The affiliate marketing industry has seen incredible growth in recent years. 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 draws individuals to affiliate marketing and represents this amazing growth, even in a recession? For too many people the affiliate marketing business represents a potential lifeline. In this economic downturn, the sheer number of layoffs and job cuts have been colossal, and many people are now facing difficult decisions. In certain locations – people who are heavily reliant on the automobile industry for instance, jobs are not likely to appear again, and a great many people have no other choice but to reinvent themselves to make ends meet. Affiliate marketing is the perfect choice for a work from home business.

Before you take a shot at affiliate marketing, it’s essential to take stock of the situation. 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’ve really got the patience and determination to sit down and figure it all out. 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.

Adam Toren, Co-Founder of Young Entrepreneur, specializes in developing the profitability of struggling businesses with a specialised and ‘bottom line’ approach. Adam, along with his brother, have created, purchased and sold a variety of companies over the years. At the moment, they own and manage a highly successful publishing company and several dedicated online enterprises.