Affiliate Marketing versus Advertising PPC: Which one is right for you?

Monetizing a website is an exciting yet challenging process, and depending on website traffic it can be very easy or extremely difficult. There are thousands of choices out there which will almost always come down to just two options – pay-per-click advertising or affiliate marketing? So what should you choose?

Advertising Pay-Per-Click

Let’s start with advertising. To keep it simple, we’re going to compare the most popular form of web advertising, Pay-Per-Click (PPC), a system used through countless advertising programs, the most well known being Google Adsense.

the advantages

The biggest advantage of using PPC advertising on your website is that it’s immediate, easy money. Earning 25 cents or whatever the amount may be per click is as easy as implementing a small amount of Javascript, and you’re earning straight away. The entire process of installing the advertising script, watching your profits grow and receiving your money could not be any easier, and this is the primary reason why these types of network are so popular among so many websites.

Recent advancements, particularly with the Adsense system, mean that advertisements are now targeted specifically at users using the information stored in their web browsers. How fascinating, I hear you say, but what this means for you is visitors are going to (potentially) click on more of your ads, more often, increasing your profit. And you didn’t even have to do anything.

the disadvantages

The problem, as far as PPC is concerned, is about your income, and how it can change very rapidly. PPC networks traditionally are very secretive as to how much individual clicks are worth, and this can be annoying, because your monthly profit can change very quickly.

The rules and regulations surrounding PPC advertising is enough to give anyone a headache, and limits some of the freedom you have for your monetization strategies… AdSense Policies

Using PPC advertising on your website can be a great for blog income, but you don’t have complete control over your marketing strategy. On the other hand…

Affiliate Marketing

Affiliate marketing is the other option here – so how does it compare?

the advantages

Affiliate marketing means you become the salesperson. YOU are flogging someone else’s product, and getting a cut of the profit upon that product being sold. The immediate advantage with this is that it allows you to work with products you choose – affiliate marketing provides much more flexibility in regards to what you are actually advertising compared to PPC. You can implement affiliate links wherever you like, you can encourage people to click on them however you like (within reasonable limitations) – the choices are up to you, and when done correctly your profits will be larger than what you would receive from equivalent PPC advertising. And above all, you’ll know exactly how much you’re going to earn every time someone buys a product using your link.

The sheer amount of affiliate products out there means you can advertise products relevant to your own website. For example, we are affiliates with WooThemes, a wordpress theme company, and we provide affiliate links in our WordPress themes posts. Unlike PPC which can only estimate what visitors would be interested in, by using affiliate links we can directly target our visitors with relevant products that will benefit them.

the disadvantages.

What makes affiliate marketing great also makes it suck – there is work involved. Well, not necessarily, but if you want to make the most of affiliate links, you’ll have to put in the effort. Sure, a simple banner advertisement with a link will garner you some profit, but to make the most out of affiliate links, incorporating links strategically into content, recommending products to users, creating custom banner advertisements and trawling through the countless number of affiliate programs out there will mean you need to put in the work. But when done right, the reward will be well worth it.

Affiliate marketing does not provide that instant profit that PPC provides, either. Visitors clicking on a link is (usually) not enough to gain a profit – they have to actually buy the product for you to get a cut, meaning the products you are affiliated with have to be worth your visitors time.

So what’s the better choice?

Ideally, both. No one said the two cannot work together in perfect harmony – employ both systems to get the best of both worlds. But we know you didn’t read this blog post looking for that answer, so if we had to choose? Affiliate marketing would win every time.

PPC is a godsend for small websites, or for webmasters who want the easy option, but affiliate marketing affords you so much more freedom to advertise what you want, how you want, knowing exactly how much you can expect to earn off each purchase.