Affiliate marketing is a performance-based promotion model, where a company pays commissions to third-party marketers, influencers, publishers, and entrepreneurs ('the affiliates') who generate sales, traffic, or leads to the company's products and services.
This performance-based model presents a lucrative opportunity for new and experienced entrepreneurs to earn money online, while also helping companies and brands effectively market their products with low or minimal effort, time, and budget investment, while also guaranteeing high returns on investment, increase in brand awareness, and business growth.
While traditional business models such as retail and manufacturing require lots of resources with long-term commitments such leases, talent recruitment, property taxes, and inventory control, an affiliate marketing model offers entrepreneurs more flexibility and lower entry-requirements.
You can launch an affiliate marketing business in a matter of minutes by simply signing up for a company’s affiliate program that has attractive commission rates and products that align with your interests. Then, start marketing and promoting the products by sharing them on blogs, social media platforms, podcasts, or websites to get commissions for every sale that you make.
More than 80% of brands today have affiliate programs, according to statistics by Mediakix. This means it is much easier than ever before to find suitable affiliate programs you are passionate about that you can promote and start a thriving affiliate marketing business in those niches.
Gone are the days when you had to spend weeks, months, or even years building your brand and website and searching for affiliate programs before launching into affiliate marketing. The global market size of affiliate marketing is huge, now estimated at over $17 billion.
In fact, affiliate marketing spending in the U.S. alone is projected will reach more than $8 billion by the end of 2022, which means launching a business in the multi-billion-dollar affiliate marketing industry is a viable and lucrative opportunity with many benefits.
Benefits of Affiliate Marketing Businesses
Some of the key advantages of affiliate marketing worth noting include:
1. Attractive earnings
As an affiliate marketer, you are the middleman between brands and customers. For that, you earn commissions averaging between 5–30% from promoting and selling products or services.
This is a generous amount you can easily earn online, considering that you won’t have to incur the typical business costs and commitments of managing staff, inventory, and other overhead costs.
Many affiliate programs also offer customized rewards and bonuses for affiliates who generate many sales or referrals that can add up to significant earnings online.
2. Low barrier for entry
Unlike traditional businesses that require you to jump over numerous hoops including business licensing and certification, affiliate marketing only requires you to be committed and self-driven.
You can launch a successful affiliate marketing campaign in minutes without prior experience, and even set it on autopilot using modern automation tools like social media auto-posting apps.
This means you can launch a lucrative online business now, and you don’t even have to remain hands-on at all times when running the affiliate marketing business.
3. Flexible schedule
You can set your own affiliate marketing work schedule and work whenever and from anywhere in the world as long as you have an internet connection.
4. All-year-round business
Unlike traditional businesses that usually only have a few products that sell in specific seasons, affiliate marketing provides you with a wide range of products across sectors suited for different targets you can pick for each season.
That means you can build a solid income stream all-year-round.
5. Efficient payments
Affiliate marketing programs often pay faster than traditional businesses that can take weeks or even months to pay you for your work.
You may be paid instantly after customers complete the checkout process when you promote specific affiliate products, each with a set price and fixed-amount commissions.
Or, you will be paid a certain percentage on set days for the sales made from your affiliate links and affiliate marketing efforts. This predictability is great for business planning and growth.
Moreover, most affiliate programs allow you to quickly and conveniently transfer your earnings to your local bank account via an e-banking solution of your choice.