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

TxtNation launches new affiliate scheme Telecom Paper (subscription), Netherlands - Aug 22, 2008 Mobile services provider TxtNation has launched its new affiliate programme. TxtNation has invited clients to encourage friends, business colleagues and ...

BETHPAGE, NY, Jul 31, 2008 (BUSINESS WIRE) -- Cablevision Systems ... MarketWatch - Jul 31, 2008 The increase in net revenue was driven primarily by VOOM's higher affiliate revenue (impacted by Cablevision's carriage beginning July 1, 2007 offset by ...

Forgetful people -- remember the Kwiry program Los Angeles Times, CA - Aug 12, 2008 The program is supported by advertising as well as affiliate revenue. If you buy something on Amazon through Kwiry, for instance, the company gets a small ...

Adweek

Time Warner's Q2 Yields Mixed Results Adweek, NY - Aug 6, 2008 Ratings and CPM increases at the Turner nets and CNN helped boost ad sales by 11 percent, while affiliate revenue grew 10 percent. ...

CBS to sell 50 radio stations Variety, CA - Jul 31, 2008 Affiliate revenue rose 5% on rate increases and subscriber growth at Showtime. Moonves said the pay network, whose original programming has taken flight, ... Sale of Sundance Channel Lifts CBS in Quarter New York Times CBS posts higher profit on gain but cuts outlook guardian.co.uk all 177 news articles

CBS reports slim profit growth in 2Q The Associated Press - Jul 31, 2008 The company's billboard unit, international syndication sales and affiliate revenue also posted gains in revenue. Radio, long the sick-man of the company, ...

Second Issue of FeedFront Magazine Now Available AffiliateTip.com, NJ - Aug 5, 2008 Also, there are articles on conference networking, diversifying affiliate revenue, perils of white hat SEO, ten affiliate manager commandments, working with ...

BlueFuzzySlippers.com: A Cozy Site for Social Commerce ECommerce-Guide, United States - Aug 5, 2008 If accepted, they are enrolled into an affiliate revenue sharing program for advertisements that run during the program. So, for example, a member who opens ...

Pro-EbookTemplates.com Is Live Offering Quality eBook Templates Press Release 365 (press release), FL - Aug 5, 2008 He also enjoys creating software and has released a number of software products like Ziney Pro, Zip2profit and CB Affiliate Revenue. ...

News Corporation Reports Record Full Year Operating Income Of $5.4 ... broadcastbuyer.tv (press release), UK - Aug 6, 2008 ... primarily from increased affiliate rates driving affiliate revenue and advertising revenue gains resulting from increased pricing. For the full year, ...