First, let me clarify what I mean when I say REAL affiliate business.
I mean a real, legitimate business like a Limited Liability Company (LLC), or even simply a Doing Business As (DBA).
You can learn about all the common business types at LegalZoom.
I’d say a majority of affiliate marketers today (maybe even you?) fail to actually create a real business structure when they are just getting started. I think this is one of the most overlooked aspects of affiliate marketing!
Now don’t get me wrong, I think it is fine to go without setting up a business if you are simply going to test out affiliate marketing by building one website using nothing but free resources in your spare time to see if you enjoy it. But even then you are missing out on taking advantage of some easy savings!
Here are a few great reasons to start a real affiliate marketing business:
Note: I am not an attorney or an accountant, nor do I claim to be. I recommend you consult with a professional if you have any questions about anything mentioned in this blog post!
Write Off Your Affiliate Marketing Tools and Education
This reason alone is why most entrepreneurs form a business. When you are an official business, you get to write off most work related expenses on your taxes, including education and training expenses.
So not only can your write off the expense of forming the business to begin with, you can write off things like: a computer, a laptop, a desk, an office chair, monthly internet expenses, and website hosting.
Affiliates miss out on purchasing software and programs that can make their work so much easier because they don’t think they can afford it. They also don’t purchase valuable affiliate training courses available for the same reason.
This is too bad because not only should affiliates invest in their business and training to take them to the next level, they should also be taking advantage of the tax write off benefits of doing so!
The Motivation Factor
This is another great reason to form a business as an affiliate. There is a sense of ‘realness’ of going through the process of creating an official business. It helps you get out of the ‘hobby’ mindset, and into the ‘business’ mindset.
This is a big difference in thought process. The more you treat your online affiliate marketing as a business, the sooner you will make it a profitable venture.
The Legal Barrier
It is nice to have a little peace of mind these days. When you form yourself as a business, you put an invisible layer of protection on your personal assets in the case something goes haywire with one of your business ventures.
You don’t hear too many stories about affiliates getting sued for this or that, but there have been instances when policy or copyrights were violated and legal action was brought upon someone. Again, a little peace of mind goes a long way!
There are a few different types of business you can form. I personally prefer the LLC for its flexibility, ease of set up, and cost. I set up my LLC through LegalZoom, which is one of the most popular ‘do-it-yourself’ business set up websites.
It honestly took less than 30 minutes, and then I was a legitimate business!
Regardless of what business type you choose, I recommend taking advantage of all the benefits forming a real affiliate business provides. You will thank me come tax season!