Online Marketing 101: Pros and Cons of Affiliate Marketing

Pros and Cons of Affiliate Marketing

Affiliate Marketing: Pros and Cons

Do you own an online business? Are you thinking of focusing more on letting a group of commission-motivated affiliates market your product than selling it all by yourself? Then look at the following pros and cons of the online affiliate marketing model in order to decide accordingly.

[Infographic]How Affiliate Marketing Works

Can You Really Increase Website Profitability with the Same Amount of Traffic?



You get free ad space on your affiliate’s site. Depending on your affiliate’s level of interest to promote your product, your product can be repeatedly exposed on a premium banner position or on a strategic side bar display. The more affiliates you have, the bigger your potential audience.


You reap profits on a short-term basis, most especially if you have a lot of affiliates who simultaneously and aggressively market your product.


You have a rich source of marketing information when you track the type of consumers being referred to your site by your affiliates. This type of consumer data can be a goldmine because it gives you a real-time picture of trends and market demands.



Your affiliate’s bad behavior can taint your reputation as a merchant. And no matter how small, your affiliate’s fraudulent practices can directly impact your brand and discourage future sales.


Shelling out for affiliate commission can make a dent in your earnings. This is why most products that rely on affiliate or referral marketing campaigns end up being priced exorbitantly that they become difficult to sell.


If you have a lot of affiliates ranging from personal blogs to shopping portals, then you may need someone to manage them. An affiliate manager would be placed in charge of identifying the individual affiliates, track their progress and sales, and make sure that their commissions are paid.

All in all, it depends on how you envision the fate of your business. You can even do both ways. Sell your product directly using all means available to you, including content marketing, social media marketing, and the like, then manage an affiliate base on the side.
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The most important thing is have a concise marketing plan before you sink money on anything you believe can bring in huge profits. Is your product sellable when advertised on a so-and-so affiliate site? Does the placement of your product on a certain blog, for instance, mar your credibility? How much time and money can you set aside to cover your marketing? Most importantly, who are your target consumers? Begin with an informed marketing move then decide.

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