Are you dreaming of being your own boss someday, or would you like to bring in extra income? Starting an online business is one of the easiest ways to accomplish this.
The biggest challenge of starting an online business can be developing your business plan. If you are struggling to come up with that brilliant idea that will make you rich overnight, a possible solution could be to promote already-existing products, as an affiliate.
If you choose the affiliate route, you will then need to decide whether you will promote physical goods or digital goods.
Physical goods are basically anything you can touch, and they require having stock available and dealing with delivery contractors, both of which can be a hassle.
E-books, software, online video courses, and antiviruses are just a few examples of what are classified as digital goods. Digital goods are very attractive to many consumers because they offer instant access to their purchase.
In the long run, if you are seriously considering the promotion of already-existing products, as an affiliate, we strongly recommend you choose digital goods. We will present some of the main benefits of this route below.
Digital Goods Have Higher Conversion Rates and Can Result in Higher Commission Rates
The simple fact is that when purchasing a digital good the customer gains access to the product right away, and doesn’t have to wait for delivery, which brings immediate satisfaction and joy. These factors will ultimately work together towards a higher conversion rate.
One essential thing the majority of the digital goods evolve around is “content”. Content speaks money in the information economy worldwide. That’s why digital goods and software products offer much higher commission rates (even up to 80%) than physical products, which mostly find their strength in volume.
It is also worth thinking about promoting higher-priced products or products that renew on a monthly subscription. These strategies can translate into better profits for you, from higher commissions to ongoing monthly commissions. A monthly recurring affiliate sale is a very good way to gain stable income from your affiliate business.
You Can Start Selling Immediately
Setting up the business infrastructure for an affiliate relationship doesn’t require advanced marketing knowledge. It can be done in a matter of days, maybe even hours.
The most important first step is to pick up one of the best-selling niches in affiliate marketing. Then, select the right products from an online merchant, start promoting them, and the first commissions should start showing up.
Best practices in the affiliate marketing industry indicate that the easiest way to get started is to sign up for an affiliate program that will offer you the trackable links to the products they offer. Then, simply promote the products by using those links to your advantage. For example, if you are a blogger you can write a review incorporating the links, or send an email including them to your database.
No Hassle with Inventory and Customer Service
With digital goods, you will have no complications of having physical stock in storage, as most sales only imply a direct file download to the customer from the affiliate network (for ex., Avangate Affiliate Network) or from an independent merchant’s website. This takes a lot of the responsibility away from you and simplifies the process, which in turn makes the products more appealing to the consumers.
Another advantage of promoting digital goods is that you won’t have to deal with providing customer service. The vendors cover this, as it is their product and their reputation at stake, and they will want to be hands-on when it comes to complaints or refunds.
Hopefully, now you have a better understanding of what it implies to promote digital goods. Not only are they easy to set up, but they also have high commission rates. Are you ready to get started?