As an affiliate marketer myself, I can tell you that affiliate marketing is a great business model that allows you to send traffic to sell another company’s product for a percentage commission in return. Wondering why affiliate marketing works still? Here’s the answer…
Affiliate marketing works still in 2023 as well as it ever has, but competition is ever increasing. Consequently, it’s important to learn why it works as a business model and how to build it up as a relatively passive income stream.
Affiliate marketing can sometimes be presented as a super easy business model to earn income. However, it takes time and hard work to earn a substantial full-time income and beyond.
I’ll be sharing now how affiliate marketing works to get ahead of the curve.
Let’s get started!
8 Reasons Why Affiliate Marketing Works Still In 2023
Affiliate marketing is a powerful business model. Now, let’s take a look at why affiliate marketing works still as an income stream for online businesses. Plus, find out how you can earn money with affiliate marketing.
1. Affiliate Marketing Is A Win For The Company
Whenever a company or individual creates their own product, it’s likely that creating an affiliate program for that product should be considered.
In this case, the company or individual has their own audience that they’ve built a substantial trust with over time and is a great way to market a new product. However, the problem is that the potential customer base is much wider of an audience than what the company has and paid ads are usually necessary to invest in.
The good news though is that by creating an affiliate program the company can leverage the power of other creator’s audiences. This allows for the marketing cost of acquiring a customer to become a fixed commission set by the company which can be paid on the back-end after a sale is made.
This greatly increases the chances of a product launch bringing in a ton more revenue for the company since they aren’t directly limited by the up-front cost of paid ads.
Plus, the company has full control over the exact cost of how much they’re paying out to affiliates. Typically, digital products will have anywhere from 20% – 100% commission on each product. Physical products on the other hand have a lower commission percentage due to the inherent cost of producing each product.
2. Affiliate Marketing Is A Win For The Affiliate
Affiliate marketing is a huge win for the affiliate promoting the product.
Here’s why being an affiliate is so awesome:
- leverage big brand names even if you have a small audience
- coming up with and creating a product isn’t necessary
- grab an affiliate link, promote it, and make a sale right away depending upon your audience size
- no customer support necessary
When you’re just starting out building your online business, it can definitely be overwhelming to try and build an info product.
That’s why promoting an affiliate product from a well-established brand is a great way to get started and monetize as you grow your audience size. I always recommend trying out and only recommending affiliate products that you personally enjoyed and can get behind.
3. Affiliate Marketing Is A Win For The Customer
A customer is always looking for the best product that will sufficiently solve a problem they may be facing.
By recommending a reputable brand as an affiliate, you can provide the customer with a great recommendation that many times comes with a discount code you can give away alongside the affiliate product.
Now, the customer gets to save more money getting a product they enjoy while the affiliate marketer and company who own the product can reap the benefit of even more sales.
4. Upward Trend For Affiliate Marketing
I did a quick search on Google Trends to see how “affiliate marketing” is currently trending.
Here’s what the trend looks like for affiliate marketing.
This means that affiliate marketing is trending upwards as more and more people are searching for it.
5. Leverage Powerful Brands As A New Company
Leveraging an existing audience online is probably one of the best ways to see substantial and huge growth right away as you build an audience.
The same is true with affiliate marketing because you can leverage a well-known brand such as Amazon to then sell any products they currently offer online as an affiliate for a certain commission percentage.
Here’s a few of the benefits that come from promoting big brand names.
- inherent trust with consumer
- likely more sales
- consumer is already familiar with brand name
6. Affiliate Marketing – Billion Dollar Industry
Affiliate marketing is a rapidly growing industry.
The cool part is that affiliate marketing is a $6.8 billion dollar industry. In fact, that number is expected to increase by over 10 percent each year.
Now, it’s simply up to you to build the audience and recommend awesome affiliate products that you know they’ll love.
7. Promote 1-10 Niche Affiliate Products
One of the biggest things that I recommend doing when starting out is only focusing on promoting one affiliate product.
If you try to go after and promote 20 or 30 affiliate products all at once, then you’ll likely never reach a substantial income with any of the products. This is because the more content you create surrounding one product, the more of an authority you are on the subject.
You’ll then start to be recognized and recommended by others if you stick with promoting a select few affiliate products that your audience knows they will get their money’s worth for each product.
8. Super Affiliates Make Upwards Of 7 Figures Per Year
A super affiliate is someone who ranks in the top 1% of all affiliate marketers promoting a single affiliate product.
So, as you can imagine the super affiliates are making quite the hefty amount of income.
Some of the biggest super affiliates are:
- John Chow – Estimated monthly earnings of $50,000+
- Darren Rowse – Estimated monthly earnings of $45,000+
- Pat Flynn – Estimated monthly earnings of $100,000+
What does an affiliate marketer do?
An affiliate marketer recommends another company’s product for a percentage commission of the sale in return. The affiliate marketer uses their existing audience to drive traffic to various affiliate offers and make sales.
Why is affiliate marketing the best?
Affiliate marketing is the best online business model to get started with since it’s extremely easy to set up. All you have to do is grab an affiliate link for a product that you enjoy using and recommend it to your audience. The only part that takes a long time to build up is the initial audience.
How can I use affiliate marketing effectively?
Affiliate marketing can be done effectively by only recommending products you have used yourself.
Is affiliate marketing worth doing?
Affiliate marketing is worth doing if you’re looking for an easy way to add an additional income stream. It’s a very low barrier to entry and you can make a sale with affiliate marketing relatively quickly with an existing audience in comparison to a digital product.
Final Thoughts On How & Why Affiliate Marketing Still Works In 2023
Affiliate marketing is a business model that is drawing in more and more people when starting an online business.
The reason is that it’s a very low barrier to entry and you can make your first affiliate sale relatively quickly.
The main thing you need to remember is that in order to earn a substantial income with affiliate marketing you need to be willing to put in the effort over the long-haul while focusing on a small number of affiliate programs to likely find success.
If you’re interested in getting started with blogging or a YouTube channel to drive traffic, then I highly recommend Project 24 to get started. It’s an awesome course that shows you step-by-step how to get a full-time income online in 24 months.
So, are you starting your online business and pursuing affiliate marketing starting today? Have you made your first affiliate sale yet? Leave a comment below and let me know.
I hope you enjoyed this post. This post may contain affiliate links, meaning I get a commission if you decide to purchase through my links at no additional cost to you.