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Affiliate marketing for small business a waste of money?

Posts: 1
Joined: 22 Jul 11

Affiliate marketing for small business a waste of money?

Hi Guys,

What are your thoughts on affiliate marketing for small business owners is it a waste of money?
I have done a lot of research over the last few months and have just written a blog on the subject but am worried I may have been a bit harsh. Can anyone provide some quality feedback/experiences about this?


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Posts: 33
Joined: 05 Aug 10
Hi Sam,

Nice to see another UKer !!!

Just read your post and I do not understand one of your statements:

"On closer inspection it appears to be a way of paying a large sum of money to an 'affiliate platform,'"

It is not like a MLM programme where you pay someone higher in the chain a load of money. You join a network like ClickBank which have a number of Programmes (read products supplied by merchants) that you can market. Depending on your selected niche you can choose a few and then you get paid commision by ClickBank or other network when you enable a purchase.

Small businesses could be an affiliate marketer or a small business could sell a product via the affiliate channel. Digital products are obviously very popular, but you have physical products as well. Commission based affiliate selling is nothing new in the physical world. However in the online world because digital products are cheap to reproduce the margins are large thus enabling large commissions, upto 70%.

Yes there are some expensive products that are sold hard which offer "the secret" , mainly in internet marketing. One just needs to keeps ones feet firmly on the ground.

Based on what your business does ie cost optimisation, what is you requirement here; to sell for others or represent merchant's and their marketing efforts?

So is it a waste of money? The question is inaccurate in my opinion since affiliate marketing is another sales and marketing channel which may be irrelevant to a small business or offer a great opportunity depending on need.

Just my thoughts,

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Posts: 334
Joined: 26 Apr 09
Affiliate marketing isn't a waste of money if done right for a small business. The thing is though, it all depends on what type of small business we're talking about. Do they have their own product line (or lines), are they based online of offline? Do they advertise or sell? There are so many more questions.

The reason it matters is because if they revenue source is strong enough, all that's needed to fix the finances (according to your article) is just some practical saving advice. Cut expenses and liabilities. That's it. This can nearly always be done to a certain extent. And since the revenue source is strong enough, no extra income is needed so you wouldn't need affiliate marketing.

On the other hand if the revenue source is low because the particular market is in a downer at the moment or something. Still see if costs can be cut (obviously is less is being produced/sold), you can make a cut on storage and production costs. But what I think would be more suitable for a small business, especially a local one, is to NOT branch off into affiliate marketing unless its relevent the same niche they're in. Better yet, see if they can start up another similiar product line? Or do some sort of extra sales/services.

Eg. Say we're talking about a guy called John who's a masseur and he has his own store. Lately things have been down for him, so he started cutting costs where he could. Now to create some more income, because he's already got his speciality (and hopefully a list of clients too as a bonus, because he definitely should be recording them), he can do things like offer discounts just to get business coming in again. If he wanted extra income sources and people entered his stores, he could sell massage oils or something. He can do things like that on the side. He could go to local markets and sell massage oils. He could go to big companies and offer his services as a masseur to workers (some big companies do this once per week where they have professional massage services coming in to look after their employees - I also know at big poker tournaments they do this as well, so he could even speak to a big casino in the area). I'm just spewing these ideas straight out of my head, but they can increase income, without having to opt for something like affiliate marketing in random niches, and not even being at an extra cost (just more effort going OUT to get people, rather than hoping they come in). Once you hook them in once, they'll be back if you did well.

If he really wanted to do affiliate marketing, then he's best off to make a site on what he specilises in, because by sticking in this circle of speciliaty, he can always cross promote and build his main business at the local shop.

Just my two cents...
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http://www.TheBigVenture.com - Started 6 years ago...finally making $15,000+ per month now!
Posts: 30
Joined: 29 Apr 16
Affiliate marketing for small business is a really wate of moey. I know how does the same methods work with the large and prominent online sources, but I don;t understand how do they work with the small. I can suppose that the small webistes for which you want to open the affiliate program do not have so much authority rankings as large and strong does, and it's the main factor of such success. Also, the large websites can withstand such a great load by the traffic from the affiliates and small can not as they even do not have such capacities..
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This topic was started on Jul 22, 2011 and has been closed due to inactivity. If you want to discuss this topic further, please create a new forum topic.