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There's benefits and drawbacks. You've listed the drawbacks which are definitely true. But as an affiliate you're free of the colossal risk of developing your own product and bringing it to market. You pay nothing for R&D, production, distribution, and the thousands of startup costs of a new venture.
For that reason, I still think it is a worthy business, as you can see by the profits of many affiliates here. The business model of selling another company's battle tested product has huge advantages for an affiliate. But the affiliate should eventually use their experience to develop their own products as a long-term business strategy.
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