What is an Affiliate Program, and How an Online Business Grows Using Affiliate Marketing

12 Nov 2021

By Satrio Ardia

What is an Affiliate Program?
 
An affiliate program is a program that allows you to earn a commission if you succeed in getting other people to buy or use a product.
 
There are so many affiliate programs out there that it is difficult to choose the best. To make things more complicated, there are so many differences between them. For example, there are different types of affiliate programs:
 
    1) Affiliate marketing programs
 
    2) Affiliate distribution programs or digital distribution programs
 
    3) Pay-per-click affiliate programs
 
    4) Direct sales affiliate program
 
    5) Cosmetic products or cosmetics distribution program
 
How Will an Online Business Grow Using Affiliate Marketing?
 
As digital technology drives the way business is done today, so does affiliate marketing. There are hundreds of online businesses that use affiliate marketing, and some of them are like Amazon, MadeinIndonesia.com, eBay, and Google.
 
Today's Affiliate Marketing System provides an opportunity to earn money without having to spend inventory. Imagine earning money just by "drinking coffee".
 
This is because it can be done with the click of a button. This concept has attracted people who are into affiliate marketing. Affiliate Marketing has many different types of businesses that do business with each other through affiliate programs. These types of businesses include e-commerce stores, small local stores that sell products online, accounting firms that provide accounting services for affiliates and generate profits from these services for their clients.
 
What Are the Advantages and Disadvantages of Affiliate Marketing?
 
Affiliate Marketing Advantages:
 
1. Has No Production Costs
By using Affiliate Marketing, of course you don't need to think about and add production costs to start your business.
2. Low Initial Cost
Because you only need a computer connected to the internet and several other supporting tools including software to create logo designs and so on.
3. No Fee or License
You can keep the money allocated for the license fee. Why? Because with this Affiliate Marketing program, your marketing targets are unlimited and you are free to join in any area.
4. Can Sell Anything
By taking advantage of today's developments, you can take advantage of existing Affiliate Marketing programs, you just have to choose what products you want to promote.
5. No Sales Experience Required
You don't have to have experience being a salesperson, because usually merchants have provided or prepared materials about marketing that are good and useful so you can use them on the Affiliate Marketing website that you have created.
 
Disadvantages of Marketing Marketing:
 
1. Your Income Depends on Others – Before you become an Affiliate Marketer, of course you have to go through a registration process that requires you to play on the rules set by the merchant.
 
2. You Don't Build An Asset (Customer Data) – Because all processes, both order recap, shipping and so on, have been handled by the merchant, gradually you will realize that you don't have any customer data such as names, emails, and so on who shop on your website.
 
3. Must Compete with Other Affiliate Marketers – Intense competition will occur among Affiliate Marketers because they all sell the same product or service.
 

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