There are so many different type of affiliate programs you can promote that the list is just endless. So before you start looking you first need to separate what types of affiliate programs you are going to join and promote.
In my personal experience there are 3 major lists that you need to write down, and then separate your affiliate products under these lists. Try and pick 1 or 2 from each list so you can diversify your streams of income.
These are the 3 type of affiliate programs you should concentrate on when using affiliate marketing, including the pros and cons of each:
Digital Products - This type of affiliate programs are the most popular with affiliate marketers, because simply they are the easiest to start promoting.
• High percentage commissions.
• The only place to buy the product is online therefore this increases the chance you will actually get that commission.
• Many digital products offer a 1 tier and a 2 tier commission basis. This means that if someone buys a product you make a 1 tier commission, and then if that person becomes an affiliate for that product and sells to others, you get a 2 tier commission from that affiliate persons sales.
• A very wide range of products to choose from with different niches.
• Most of the times the majority of digital affiliate programs have long cookie tracking durations, which means you will generate commissions for the same referrals you have promoted for years.
• Even though there is high percentage commissions, the actual conversion rates are lower than physical products. This is because when somebody buys a physical product they now exactly what they are getting because they can see it, whereas with a digital product you can only read what the product offers, unless of course you use it yourself – something that I highly recommend you do anyway.
• Popular digital products have very high demand for affiliates which means your competition is very high also. However if you have your list of customers in an autoresponder like GetResponse, or you market your own website or blog with constant visitors, then you have the upper hand over your competition.
Physical Products -This type of affiliate programs do not sell as well as "digital" affiliate programs, however their conversion rate is much higher, especially if you sell recognized brands or products from a recognized source like Amazon.
• Like digital products there is an endless list of physical products you can promote. Just write a review on the product you are selling and your sales page is ready.
• The actual affiliate percentage commission might be low, but the conversion rate of physical products is much higher.
• Straightforward keyword research opportunities simply by targeting a products name.
• If you send a referral to a large retailer like Amazon, the referral might buy more products that you are not promoting but you still get a commission for those products as well.
• Lower commissions than digital products.
• Popular physical products have very high demand which simply means more competition.
• You can lose the commission because your online visitors might see your review page for a specific product and then just go and buy it from a local shop or from somewhere else.
• Some online retailers have short cookie tracking periods which means that if a referral sees a specific product that you promoted, and the referral decides to buy that product after 3 months, you might lose the commission.
Membership Sites - This type of affiliate programs are a great way to earn recurring commissions. Instead of needing to promote several products to make a certain amount of commission, you can promote a membership site with recurring fees and earn the same amount of commission with just 1 sale. An excellent membership site for Internet Marketers is the Chris Farrell Membership Site. This is where I personally started my journey in the Web Business. Chris is unique in the way he gets he message across to you. Just have a look for yourself !!!
• Recurring commissions, usually monthly.
• Not many websites that offer good service and support, so if you find a good membership site, your way ahead of most people.
• Becoming an affiliate for a membership site, which has various products for sale, you will usually be making money from the other products as well, not just from the main service or information offered.
• Lower conversion rates because sometimes, no matter how good the site is, people will think twice of paying a certain fee every month.
• Sometimes you will find membership sites that start out to be first class, and then a sudden drop in quality or new content, due to the lack of interest of the webmaster.
NOTE: If you would like to add comments on the above article or if you have any personal opinions and experiences with affiliate programs, we would be grateful and honored if you shared your thoughts and ideas in the "comment" section below.
A wake up call to finally 'let go' and 'be yourself'
What would you do if you found a 'money tree' as you were walking by?
Why we make leadership bigger than what we are