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What is affiliate marketing and how do you get started?
Did you know there's a method that lets you earn passive income from activities you enjoy, such as writing, creating content, or selling products?
That’s the unique value affiliate marketing brings to the table; turning your influence into income.
The international affiliate marketing market hit more than $18.5 billion in 2024 and is projected to reach $31.7 billion, growing at a CAGR of 8% between 2024 and 2031.
That's not a trend; that's a shift that's here to stay in how brands acquire customers.
What is affiliate marketing?
Affiliate marketing is a pay-for-performance program in which the merchant or firm compensates an affiliate (partner) for generating sales, traffic, or leads via a unique tracking link.
It is a win-win for the affiliate, merchant, and customer because the merchant can compensate the affiliates on a performance basis, the affiliates get to promote something that they believe in, and customers learn about products or brands that they already know and support.
More than 80% of companies have utilized affiliate marketing programs, and it is the main source of revenue for 31% of publishers. Moreover, firms that utilize affiliate marketing earn an incredible average return on investment of around $15 for each $1 they spend.
How does affiliate marketing work?
Affiliate programs are partnership arrangements where the affiliates are provided with a special tracking link and commission plans from the merchants.
Each time a customer uses the affiliate’s unique tracking link to make a purchase or take a specified action, the affiliate earns a commission.
Find a product or service
The affiliate selects a product or service to sell. This is usually a niche market in which they have experience.
Get an affiliate link
When joining a merchant's affiliate program, the affiliate is provided with a unique tracking link that recognizes them as the referral source. It's their web fingerprint for earning commissions.
Promote the product
The affiliates use their blog, YouTube channel, social media, podcast, or email newsletter to create valuable content around the product. It can be in the form of reviews, tutorials, comparisons, or recommendations.
Customer makes a purchase
When the user clicks on the affiliate link and executes the desired action (purchase, registration, download), the tracking system records the conversion and assigns it to the affiliate.
Earn a commission
The merchant compensates the affiliate with a predetermined commission, typically a percentage of the purchase price or a fixed rate per conversion.
Different types of affiliate marketing
There are three general types of affiliate marketing, differentiated by how closely the affiliate is connected to the audience or the product.
Unattached affiliate marketing
Unattached affiliate marketing is the most hands-off method. The affiliate does not have previous experience with or personal interest in the product. They advertise it with paid promotion, such as PPC campaigns, without giving a personal recommendation or endorsement.
This is easy to start, since it requires no experience or platform, but it lacks credibility, so consumers are less likely to trust the promotion.
Involved affiliate marketing
Personal or involved affiliate marketing is when the affiliate themselves has used the product or service and can provide actual insights, reviews, or tutorials.
This method is the most trustworthy and usually yields greater conversions, although it takes additional effort and time to learn and create unique content.
How do affiliate marketers get paid?
Affiliate marketers do not all get paid the same way; it varies based on the affiliate program one joins. Some are paid only upon making a sale, while others are paid for sending traffic or creating leads. Here are some of the most popular payment structures.
Pay-per-click
In the pay-per-click scheme, affiliates get paid every time someone clicks on their special affiliate link, no matter if they purchase anything or not. This suits affiliates with high-traffic sites who can generate huge amounts of clicks.
For example, a news site offering a new SaaS tool via banner advertisements may receive a small payment.
Pay-per-lead
The pay-per-lead model pays affiliates when a referred visitor completes a specific action, such as signing up for a free trial, registering for a webinar, or filling out a contact form.
A B2B marketing blog might direct readers to sign up for a CRM’s free trial and earn a set amount for each valid signup.
Pay-per-sale
Under the pay-per-sale model, the affiliate gets paid only when the customer buys something. It is the most prevalent method and tends to have the highest payments.
For example, suggesting an annual subscription to a project management software can potentially generate a commission worth a percentage of the subscription amount, potentially more than a hundred dollars per transaction.
What are the advantages of affiliate marketing?
Benefits for the merchant
Performance-based expenses: You only pay for actual results, which makes it more cost-effective than most advertising strategies.
New audience access: Affiliates tend to have specialized followings that can expose your brand to highly targeted markets.
Growth on a larger scale: You can grow your affiliate base rapidly without having to develop a big in-house marketing team.
Low risk: No initial media investment; payment is directly linked to conversions.
Benefits for the affiliate
Passive income potential: Earn money from content you’ve already created and published.
No product development required: Focus on promotion without worrying about manufacturing, inventory, or fulfillment.
Flexibility: Select products, niches, and approaches that fit your ability or passion.
Scalable income: Several affiliate programs can be operated concurrently to spread the income.
How to start affiliate marketing for beginners in 5 steps
Step 1: Choose your affiliate marketing channel
Determine where you will be promoting your affiliate products. This might be a blog, YouTube channel, LinkedIn account, newsletter, podcast, or even webinars. Select a location that you think you can create content for regularly. For instance, if you are comfortable being on camera, YouTube product reviews could be your niche; if you are a good writer, lengthy blog posts and case studies could be your go-to.
Step 2: Choose your niche
You can stand out and build a loyal audience by narrowing your focus. For example, targeting "marketing team project management software" rather than "general tech."
Step 3: Pick the right affiliate programs
Look for affiliate programs that align with your niche and values. You can sign up directly or through affiliate networks. Examine their commission rate, payment term, cookie duration, and support resources before signing up.
Step 4: Build your platform
Whether it’s a website, email list, or social channel, your platform is where you’ll educate, engage, and convert your audience. Invest in SEO if you’re blogging, optimize your videos for search if you’re on YouTube, or create lead magnets if you’re growing an email list. The stronger your platform, the easier it becomes to generate consistent affiliate sales.
Step 5: Choose the right product
Offer only products or services you would recommend yourself or address actual issues for your readers. Your reputation is your investment in affiliate marketing; a low-value, irrelevant recommendation can destroy your trust with readers.
Affiliate marketing trends
AI-powered affiliate marketing
Artificial intelligence is revolutionizing the way affiliates select products, develop content, and optimize campaigns. AI technology can sort through audience behavior, forecast what works best with what offers, and even create customized product suggestions.
To illustrate, a B2B SaaS affiliate may apply AI-powered analytics to determine which CRM features their LinkedIn audience interacts with most, and then customize their promotions accordingly.
Data privacy and compliance-focused
With stricter privacy regulations, such as GDPR and CCPA, merchants and affiliates now need to be transparent in tracking and cookies. Tracking based on consent, server-tagging, and privacy-friendly affiliate solutions are the new standard.
In B2B, it translates to your email opt-ins, tracking pixels, and lead forms having to be completely privacy-compliant or else face legal trouble.
Video commerce and live streams
Short videos, product demos, and live shopping broadcasts are already gaining popularity fast in affiliate marketing. LinkedIn Live, YouTube Live, and even B2B webinars are being used as sales channels.
Envision an affiliate hosting a live Q&A with a SaaS product's product team, responding to live questions, and generating signups using a live affiliate link.
Convergence of affiliate and influencer marketing
The influencer-affiliate distinction is fading. More influencers than ever insert affiliate links into their content and, more often than ever, affiliates have created personal brands that act like influencers.
In B2B, perhaps an industry expert could write research-based blog posts but monetize via affiliate deals with software providers they trust.
Tips for successful affiliate marketing
Connect with the audience
Consumers purchase from people they trust. Invest in understanding your audience's challenge, pain, and dream. If you're selling a B2B product, work on explaining it not just by listing its features but by explaining how it will solve a certain pain your audience is experiencing.
For instance, rather than saying, "This CRM automates workflows," you could say, "This CRM will reduce lead follow-up time by half."
Get insights from product experts
Your influence increases as you're in the know. Catch up with product managers, customer success teams, or even fellow affiliates to dig deeper.
You can turn these interactions into comparison guides, tutorials, or case studies that stand out from typical reviews.
Stay updated on current trends
Affiliate marketing is a developing business. There are new platforms being introduced, the algorithms evolve, and consumer behavior changes.
Stay informed with business newsletters, monitor affiliate forums, and review competitors' tactics to stay flexible.
Pick campaigns carefully
Not every high-paying offer is worth your time. It's crucial to select products based on quality, support, and audience fit.
One misplaced promotion can destroy your reputation and diminish trust, which is much more expensive than losing a single commission.
Distribute content through different sources
Don’t rely on one traffic source. Repurpose your content for different platforms: turn a blog post into a LinkedIn carousel, a webinar snippet into a YouTube short, or a case study into an email sequence.
The more touchpoints you create, the greater your chances of conversion.
Conclusion
You don’t need a massive audience or a huge budget to start. By selecting the right niche, aligning with quality affiliate programs, and committing to consistent, value-driven content, you can turn affiliate marketing into a long-term revenue stream, not just a side hustle.
With the tips and insights in this article, you can now confidently select affiliate programs, engage your audience effectively, and build sustainable income through affiliate marketing.
Whether you’re a blogger, SaaS expert, or creator, affiliate marketing offers a proven way to grow income and influence. The sooner you start, the faster you’ll see results.