Most list builders consider affiliate marketing their primary method of monetization. As an affiliate, you can search in two main categories of products: digital and physical products. Each category has its own advantages and disadvantages. Let’s examine some of the pros and cons to make a more informed decision when choosing which category to focus on at which stage of your list building journey.
digital products
Information products are the most common type of digital product to be promoted. They can be extremely profitable in the right market. Take the weight loss industry as an example. There are many people who are desperate to lose weight and are willing to pay good money to learn how to do it effectively.
Weight loss books, how-to videos, weight-loss salon memberships, and diet plans generate billions of dollars in revenue each year, proving that people will definitely pay for information on how to lose weight. Digital products come in various forms. A favorite among affiliate marketers is the eBook.
However, different niches respond differently to various forms of digital products. Some people prefer to watch a video that tells them exactly how a certain action is done instead of reading about it. Look for products that have compelling sales letters. If the sales letter is boring, the conversion rate will probably be low.
There are several benefits of promoting digital products. One of them is a decent profit margin. You typically get a higher percentage of the sales price with digital products. Since it’s almost pure profit and there’s very little overhead, Product Owners can pay a lot more. Furthermore, digital products can also convert better than physical products. This is because digital product sales letters are designed to convert. Most physical products are barely two paragraphs of sales copy.
physical products
Physical products can be profitable in certain markets. In other markets, there may not be many physical products to promote, or they may not convert well. It’s helpful to try out several products to find out which one works best for your list. You also don’t always have to stick strictly to promoting products within your niche. If you have an email list geared toward the home cooking niche, you can cross it from time to time to promote other home and garden products, like a gardening kit or kitchen equipment.
Physical products convert better than information in some markets. For example, the home décor market may be more receptive to physical products than digital ones. This is another reason why testing is important. Your list may not respond to information products at all, but they can very well convert to physical products.
Here’s a tip. Whether you promote digital or physical products, you may want to purchase an addon domain to redirect your affiliate links. This will help hide the fact that they are affiliate links, which can increase the number of people who click on the links and ultimately purchase.
You can use a simple redirect script or buy a more complex one that will track the traffic you receive on your links. A good script can also help you track the effectiveness of your campaigns.
Learn more about the various products you could offer on your list, but always keep in mind that your judgment may not reflect that of your entire list. Therefore, it is very important to test how receptive your list is to different types of products.
