Affiliate Marketing the most cost effective online business

What is affiliate marketing? Affiliate marketing is all about selling someone else's products. Basically, you sign up with a vendor as an affiliate and then you drive traffic to the vendor's site. When someone makes a purchase from the vendor you automatically collect your commission. The vendor pays you a percentage of the sale price for bringing the customer to him.

Here are the reasons why you should start your affiliate marketing as your form of home based business.

1. Relatively low cost
It usually costs quite a bit of money to start a home based business. There is always some investment required. An affiliate marketing business does not require a huge investment. Sure, you need to have a computer and an internet connection. But that's not like the starting capital you would need for a business based outside your home where you sell physical products.

2. No inventory necessary
With affiliate marketing it is not necessary to have a warehouse full of products which you have to ship to your customers. Usually the vendor takes care of all aspects of product maintenance and supply.

3. Unlimited Income Potential
The sky is really the limit with affiliate marketing. You don't have to show up at the office. You do have to put in the necessary hours to promote your affiliate products and drive traffic to your site. But you decide how much effort you want to invest and you reap the rewards.

4. The World is Your Market
When you have your store on real real estate you are limited to your town or city. When you sell products on the internet your market is the whole world! The power of the internet is unbelievable and you can reach anyone who are connected to the world wide web.

5. Low Risk
There is very little risk associated with affiliate marketing, considering that the initial investment is very low. Yes, your time is valuable and you need to invest some money in essential tools to build your business but the risk is still relatively low.

6. No Closing Time
A website is usually 24/7. Your online store can be making money while you sleep or on vacation. It's always there even if you are not. People can come in and buy at any time.

These advantages are fairly significant when choosing a home based business.
Sure, there are many other factors to consider, which will determine the degree of success your business will have. But, all things considered, affiliate marketing is a pretty good deal and definitely a worthwhile path to take!!