The Case Against Affiliate Marketing

I received a question from a subscriber recently which you yourself may also be wondering.

‘Dan, if affiliate marketing is so great and pays so well, why do you create and sell your own products?’

I thought the answer was blindingly obvious but perhaps not.

It’s simple.

More income streams.

Why would you limit yourself to just being an affiliate? That makes no sense to me.

Don’t get me wrong I’m not changing my mind about affiliate marketing, it is still the quickest and easiest way to start making money on the internet. It is also a great way to test out your market. You can build an audience and promote affiliate offers to them, see what they buy, what they like and more importantly what they don’t like.

Once you know your market, create and sell your own products.

That way you keep ALL the money from the sale and you have complete control over the product.

Affiliate marketing and product creation are two very different business models that require two very different approaches. Here are some pros and cons of both-

Affiliate Marketing Pros 

1) No customer support- You don’t have to answer endless emails of people re-requesting their login details or dealing with refunds.

2) No shipping- If you promote physical products, the vendor has to deal with all the inventory. You just take your commission.

3) Less responsibility- If the vendor’s website goes down or their launch gets delayed you could just promote something else.

4) Quickest way to get started-Without question affiliate marketing is the quickest and easiest way to get started making money.

5) Great confidence builder- Making quick affiliate sales will boost your confidence and make the whole ‘make money online thing’ real.

Affiliate Marketing Cons

 1) You only get paid a percentage of the sale (but still can make a killing)

2) No control over the product- Vendor’s can take their product down without warning. ( Part of the reason why I don’t write long autoresponder sequences promoting other people’s products)

3) Your subscribers are in the vendor’s hands- Once you send them YOUR traffic, it’s then THEIR traffic. If they decide to mis-treat YOUR subscribers, stop answering support tickets, not deliver on promises then it’s you who will feel the wrath of your angry subscriber as YOU recommended him.

4) Potentially only make front end commissions but miss out on the ‘High Ticket’ back ends that your subscribers are hit with after they join some vendor’s lists. They pay you 100% of a $7 front end and 50% on the $27 upsell, but you get nada on the $5k coaching program that is tucked away in the back-end of their funnel.

Product Creation Pros

1) Complete control over the product- You are responsible for making sure no-one buys an out of date product from you and making sure the product stays live.

2) More money- You keep 100% of the sale. Unless you are using affiliates and JV partners then you will pay them a percentage but once the subscriber is on your list 100% of the money is yours.

3) Traffic- Once your product is created you could potentially just have affiliates driving traffic for you. You will have to pay them a commission (as I’ve already mentioned) but once the subscriber is on your list, you only have to email that subscriber. You don’t have to do all the endless blog hopping and incessant forum marketing. Leave that to the affiliates.


Product Creation Cons

1) Support tickets- You have to deal with whinging customers and refunds. (although that should be outsourced)

2) Technical issues- All technical issues have to be resolved by you. If your site goes down half way through a launch, you’re in trouble. Affiliate’s will just move on and you’ll be left with no sales and pissed off JV partners.

3) Creating products is daunting- Creating your own product can seem daunting to most people and seem like a high barrier to entry. I always thought ‘why would anyone buy something from me?’ Although this is flawed thinking it is a real concern for some people.

4) It’s takes time- You have to not only create the product, research all the content, record all your videos or write your own e-book. You then have to create all the sales material, websites, member’s areas, payment processors the list can go on and on. The longer it takes the more the chance of you giving up.

5) No guarantees- You could spend months on creating a product and there’s no guarantees that it will sell. if you have done your research and know your market well enough then you should have a pretty good idea but you never know until it goes ‘live’

Most marketer’s I know have started as affiliates and naturally progressed into product creation. That’s what I did but I’m creating more and more of my own stuff recently.

If you have wanted to create and sell your own stuff but it all seems a bit daunting then I know the perfect place for you to start.

How would you like your hand held though the entire process?

A friend of mine ran a live online workshop where he breaks down from start to finish the whole process of creating and launching your first product. Other’s paid hundreds to attend live but John recorded the whole thing.

In 8 short modules he reveals exactly how to find your niche, create your product and sales funnel, write the sales material, actually launch it and make money.

You’ll then have your own fully finished product ready to make sales that you can sell again and again. And you keep ALL the profits.

John usually sells these recordings for $297 but if you act right now you can secure a 90% discount.

Just use the code PCW90OFF on the checkout page and you’ll pay less than $30.

Check it out here- John’s product creation workshop


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