About 18% of marketers say that they look at the type of product before choosing an affiliate marketing program. Of the respondents polled, more than 80% run an affiliate marketing program to improve website traffic and increase sales. Meanwhile, a whopping 91% of merchants plan to keep or increase their affiliate marketing budgets, according to a report by Viglink. More good news is that 60% of large merchants generated affiliate marketing earnings amounting to $5 million or more by investing smartly in the right affiliates. Another proof that affiliate marketing is becoming a massive global industry is that digital media have no problem allocating 15% of their revenue for it. Affiliate marketing industry trends show that fashion accounts for 23% of all affiliate programs and is the leader in the industry.

  • Other essential skills to consider learning are mobile marketing as well as digital strategy.
  • Beginning this line of work is relatively straightforward.
  • Findstack.
  • So an effective affiliate marketing program requires some forethought.
  • The main difference lies in the compensation scheme.

Globally, the USA has the largest market share in the affiliate industry, with over 39% share. Those that make more than $50,000 annually, according to affiliate marketing stats, comprise as little as 9% of all professionals in the industry. Affiliate marketing spending increases at an annual rate of 10% with retailers accounting for 25%.

How many successful affiliate marketers are there?

Coming in a close second is sports and outdoors with 18 percent, followed by health and beauty with 14 percent. Other industries that have high rankings include home and garden, electronics, and travel. This is important for influencers and bloggers to know which industries are flourishing. Affiliate marketing is a system where an affiliate marketer can earn a commission for marketing some else’s product or service. The affiliate marketer searches for a product they enjoy and then promotes that product or service to earn a small part of the profit from each sale. The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts.

What is the affiliate marketing industry

Most well-made niche sites will see their first affiliate commissions within the first 6 months. Affiliate marketing is the process by which an affiliate earns a commission for marketing another person’s or company’s products. The affiliate simply searches for a product they enjoy, then promotes that product and earns a piece of the profit from each sale they https://xcritical.com/ make. AdWords is most commonly based on a cost per click system, where the cost per click is the minimum amount required to outrank a competitor advertiser. Using a very simple example, if a competing advertisers budget per click is $1 and yours is $5, you’ll only pay $1.01 for that click. Why not look into a niche that is already converting and selling well?

Which platform is best for affiliate marketing?

With the CPA payment model, the affiliate marketer gets paid for each lead acquired for the merchant. A lead is created when you send a customer to the merchant’s website, and they take an action, such as completing a “Contact us” form, or downloading an ebook. Consumers want to play it safe and avoid overpaying for products online. Not surprisingly, the most popular way to find more information on those items is to type a search query on Google. And this is where affiliate reviews, comparisons, and tutorials get their chance for conversion. This trend is in line with the overall rise of online shopping and the decline of brick-and-mortar retail.

The next important step to optimize your affiliate marketing efforts is link cloaking, the practice of hiding the affiliate ID from a URL by redirecting it to another page. Be active on social media. Having a solid social media presence increases brand awareness. You can build up followers’ engagement and optimize content with hashtags to boost discoverability. Hence, creating an SEO strategy is a must – the higher your site appears on search engines, the more traffic you’ll get.

Another 19.21% will use search engines such as Google and Yahoo, and 17.52% will look for programs on affiliate network websites. Yet, many affiliate programs will also provide a 3% rate for some products. As we enter 2020, an impressive 81% of brands have already implemented efforts to start building an affiliate network, and a further 84% of publishers have also delved into the area. A survey done by Forrester on behalf of Rakuten Marketing reveals that 94% of publishers use two or more affiliate programs.

Common Types of Marketing (Examples Included)

Affiliate marketing has secured its place as a multi-billion dollar global industry. The industry is worth an estimated $12B and is projected to continue growing each year. That figure is three times what affiliate marketing was worth in 2015. At the same time, the spend on affiliate marketing has increased at an annual rate of 10%, with retailers accounting for 25%. The revenue from affiliate marketing is on the rise every year. In 2019, turnover from affiliate marketing reached $6.4 billion.

Rakuten Advertising While publishers generate most of their revenue from advertising, 15% of their total revenue now comes from affiliate marketing. The results of a 2016 survey show that 90% of merchants why analyzing affiliate statistics and reports is important for a brok and advertisers say that they consider affiliate marketing an essential part of their marketing strategy. Statistics reveal that 94% of publishers use multiple affiliate marketing networks.

Many influencer marketing campaigns are about promoting brand awareness rather than just sales. Affiliate marketing is no exception — over half of affiliate marketing programs increased their revenue during lockdown. High-paying, high-volume — Expensive products with mass appeal, e.g. credit cards. An issue is that these programs tend to attract affiliate marketers with deep expertise and pockets and willingness to black-hat tactics. Starting a business can be risky and expensive because there are upfront costs for products, employees, equipment, rent, etc.


To make the most of these partnerships, you should do four things. Choosing the right affiliate products will result in better profits. Brand affinity is important for an affiliate program. That means marketers are able to deliver in-the-moment experiences where their content can match the sites where they’re served. Even US-based shoppers who already intend to buy a product will stop by two or three non-retail sites before buying a product. 16% even said they’d visit more than four websites.

That boost amounts to 15% 30% of all sales being generated by AM. According to Google Trends, the interest in affiliates has increased by 300% and reached its peak popularity in July of 2020. In a research conducted by Publisher Discovery, Awin has 30% of the worldwide publisher links followed by CJ affiliates (15.8%) and Rakuten (7.4%). Easyto sell items have a lower commission , while luxury products that cost more come with a much higher rate. 17% of companies spend over half their marketing budget on influencers.

90% of advertisers said affiliate programs are important.

A lucky, or maybe hard-working, 6% reportedly earn over $2M per year from affiliate marketing. Publishers say that affiliate marketing creates an opportunity to earn money with little effort. The 2016 report may be a few years old, but it is reasonable to imagine today’s metrics are similar. Affstat discovered that the vast majority of affiliates are working in the B2C sector.

This leaves the greater, and, in case of cost per mille, the full risk and loss to the advertiser. Publishers who have released their income reports include Pat Flynn, who grew his business from $8,000–$100,000per month, and Adam Enfroy, who makes $200,000per month. So, you can choose products that fit your niche and that you know your audience will love. 77%of consumers see customer reviews as a deal-breaker or deciding factor in their product purchase decision. When interacting with influencer content, 64%of consumers say that they prefer watching videos. Only 38% of consumers prefer written content.

Affiliate Marketing In 2020: What It Is And How Beginners Can Get Started

While these models have diminished in mature e-commerce and online advertising markets they are still prevalent in some more nascent industries. China is one example where Affiliate Marketing does not overtly resemble the same model in the West. With many affiliates being paid a flat “Cost Per Day” with some networks offering Cost Per Click or CPM. In other words, most people on the forum are experienced affiliates who are serious about making money through affiliate marketing. According to a survey of STM forum users, 81.2%of affiliate marketers are making over $20,000 per year.

What is the affiliate marketing industry

Let’s see what it’s all about. Plus, if you have a lot of personal experience in the niche (ie. it’s your hobby, or a product that you use and enjoy), this will make it much easier for you to promote effectively. That doesn’t necessarily mean you have to choose something that you know a lot about – it will just make it easier. When looking at affiliate sales data alone, there’s little value in calculating the average commission amount. The range is simply so wide.

Placing an ad in the middle of a podcast and a text link and coupon is an effective way to drive sales. Affiliate marketing reduces the barrier to entry when it comes to marketing and monetization. You can use it to add an extra revenue stream to your business or use it to drive sales directly. EBay has a large commission rate. It offers 50% to 70% of the profit that they make. But it will depend on the type of product you sell.

Affiliate marketing statistics show 73% of merchants believe affiliate marketing programs meet their revenue expectations. Successful affiliate marketers further report a 240% revenue increase thanks to content marketing. In conclusion, affiliate marketing works for many companies—big or small.

After graduating, he continued to build a diverse portfolio of websites while working a full time job. After years of building the portfolio on the side, he made the jump to run his websites full time. 18.15% of affiliates say that product or service relevance is the most important factor to consider when applying for a certain program. Typically, the modern affiliate programs offer commissions ranging between 5% and 30%. 50% of affiliate generated traffic originated from mobile devices as of 2017 Of all the stats on this list, this is one of the most telling. Sports and Outdoors is the second biggest niche making up 18.16% of all affiliate programs online.