Does an Affiliate Marketer need insurance?

Meg_Learner

I want to get started in on line affiliate marketing. That is, I create a website where I recommend items for people to buy, through a link. For instance, if I create a site on Lego toys, I might have a link to Amazon or Ebay, where people can buy these items. I will NEVER have these items in my house, I do not have any employees, the items are not mine, I will just be writing reviews and providing links where people can buy the items. I might also recommend items that help people lose weight or stop snoring, etc., or any other (reasonable) product that I might decide to promote through links. Nobody will be coming to my house, I will not be going anywhere to talk to people, I don't produce the items and am not responsible for posting them, downloading them or manufacturing them. people anywhere in the world will be able to access these links and purchase through them if they choose, so my income could come from anywhere, worldwide, theoretically.

I have [EDIT - was refused!] just managed to set up (with a LOT of difficulty) a business banking account but the bank did not seem to know much about affiliate marketing. They wanted to know what business I would be in but affiliate marketing didn't seem to be on their list. They also wanted to know who I would be working for? I have looked at a number of the sites recommended on the forum and through the search engines to choose business insurance but the more I read, the more I begin to think that I don't need to be insured, even for professional indemnity? I will have medical disclaimers on any sites reviewing health products but the products are not mine, they belong to their respective owners and I am just reviewing products and offering suggestions. I am very willing (indeed anxious) to be properly insured, if necessary but the sites I have looked at so far seem to be worried if income is coming from the US and also don't include affiliate marketing, although web marketing is included, but as I said, I don't provide my own products, just recommend others'. Any suggestions or help are welcome, thanks.

OhReally_2

Meg_Learner wrote: »

I want to get started in on line affiliate marketing. That is, I create a website where I recommend items for people to buy, through a link. For instance, if I create a site on Lego toys, I might have a link to Amazon or Ebay, where people can buy these items. I will NEVER have these items in my house, I do not have any employees, the items are not mine, I will just be writing reviews and providing links where people can buy the items. I might also recommend items that help people lose weight or stop snoring, etc., or any other (reasonable) product that I might decide to promote through links. Nobody will be coming to my house, I will not be going anywhere to talk to people, I don't produce the items and am not responsible for posting them, downloading them or manufacturing them. people anywhere in the world will be able to access these links and purchase through them if they choose, so my income could come from anywhere, worldwide, theoretically.

I have just managed to set up (with a LOT of difficulty) a business banking account but the bank did not seem to know much about affiliate marketing. They wanted to know what business I would be in but affiliate marketing didn't seem to be on their list. They also wanted to know who I would be working for? I have looked at a number of the sites recommended on the forum and through the search engines to choose business insurance but the more I read, the more I begin to think that I don't need to be insured, even for professional indemnity? I will have medical disclaimers on any sites reviewing health products but the products are not mine, they belong to their respective owners and I am just reviewing products and offering suggestions. I am very willing (indeed anxious) to be properly insured, if necessary but the sites I have looked at so far seem to be worried if income is coming from the US and also don't include affiliate marketing, although web marketing is included, but as I said, I don't provide my own products, just recommend others'. Any suggestions or help are welcome, thanks.

Are you sure you know what you are getting into?

Affiliate marketing has nothing to do with the location of the customer. If you are taking orders and deducting a commission before passing the order on, then that is a different matter (although it still doesn't matter where the customer is located, but where you base your business)

Anyway, with affiliate marketing you are simply earning referral fees from the businesses who agree to pay you. You will know who has agreed as you will need a contract in place first before anyone pays you any referral fees.

If you have no employees, you won't need employer liability insurance.

If you don't manufacture or supply a product, you won't need product liability insurance.

But if you are writing professional reviews, you should consider professional indemnity insurance in case you make an error or omission in that review. e.g. can you afford the possible legal fees defending yourself against say Coca-Cola, GSK, or Lloyds when you accidentally mis-represent one of their products or services in your professional review?

Opinion

Meg_Learner wrote: »

I want to get started in on line affiliate marketing. That is, I create a website where I recommend items for people to buy, through a link. For instance, if I create a site on Lego toys, I might have a link to Amazon or Ebay, where people can buy these items. I will NEVER have these items in my house, I do not have any employees, the items are not mine, I will just be writing reviews and providing links where people can buy the items. I might also recommend items that help people lose weight or stop snoring, etc., or any other (reasonable) product that I might decide to promote through links. Nobody will be coming to my house, I will not be going anywhere to talk to people, I don't produce the items and am not responsible for posting them, downloading them or manufacturing them. people anywhere in the world will be able to access these links and purchase through them if they choose, so my income could come from anywhere, worldwide, theoretically.

I have just managed to set up (with a LOT of difficulty) a business banking account but the bank did not seem to know much about affiliate marketing. They wanted to know what business I would be in but affiliate marketing didn't seem to be on their list. They also wanted to know who I would be working for? I have looked at a number of the sites recommended on the forum and through the search engines to choose business insurance but the more I read, the more I begin to think that I don't need to be insured, even for professional indemnity? I will have medical disclaimers on any sites reviewing health products but the products are not mine, they belong to their respective owners and I am just reviewing products and offering suggestions. I am very willing (indeed anxious) to be properly insured, if necessary but the sites I have looked at so far seem to be worried if income is coming from the US and also don't include affiliate marketing, although web marketing is included, but as I said, I don't provide my own products, just recommend others'. Any suggestions or help are welcome, thanks.

You're jumping in to a pond that is very, very full of very, very experienced fish.

What is going to make you stand out? What experience have you got that is going help you here? Have you written professional copy before? How are you going to bring readers to your site/s? There are so, so many people that run Micro-Niche Sites as full time professions that you're going to have to compete with.

I don't mean to put a downer on this, and yes, I'm basing it partly on one convoluted post, but you're never going to make any decent money from this.

Meg_Learner

OhReally wrote: »

Affiliate marketing has nothing to do with the location of the customer.

Anyway, with affiliate marketing you are simply earning referral fees from the businesses who agree to pay you. You will know who has agreed as you will need a contract in place first before anyone pays you any referral fees.

But if you are writing professional reviews, you should consider professional indemnity insurance in case you make an error or omission in that review. e.g. can you afford the possible legal fees defending yourself against say Coca-Cola, GSK, or Lloyds when you accidentally mis-represent one of their products or services in your professional review?

Yes, I understand that affiliate marketing has nothing to do with the location of the customer - it's the bank that doesn't seem to know this.

Thanks, professional indemnity insurance seems like it might be a good idea.

Meg_Learner

Opinion wrote: »

You're jumping in to a pond that is very, very full of very, very experienced fish.

What is going to make you stand out? What experience have you got that is going help you here? Have you written professional copy before? How are you going to bring readers to your site/s? There are so, so many people that run Micro-Niche Sites as full time professions that you're going to have to compete with.

I don't mean to put a downer on this, and yes, I'm basing it partly on one convoluted post, but you're never going to make any decent money from this.

Yes, I know that. It is more a hobby for me. I can see a way of making money from my hobby (rather like taking up golf after you retire) but don't want to take it further until it is legit. Don't want the Inland Revenue on my back!

Bonzowaite

Meg_Learner wrote: »

Yes, I understand that affiliate marketing has nothing to do with the location of the customer - it's the bank that doesn't seem to know this.

Thanks, professional indemnity insurance seems like it might be a good idea.

I would be very surprised if you could find a PII policy to cover affiliate marketing since it is almost certainly not going to be considered a "profession". There is no regulatory body as there is for Lawyers and Doctors etc and they wouldn't have a clue how to assess the risk presented by you (if any) as an affiliate marketer.

Bonzowaite

Meg_Learner wrote: »

Yes, I know that. It is more a hobby for me. I can see a way of making money from my hobby (rather like taking up golf after you retire) but don't want to take it further until it is legit. Don't want the Inland Revenue on my back!

One way to limit your exposure to law suits would be to consider setting up a limited company. That way, if you were sued, your personal assets would almost certainly not be at risk.

You might also benefit from more advantageous tax rates - do your own research on this point.

I plan to do this when my affiliate marketing earnings justify it.

It is good that you are trying to do everything above board, but apart from registering your business, I don't think you will need to worry about the taxman for a little while yet. For at least the first couple of months, your outgoings will exceed your income. I'm not sure that you needed to incur the fees of a business account at this stage provided you keep a careful account of the money going in and out.

It is true that many people fail, but that's the same for any new business venture (whether that is offline or online). Having said that, there are also a lot of people making a full time living from affiliate marketing. If you are going to have any chance of success, you need to treat is as a business rather than a hobby and be prepared to put in a lot of hard work (especially at the start) and learn how to do it properly. You can't just write stuff and expect to get good rankings.

I would be careful about touching any product that could be considered "medical" unless you are a qualified Doctor. There are plenty of less risky products to promote.

IronWolf

I run a blog and do recommendations as well as critical pieces on companies moreso than products.

I looked into getting professional indemnity insurance for that and also a product Im about to start selling, but found it difficult and in the end gave up. In many countries journalist work has legal protection from people trying to claim against you but I don't know for sure how it is in the UK. Probably best to speak to a proper lawyer about it.

Bonzowaite

IronWolf wrote: »

I run a blog and do recommendations as well as critical pieces on companies moreso than products.

I looked into getting professional indemnity insurance for that and also a product Im about to start selling, but found it difficult and in the end gave up. In many countries journalist work has legal protection from people trying to claim against you but I don't know for sure how it is in the UK. Probably best to speak to a proper lawyer about it.

How I wish I had paid more attention at Law School

Generally, opinion is fine, defamatory factual errors are a potential problem. You should normally get an opportunity to correct the error before being sued though. I have asked around amongst my Affiliate Marketing Chums and none of them have ever heard of anyone having insurance for this work.

Disclaimer: I am not giving legal advice and am not guaranteeing that insurance is not required

Meg_Learner

I have been refused for a business banking account:mad:! Even though I own my own house, have lived there for 30 years, no mortgage no dependants, good credit rating (excellent!) and using a bank that I have had an account with for over 10 years (I have now just cancelled an application they wanted me to take out for another credit card:D.). The insurance companies don't have a policy that covers affiliate marketing and the one I wrote to hasn't replied:p. Looks like big business hasn't caught up with affiliate marketing. Oh well, will just stick with PayPal. At least it gives me a record of all my transactions. Thanks all.

Bonzowaite

Meg_Learner wrote: »

I have been refused for a business banking account:mad:! Even though I own my own house, have lived there for 30 years, no mortgage no dependants, good credit rating (excellent!) and using a bank that I have had an account with for over 10 years (I have now just cancelled an application they wanted me to take out for another credit card:D.). The insurance companies don't have a policy that covers affiliate marketing and the one I wrote to hasn't replied:p. Looks like big business hasn't caught up with affiliate marketing. Oh well, will just stick with PayPal. At least it gives me a record of all my transactions. Thanks all.

I think that the business account refusal is a good thing since I imagine you would have been charged account management fees.

Most of the affiliate companies that I use pay by automatic bank transfer or cheque (US Amazon). A couple use Paypal. Provided you have a personal bank account, you can just have the payments deposited there. Each affiliate agency will keep a detailed account of earnings / payments that you can access via your account with them - just print them off each month to keep a hard copy for your own records.

Big business know all about affiliate marketing since the vast majority of them use affiliates themselves - they just tend to keep quiet about it. I have affiliate relationships with a few major high street retailers.