Let’s say an entrepreneur has decided to start a brand new affiliate marketing business and has nothing in place.
Facility Costs.
Our new affiliate marketer entrepreneur has everything they need in a corner of their family room or a spare bedroom. It’s a desk, computer and internet access. There’s no outflow of cash for rent, though they can get cash back from their taxes by deducting home office expenses. The same goes for utilities, no more cash out, but cash back from taxes. Of course I am not a tax lawyer, so obviously you should seek advice from one once you get started. They’re not inviting customers into their home, so there’s no high dollar liability insurance. No extra facility costs are incurred to get the business up and running. At some point, you may believe that a home office will work better for you, but it isn’t necessary, and will be your decision based on lifestyle factors rather than necessity.
Don’t have a computer yet? No worries. We can use the neighborhood library. Or, if concentration is a problem at hoe, you can take a notebook computer to a quiet coffee shop. On the flip side, if you have children and other things that keep you home-bound, then affiliate marketing on your home computer is just right for you.
Inventory.
What inventory? Through affiliate marketing, you bring customers to companies who handle the inventory, and they pay you well for doing it. You keep absolutely no inventory for re-sale. You might need some computer paper, but that’s $4.50 a ream at Walmart. Virtually everything you’re about to do is going to be implemented through the internet. So just let Netflix, Best Buy, and others keep millions of dollars in inventory in multiple warehouses while you get to participate in their profits as they pay for the facility, inventory, insurance and other overhead costs.
Employee expense.
Again, what employees? You alone can do everything needed to get your affiliate marketing business going. And once you’ve set it up, it is mostly self-sustaining. No salaries, insurance, payroll taxes or other employee related costs will be in your budget. Another benefit is that your livelihood is completely dependent on your motivation, knowledge, desire, and performance. Your income will not suffer due to employee neglect or indifference. You won’t have emergency situations when a floor employee doesn’t show up for work after you’ve spent thousands advertising a huge sale. You will not need a staff to handle sales, complaints, or returns-there aren’t going to be any. A wonderful benefit of affiliate marketing is that your money is made by getting the customer to the retailer, supplier, or information provider. They manage the web site and/or phone sales, handle deliveries, as well as complaints and returns. You’ve long since collected your money.
Article source: http://ezinearticles.com/6704762
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