Affiliate marketing is one of the most popular online business models. It's also one of the simplest, yet easiest to get wrong.
In a nutshell, affiliate marketing is where an affiliate partner (YOU) refers a customer to a vendor, and the vendor gives you a generous commission if a sale takes place. You do not work for the vendor, you're more an independent contractor.
The affiliate model was pretty much invented by Amazon. If you referred a customer to Amazon and that customer buys something from the site, Amazon will give you a commission.
The advantages of affiliate marketing are many.
No need to create your own products.
The vendor handles all the hard work like delivery, invoicing, customer support etc.
You can do this from any where in the world.
Easy to set up and get started.
Low cost set up costs.
Fairly easy to scale.
Works around the clock, 24/7.
The truth of the matter is, most affiliate marketers end up losing time and money because they do it the wrong way. It doesn't help that the industry promotes this way as the way to get rich quick.
Getting it wrong is costly. Even if you invest very little real money into your venture because your time has value, you could invest months into your online business, and see Zero results. All that time, the hours invested, could mount to nothing. These are just some of the possible flaws we've seen.
The customer doesn't belong to you. (Send someone to Amazon, they become an Amazon customer)
You only get paid once and typically, it's a very small commission, as low as 2%
You have to keep spending money on traffic or the sales stop.
The advertiser may pull the offer (or only offer it to a few).
Commissions are low, and the advertiser may lower the payout further, and at any time.
Google may slap your landing page, killing traffic, killing sales.
Your affiliate network might rip off your campaigns (this happens more often than you think).
Competition will drive up advertising cost to the point where the campaign is no longer profitable.
Craftys Affiliate Marketing Model is different, I've jumped through the hoops above, fallen for the misleading claims, and designed my own affiliate program to be different, its more a partnership that works for both you and me, that's the only way I can see such a model being sustainable.
Our goal is to find multiple income streams, and the more passive the better.