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Affiliate Marketing Pros & Cons Every Business Should Know

pros and cons of affiliate marketing

Imagine having a team of affiliates promoting your products while you focus on what you do best. That’s affiliate marketing from one side. 

Over the years, thousands of businesses have skyrocketed their sales and revenue with affiliate marketing programs. But we’ve also seen the other side of affiliate marketing. Like any strategy, there are both – pros and cons of affiliate marketing.

Let’s just say, affiliate marketing is like a double edged sword. It can bring new customers and increase sales… or headaches if not handled carefully.

From working with thousands of businesses through AffiliatePress, we’ve learned the sweet spots and the pitfalls of running a successful affiliate marketing program. That’s why you don’t have to worry at all! 

In this blog, we’ll explore the real pros and cons of affiliate marketing so you can grow your own affiliate program with minimal risk. So, are you ready to dive into the advantages and disadvantages of affiliate marketing? Here we go! 

What is Affiliate Marketing?

affiliate marketing

Affiliate marketing is a performance based marketing strategy to boost your sales. By partnering up with a third person (affiliate) to promote your products, you can boost your sales and conversions. And in return, you, as a business owner, have to pay commission per sale. 

In addition, affiliate marketing is a win-win marketing strategy for both affiliates and businesses. For affiliates, they get commission by promoting other brands’ products, while businesses get more sales by increasing their brand awareness and sales in exchange for commission. 

However, if you are wondering if affiliate marketing is actually that effective? Then let us throw some top stats to clear all your doubts. 

By 2031, the studies show the affiliate marketing industry is about to surpass $31 billion in just a few years. Plus, the performance based strategy makes it an attractive online marketing strategy for both businesses and affiliates. In fact, over 80% of businesses have affiliate marketing programs to enhance their brand awareness and boost sales. 

But before you jump blindly into affiliate marketing, you must know that there is always a scary side. So, let us show you the pros and cons of affiliate marketing programs for businesses.  

Quick Comparison: Pros and Cons of Affiliate Marketing

ProsCons
Pay only on salesHard to control brand message
Passive sales 24/7Fraud & payment issues
Access ready customersMarket saturation
Content & SEO benefitsTracking problems
Creative marketing reachTime & effort needed
Discover new audiencesTricky commission rates
Build trust & loyalty
Get free high quality traffic

Advantages of Affiliate Marketing for Businesses

advantages of affiliate marketing

So here are the pros of affiliate marketing to encourage you to jump right in:

1. Pay Only When You Earn

Unlike other marketing strategies where you pay first in the hope of more sales, Affiliate marketing is a game changer. In this, you only pay affiliates when a sale happens. If no sale, no commission. 

It’s as simple as that. When running upfront ads, you spend a lot of money with no guaranteed results. Yet it’s not the same case with affiliate marketing. 

Let’s say an affiliate signs up with your affiliate program. Now hundreds of visitors visit your online store by clicking on that affiliate’s link, yet none buy anything. In that case, you don’t have to pay a single penny. 

2. Generate Passive Sales and Revenue

The best part of affiliate marketing is sales happen anytime, even while you sleep. By recruiting affiliates worldwide, you can rest assured while your affiliates promote your products across all different time zones. 

In short, your products keep selling even while you focus on other important aspects of your business. Also, unlike regular salespeople, affiliates have no weekends. In fact, for most affiliates, weekends are the golden free time to work. 

Thus, your sales don’t stop even when your workday ends. 

3. Reach Ready Customers

People who sign up to become affiliates have already done their work by building trust and credibility in the digital market. 

Thus, by hiring affiliates who already have a good number of following, you can reach ready to go customers and get high quality leads. 

After all, affiliates already have built strong and loyal audiences who trust their opinions. So when they recommend your product, these customers are more likely to take action. It’s like getting a friendly recommendation rather than cold marketing from strangers.

4. Unique Content and SEO Benefits

Getting unique content for your product is the biggest pros of affiliate marketing. By hiring affiliates who are already familiar with market and social media trends, they create unique content about your products.

This leads to new content like blogs, livestreams, podcasts, reels, YouTube videos, and much more. This indirectly also leads to higher SEO benefits, like lots of brand mentions and backlinks. 

Best of all, it is all a part of affiliate marketing, so you don’t have to pay any extra cost to affiliate for content creation. 

5. Creative Marketing

Now, as you start getting multiple types of affiliates, you’ll realize they all have their own niche and ways of promotion. Still, all of them bring something valuable to the table. 

Some affiliates make YouTube videos, others write blogs or send emails. By all means, your product promotions reach a wide range of audiences across multiple platforms. 

After all, each social media influencer or blogger has their own style for creative marketing. And affiliate marketing gives them freedom to promote your products in their own way, so their audience can connect with your products easily. 

6. Discover New Audiences

As we said before, affiliates are mostly social media Influencers, bloggers, industry experts, publishers or coupon website owners who have their hands on various niches and markets.

By partnering up with them, your products can reach new groups or potential customers that might be completely off your radar. Plus, you can test your products in new niche markets that you wouldn’t have tested yet.

7. Builds Trust and Loyal Customers

Customers are most likely to trust the recommendation from people they already know. Think of it like a friend recommending a product to another friend. 

When affiliates recommend your products to their followers or subscribers, they can easily trust and connect because they already know that person (affiliate) for a long time. 

Also, affiliate marketing builds trust and encourages more repeat orders, which leads to creating a loyal customer base for your brand over a period of time.

8. High Quality Traffic

Whenever an affiliate promotes your product to their followers who are already interested in a similar product or niche. It takes no time for these followers to turn into loyal customers, as affiliates promote to people who are already interested and also trust them, so the visitors they bring are more likely to convert.  

This means you get traffic that actually has value rather than just random clicks.

Disadvantages of Affiliate Marketing You Should Consider

disadvantages of affiliate marketing

After going through the amazing pros of affiliate marketing, it’s time to take a look at the other side of the coin – The cons of affiliate marketing you should consider: 

1. Hard to Control Brand Message

This is one of the most common challenges or disadvantages of affiliate marketing. Sometimes affiliates represent your product differently than you want them to. 

When affiliates promote your product, they may describe it in their unique ways that sometimes you mayn’t like. Yet since affiliate marketing gives them freedom to promote the product in their own style, it’s kinda hard to control your brand message. 

This can sometimes lead to mixed messaging or miscommunication about your brand. That’s why it’s important to provide clear instructions to your affiliates the second they join your affiliate program. 

2. Fraud & Payment Issues

All affiliates are the same. Some affiliates can try to cheat your system and will do everything to get commission. From technical glitches, cookie stuffing, to self referral to boost their commission payout in the wrong ways. Also, there are many fake clicks and bots from which you have to protect your affiliate program.

As we are talking, it’s worth mentioning that you can easily overcome affiliate fraud with the help of smart fraud detection by AffiliatePress. 

Yes, AffiliatePress heard your calls for help to sort this out. So it offers advanced fraud detection to identify common fraud and suspicious activities in real time. Plus, it prevents fraud as well by blocking all suspicious activities before they affect your payouts and revenue in any possible way. 

3. Market Saturation

Market saturation is something we can’t ignore as an affiliate business owner ourselves. The fact is that if too many affiliates promote the same type of product in the same niche, it actually affects the overall results of your affiliate program. 

After all, affiliate marketing has been a competitive marketing strategy since the start. Thus, competition between affiliates leads to low sales for each partner.

That’s why we always recommend selecting the most suitable types of affiliates carefully. 

4. Tracking Problems

Most affiliate tracking systems are never perfect. Clicks and sales sometimes are not tracked accurately, the way they should be. There are multiple reasons, such as technical errors, cookies, or ad-blockers, which can create confusion and missed commissions.

However, they sure leave a negative image of your affiliate program among the affiliates, spreading bad mouth of marketing among the network of affiliates, and they are also not wrong here. If an affiliate works day and night to sell your products, they sure deserve accurate tracking. 

That’s why AffiliatePress stands out as the most reliable WordPress affiliate plugin. It offers a robust set of features, including real time and accurate commission tracking.

5. Time and Effort Needed

Now, even if you got yourself a reliable affiliate software, it takes time and effort to manage everything. From recruiting, monitoring, to supporting affiliates, it actually needs a lot more time and effort than it appears. 

Moreover, you also have to maintain a strong relationship with your affiliates and track their performance accurately. 

6. Commission Rates Can Be Tricky

Wondering what factor motivates affiliates to choose “your” affiliate program among the thousands out there? It’s a commission rate per product sale. 

Commission rates play a major role in encouraging affiliates to join your affiliate program. Sure, there are other factors as well, such as cookie period, minimum payout, and payment methods, yet they are just supporting factors when it comes to a “high commission rate”. 

However, you have to adjust your commission rates over time to stay competitive. Plus, to keep your best affiliates motivated, your commission rates matter a lot. Too low and affiliates leave; too high, and your profit margins shrink.

That’s why commission rates can be tricky to maintain. 

Deciding If Affiliate Marketing Fits Your Business Strategy

deciding the strategy

In a nutshell, Affiliate marketing is a win-win marketing strategy for both affiliates and businesses. If implemented the right way, it can unlock a successful stream of revenue. However, if messed up, it can lead straight downhill.   

Let’s be real, the pros and cons of affiliate marketing we have discussed aren’t something to put aside easily. So first, accept that affiliate marketing isn’t for every business. 

If you are ready to keep good relationships with your affiliates, invest time and money in a good, reliable affiliate software, and offer unique creatives to your affiliates, then your affiliate marketing program can shine. 

However, if you can’t give time to monitor your affiliates, track their performance, or manage commission rates and payouts, it might end up not good. Now here comes the real question: ”Is affiliate marketing actually worth it?” The answer is straightforward: Yes, but only with a proper and reliable affiliate software and a proper strategy.

By having a powerful and reliable affiliate software, you can easily dodge some of the cons of affiliate marketing like a Pro. For WordPress, you have a clear choice: AffiliatePress. With this WordPress affiliate plugin, you get:

  • Real time and accurate commission tracking.
  • Multiple smart commission structures.
  • One click and automatic payouts via secured payment gateways.
  • Smart & efficient fraud detection.
  • Free Integrations with other popular plugins, for example WooCommerce.
  • And, unlimited creatives, customized sign form, personalized landing and user user-friendly panel for your affiliates.

So what are you waiting for? Try AffiliatePress and give your shot to affiliate marketing to skyrocket your sales!

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