So, you have a website or a blog, and you want to use them to promote products and services. Should you become an affiliate marketer and promote other people’s products, or should you create your own product and sell? Affiliate marketing is less stressful and more flexible than owning and selling your own product but selling your own product would give you more control and could be more lucrative. Neither is infinitely better than the other: it is left to you to choose what is most suitable for your situation and long-term goals.
Having Your Own Product: The Pros
- You Get To Build Your Own Customer List
Creating your own product means you get to build your own customer base and even get affiliate marketers to expand that customer base for you. Your customer list is yours as long as you are in business and continue to keep the customers satisfied. Customers are the most important part of a business venture, and having your own customer list is a plus for you and your business.
- Full Control of Your Product
You make it, you own it. Your product is yours to do with as you please. You are the one who determines the cost of your product, how to market it, what your target audience is, the amount you’d like to set as a discount, and all of that.
- Profit is 100% Yours
Everything you earn from the sale of your product is completely yours. Unless you have hired affiliate marketers who will take a percentage for making the sales possible, you can use your profits as you wish. You can reinvest in your product, upgrade your website, and you even hire more affiliate marketers. The profit is yours; no one can tell you how to use it.
- Very Lucrative
Having your own product can be a very lucrative business. The income potential is very high, especially once the product has been established on the market. As your customer base increases, and the products you have to offer increases, so will your income increase.
- Affiliate Marketers Can Broaden Your Market
Using affiliate marketers can increase your reach exponentially. Affiliate marketers have blogs and websites and strong social media presences that garner great amounts of views every day. With that kind of reach, affiliate marketers can make your product highly visible and increase your customer list.
- It Is Good For Your Business
Owning your own product and making it a good one gives you and your brand a good reputation. Good reputations go a long way in making sure that you stay in business, as it means you are trustworthy and an authority in what you do.
Having Your Own Product: The Cons
- Heavy Investment
Having your own products needs a lot of time, a lot of effort, and a lot of money. The manufacturing process alone requires heavy financial investments, not to mention having to promote the product and making sure it gets on the market.
- Customer Service Must Be Exceptional
No matter what you are selling, no matter how small or big, your customer service has to be spectacular. Poor customer service is a leading cause for discouraging customers from a business.
- Expertise is Necessary
You have to be an expert in your field. This is non-negotiable. Otherwise, your product will not sell, and your business will lose out to the fierce competition.
- There are No Guarantees of Sales or Profit
There is a 50/50 chance of your product making it on the market. There is no certainty that you will make great sales and draw in great profits.
Affiliate Marketing: The Pros
- No Monetary Investment
You don’t have to invest in anything financially to become an affiliate marketer. No payments, nothing. Just have an internet connection and a computer with a website, and you are good to go.
- No Time Investment
You are not creating something from scratch: you are only promoting what someone has already made. You don’t need to put in vast amounts of time and effort into creating a brand new product. You just promote that product for customers to see and buy.
- There are Many Products to Promote
There are so many products to promote, your problem could be choosing the products to promote. You have to be wise in your selections, promoting products that fit within your niche and that you are an expert on, as well as products that will get you traffic.
- No Customer Service
Customer service is not your problem: it is the merchants’. All you have to do is to make the sale. Once you have made the sale and the customer is redirected to the merchant’s page, your work is done.
You can promote as many or as little products as you want, from different merchants and in different niches.
- You Can Sell Your Products and Others’ As Well
You can promote other products with your products as complementary products. Affiliate marketing and owning your own product can actually be a combined business venture.
Affiliate Marketing: The Cons
You aren’t the only affiliate marketer out there: there are many others, and there are much more promoting the same products as you. And only the one that makes the sale gets paid.
- Poor Customer Service is Bad for Your Business
Customer service is not your problem, but it is the merchant’s problem. If the merchant doesn’t have good customer service, you might get associated with the bad reputation, your business will suffer from poor traffic, and you will lose out on commissions.
- No Control over Product
Since the product is not yours, you have no control over it. The merchant determines how much it costs and who it should be sold to, whether you have something better in mind or not. All bonuses and offers are determined by the merchant, not you.
- You are Building Customer Lists for Someone Else
All the customers you get belong to the owner of the product: the merchant.
Ultimately, the choice is yours whether it is building your own product or selling someone else’s product. If you are new to selling, It is advisable to get your feet wet by being an affiliate marketer to experience the taste of conducting business. Likewise, if you are no stranger to e-commerce, this might be the time for you to venture something big and something to call your own.