Affiliate marketing and contextual ads can be considered to be the most important and lucrative ways to monetize a blog.
In fact, there is a big debate whether affiliates or contextual
advertisement is better. Without taking any sides, here are the three
advantages that affiliate marketing programs have over contextual ads:
More Money: If you have chosen the right affiliate
program and product for your site, you will make more money from a
single sale than you would with days of running a contextual ad on your
site – that is the simple truth. Of course, choosing the right affiliate
is not as easy as you would think it is. This also does not mean that
all affiliate programs offer a higher payout than the contextual ads.
The total payout depends on the type of product that you are affiliated
with and action that has been determined.
For example, if an affiliate marketing program requires the user to
provide just their e-mail address, you would be making much less money
out of it than suppose they were to buy the product. If the product
itself costs something like ten dollars, the commission that you would
get would be something around ten percent of the total cost price.
Control over Products: The main disadvantage of
contextual ads is that you have little or no control over what type of
ads you would run on your site. Yes, some contextual advertisement
services now offer you a chance to decide which ads are set on your
site, but it’s too much of a job for one web master. With affiliate
marketing, you can decide which product you want to offer, and even
which type of graphic you would like to show
Residual Income: Though it is all about choosing the
right affiliate program, with affiliate programs you have a chance to
make a residual income. For example, if you sign up as an affiliate of a
MMORPG, and a person subscribes to the MMORPG through your site, there
are chances that you will get a commission whenever the person upgrades
their subscription. In the case of contextual ads, you would be paid
only when a particular number of clicks occur on the advertisement.
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