Affiliate marketing pros and cons are:

Affiliate marketing is a performance-based business model. You get a commission as an affiliate marketer for every sale made for a third-party company. Performance Marketing Association's study shows that affiliate marketing investment grew by 47%. There is a significant rise in demand for affiliate marketing.

Affiliate marketing has low investment costs. However, low cost doesn't mean free. So you need to plan for a budget of $500-$3000 to start. This amount will cover the costs of things like:

1. Hosting 
2. Spy Tools 
3. Tracking Software 
4. Landing Page Builder 
5. Ad Budget

There are ways to score a few quick wins that won't cost you big bucks. For example, you can publish a blog and find keywords that aren't too competitive. Look for ones with a low cost per click, and focus on long-tail keywords so you can make money faster. You can create low-competition blog posts on topics like "best" or "review hacking."

You can start affiliate marketing with no money through social media platforms like YouTube, Instagram, and Facebook. Online conversations discuss how you can use social media to grow your followers. A Redditor suggested growing a Facebook group or on other platforms to “make people seek you out." Another Redditor says you can start affiliate marketing using Pinterest and a free WordPress blog. Once you set up the blog, you can create content and refer your readers to affiliate offers. 

Affiliate marketing is a thriving industry. Influencer Marketing's Report shows affiliate marketing’s global spending will increase by 9%. US is the top spender for affiliate marketing. According to WifiTalents, 15% of US digital marketing revenue is from affiliate marketing. Moreover, 81% of brands, 84% of publishers and 87% of e-tailers use affiliate marketing.

Affiliate marketing also recorded growth in Australia, Japan, Germany and France. Although UK has the highest percentage of purchasing through affiliate links at 52%. A notable trend across these countries is mobile device usage for affiliate purchases. In the UK, mobile accounts for 43% of affiliate sales, while in Germany it's 38%, and in France 35% as per Awin.

Affiliate marketers have a market-ready audience for the brands or services they’re offering. You don’t start from scratch. There’s already a merchant who completed the market research and product development. Your role is to promote the seller's product or service through affiliate links.

The market for affiliate marketing also has many products and services for promotion. There is no fixed number of products that you need to promote in this business model. Although there are preferable and proven ways to get your traffic. According to Hosting Tribunal, 65% of affiliate marketers get traffic through blogging.

Some affiliate marketers focus on the high-priced offers in a niche. You need to find the best offers in your chosen niche. These offers should respond to the needs of your target audience. You can promote as many offers as you want as long as you comply with the policies of the affiliate platform. ClickBank, for instance, allows you up to 500 offers or products.

Affiliate marketing offers a flexible career of working anywhere with an internet connection. In fact, 55% of affiliate marketers are working from home, according to Trust Pulse. 26% of them developed a routine of working from home and at an office depending on the day.

Affiliate marketing also offers flexibility in your market. You can choose offers from anywhere in the world and cater to audiences globally. Even the type of product you offer is not limitless. Ahrefs explains that you can promote physical products, online courses, or software. You need to create unique and engaging content. Then leverage purchase power in a popular niche or trending market. Attracting traffic and viewers is also crucial. You can publish dynamic organic content or spend on paid ads. 

Affiliate marketing has a high income potential. You can earn a 1%-150% commission depending on the affiliate marketing program. The travel industry is a lucrative niche for affiliate marketing. Influencer Marketing Hub reported 16% of all travel sales are from affiliate links. As an example, Travelpayout has different commission rates for affiliates for travel companies. They also offer 7% of the earnings from your referrals. 

The highest paying affiliate program is Wishup. It's a remote job marketplace connecting small business to skilled virtual assistants. You'll get $500 for every virtual assistant hired through you. Semrush pays $200 for every new first sale, plus $10 for each new trial activation. Liquid Web hosting offers a minimum payout of $150 commission per sale or 150% of the monthly hosting cost.

However, success in affiliate marketing depends on your understanding of the business model. You must increase site visits and boost the conversion rates of these visitors. On average, the conversion rate for affiliate marketing is 0.5% to 1%, according to Optimonk. The goal is to drive traffic to your offers and get people to take action. This needs a strategic plan with effective marketing techniques, not random content publication.

Affiliate marketers don't worry about customer service. Customer complaints go to the merchant, who typically has a team to handle clients. You only entice people to click the link leading to the product or service's sales page. The brand or company fulfills the rest of the sales process.

Customer service presents an added expense to businesses. ZipRecruiter's showed the annual average income of customer service representative is $39,098. It's an additional cost of operation for companies which affiliate marketers don't have. However, affiliates are still indirectly responsible for customer service. Edelman study on consumer trust shows 63% trust influencer more than brand messages. When customers get negative merchant experience, affiliates' reputation can still take a hit.

Affiliate marketing is scalable because you can promote multiple offers. You can leverage different platforms to drive traffic to your links. You can also include upsells for products you promote. Use spy tools or do a Google search to see what competitors are promoting or what other people are ranking for. Use other marketing techniques like email or SMS marketing. You can also run paid ads with more than one profile or have various ad campaigns. You can also increase the number of affiliate links you promote. 

Affiliate marketing has a global reach. It provides a worldwide potential customer base. With an option to target specific countries, languages or market segments. According to Meltwater and We Are Social, 65.7% of the world's population uses the internet. It's a wide customer base you can reach with affiliate marketing. While US is the largest affiliate marketing market, Asia-Pacific shows significant growth. According to Cognitive Market Research, the Asia-Pacific expects 10% annual growth until 2031. 

Affiliate marketing is among the top side hustles online. Ben Alistor, an Amazon FBA mentor, lists affiliate marketing among the top 5 side hustles in 2024. Ben highlighted that affiliate marketing is a low-investment method to earn extra income. Affiliate marketing has a low barrier to entry. So it can supplement your income without committing to a full-time business or job. Content creator Ted Gets Bread also shared that with affiliate marketing, he could earn $7.20 to $5,024.65 weekly. 

Affiliate marketers work independently. Merchants outsource affiliate marketers to promote their products and services. Affiliates are not employed and required to report to office. They can select the niche they want to tap and develop their marketing strategies. The independence of affiliate marketers contributes to the diversity of the industry. For instance, content marketing and blogging remain the most effective affiliate marketing methods.

Working independently also enables affiliates to diversify their income. According to WebFX, 94% of affiliates use more than 1 affiliate network. Furthermore, 40% of affiliate marketers have been in the industry for 5+ years. This also suggests the long-term viability of this business model.

Affiliate marketing requires no inventory management, unlike traditional retail businesses. Inventory management is organizing stocks to ensure you have enough for market demand. Powerhouse AI explained that a single shipping mistake costs between $50 and $250. And according to US Census, retailers sit on $1.50 in inventory for every $1 sale. But affiliates don’t need to purchase, store, or manage inventory. Therefore, it eliminates a significant barrier to entry for many entrepreneurs. 

There are large conferences to expand networks for affiliates every year. Affiliate marketers are typically solopreneurs. According to Affiliate WP's study, 7 out of 10 affiliates are working without a team. An affiliate marketer's team will grow once they reach 6 figures annually. However, research shows networking is vital for an affiliate's success. Authority Hacker reported affiliates earning $10,000+ per month attend conferences for networking.

Reddit users also emphasize the importance of attending conferences for affiliates. PortablePaul, who attended the Affiliate Summit East (ASE), immediately got 2 accounts. He also said it seemed impossible to attend and not have a business afterward. However, he cautioned that you have to go there with a plan. It's best to attend with meetings already set up to connect with your potential partners.

Another redditor said conferences are for finding new businesses and partnerships. The redditor attended popular conferences like Inbound, Affiliate Summit and Content Marketing World. According to him, he rarely got new insights out of them, but great for vendor partnerships.

As an affiliate marketer, you're building someone else’s brand and not your own. You don't own the product or service and have no customer loyalty. Instead, you're doing the hard work to find new and innovative ways to deliver content and drive traffic to affiliate links. The biggest problem in affiliate marketing is having onetime customers. It’s hard to have repeat customers since they buy directly from the vendor when they buy the next time.

YouTube content creator Ceo Dose said affiliate marketing is not a get rich-quick scheme. According to him, it typically takes 18 to 36 months to earn a significant income. But once that consumer clicks on the link, they belong to the merchant.

Traffic is unpredictable in affiliate marketing. As an affiliate marketer, getting purchase-ready traffic is the crux of your business. Authority Hacker's survey reveals 45% of affiliate marketers find getting traffic a challenge. Converting traffic to sales is the second biggest challenge with 19.5%.

Content writer Raymond Kubode said "a steady flow of traffic to your site" is the most important thing to start affiliate marketing. Raymond adds that without traffic, "you won't be able to generate leads or make sales." A few of the more popular options for generating traffic include:

• Youtube
• Blog
• Facebook Groups

Affiliates have no control over affiliate programs since business isn’t yours. You promote products or services others created. You cannot decide on the quality, availability, or delivery of these products. If the product or service cannot meet market expectations, it can affect you as the promoter. Even though you had no role in its creation or fulfillment. This lack of control can be a significant downside. Especially if the company you're affiliating with has quality control issues.

Affiliate marketing is prone to market saturation because of its low-barrier entry. Forrester Consulting's study shows 81% of advertisers and publishers include affiliate marketing in their overall marketing strategy. Meanwhile, 84% create content for affiliate marketing. This shows the proven benefits of the business model for aspiring affiliate marketers. However, since you don't need a lot of skills or upfront capital, it results in a pretty crowded online space. You'll have to create content with value to stand out to drive organic traffic or you need to be willing to pay for ads. The more popular the product, the more you'll need to spend to get clicks that convert to sales.

Affiliate marketing requires time and money. Bill Widmer shared that it takes around 6 to 12 months on average to earn money as an affiliate marketer. Bill added that it would take “around 2 years to earn enough money to quit your day job.” Affiliate marketing is a long-term business strategy that takes time to establish. You need dedication and discipline to earn consistent affiliate commissions. You need to: 

• Build an audience
• Rank your affiliate website in the SERPs
• Establish a following on social media platforms
• Spend money on paid ads
• Find high-converting offers for products that fit your niche

A marketing specialist shared that he also said he made money in 2 weeks even without spending on ads. Another commenter said it took about 8 months to make money with affiliate marketing. Lastly, Nannie Dokez shared that making money with affiliate marketing needs persistence. Nannie took 6 months to try all the methods. In the 7th month, he earned $41.15 from the product he was promoting. 

Affiliate marketing is vulnerable to fraudsters and hijackers. Hostinger listed the most common affiliate marketing scams that can affect your revenue. These scams include:

• cookie stuffing (aka cookie dropping),
• fake products,
• pay-to-join programs,
• get-rich-quick schemes,
• and spoof traffic.

One of the leading cases of affiliate marketing fraud reported was the case of two of eBay’s top affiliates. They made $35 million in commissions with cookie stuffing. According to Jonathan Marciano, the cost of affiliate marketing fraud is $1.4 billion. 

Income from affiliate marketing is unpredictable. Your earnings largely come from commissions you get from sales, clicks, or leads. Changes in consumer behavior, seasons changes in the affiliate program's terms can reduce earnings. Faisal Khan, a content creator, shared on Quora that while you can earn from affiliate marketing, the money you make is not sustainable. Faisal explained that affiliate marketing benefits the merchants and not the affiliates. He added this is especially true when thousands of marketers promote the products. 

Your earnings as an affiliate marketer depend on the cookie lifespan limitation. As per Post Affiliate Pro, cookie duration dictates how long affiliates can get credited from a visitor sale. You can only receive the commission when a customer buys the product within the time frame. Once the cookie lifetime expires, you will no longer earn affiliate commissions. The duration of the cookie lifespan depends on the affiliate program. Zalora's cookie window is 7 days after clicking your affiliate link. Amazon has 24 hours and Nike’s affiliate program has a 30-day cookie period.

Merchant and brand reputation also affect the earnings of affiliate marketing. According to Statista, 58% of adults in the US consider the company’s reputation when purchasing a product or availing a service. When a brand’s product quality declines, customers can be dissatisfied. And this can affect your credibility and future marketing efforts. Especially since brand trust is a deciding factor for 8% of customers, as per Edelman. Inc Magazine also reported it takes 40 good reviews to undermine 1 negative review.

How Do You Become An Affiliate Marketer?

Is Affiliate Marketing Worth It in 2024?

Affiliate marketing is worth it in 2024 because there are always new products and services. The global social media reach grows by 10.1% year on year. And 76% of consumers have purchased a product they saw on social media. Affiliate marketing is a good way to make money if you already have a strong following. According to Matter Communications, 7 out of 10 customers trust the influencers they follow on social media for purchases. Compared to other online business models, like Amazon FBA, affiliates have fewer worries. In affiliate marketing, product inventories and supply chain issues are left to merchants.

But despite the simplicity of the business model, only 5% of marketers succeed. So why do 95% of affiliate marketers fail? Most people don't succeed because they choose the wrong niche or lack a content strategy. Others don't treat it like a legit business and focus more on the money than on providing value. Affiliate marketing unpredictability in traffic and income are factors you have to consider before starting.

To succeed with affiliate marketing, you need to build trust with your audience. Be the best marketer by giving value to your potential clients. Think about the following questions when creating content:

• Why should people click your link? 
• How does your offer enhance their life?

You need to understand customer psychology and how to leverage impulse or emotional purchases. Take the time to learn about your audience and learn what platforms they use. Where are they spending the most time online? Then, access the competition: Where are they making money? How can you execute a better offer or fill a void in the market?

You also need a marketing strategy that will get your audience to sit up and take notice. It takes an irresistible offer and on-point content or scroll-stopping creatives. You need copy that hooks your audience and makes them buy what you're promoting. 

Hidden Truths About Affiliate Marketing That Experts Don't Want You To Know in 2024

What is Better Than Affiliate Marketing?

Local lead generation is better than affiliate marketing because you own the digital assets. In local lead generation, you build websites targeting a specific niche. Then rank it on Google using organic traffic. Once ranked, you can rent it out to local businesses. You own the websites, and this gives you control. This makes income predictable. You get to decide who rents your websites and the monthly rental cost. 

Affiliate marketing is a low-cost way to make money online. It also has a low barrier to entry, making it a suitable business model for beginners. But you need to invest time to build an audience or create a following on social media. Also, having a low barrier to entry increases competition and the risk of saturation. Generally, experience matters in a job. So it's more challenging for newcomers to compete with experienced affiliate marketers. Authority Hacker’s survey also found that affiliate marketers with 3+ years of experience earn 9.45x more than beginners. 

Compared to affiliate marketing, local lead generation requires a specific skill set. It increases the barrier to entry. Not everyone has the patience to master data analysis and research, sales, and negotiation. Also, when you pick a profitable niche in your local area, you can decrease the competition more. 

Spending on ads can also be a challenge for new affiliate marketers. If you’re a beginner without enough following, you need to spend on ads to get the content to your target market. Chad Bartlett, creator of Affiliate Marketing Boss, shared he spent $200 a day on Facebook ads. While he made $700 per day from the same ads, this may not be the case if you have no effective content. Also, Chad shared that when his Facebook ad account got shut down, his profits went down to zero. 

In local lead generation, you don’t have to spend for ads. You are maximizing Google’s organic traffic. Plus, once your systems are in place, you can automate the process. You're securing a passive and predictable income. Local lead generation is the better alternative to kickstart your financial freedom journey.