While digital world is growing every day and as the same time it is entering to daily life of people, a lot of online jobs and business have been operated. One of the most famous online jobs is affiliate marketing.
However, this business has a lot of advantage for your business and can help you to increase your income, there are some risks in using affiliate marketing. So, you must get to know them before starting your business.
When you know more about theses dangers, you will start your business safer and can make the best decisions about it. So, join us to know more about the risks and facts that associated with affiliate marketing.
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What is Affiliate Marketing?
Affiliate marketing is a kind of business that based on the mutual benefits between merchants and publishers. Affiliate marketing is a very famous business in recent years. In this kind of Digital marketing, merchants ask from publishers to promote and advertise their products or services on their pages and websites.
Merchants give to publishers a determined commission for gaining their defined result. For example, selling a product, downloading or installing an application, and etc.
Everywhen a user sees an advertisement on the platform of a publisher and click on it, affiliate marketing system can understand this event and will report it to the merchant. So, merchant will give a defined commission to the related publisher. This commission can be a determined percent of per clicking, selling, downloading, installing, registering, and etc.
If you want to know more about the affiliate marketing systems and their advantages, please click here.
As you know, there are three kinds of players in an affiliate marketing including merchants, publisher and customers. In the following parts, we want to speak about 11 risks associated with publishers and merchants in affiliate marketing, separately.
Disadvantages of Affiliate Marketing for Your Business
Up to this point, you got familiar with affiliate marketing. However, there are a lot of advantage with using affiliate marketing for your business and can increase your income, but there are some problems too. So, you must know about them before you start your affiliate marketing.
In this part of article, I want to help you to make a safe decision about your affiliate marketing. We will investigate the dangers of affiliate marketing for merchants and publishers separately. Since keep reading!
The Main Negative Points of Affiliate Marketing for Merchants
If you as a merchant decide to promote your product or service by affiliate marketing systems, we suggest you to attend following five golden points before making a contract with publishers. It will help you to make a deal with publishers to do business together with low risk.
1. Sometimes brands have to pay a lot of costs for operating and supporting an affiliate marketing system, in addition, publishers request a high commission from them. It is a hard situation for brands.
2. Sometimes publishers perform some cheat and unethical methods for advertising products and services of brands. For example, they may give a wrong and exaggerated formation about products quality, sales, after selling services of a brand, and etc.
In this situation usually customers buy the product but when they find out the truth, they complain and return the product. It has a very bad effect for your brand. So, so, pay attention to this notice that some publishers may use cheat methods to attract customers and abuse the name of your brand.
3. If the goal of a brand is installing an application, it’s possible that publishers create a false installing or users. You can prevent from these events by gaining enough information about the cheat methods in digital advertising and how you can prevent.
4. The risk of gaining a few information about customers. Customers belong to a merchant. But when you using affiliate marketing systems, there is a disadvantage that publishers know all of things about customers.
In another word, you, as an owner of a famous business website or social network, don’t have enough information about your customers, you don’t know who clicked on the at the affiliate link and who buy your product.
Having information about your customers is very important for your business, because if you know who are your customers and what’s the taste of them, you can introduce your product to them by best way. Actually, it’s retargeting advertisement. If you want to know more but retargeting advertisement, please click here
The 6 Golden Tips About The Disadvantages Of Affiliate Marketing For Publisher
If you want to go to business as a publisher of brand or company, affiliate marketing will help you. In fact, you can gain money by advertising for companies and brands and take your commission.In this way you can cooperate with big brands and famous companies and introduce new customers to them. Brands and companies give a defined commission to you for per selling.
But if you want to go affiliate busyness, you must pay attention to the following golden tips. They help you to perform your affiliate business with low risk.
1. Sometimes, cheap brands terminate the affiliate programs, without the publisher’s knowledge. In this situation cheat brands don’t give any payment to publisher.
2. Some brands promise to give a high commission to publishers to attract them. But after a while, they may decrease the amount of commission. The best way for preventing this problem, is making a deal in a creditable affiliate marketing program network.
3. It is possible that affiliate link burglars steal affiliate links and gain commission instead of publishers.
4. If you want to have a lot of income from affiliate business, you must have a lot of traffic or followers on your website or social network page. As you know having a website or social network page with a lot of viewers, need to spend a lot of money and time to create and manage it.
So, if you want to gain money with affiliate marketing, you must determine a specific time-period for developing your website or page to make great traffic.
5. One of the most important problems of affiliate marketing for publishers is that you cannot control the quality of products and services that you are advertising them.
It’s possible that your audiences who buy a product or services by your affiliate link, are dissatisfied from the quality of the products or services. It will have a very bad effect on the traffic of your website, because they may unfollow your page or never visit your website again.
So, we suggest you that always select the best companies and bran for your affiliate marketing and always research about them.
6. Another risk in affiliate marketing is the competition between publishers. So, there is a lot of competitors for your business. In addition, maybe other companies present product or services similar to the product that you are promote it.
So, they are another kind of competitor for your affiliate marketing. Since if you want to win in your business competition, you must be creative to create your advertising content.
Conclusion
However, affiliate marketing has a lot of advantage for your business and can help you to increase your income, it has some risks and disadvantages that you must get to know them before start your business. The most important gangers are maintained above.
In spite of these risks, affiliate marketing is still one of the famous methods of digital marketing in all of the world. Because most of this problems and risks have a solution. you can prevent from these dangers by make a deal with an affiliate marketing network. It’s very important for your affiliate business.