There is a wealth of opportunities online, and one of the latest and most promising avenues for making money is through affiliate marketing. What is affiliate marketing?
Put simply, if you’re a consumer goods company and you want to promote a new product, you might choose to pay an affiliate marketer to promote your product on her website. If someone clicks through and makes a purchase, you’ll earn a commission.
Nowadays, businesses of all sizes can employ the services of an affiliate marketer. Even small and medium sized businesses can afford the services of an affiliate marketer, as long as they’re committed to growing their business through digital marketing and platforms like Facebook, Google and Snapchat.
The Growth Of Online Affiliate Marketing
Let’s take a look at the growth of online affiliate marketing over the last few years.
In 2014, about 20% of the worldwide GDP was generated by digital businesses.
Then in 2019, the numbers grew to about 25%. In 2022, experts predict that online affiliate marketing will contribute over 35% of the worldwide GDP.
This is largely thanks to the growth of e-commerce and the rising popularity of click-to-buy buttons on websites. If you’re running a blog, you can take advantage of this trend and earn money online through affiliate marketing.
The most effective (and free) ways to find affiliate marketing opportunities are to:
- Look for affiliate marketing programs from brand-name companies that you’re familiar with
- Search for brands and products that you’re passionate about
- Visit affiliate marketing websites often to keep up with all the latest opportunities
- Join community forums where you can share tips and tricks on how to make money online
- Stay active in social media.
Why Blogging Is The Ideal Platform For Affiliate Marketing
If you’re looking to make money through affiliate marketing, you have a couple of options. You can set up a marketing blog or you can create product reviews for various platforms (e.g., YouTube).
Choosing to blog is ideal because it gives you complete control over the content that you create, allowing you to establish your authority as an expert in your niche. Moreover, you can easily identify and target a specific audience. In addition, you can use various platforms (e.g., blogs, social media, podcasting) to consistently market your product or service.
The Pros And Cons Of Affiliate Marketing
Before you commit to affiliate marketing as a source of income, it’s important to weigh the pros and the cons. These are the points that you need to consider:
- Pros
- Cons
- Key takeaways
Let’s examine each point individually.
The Pros:
- Freedom – you’re your own boss
- Consistence – it’s a steady job
- Variety – you can do anything from promoting fitness to promoting tech or science-related products
- Flexibility – you can work anytime that you want
- Lifestyle – you can work remotely, take vacation days, or look for part-time work
- Income – you can make decent money online with some savvy marketing and a few well-placed affiliate links
- Earning potential – you can become a well-known expert and eventually brand consultant for a fortune 500 company or you can maintain a blog for years and become extremely wealthy
Freedom
One of the chief privileges of being an independent contractor is having the freedom to choose your own work schedule and to take vacation days when you need them. If you want to stay connected to the internet, you don’t necessarily need to be online at all times to engage with customers or potential customers. Moreover, you can set your own hours and be your own boss.
Consistence
On the other hand, there are some definite drawbacks to working for yourself. You’ll have to prepare food for yourself, clean your own home, and deal with your own finances. In some cases, you may also have to pay for your own healthcare. Despite the challenges, it’s still very desirable to be your own boss and avoid having to follow a schedule imposed on you by someone else.
Variety
One of the things that attract people to working for themselves is the variety of the work that they can do. If you’re looking to start a fitness blog, for example, you might decide that you want to explore a variety of topics including nutrition, training, and lifestyle. As an independent contractor, you’re free to research and report on any topic that interests you.
If you want to further your education, you don’t necessarily have to specialize in blogging to do so. There are tons of online programs that you can complete to further your knowledge in a variety of areas.
Flexibility
Another important consideration when deciding to work for yourself is the flexibility that you’ll need to have. When you’re working for yourself, you’ll have to ensure that you schedule your work hours efficiently. Moreover, you’ll have to be willing to go beyond your routine and adjust your hours as required. For example, if you’re a parent, you might want to set aside some time to care for your children but you don’t want to lose out on your business’ earnings. Rather than feeling guilty, you should feel proud that you can achieve both and that your work serves your family.
Income
One of the biggest draws of working for yourself is the ability to earn money online. You don’t need to apply for a loan to finance your exercise equipment or your healthful meal delivery regimen. Moreover, you don’t need to have a degree in economics to see why having a savings account is beneficial. In the event of financial hardship, you can use your savings to help you get back on your feet. In addition, you can use various platforms to earn money online (e.g., blogs, social media, podcasting) and keep 100% of what you earn.
Earning potential
Even if you’re not looking to become rich, you should still consider the income generated by blogging as valuable. In many cases, you can become an expert in your niche and establish yourself as an authoritative voice on the subject. In turn, you can gain access to higher-paying consulting or expert coaching gigs. In the longer term, you can see your blog as a springboard to further your career. Once you’ve established yourself as an expert, you can begin charging higher rates as a brand consultant or coach.
Lifestyle
Another important consideration when deciding to work for yourself is the lifestyle that you’ll lead. Will you want to work regular hours and join a company gym, or will you prefer to set your own schedule and enjoy a regular workout session at home?
On the subject of home versus office workouts, you should know that you’re free to workout whenever and wherever you please. If you lead a particularly active lifestyle, you might decide that a trip to the office gym isn’t for you. Instead, you can push your muscles at home with a series of lunges, squats, and overhead presses.
In the event that you decide to work out at home, you might want to consider investing in a gym bag or other small storage containers so that you can keep your workout clothes organized. You might also want to invest in a yoga mat and other equipment that you need for your practice. In turn, you’ll enjoy a regular workout routine and see the benefits for yourself.
Income Tax
Even though you’ll be able to keep all of the money that you make from your blog, you should still consider income tax as a potential drawback. In the United States, as an independent contractor, you’ll need to file a form 1040 every year. Moreover, if you’re a freelancer or a small business owner, you might want to consider establishing yourself as an S-corp (sole proprietorship) or an LLC (limited liability company) to reduce your tax liability.