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Too many days pass by and nothing really happens to you as an entrepreneur. If you have done anything but the secret that will be let out here, you will see that you will never arrive. Many entrepreneurs think of taking the easy route and that is to be an affiliate or to sell a larger company’s products. Think of the various mom-and-pop stores, air-ticketing agents, real-estate and scores of other businesses which have all started operations and sell someone else’s products and services.
There is nothing wrong with selling products and services that belong to another company; it’s just that there a few disadvantages to it. Here they are:
- You don’t control quality: One of the biggest drawbacks to being an affiliate of any sort –on the Internet or off it – is the fact that you don’t make the products or deliver the services and hence you have to rely on the main businesses’ expertise to keep your clients happy. You have absolutely no control over the product quality, which isn’t easy to stomach when you are an ambitious entrepreneur.
- Profits are determined by others: The manufacturer of the product already sets a price and you only get a commission off the product sales. The profits can only stretch so far. That narrow gap between the wholesale price and the actual selling price is the only area you could play with and that isn’t much to write home about.
- You compete with other affiliates of the same product: The funny thing about the affiliate marketing model is the fact that the only one who is truly being very profitable is the producer( the company that actually makes the products), while everyone else just compete with themselves. If you were an affiliate ticketing agent selling tickets for Lufthansa flights, and I do the same too, we are then competing with each other to sell as many flight tickets as possible. While our maximum profits will remain capped to an extent, Lufthansa continues to make money either ways.
Being the producer or the rainmaker is the only true way of earning profits. Any other path you choose is just OK – but not something that helps you make wealth.
