One of the most common ideas about business is that you need to spend money to make money. As a result, any type of business typically requires you to invest money. This leads to significant risk, especially if you aren’t confident in the idea to begin with.
For that matter, there are many sites online that promote ‘amazing’ and ‘risk-free’ ways to make money. Yet, getting involved requires that you spend money. Often, you’ll have to pay for the product itself, along with various upsells and hidden costs. Despite these patterns, it is still possible to make money without risk or, at least, with minimal risk.
Picking The Right Approach
If you want to make money without risk, then you have to choose your direction carefully. For example, some methods for making money seem simple at the beginning but there may be hidden risks and costs. This is particularly true for any technique that claims to be simple and fast.
In some cases, I’ve found products online that offer training for a very low fee. However, they just teach basic techniques and force users to buy additional services at a premium.
There is also considerable risk in techniques like selling products online. When you do this, you’re often investing money in buying the items to begin with or in getting the materials to make what you’re selling. Plus, regardless of the product, you can never be entirely certain that you’ll make a profit.
So, the risk is significant and it just gets bigger as you expand your business. This is why the best direction doesn’t involve products at all.
What I recommend instead is a system known as affiliate marketing. This is a way of selling products without actually selling them.
Okay, that’s not the best explanation in the world.
Affiliate marketing means that you act to promote products. For example, some affiliate marketers write comprehensive reviews, while others create lists where they talk about the best products in a given area.
There is a high demand for this type of information, especially as so many people shop online nowadays. As a result, affiliate sites can become ‘go-to’ places for information about a given topic.
And, the field is flexible. So, you could create a site on almost any topic, as long as you could find some related products to promote.
To make money, you simply use affiliate links. These links are provided by companies and act as a way to track activity. If somebody clicks on the affiliate link on your site and then makes a purchase, you earn a commission.
The rates of commission vary dramatically across programs and products, often between 4% and 50%. But, even the low rates can add up, especially if you’re promoting products that are already popular in their own right.
Because you’re not actually selling the products yourself, the risk is very low. In particular, you don’t have to buy products to resell them. As a result, you can promote multiple different products and change up what you promote over time.
Affiliate Marketing Involves Low Investment
At the same time, you don’t need to spend a lot with affiliate marketing at the beginning. Instead, you can learn the field and start building your business without investing much money at all.
As I mentioned before, there aren’t that many costs anyway. You don’t have to buy products and you also don’t have to actually set up a shopping cart or anything like that.
Instead, the most significant things that you need are a domain name, hosting and possibly some training. All of these areas can be inexpensive if you know where to look. For example, hosting is easily under $20 per month and a domain name is much cheaper than that.
Even these costs are somewhat negotiable.
The biggest risk you take is simply time. After all, if you want to develop a successful business then you will have to invest time. The more time you put into the process, the better your potential outcomes.
This isn’t a bad thing though. Realistically, any business that doesn’t involve a time investment simply isn’t going to work in the long-term. Additionally, you do still learn things and develop skills.
So, regardless of your outcomes, your time is never wasted. Plus, if you’re struggling financially, then risking some of your time is going to much more appealing than taking an economic risk.
What You Put In Affects What You Get Out
The idea that you need to spend money to make money isn’t just a random saying. To a degree, this is true with any type of business, including affiliate marketing. With this in mind, what you put into affiliate marketing does affect your end results.
As with any business, the effort you put in will directly affect your success. So, affiliate marketing might be a low-risk technique but that doesn’t mean that you should slack off. Instead, putting time and energy into affiliate marketing is critical to being successful.
I've always seen a correlation that the more time I personally work on my business, the less money I have to spend to pay people to do the work. But spending more money to pay people to work on my web properties frees up time for me to think about “bigger business moves” and manage multiple websites at once.
Is Affiliate Marketing A Good Choice?
Affiliate marketing is one of the most powerful ways to make money online, especially for beginners. As we’ve discussed, the model requires very little financial investment. Furthermore, you end up with a business that you can continue to grow and develop over time. For some people, affiliate marketing can even become a source of full-time income.
However, this doesn’t make affiliate marketing a good pick for everybody. You have to be patient and willing to learn!
For example, affiliate marketing success is partly connected to developing a quality site and getting traffic. In some cases, affiliate marketers may spend multiple months working on the process before they earn a dime. Likewise, it can take a year or even years until you get a full-time income out of the system.
The issue isn’t so surprising. After all, if you develop a physical business, it can take years to even break even and much longer than that before your business is performing optimally.
For that matter, any type of long-term business will take time to grow. This is true for other methods too, like selling products online or freelancing. In those cases, you may earn your first pieces of money faster but it can still take a long time to be successful.
From my own experience and the people I’ve interacted with, I feel that affiliate marketing is a great choice for making money online. This is also the best way to earn money without significant risk.
But, you do need to be patient. So, affiliate marketing mightn’t be a good choice if you’re looking for fast results without much work.