Affiliate marketing is a sales tactic that companies that sell products/services implement to generate online revenue. It’s a non-direct way of making sales by essentially using ‘digital’ real estate on other high-traffic domains as well as utilizing the influence of popular figures to push a product. An affiliate marketer usually endorses a product matching their niche which they may personally use, but it’s hard to tell because in the end if it makes money then they’ll likely just push it to their audience just to earn a cut.
In the digital world, affiliate marketing is only on the rise and has proved to be extremely beneficial to all parties involved. The majority of statistics collected over the years have shown that affiliates are here to stay. 81% of brands and 84% of publishers believe in the power of this specific marketing strategy. In the US, there has been a 10% increase in the expenditure towards affiliate marketing – so much so that by 2020, it has been estimated to increase to $6.8 billion. It’s not just the food and fashion bloggers that use affiliate marketing, but big websites like IMDB and Huffington Post rely on banner ads and links as a large part of their revenue stream.
Although they are thriving now, it is uncertain whether they will continue to last forever, especially as people change and also inevitably understand that they don’t always use products that popular figures promote. This begs the question: will there be a decline in affiliate marketing in the future? To analyze this we’ll need to go through the benefits and downsides.
Advantages of Affiliate Marketing
Affiliate marketing is one of the easiest ways to generate passive income, even while you’re asleep. It is a mutually beneficial business for both the brands and advertisers.
Merchants can have a bigger platform to make their sales and do not have to only depend on stand-alone stores. Sales can be generated from all over the world, especially with the advent of international shipping. They are also able to keep growing their customer base without having to spend time and energy in search of them. In that sense, affiliate marketers are essentially indirectly employed to work for the brands.
Moreover, it provides an additional source of income for those who sign up for the affiliate marketing program. Whether you are a filmmaker on YouTube or a travel blogger, you will be able to make money by running affiliate links and ads through your chosen medium. Affiliate marketing should be utilized by everyone because statistics show that it’s only ever growing. Even older, real-money casino sites such as BestOnlineCasinos.com are still going strong and have a steady flow of visitors daily. To promote business within the gambling sector, an online casino site will only get paid when a user visits the online casino through a marketing link provided by the affiliate.
Disadvantages of Affiliate Marketing
Some brands may incur high commission costs and deduct additional fees from the publishers and websites that they work with. On the other hand, even affiliate marketers may be engaging in false advertising to generate sales. Moreover, hackers may be able to hijack links and able to get paid instead of the publishers through affiliate links. Publishers also usually have no control over pricing or commissions.
But perhaps the biggest disadvantage is that the system requires patience. It is not possible to start receiving sales profits the minute you post an affiliate link. It takes a while to get established and grow an audience that trusts you and the products you promote. There is no external push for the routine and hard work that needs to be put into generating passive income from building an authority website.
The Supposed Decline of Affiliate Marketing
In the big picture, the pros outweigh the cons when it comes to affiliate marketing. The only reason some consider that affiliate marketing is on the decline is that there was a rumor that Google was trying to demonetize the websites that used a dated version of affiliate marketing. However, this is not the case. In today’s digital world, it is no surprise that affiliate marketing is one of the most advantageous ways of making money.
Big brands are investing more and more in it, and websites are evolving from being online diaries to businesses that make significant income. Affiliate marketing cannot be declined simply because there are individuals who earn enough money to raise families through it. Some publishers do not even require a website, and a social media presence is enough to benefit from the affiliate marketing program. Some start-ups are known to use Twitter to provide information about their company while putting in affiliate links. When these links are clicked by users, they get to see ads that in turn generate revenue for the company.
Although it is initially hard to get established for absolute beginners because generating enough traffic to get profits is a complicated process, affiliate marketing is not declining. It is a rewarding, stay-at-home profession for many.
