The affiliate marketing industry has enjoyed unparalleled growth in recent times. Even during this dour recession the industry represents a growth area. Jupiter Research estimates that affiliate marketing will grow in size by 13% each year over the next five years, as measured by affiliate earnings.

What is it that attracts people to affiliate marketing and accounts for this growth, even in a downturn? For many people the affiliate marketing business represents a potential lifeline. In this recession, more than any other, the level of layoffs and job losses have been substantial and many people are facing grim realities. In certain geographical areas – those heavily reliant on the automobile industry for example – jobs are not likely to return and many people are being forced to reinvent themselves in order to survive. Affiliate marketing is an ideal, work from home business.

Before embarking headlong it is important to take stock. Endure some soul-searching to see if you are really cut out to make it in this highly competitive business. There are five questions that you should ask yourself before you decide if this is for you and, if you decide to proceed, there are a further five tips that you should bear in mind when setting up your shop.

Ask yourself whether you are really willing to sit down and learn. This will all be unfamiliar territory to you and it will take you quite a while to learn all the tricks of the trade.

Secondly, understand that you must be willing to put in a significant effort as things will not happen overnight. You must understand that several months may go by without any measurable results.

The third quality you must possess is determination, as without this you will often find it difficult to respond to that early morning alarm clock, knowing that you must put in the hours necessary to succeed.

Discipline! Don’t be tempted to shortcut and try and make sure that your time management skills are adequately honed.

Finally, are you an optimist – there will be plenty of naysayers. Try and surround yourself with other optimists and always look at the glass as being half full.

When you decide that a career as an affiliate marketer is for you, make sure that you follow this advice and “play smart.”

Always check up on the company that you will be doing business with. If you are investing a significant amount of time and effort to promote the products or services of another company, it goes without saying that you should be aware of who you are “getting into bed with.” Look for any warning signs online that might indicate bad reviews or payment issues.

Secondly, understand what is involved, including the terms and conditions, payment schedules, tracking methods “do’s and don’ts.” There is nothing worse than establishing sales only to find out that you may have inadvertently broken one of the rules, thereby forfeiting the payouts.

Be wary of dealing with a new company and try and stick with a reputable firm. Try and protect those future payments.

If you sense any problems, payments are late or you come across other rumors about the company, cut your potential losses and move on.

Finally, don’t be tempted to put your “fingers in too many pies” as many do. Stick with one product or promotion and do it well. Give yourself the best chance of success in this highly competitive arena.

Have you ever been tempted to try affiliate marketing? Let us know.

Matthew Toren