The reason you’re getting into affiliate marketing is so that you can establish a reliable income source for you and your family.
You’ve been working almost all your life but you still haven’t gotten to the point where you can spend quality time your family or enjoy what you’ve worked for. You’re still stuck in a job that makes you work too hard but compensates you too little.
This is why you’ve made the decision to put up an online business.
But since you do not have any new or fantastic idea for a product, you’ve decided to go for affiliate marketing, which allows you to skip the tedious process of product creation and development, and instead go straight to what you do best–market and sell.
Affiliate marketing, which is a type of online business that enables you to earn a commission each time you are able to get an affiliate product sold, can do wonders for your financial health.
Once you’ve gotten things rolling, this can be converted into a passive income source so you can enjoy your life more.
But did you know that some affiliates who have achieved success in this business have ended up financially broke and emotionally broken?
Here are some of the common reasons why an affiliate can end up without any money even after achieving success with this business.
Make sure that you don’t let any of these happen to you.
Reason # 1 – You used WordPress.com to set up your website
The first step for any new affiliate starting in this business is to set up a blog or a website where he/she would insert affiliate links within the content.
Most experts recommend using WordPress to build an affiliate blog or website.
After all, WordPress is the top content management system in the world that powers up to 30 percent of all websites and blogs online today.
It is not only highly efficient and flexible but also superior in terms of security.
Many confuse these two.
These two come from the same parent company but one is hosted and the other is self hosted.
WordPress.org is what you should use for your affiliate marketing business even though it requires purchasing a web hosting service.
WordPress.com is free to set up at first, but for you to be able to get rid of the URL extension wordpress.com in your website link, you will end up paying a much bigger cost than when you used WordPress.org in the first place.
Additional features also cost a lot more when you use WordPress.com.
You are sure to spend a lot more on WordPress.com than with WordPress.org so you better not make the mistake others have.
Reason # 2 – You splurge your affiliate earnings
There’s nothing wrong with enjoying the fruits of your labor.
What can cause problems is when your spending becomes uncontrollable.
This has been the case with many affiliates who experience big earnings for the first time.
They are ecstatic about getting their first big commission and right away spend it on things that are not important.
If this becomes a habit for you, it won’t take that long for you to become broke.
If you live a lavish lifestyle, there is a big chance that you won’t be able to keep up with the tasks needed to maintain your affiliate marketing business.
Reason # 3 – You did not choose a high quality affiliate product
You’ve chosen a product that gives high commission rates because you want to earn big money right away.
What you failed to look into is whether this product is of high quality or not.
You did not try using the product yourself or even doing any research about it.
Instead, you proceeded right away to selling and promoting the product. Since you’re good at this, you are able to sell a couple of these products.
Soon, you are making big money from this product.
But because the product turns out to be of poor quality, word quickly spreads about it.
Your target customers find out that you know nothing about the product that you recommended to them, and understandably, they instantly lose their trust in you.
Once this happens, it would be a lot harder getting people to buy your affiliate products.
Before you know it, your business has come crumbling down, making it virtually impossible to recover.
Reason # 4 – You do not maintain your website
One factor that contributes to the success of any affiliate is your website’s performance.
Online consumers do not have the time or the patience to deal with slow loading websites or poor navigation that makes it difficult for them to find what they are looking for.
If you fail to maintain your website’s efficiency, you are bound to lose your customers.
Customers will stop coming to your website and buying your affiliate products.
You might be making good money at first, but once using your website becomes a burden for your customers, you will inevitably cease to make money from this business.
Make it a point to do routine checks on your website.
Not only should you ensure that it loads quickly as your customers would expect, but you should also keep your security plugins updated so that your customers won’t be put at risk whenever they visit your affiliate website.
Reason # 5 – You do not upload your site with new content
One thing that would keep your customers coming back to your website aside from its efficiency and user-friendliness is new and fresh content.
It is imperative that you are able to keep your site updated with valuable and practical content that your customers would look forward to reading.
But you have to remember that customers change their minds, habits, preferences and interests all the time. One minute they’re engaged with this topic, and the next minute, they’re no longer interested with it.
This is why, you should always have something new for your audience so you don’t lose their attention and interest, and so you are able to keep them engaged long enough until they purchase one or more of your affiliate products.
Check out websites like BuzzSumo so you can find out what are the latest trending topics related to your niche that you can write about.
Reason # 6 – You do not nurture the relationships you’ve built
In the initial stage of your affiliate marketing business, you’ve given so much focus on connecting with your audience and building a connection with them.
You’ve done a great job on this.
But after you’ve started to earn money, you’ve become too obsessed with the money making part of the business that you’ve completely forgotten all about the relationships that you’ve worked so hard to build.
You neglect responding to messages, you stop helping out your customers, you no longer reach out to them.
If you do not nurture the relationships you’ve built, they’re going to die.
Your customers will disappear one by one, forgetting that you and your business exist.
They will stop supporting you and will stop buying your affiliate products.
When this happens, your income stream will also stop. And that’s when you’ll realize that you’ve become an affiliate with no money.
Reason # 7 – You make unnecessary expenses
Since you’re now earning a lot from your affiliate marketing business, you can’t help but find a lot of things that you seem to need.
When you go online, you find more and more things that you think you should buy.
This wasn’t the case when you didn’t have the money.
But now that you do, you keep adding to your list of things to buy that by the time you are almost complete buying everything, you’ve already spent all your money.
If your affiliate marketing business for some reason suddenly stops working in generating income for you, you’ll find yourself having no more cash left.
You end up with too many things, most of which you don’t really need.
When you have lots of money, it doesn’t mean that you should spend it all. You need to learn to distinguish between real needs and wants so you will only have to make purchases that are absolutely necessary.
Reason # 8 – You purchase overly expensive themes, plugins and tools
You want to improve your website so that you can keep earning big from your affiliate marketing business.
Of course, this is the right mindset to have.
The problem is, when you don’t plan your purchases, you might end up spending too much on themes, plugins and tools.
Always remember that there’s always a less expensive option. But you have to research extensively about the options that you have to ensure that you buy something that will give you the best value for your money.
Keep in mind that the most expensive option is not necessarily the best option.
You should also consider using “freemium” tools, which give you premium features and benefits without causing you to break the bank.
Reason # 9 – You don’t build an emergency fund
Building an emergency fund is necessary not only for affiliates but for anyone who’s engaged in any type of business, whether online or offline.
It’s important to remember that unlike a day job, a business may not be as stable. With your day job, you will receive your paycheck according to schedule every month. But with your business, if things do not go the way you want, there may be times when you won’t be earning anything.
This makes it imperative that you have an emergency fund that you can use in times like this.
When building an emergency fund, make sure that you set aside three months worth of expenses to cover your daily necessities. This will give you enough leeway to recover from the slow times.
Reason # 10 – You don’t shop around for the best rates
Whenever you have to buy something whether it’s for your affiliate marketing business or for any other purpose, you need to make it a habit to shop around for the best rates.
This will help ensure that you don’t end up spending more than what is necessary.
For example, if you want to change the web hosting of your website because the one you’re currently using is causing your site to load slowly, you should check out the pricing and inclusions of the top web hosting providers like SiteGround, Bluehost and HostGator.
You’ll find out from your research that Bluehost is the best option in terms of practicality and superior performance. If you don’t do your research properly, you may end up choosing the wrong product.
Reason # 11 – You paid for your domain name
This is related to the previous tip.
If you did not do your research about web hosting providers, it is most likely that you will end up paying a lot on your domain name.
But what you do not know is that you can actually get a free domain name from top web hosting providers such as Bluehost.
Why spend on it when you can get it for free, right?
If you don’t make wise decisions like this one, you are bound to become a broke affiliate after a while.
Reason # 12 – Your marketing campaigns are all over the place
Online marketing is an extremely important part of your affiliate marketing business.
But if you’re not able to do it right, not only will you fail to get the results that you need for your affiliate marketing business to thrive, you will also end up spending so much.
Obviously, you don’t want this to happen.
You want your online marketing strategies to work for you without causing you to go completely broke.
Here are some tips to remember to avoid overspending on your marketing strategies:
- Take advantage of free trials for online marketing tools and platforms so you know which one is the best option for you without having to shell out any money.
- Shop around for the best rates. Always check the features and inclusions to get the marketing tool that will give you the best results.
- Formulate a detailed marketing plan that will include everything that you need and have to do. This way, you will not have to spend on tools that you don’t actually need.
Reason # 13 – You put all your eggs in one basket
There is a saying that you should never put all your eggs in one basket.
This adage also applies in affiliate marketing.
It’s reasonable that you’d want to start with one affiliate product at first. And you should while you’re still trying to learn the ins and outs of the business.
This makes sure that you don’t get overwhelmed with the process.
But once you’ve established your first income stream, you would want to venture in other affiliate products and niches as well.
You can also explore other money making methods online. You can consider getting into drop shipping, membership sites, selling of digital products and so on.
Whatever you choose, make sure that it’s something that you can do for the long haul.
If something goes wrong with your first business, you will have other income sources that you can rely on.
Reason # 14 – You don’t work to maintain your positive reputation
A positive online reputation is necessary to nurture the trust of your customers.
If your reputation is tainted with complaints and negative feedback, and you don’t do anything about it, your business will take a hit.
Never make the mistake of thinking that your affiliate marketing is invincible.
Sure, you’ve already earned the trust of your target customers and you’re already doing well enough.
But if you don’t work to maintain this, things can take a different direction.
It’s possible that one negative complaint that you ignore can spiral out of proportion and ruin everything that you’ve worked so hard for.
Reason # 15 – You engage in unethical practices
Never think that your customers won’t find out.
You’re smart and cautious but some of your customers are smarter.
If even just one of them finds out that you engage in unethical practices, word can get out fast.
Everything you’ve worked so hard for to get where your affiliate marketing business is now can be destroyed in a blink of an eye.
Trust is so hard to earn and yet so easy to lose.
Even if things are not doing well with your business, you should never attempt to engage in unacceptable practices just to boost your sales.
Even seemingly harmless practices like keyword stuffing which may temporarily boost your ranking in the SERPs will do more harm than good for your affiliate website in the long run.
Reason # 16 – You rely on hard selling techniques
Hard selling refers to a type of sales strategy that involves the use of aggressive methods.
To explain it more simply, a hard seller is someone who does everything just to get a customer buy a product even if the customer does not need it.
This technique may have worked in the past especially for door-to-door salesmen.
But this is no longer applicable in today’s online industries.
If you want long-term success with your affiliate marketing business, you should never make use of any hard selling techniques.
These techniques may even get you to end up as a broke affiliate.
Reason # 17 – You spend all your earnings building new online businesses
So you want to diversify your income stream.
After all, you’ve been taught that it’s never wise to put all your eggs in one basket. We’ve even mentioned it a while ago.
But what you should never do is to spend all your earnings building a new online business, whether it’s within the affiliate marketing realm or you choose to venture into something new.
Remember what we said about building an emergency fund?
Aside from making sure that you have intact emergency fund, see to it that you do not dip into this for your new business idea. Building a new business is not an emergency.
It’s common to see new affiliates earning big money from their affiliate website and spending all this money on a new business venture which may possibly turn out to be a failure.
You don’t want to lose all your money. You have to be wise whenever making any financial decisions.
Reason # 18 – You don’t keep up with the changes in affiliate marketing
Affiliate marketing is a highly dynamic business model.
It’s no wonder since it works within the realm of the internet, which is just as ever changing.
What does this mean for an affiliate like you?
It means that you need to always be updated with any changes or new trends.
There is always something new for you to learn.
Even if you think you have already mastered the strategies that have proven to work for your affiliate website, it’s possible that these strategies will no longer work in the coming weeks or months.
You have to stay on top of affiliate marketing so you don’t get left behind.
Reason # 19 – You let your competitors get ahead of you
Speaking of not getting left behind, you should also strive to keep up with the competition.
Or better yet, work hard enough to get ahead of them.
It always pays to give your 101 percent effort in everything that you do for your business, and that you practice consistency at all times.
It would also be a good idea to monitor what your competitors are up to–what their new strategies are, what methods they’ve stopped using and so on.
This doesn’t mean that you have to exactly replicate what they’re doing.
But this only helps you be aware of what’s happening around you so you can apply the right strategies for your affiliate marketing business as well.
Reason # 20 – You don’t set or follow a budget
Setting a budget for your affiliate marketing business is a must.
This helps ensure that you do not end up spending more than what you can afford.
For example, if you plan to go beyond the organic SEO traffic that your website is getting, and you want to take it a notch higher, you would want to get into PPC advertising.
This way, you will also land a top rank when people search for keywords that you paid for.
But you need to allot a specific amount of budget for your PPC campaign.
You don’t want to end up spending all your marketing budget on your PPC campaign alone that you will no longer have any money for your other marketing strategies.
Be sure to stick to the budget that you’ve set.
Success can be overwhelming. Some affiliates who have started earning big only after a short while are not able to keep up with the success that they are experiencing. Make sure that you set yourself up for long-term success so you don’t end up a one-hit wonder.