Advantages of Product Ownership VS Affiliate Marketing
The product owner often gets the better end of the bargain.
Advantages of being an affiliate:
1) Faster and Cheaper cost of entry:
This can be anything from a direct linking campaign to a squeeze page but you get to test the waters quickly with little risk involved.
2) Few Top Level Skills required:
With an average skill set and the right formula, you can do very well. No need for extreme copywriting skills that can make or break your campaigns, if you track your keywords well, you’re 75% of the way there.
3) Easier diversification of assets:
Arguably, your assets are somewhat more fragile since you depend on other continuing to pay you well for selling their products. Affiliate programs come and go. You may lose some but they won’t account for huge slices of your income if you keep the funnel well stocked.
4) No Customers:
While customers are what put money in your pocket, you don’t have to deal with them. They whine at the vendor, not the affiliate, they ask her for support, not you. Customers can be one of the most stimulating parts of any business. They can also be the most irritating.
5) No Inventory and Fulfillment:
Advantages of being a product owner:
1) You get double the money on a good deal of sales and all your personal sales.
If you are promoting your own product on PPC, you can bid twice as much as you could as an affiliate and still be profitable. When the campaign is profitable anyways, you make twice as much money.
2) You get a bigger list faster:
Assuming equal marketing, you can put your own lead capture device directly in your sales page instead of making a squeeze page which means you get a good deal of signups without ever losing a customer because they refused to optin.
3) You have complete access to the buyers list:
Clickbank gives you the names of the buyers you refer as an affiliate. You can get them to optin to your list at a decent percentage but most don’t even do it. Nevertheless, most affiliate programs don’t give you access to buyer data and even when they do, you can never build a relationship with them on par with the vendor whose product they now own.
4) You have your own affiliates:
This is a bit like your second family of customers: they require some investment and work. But they use their own money, time and resources to sell your product without you ever risking a cent! This is a ridiculously good deal. On many digital products, you make 50% of the sale price doing absolutely nothing. You get access to buyers and subscribers you never could have gotten otherwise because they come from other people’s lists and sites where you can’t advertise as an affiliate. When other people start busting their hump to make you money, you can’t really ask for anything more.
5) You have access to JVs:
This is another sickeningly powerful advantage the regular affiliate doesn’t have access to. As a product owner you can make twice as much money promoting the same product with the same size list. As an affiliate, you just mail out and get commissions from the sales you make. As a product owner, you get those profits and the ones generated by the other product owner mailing out for you at the same time. Your list grows and your campaigns make twice as much money. That’s hard to beat.
6) You get Notoriety:
As an affiliate, you can gain some notoriety for your success as a seller. If you build huge authoritative VRE sites, you might get recognition for that too. As a vendor, you get interviews, media attention and expert status in your niche. More sales and more power coming your way.
About the Author
Alex is the owner of Net Frontier Marketing an Affiliate Marketing Blog, where you can read various product reviews such as Adwords180 Exposed
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