Title: Why is Affiliate Marketing Popular with Home Based Business
Author: Kanaga Siva
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Why is Affiliate Marketing Popular with Home Based Business Entrepreneurs?
by Kanaga Siva
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
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,
List of articles by Kanaga Siva : [EMAIL PROTECTED]
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