This is a very common question that thousands of beginners to affiliate marketing agonise over.
What type of products should I choose? There is so much choice and they all look so good. So what to do?
The doubts and questions are a good sign. It shows that you’re actually thinking and not making hasty decisions.
The hard fact is that time and money are limited resources.
As an affiliate marketer who is just starting, you probably will not have much of either to begin with.
So, you will want to choose the best possible product for you to maximize your profits.
But how do you know which is right for you?
In order to do that, we’ll need to examine the pros and cons of both digital and physical products.
Once you analyze them, you will be able to make your decision.
Please note that there is nothing stopping you from choosing to promote a mix of both.
This is affiliate marketing and either type of product is ok.
The smart marketer will try promoting a mix of both products
and see which works well for him or her
and go all out for it when they know what’s working.
Digital products are information and service related products that can be found online.
They could be eBooks, software, videos, and audios.
Upon purchase, the customer will have immediate access to the products.
The most popular digital marketplaces are ClickBank, Tradebit and JVZoo.
The pros of digital products are that they are easy to setup.
Open an affiliate account and start your promotional efforts.
The customers will receive the products immediately
and the best part about digital products is the high commission rates.
Since there is no shipping involved, the product creator has less cost
and is able to offer commission percentages of 50% to 75%.
These are very attractive.
There are a few cons to digital products though.
Firstly, there is a higher refund rate.
There are many freebie seekers who have no qualms about purchasing
and downloading the product only to ask for a refund a few minutes later.
Some digital product vendors are also unreliable and may disappear
or take their sales page offline at any moment.
Digital products usually do not easily convert browsers into buyers.
You will need to build a list and develop a relationship with your list.
After that, you may repeat the offer to them via email at intervals
and over time they may be persuaded to buy.
It is a longer process.
Physical products are the kind of products that you can buy at Wal-Mart or another retailer.
These products have their own set of pros and cons.
The pros with physical products are that people are much more ready to purchase them
since they are tangible and generally, seem more reputable than digital products.
There is also much more variety with physical products
and the refunds or returns are much lower
because of the hassle of sending the item back, etc.
The commissions are greater when you promote higher ticket items.
Unlike digital products with a fixed price and fixed commission,
the commission you earn from promoting a physical product may vary.
If the buyer picks a more expensive product in the marketplace, you get more commission.
The cons of physical products are that they have lower commission percentages (usually 5% to 10%).
It’s also more difficult to promote these products without a website
and it takes longer to receive commissions from the vendors.
You will need to decide what is best for you and what suits your personal needs.
As long as you have the basics of marketing in place such as pre-selling skills,
list building, email follow up, basic wordpress setup, etc. you will fare well with either type of product.
