Many of you guys seem to be getting started with Affiliate Marketing. In addition to e-commerce I do a fair bit of affiliate marketing myself.
One question to ask yourself when you begin to get into affiliate marketing is which types of products should you sell? Not only which niches should you sell in, but also, should you sell physical tangible products or digital products or softwares.
There are advantages and disadvantages to each type of product.
Physical products often have more trusted names, brands, companies selling them which makes you getting sales easier. People also tend to prefer buying physical or tangible products which makes people feel like they got their moneys worth which also makes it easier to sell. The downside to physical products is they often have a lower commission than digital products.
Digital products on the other hand have very high commissions and there’s less competition in terms of other people trying to promote those products so those are some plusses for digital products. The negatives however are that digital products are more difficult to present. The companies selling them oftentimes aren’t as well known or trusted as say an Amazon or Ebay, and lastly, oftentimes with digital products and softwares people don’t feel they got their moneys worth because they didn’t receive something tangible which they can touch and open up. This leads to higher rates of returns and when someone returns an item your commission gets taken away.
There’s no right or wrong answer to what products you should promote but understanding the differences between physical and digital products will help you be a more effective seller and a more effective affiliate.