pointed out, is a great way to make money. The only risks I see are sudden changes in commission rates like Amazon's in 2020. Often, however, there are bunch of other affiliate networks that you could switch to

HenryObi · Mar 31, 2022

D3ron said:
I think affiliate marketing is a great business model because you just get to sell someone else product and don't have to worry about customer service but if they go out of business, I say you create your own product and sell it on your website

Are they the only ones making that product? There should always be competitors or similar businesses which you could switch to.

homeriscool · Mar 31, 2022

HenryObi said:
Are they the only ones making that product? There should always be competitors or similar businesses which you could switch to.

There doesn't seem to be anyone I can switch to if this company went bankrupt....

I could create my own product....but it would require a ton of work and wouldn't be "passive income" anymore.

It would be a business (with headaches and stress).

HoNeYBiRD · Mar 31, 2022

homeriscool said:
What happens if they go out of business?

That's a possibility, the risk varies though. There's no such risk for Amazon, but the fear can be valid in case of smaller networks or companies, if you go direct. But if you go with Amazon, you trade the peace of mind for shitty rates.

For the same reason i never really understood those, who promote revenue sharing offers via CPA networks. You're already depending on the company, whose offer you promote, doing it via another network is an added, unnecessary risk. We saw even well-established CPA networks ceasing operations.

N1ckG2 · Mar 31, 2022

Affiliate marketing in general is a win win business model.

There is a manifactures on one side and marketers on the other.

To make this as a long term business for you, as a marketer, you need two things..

Diversity
Evolve

You must work with different suppliers, retailers, servise providers etc etc

You must have different traffic sources, and adapt.

If you build up a niche website focuces on 1 or 3-4 products from the same source zand you replay on seo only you are set up for failure.

homeriscool · Mar 31, 2022

N1ckG2 said:
If you build up a niche website focuces on 1 or 3-4 products from the same source zand you replay on seo only you are set up for failure.

This is exactly were I am at. All traffic from Google.

No social media, no YouTube.

crystalwiz · Mar 31, 2022

Most affiliate networks will shave your earnings.

IM Dude · Mar 31, 2022

Few thinks I can suggest.
1) don't do or don't invest too much on season niche. I know it's very enticing as they have lowest keyword difficulty and are easy to rank.
2) think of flipping the site. Most affiliate sites make money by flipping the sites. Even wirecutter got flipped to new York times. So embrace site flipping.
3) stay positive and have a mindset of a mountain.

homeriscool · Mar 31, 2022

IM Rider said:
Few thinks I can suggest.
1) don't do or don't invest too much on season niche. I know it's very enticing as they have lowest keyword difficulty and are easy to rank.
2) think of flipping the site. Most affiliate sites make money by flipping the sites. Even wirecutter got flipped to new York times. So embrace site flipping.
3) stay positive and have a mindset of a mountain.

Site flipping has crossed my mind....but I find it pretty hard to let go of something I've built from nothing....

friedrice_warrior97 · Mar 31, 2022

homeriscool said:
Site flipping has crossed my mind....but I find it pretty hard to let go of something I've built from nothing....

Well, you can use the money to reinvest in other businesses and investments or even make a new affiliate site. Most affiliates do this.

If you check on flippa, most of the sites there are affiliates that want to sell the site and you can sell the site for 20x to 30x of your current earnings.

So let's say your site generates $/1500 a month, then you can sell it for $/30000 or $/45000 for the site.

As you know, maintaining site traffic is harder dan building it. That's a major reason that affiliates flip their site

N1ckG2 · Mar 31, 2022

homeriscool said:
This is exactly were I am at. All traffic from Google.

No social media, no YouTube.

Been there, it hurts.

Start list building asap even if you don't know what to do, what to send etc. Add mailchimp and start now on all websites.

Email list is the only traffic source you own and control.

IM Dude · Mar 31, 2022

homeriscool said:
Site flipping has crossed my mind....but I find it pretty hard to let go of something I've built from nothing....

Another reason why you gotta have multiple sites.

homeriscool · Mar 31, 2022

N1ckG2 said:
Been there, it hurts.

Start list building asap even if you don't know what to do, what to send etc. Add mailchimp and start now on all websites.

Email list is the only traffic source you own and control.

what if the product is something people will only buy once?

Its not something I can sell again and again.....

homeriscool · Mar 31, 2022

N1ckG2 said:
Been there, it hurts.

Start list building asap even if you don't know what to do, what to send etc. Add mailchimp and start now on all websites.

Email list is the only traffic source you own and control.

IM Rider said:
Another reason why you gotta have multiple sites.

I have 2 sites selling the same product.

One "white hat" and one "black hat"

The Dangers of Affiliate Marketing?

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