Affiliate Marketing v Offline Business Startup

Sadly there are many people who are put off by the belief that it requires a large capital investment that they just do not have, or because they need the day job that covers the bills and puts the food on the table. It is perfectly understandable to have these concerns and in the past they were true. Now things have changed. With the advent of the Internet the average ‘Joe’ has a chance and a choice not enjoyed by his forefathers. He can still create a sole proprietorship offline or he can become an online affiliate marketer. Both can be wildly successful but let’s take a look at the pros and cons of each.

Whichever way you choose to go it is important to realize that you have to take it seriously and that a business is like a train stood on the tracks. It needs a mighty push to break the inertia and get it rolling. The more effort you put in the quicker it will start to roll and gather momentum. However, it does have to be said right here that sole proprietorship will, by its nature, be more risky and more labor intensive.

Creating your own business offline is extremely difficult and there is a relatively high barrier to entry that does not exist in the online world. Unless you have a unique idea you will have a lot of competition from pre-established businesses who have all the advantages of prior positioning. If you want to steal their trade you are going to have to build a better mousetrap and have the resources to stick it out until you can get cash positive which for new startups is on average 18 months. Obviously if you succeed the rewards can be immense but the flip side is that you can have a great idea and still go broke for cash flow! Eighteen out of twenty new businesses fail on cash flow and if you are the sole proprietor the chances are you put up your house and lost everything.

One of the reasons that making money on the internet is easier is that with affiliate marketing you do not need a bank loan or a unique product. You are not trading on the strength of your product or your reputation which would take considerable time to build. You are trading on a solid product already established and trusted. You have not had to spend your money researching and developing or even building a sales platform or website let alone leasing a unit, refitting and stocking it. That has all been done for you at no cost. Your house is not being used for collateral on a loan and you are still able to go to your daytime job and bring in an income until you decide that your online business is more lucrative and warrants your fulltime attention. If it failed you have lost little but a few hours of your time. This is a huge benefit.

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