Affiliate Marketing is Low Risk

There is absolutely no doubt that Affiliate Marketing is becoming more and more popular every day. On a daily basis more and more would be entrepreneurs are turning to affiliate marketing as a way of making an online income. There are obviously many compelling reasons for the popularity of affiliate marketing. Near the top of that list has to be the fact that affiliate marketing is considered a low-risk opportunity for many people looking to make money from the comfort of their home. Now many people believe that low-risk also means low-reward. I however, am not one of those people! In the case of Affiliate marketing, I believe it falls into the low-risk category because the potential losses are relatively small and the potential for earnings can be huge.Affiliate Marketing affords many ordinary people the opportunity to not only start an online business, but to also keep their financial losses to a minimum.As an affiliate marketer you are truly not involved in the hard selling of a product, service, or program. Your main responsibility is to promote quality products, services and programs. Compensation is earned when the prospect makes a purchase from the merchant's site after being directed by your affiliate link.I have included four very important reasons why affiliate marketing should be a low-risk business venture for you.1. Minimal or Low Set-Up CostUnlike brick and mortar businesses that need structures such as offices and showrooms, setting up an affiliate marketing business does not involve large expenses. There will be no offices to fill up with tables, chairs, and filing cabinets. There will be no showrooms to fill-up with products. A little corner of your den or small office above your garage will do the trick. Obviously you will need a computer and internet connection, but if you are reading this article you already have those items. Now, does this make affiliate marketing similar to any other online business?Unlike other online businesses, would-be affiliate marketers do not need to invest a lot of money to conduct affiliate marketing. Most affiliate programs are free to join and the online company or merchant that established the affiliate program may even provide you with the promotional materials and websites that the affiliate will need. Therefore, the set-up cost of affiliate marketing is truly negligible.I do recommend that you purchase your own web hosting, so that you may set up your own site. Why? It will be important for you to differentiate yourself from the many other affiliate marketers who are involved in promoting the same products, services, and programs that you are. With your own website you create a uniqueness that will help separate you from your competition. With your own website you will also have the opportunity to send any and all potential customers to your site first rather than the merchant site. This is a golden opportunity for you to get prospects to subscribe to your newsletter or other free offers you may have. List building is the life blood of any affiliate marketer, but that is an article for another time.2. No InventoryAs an affiliate marketer you do not own the products you are promoting on your website. Your main job as an affiliate is to give your visitors compelling reasons why they need to click on your affiliate link and go to the website of the merchant you are promoting the product for. As an affiliate for a product or service you are not responsible for taking orders from your visitors. The order process is done on the merchant's website. What does this mean for you? It means you don't have to worry or think about product inventories.In affiliate marketing, the affiliate does not handle the purchasing or delivery of the products. In a nutshell, as an affiliate marketer you do not have to worry about the costs or time involved in stocking, buying, delivering, or taking inventories of the products.3. No EmployeesIn affiliate marketing, there is no need for regular employees. Most affiliate marketers are a one man or woman operation. Many of the tasks that you must complete as an affiliate marketer can be done on your own. You might enlist the help of a spouse or other family member, but there really is no need to hire a staff. Without a staff or regular employees, the affiliate is no longer burdened by the financial pressure of providing wages.There may be times where you don't feel you have the expertise of handling certain aspects of the work you must do as an affiliate or you just don't have the time. You may need to outsource some of your work. What is outsourcing? Very simple, getting others to do the work for you...at a cost of course.4. Minimal Customer ServiceAs an affiliate marketer you are not involved in the manufacturing or delivery of products. The responsibility for maintaining quality products does not fall on your shoulders. This means that keeping the customers happy is also not your major responsibility. That responsibility falls on the merchant, who deals with the paying customers.Now, this does not mean that you totally remove yourself from the customer service aspect. What it does mean is that in order to avoid unhappy customers, it is very important that you stand behind the products and services you are promoting. Make sure you are recommending quality products, programs, and services that you use yourself. After all, many people are going to buy the product you are promoting based on your recommendations. How can you make an honest recommendation if you have never used the product yourself?Always remember, a customer that purchases from you one time is more likely to purchase from you again. If they have had a positive experience with the merchant and product you recommended you have gained a customer for life.