There are a few ways to answer this question, but I will start off by telling you what I believe. My answer is that those who run a business online could benefit from using both models so that they can have more than one revenue stream. There are pros and cons to both sides, though, and business owners should choose the method, or combination of methods, that best suit their businesses. Here’s more information:
Pros and Cons of an Affiliate Business
One of the main reasons why you would want an affiliate business is that you don’t need to worry about creating your own product and all the planning and expenses that go along with it. This includes building a list, developing the product, figuring out how to take payments, and also figuring out how to deliver the product. There are certainly a lot of steps! As an affiliate, you won’t have to worry about any of these things.
There are also some negative aspects of having an affiliate business and the main one is that you won’t have control over the product itself. You also need to look for a product to promote. You can find a product from affiliate networks like Clickbank or from the sellers themselves. Sometimes they run their own affiliate program.
Once you do find the product, you also can’t control what the content looks like, what the sales letter looks like, and the product owner’s customer service. If any of these fall short, it reflects poorly on your own business unless you take measures to fix it.
Pros and Cons of Being a Product Owner
When you decide to be a product owner, your success is entirely up to you. While this could be a good thing, it does have some drawbacks. It is up to you to come up with the idea, develop the product, successfully launch the product, and provide the customer service. They are part of the process from start to finish.
Once the product is developed, you then need to find ways to sell it. This includes driving traffic to a sales page, attracting affiliates, and constantly finding ways to attract your target market. The sales copy needs to be developed, as well, and this could be a long process, especially if you need to make tweaks.
Which Business Model is Better?
So, is one choice better than any other? There are certainly pros and cons to both, and that is why I’ve adopted a model of incorporating both in my businesses. For me, it all depends on the niche. Each website that I have focuses on a different topic. Different markets require different monetization mixes.
However, no matter how I decide to monetize each website, my sincere goal is to do it in a way that adds value to the customer experience. For example, if I had a website on camping, I would offer affiliate links to my favorite camping gear. Sure, the links earn me money, but they also help my audience because I am pointing them in the right direction.
Do you want to learn how to make money with affiliate marketing? The very first affiliate “how to” product I ever bought was super affiliate Rosalind Gardener’s eBook. Although she wrote it over a decade ago, she has since updated it. I still refer to it to help guide me in the right direction every time I start a new website.