There are many ways to earn significant revenue from affiliate marketing, but in eCommerce the path to success is riddled with risks. Recognising and preparing for these key threats is critical for establishing sustainable success.
Check out the five key challenges facing affiliate marketers, and recommendations to effectively overcome them.
1. Spread the Wealth
Having a niche focus in affiliate marketing can be a good strategy for some, but it is dangerous to rely solely on a single income source. If only one platform is utilised (i.e. Amazon or YouTube), you risk total loss if you falter. Your traffic could rapidly decrease, you could get banned, or the whole platform could fail entirely.
Leveraging multiple sources of affiliate income is the proper way to combat this risk. By doing so, you reduce the potential hit to your traffic and income in the event that a single stream stalls or dies out.
2. Read the Fine Print
For affiliate marketers, there are many laws and regulations designed to protect consumers from false or deceptive practices. Be careful and take the time to read the terms of each site you use. Proper disclosure of payments on blogs and social media, breach of copyright and misleading advertising are just a few of the legal barriers affiliate marketers face.
When necessary, hire an attorney.
3. Pick the Right Team Members and Partners
In order to maximize success, affiliate marketers often rely on a trusted support network. Website developers and managers, content writers, and affiliate partners are just a few of the potential individuals needed to support your venture.
"Spend time learning about each person's experience and credibility, making sure you are choosing the right partners, with clean reputations and a strong track record."
Each of these individuals contributes to the marketplace presentation of your business. Spend time learning about each person's experience and credibility, making sure you are choosing the right partners, with clean reputations and a strong track record.
4. False Success - The Case Study of “Zorbas”
Affiliate company Zorbas Media fell into a trap when an appealing deal- perhaps too good to be true- was presented to them. They were offered an affiliate deal with a beginning media cost of only $300 daily where “traffic was run at the speed of light, and almost all traffic was converting well.” On the fourth day of the affiliate deal, their turnover increased to $4,000-$5,000 a day and the numbers in the tracker were highly promising. They thought they nailed it!
However, after only a few weeks, their success took a turn for the worse. The network’s performance was low and the number of un-subscriptions outpaced the number of new subscriptions.
“It lasted for quite a while: various chats, forum threads, numerous messages, and finally it became clear that the advertiser didn’t want to pay the network, while the network didn’t want or wasn’t able to pay affiliates… Then one day the network’s domain and the stats disappeared from Zorbas’ personal account. They ultimately lost over $24,000.”
“It lasted for quite a while: various chats, forum threads, numerous messages, and finally it became clear"
Choosing the correct partners and suppliers and ensuring your exposure is limited is crucial. Although sometimes you may feel you are succeeding with a certain partner, always make sure not to be left high and dry.
5. Maximize Your Earnings
Even if you generate sales through successful affiliate marketing, certain factors can impede your ability to convert sales to profits, including high taxes and platform fees. Especially if you conduct your company internationally, familiarise yourself with tax laws in each country where you work so you can properly assess income and risk opportunities.
"Reduce the risks of conducting your business in foreign markets"
Receiving payments in a hassle-free, low-cost manner is essential as well. This is where an online payment service like MoneyNetint comes in handy. You reduce the risks of conducting your business in foreign markets by ensuring proper payment on sales. MoneyNetint’s cross border and local IBAN bank account numbers enable affiliate marketers to secure their earnings and avoid high transaction fees.