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Why is Affiliate Marketing Popular with Home Based Business Entrepreneurs?


The great strides made in the development of the Internet in the recent past has enabled information to be transmitted thousands of miles away with such ease and clarity that time and space are hardly of any consequence to the Internet Marketer today.

Marketing Programs have literally taken over the Internet and riding high, is Affiliate Marketing.

According to the Computer Industry Almanac "The world-wide Internet population for 2004 was 934 million and the projection for 2006 is 1.21 billion."

Sean Michael Kerner in an article in Click Z News quoting a spokesman for eBay states "According to eBay their largest affiliate earned over $1.3 million dollars in January commission, the largest amount yet in their affiliate program's history. Their top 25 affiliates averaged over $100,000 per month each and the top 100 affiliates earn almost $25,000 each per month."

With this sort of statistics around, is it any surprise that thousands of entrepreneurs especially those Home Based Business entrepreneurs with very small marketing budgets are jumping on to the Affiliate Marketing band-wagon!

Given below are some of the Popular reasons for this desire and urge to do Affiliate Marketing:

1. Cost Factor:
Most Entrepreneurs refrain from starting a brick and mortar business or for that matter a Home Based Business (non internet) because of the investment required. In Affiliate Marketing the set-up cost is negligible with most programs being free to join and the merchant even providing you with the tools, tips and websites.

2. Pick and Choose Products:
With dozens of Affiliate Program providers and thousands of merchants having their own affiliate programs, there are several thousands of products to choose from. You name it they have it! In fact there are even Fortune 500 companies to choose from. The idea is to pick and choose your niche products and promote them.

3. No need for an Inventory.
The hassle of purchasing, stocking of items and storing of finished items (in a production unit) and dispatching them are not there. There is no need to maintain an inventory. It is all handled by the merchant.

4. No need for Employees.
In any business the wages of the employees is one of the major expenditures to contend with. Here the problem does not arise since the marketer himself will operate his home business and probably get the assistance of a family member to help him.

5. Necessity for Customer Service does not arise.
Customer service plays a major role in the success or failure of a business. The advantage here is that there is no direct dealing with the customers. The website will automatically direct the customers to the merchants.

6. Two Tier Affiliate Marketing:
An attractive feature of certain affiliate programs is that they have a Two tier system, whereby affiliates can sign up as sub-affiliates below them. When the sub-affiliate earns a commission, the affiliate above him too earns a commission.

7. Income without a limit.
In a paid job the salary structure has a vice-like grip over your monthly income. Here the possibilities are limitless. Though it is not every marketer who earns a big income, the fact remains that avenues are all there for the enterprising marketer to make it to the big time.

8. Global Market Place.
You no longer need to restrict your market to your home town or country. With your well chosen niche product you can sit in the comfort of your home and target the Global Market.

9. Low Risk Factor.
The risk factor in Affiliate Marketing is so small that it has become one of the major attractions for many Home Based Business entrepreneurs especially for those with low marketing budgets.

10. Business works Right Round the Clock.
One major asset of Internet marketing is that your Website, or in other words, your Home Based Business never sleeps. It works right round the clock (24/7) making money from home for you.

Having indicated the above reasons for the popularity of Affiliate Marketing, it has to be mentioned that statistics indicate that only 5% of the marketers do make big money. It is presumed that there are of course several thousands of marketers who make some money, thus giving them an additional income.

As long as the top marketers in the 5% slab, continue to make their millions and the latter continue to make reasonable amounts of money and have the urge to emulate the top marketers, Affiliate Marketing will continue to draw the attention and be popular with Home Based Business Entrepreneurs.

Copyright © 2005 Kanaga Siva

About Kanaga: Kanaga Siva has been a Marketing Manager and Business Manager and has a wealth of experience in Marketing. He now operates his own Home Based Business. For Articles, Resources, Tips and Ideas to start a Home Based Business from anywhere in the World, visit his website, http://www.business-fromhome.com


MORE RESOURCES:

Ottawa Citizen

The Walt Disney Company Reports Earnings for Fiscal Year 2008
MarketWatch - Nov 6, 2008
The increase in affiliate revenue was due to contractual rate increases and subscriber growth. Increased advertising revenues reflected improved rates and ...
Walt Disney F4Q08 (Qtr End 9/27/08) Earnings Call Transcript Seeking Alpha
all 295 news articles


Sports Business Journal (subscription)

Is cable the new home of champions?
Sports Business Journal (subscription), NC - Nov 17, 2008
The fourth quarter ad market has been soft across all sports, putting greater importance on the affiliate revenue that cable networks collect. ...


TechCrunch

Cookstr Helps You Find Recipes From People Who Know Their Onions
TechCrunch, CA - Nov 18, 2008
... NY Times article on the startup points out, they’ll also be collecting affiliate revenue when books are sold on e-commerce sites via their website. ...


Hollywood Reporter

Moonves: US economy close to recession
Hollywood Reporter, United States - Oct 30, 2008
In the core TV division, revenue rose 2% to $2.08 billion because of higher license fees, home entertainment and affiliate revenue partially offset by ad ...


Cablevision Systems Corporation Q3 2008 Earnings Call Transcript
Seeking Alpha, NY - Nov 6, 2008
The third quarter results were principally driven by higher revenue at the networks of $10 million which was principally increased affiliate revenue and ...
Cablevision Systems Corporation Reports Third Quarter 2008 Results StreetInsider.com (subscription)
all 3 news articles


Cleco Corp. Posts 2008 Third-Quarter Net Income of $37.1 Million
CNNMoney.com - Nov 5, 2008
30, 2008 2007 ----------- ----------- Operating revenue Electric operations $ 333936 $ 300862 Other operations 7004 9238 Affiliate revenue 2735 1591 ...


News Corp. shares plunge on outlook
Crain's New York Business, NY - Nov 7, 2008
But cable network programming revenue rose 19% to $1.3 billion, on advertising and affiliate revenue gains at Fox News Channel, FX and the Big Ten Network. ...


Ottawa Citizen

Turner Nets Defy Soft Market
Adweek, NY - Nov 6, 2008
Along with the advertising gains, network revenue was goosed by 10 percent year-to-year growth in subscription/affiliate revenue. The Turner nets now appear ...
Time Warner Q3 2008 earnings transcript BloggingStocks
all 507 news articles


Cablevision Systems Corporation Reports Third Quarter 2008 Results
MarketWatch - Nov 6, 2008
... all compared to September 2007 -- A 9.3% increase in affiliate revenue compared to the prior year period -- A 19.3% increase in operating costs compared ...


Spong

Viacom’s Profit Fell 37% on Slower Ad Sales
New York Times, United States - Nov 3, 2008
Cable and satellite affiliate revenue grew 12 percent, to $660 million. Ancillary revenue surged 36 percent, to $313 million, driven by sales of its video ...
Viacom earnings drop 37 percent; ad slump hurts guardian.co.uk
all 205 news articles

Affiliate-Revenue - Google News

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