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One of the problems with Internet marketing is the amount of information available when you are first starting out. Affiliate marketing is typically an easy way to start working online because you don't need to create or own your own product or provide customer service, and you don't even need your own Web site to get started.
Once you make the decision to try working as an affiliate, then you need to decide which is better to promote - information products or physical goods?
Why Affiliates Start with Information Products
Information products include e-books, online content, reports, and online courses. Many affiliates start by marketing information items because that is what a lot of experience Internet marketers recommend. Experienced marketers may recommend this because it is the way they started online or they may recommend it because they are selling courses following this method
Another reason that new marketers start with information products is because the commissions are very enticing. You can earn 50% or 75% of the total cost of the product. For an e-book that sells for $49.98, you could receive $24.99 per sale! That's a great commission!
However, one of the disadvantages of promoting e-books and similar products is that it can be difficult to convert shoppers into buyers. Free information is widely available all over the Internet, so the e-product would need to be something that the buyer is actively searching for and that they really need in order to solve a problem. The information you are selling would have to provide information that is not available anywhere else.
Advantages of Promoting Physical Products
There are three primary advantages to becoming an affiliate for physical products:
- Physical products are things that people are already buying every day
- You can promote products you've already used and love, so it makes marketing easier
- Physical products convert better than information products
People are already online searching for items such as dog beds, digital cameras, baby toys, handheld vacuums and many, many other physical items. Tapping into this market is easy because there are literally millions of products that you can promote that people are already searching for.
I like to choose products that I have already used or would like to buy because it makes it so much easier to write about the products on my blogs or in articles. This way when I am reviewing the product, I feel authentic and it shows in my writing that I am truly promoting something that I know someone else can benefit from.
Physical items convert easier than information products. People like to buy things that they can see, touch and feel. It is exciting to come home with a new purchase (or see the box delivered on your doorstep) and use your new product for the first time. Additionally, people are actively searching for millions of physical products every day. These products don't have to solve a specific problem, but can be for fun, entertainment, household use, gifts, etc.
The disadvantage of promoting hard goods is that the commission rate is lower than it is on information products. Some online retailers start with commissions of 4%. However, if you sell many products (and you would because they convert so well), your commissions can go up to over 8.5% per product for a particular month. Because the conversion rate is higher for physical products, it makes up for the lower commission rate.
Partnering with a well-respected online retailer is key to success in increasing your commissions and conversion rate, but thankfully, it is easy to find excellent affiliate programs with good online retailers.
About this Author
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Article Source: http://EzineArticles.com/?expert=Anna_Oftedal
