One of the considerations to take into account is whether you’re focusing on digital or physical products for your affiliate marketing business, or whether you can promote both.
I can’t give you a firm answer and neither can a search engine. Both opportunities have their pros and cons and the key to selecting the right type of products is to evaluate them on your own business’s scale.
The closest you can get to knowing what seems to be working well is reviewing others in your niche who have had their business running for a while and checking what they are promoting successfully.
Digital Products vs. Physical Products.
Let’s compare both digital and physical products so you’re aware of some of the basic differences:
Digital Products.
(like online courses, e-books, tools and software, travel guides, etc).
Digital products are often much more profitable to promote than physical products. Simply because there are lower production costs associated with digital products.
There are no shipping costs applied either, and your customers get immediate access to the products they purchase using your affiliate link.
The cons of concentrating on digital products are that some of the buyers will find it easy to request a refund if they’re a little unhappy with the product, and they might do so after they’ve downloaded it and used it (simply to get their money back).
In other cases, if the company (that created the product you’re promoting) offers a limited period refund policy (like 30 days money back guarantee) paying you as an affiliate might only occur after the refund period has expired.
Physical Products.
(clothing, fitness equipment, cosmetics, kitchen equipment).
If you choose to concentrate on physical products, you earn lower commissions, but it’s less likely that people will request refunds, as there will be a hassle and a shipping cost involved.
Physical products are also easier to sell in larger quantities because people often tend to like purchasing tangible things.
So, if you build an online presence that qualifies you to promote well-known high-quality brands, you’ve already established trust in the product with your potential customers, which will make it much easier for you to sell, but that of course comes with a lot of time and effort to grow your brand and business so you can qualify as an affiliate for such brands.
With that being said, you most likely won’t earn as high commissions promoting physical products as you would with digital ones unless you promote expensive items.
It’s also worth mentioning that you don’t have to stick to one type and completely avoid the other, because in some cases like starting an affiliate business and selecting Health & Fitness as your primary niche, you can promote both types, like online Yoga courses as well as yoga mates and fitness equipment.
Your ultimate blueprint for affiliate marketing success and achieving sustainable growth. This self-assessment guide will equip you with the skills and knowledge required to navigate the complexities of online entrepreneurship.
- Understand the fundamentals of affiliate marketing as a business model and build a strategy that enables you to grow a sustainable business independently.
- Discover the secrets to attracting lucrative partnerships, optimising your revenue streams, and staying ahead of the competition.
- Build an affiliate marketing business that helps you connect with people and build trust and long-lasting relationships with your audience.
- Define high-quality content and grow your content creation skills to promote products as an affiliate marketer.
- Maintain a successful business in the long run and explore different methods that help you detect potential setbacks and how to overcome them.
