Why is Affiliate Marketing Popular with Home Based Business Entrepreneurs?

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Why is Affiliate Marketing Popular with Home Based Business Entrepreneurs?

Why is Affiliate Marketing Popular with Home Based Business Entrepreneurs?

The great strides made in the development of the Internet in the recent past has enabled information to be transmitted thousands of miles away with such ease and clarity that time and space are hardly of any consequence to the Internet Marketer today.

Marketing Programs have literally taken over the Internet and riding high, is Affiliate Marketing.

According to the Computer Industry Almanac "The world-wide Internet population for 2004 was 934 million and the projection for 2006 is 1.21 billion."

Sean Michael Kerner in an article in Click Z News quoting a spokesman for eBay states "According to eBay their largest affiliate earned over $1.3 million dollars in January commission, the largest amount yet in their affiliate program's history. Their top 25 affiliates averaged over $100,000 per month each and the top 100 affiliates earn almost $25,000 each per month."

With this sort of statistics around, is it any surprise that thousands of entrepreneurs especially those Home Based Business entrepreneurs with very small marketing budgets are jumping on to the Affiliate Marketing band-wagon!

Given below are some of the Popular reasons for this desire and urge to do Affiliate Marketing:

1. Cost Factor:
Most Entrepreneurs refrain from starting a brick and mortar business or for that matter a Home Based Business (non internet) because of the investment required. In Affiliate Marketing the set-up cost is negligible with most programs being free to join and the merchant even providing you with the tools, tips and websites.

2. Pick and Choose Products:
With dozens of Affiliate Program providers and thousands of merchants having their own affiliate programs, there are several thousands of products to choose from. You name it they have it! In fact there are even Fortune 500 companies to choose from. The idea is to pick and choose your niche products and promote them.

3. No need for an Inventory.
The hassle of purchasing, stocking of items and storing of finished items (in a production unit) and dispatching them are not there. There is no need to maintain an inventory. It is all handled by the merchant.

4. No need for Employees.
In any business the wages of the employees is one of the major expenditures to contend with. Here the problem does not arise since the marketer himself will operate his home business and probably get the assistance of a family member to help him.

5. Necessity for Customer Service does not arise.
Customer service plays a major role in the success or failure of a business. The advantage here is that there is no direct dealing with the customers. The website will automatically direct the customers to the merchants.

6. Two Tier Affiliate Marketing:
An attractive feature of certain affiliate programs is that they have a Two tier system, whereby affiliates can sign up as sub-affiliates below them. When the sub-affiliate earns a commission, the affiliate above him too earns a commission.

7. Income without a limit.
In a paid job the salary structure has a vice-like grip over your monthly income. Here the possibilities are limitless. Though it is not every marketer who earns a big income, the fact remains that avenues are all there for the enterprising marketer to make it to the big time.

8. Global Market Place.
You no longer need to restrict your market to your home town or country. With your well chosen niche product you can sit in the comfort of your home and target the Global Market.

9. Low Risk Factor.
The risk factor in Affiliate Marketing is so small that it has become one of the major attractions for many Home Based Business entrepreneurs especially for those with low marketing budgets.

10. Business works Right Round the Clock.
One major asset of Internet marketing is that your Website, or in other words, your Home Based Business never sleeps. It works right round the clock (24/7) making money from home for you.

Having indicated the above reasons for the popularity of Affiliate Marketing, it has to be mentioned that statistics indicate that only 5% of the marketers do make big money. It is presumed that there are of course several thousands of marketers who make some money, thus giving them an additional income.

As long as the top marketers in the 5% slab, continue to make their millions and the latter continue to make reasonable amounts of money and have the urge to emulate the top marketers, Affiliate Marketing will continue to draw the attention and be popular with Home Based Business Entrepreneurs.

About Kanaga: Kanaga Siva has been a Marketing Manager and Business Manager and has a wealth of experience in Marketing. He now operates his own Home Based Business. For Articles, Resources, Tips and Ideas to start a Home Based Business from anywhere in the World, visit his website, http://www.business-fromhome.com

In The News:

CNET News
Mozilla revenue $75 million in 2007, up 12 percent
Ars Technica, MA - Nov 19, 2008
Other sources of revenue include the revamped Mozilla store, affiliate programs, and interest on investments. The nature of Mozilla's agreement with Google ...
Mozilla Set To Rake in $84 million In Revenues In 2008; Non Profit ... ITProPortal
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Grubb & Ellis Files Investor Presentation
MarketWatch - 5 hours ago
With more than 130 owned and affiliate offices worldwide, Grubb & Ellis offers property owners, corporate occupants and investors comprehensive integrated ...

RTT News
Hurray! Q3 2008 Earnings Call Transcript
Seeking Alpha, NY - 13 hours ago
We also tested or invested in music [actually affiliate] for impairment and recorded a write-down of $1.9 million in the third quarter of fiscal year 2008. ...
Helmerich & Payne, Inc. Announces Record Fourth Quarter and Fiscal ... MarketWatch
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Out of the Starting Gate : tyBit's First Payout to Affiliate Partners
Emailwire - Nov 19, 2008
Lastly, tyBit delivers fast, relevant search results to its users and pays its affiliate partners the most robust revenue share in the industry. ...
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Outdoor Channel Holdings, Inc. Q3 2008 Earnings Call Transcript
Seeking Alpha, NY - 1 hour ago
I believe we are nearing a point where we will begin to see a drop level with regards to affiliate fee decreases. At any rate, we are taking a cautious view ...

Port Authority OKs bonds for Queen City Square
Bizjournals.com, NC - 3 hours ago
The Port Authority will own the project and lease it to an affiliate of Western Southern with the option to buy. The city and Western Southern are working ...
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New Relic Launches Affiliate Program
PR Web (press release), WA - Nov 20, 2008
Rails organizations can generate revenue for recommending popular RPMâ„¢ application management tools; nine organizations sign up as charter members. ...

Host Department Launches a New Affiliate Program
MyHostNews.com (press release), OK - Nov 19, 2008
Moreover, to join the affiliate program, affiliates just need a website and a PayPal account to rake this instant revenue.

China Distance Education Holdings Limited Reports Fourth Quarter ...
MarketWatch - Nov 17, 2008
BAI is an affiliate of Bertelsmann Asia Investment AG, a shareholder of the Company. Prior to BAI, Ms. Long was a principal of Bertelsmann Digital Media ...

Ottawa Citizen
The Walt Disney Company Reports Earnings for Fiscal Year 2008
MarketWatch - Nov 6, 2008
The increase in affiliate revenue was due to contractual rate increases and subscriber growth. Increased advertising revenues reflected improved rates and ...
Walt Disney F4Q08 (Qtr End 9/27/08) Earnings Call Transcript Seeking Alpha
Disney's 4Q net income falls 13 percent The Associated Press
Earnings Reports Reveal Economic Pain For Media Giants CNNMoney.com
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affiliate revenue - Google News

Why is Affiliate Marketing Popular with Home Based Business Entrepreneurs?

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