Affiliate marketing is one of the raging marketing strategies, and more and more people are interested in starting a career as an affiliate marketer. Here we will discuss how much one can get paid by being an affiliate marketer.
The payment of an affiliate marketer can vary depending on the niche, products, and method of marketing. Affiliate marketers can generally earn $0 – $100 per day (source). The top 10% of affiliates can make $1000 per month.
How Much Does Affiliate Marketing Pay?
According to PayScale, affiliate marketers earn $51,217 on average. The bottom 10% of affiliate marketers earn around $3700 per year, while the top 10% earn $71,000 per year on average.
The number is even higher in Glassdoor’s research. According to this website, the base income for affiliates is $65,365 a year. The lower-income range is $42,000, and the upper-income range is $83,000 per year.
However, the payment from affiliate marketing can vary depending on several factors. First of all, one needs to consider the conversion rates of the product they affiliate with.
Some companies will offer affiliates a percentage of the affiliate sale, while some companies will give a certain amount of money for each sale they make.
If an affiliate promotes a $20 Amazon product for a 2% commission, they will need to sell 2,500 products to make $1000. On the other hand, if the affiliate marketer earns $100 by selling a digital product, they will need to only sell 10 products to make their first $1000.
Additionally, the product can influence the affiliate commission as well. If the audience receives a product, the affiliate marketer can easily sell the product and gain better commission.
In contrast, if the product is hard to sell, the marketer may not generate enough conversion and may not earn much commission even though the commission rate is high.
Finally, traffic in the influencers’ channels can make a huge difference in the affiliate’s earnings. Influencers with high and targeted website traffic for a product can reach the audience better and generate better sales. On the other hand, if the affiliate marketer does not have enough traffic or has the wrong kind of traffic, they may not be able to generate enough sales and get less commission.
According to PayScale, affiliate marketers earn $51,217 on average. The bottom 10% of affiliate marketers earn around $3700, while the top 10% earn $71,000.
How Affiliate Marketers Get Paid
Once affiliate marketers sign up for an affiliate program, the program owners will clarify the requirements for earning commissions. Different companies have different metrics to distribute commissions among their affiliates. Also, there are certain rules one needs to play by, rules set up by affiliate industry regulators.
Signing in for newsletters, scheduling an appointment, downloading a free trial, and buying a product are some of the desired actions for affiliates to be eligible for earning a commission.
The company will offer a unique affiliate link or a coupon code to track the affiliate activity. The affiliate will receive their commission when someone completes the desired action using the link or the code.
As mentioned above, affiliates get paid in two ways. Either they get a percentage of the sales that have been made through the affiliate link, or they earn a fixed amount for each consumer they bring.
However, the percentage and the flat rate can vary depending on the niche, program, and method.
We will discuss these in the following section.
Factors Regulating Affiliate Payment
There are several niches available for different products. Depending on the niche, the commission structure and percentage can vary as well.
Here is 5 niche that will resonate with the audiences, generate sales, and bring sustainable income for affiliates:
- Financial products: Consumers are always looking to save money. Financial products like credit cards, mortgages, insurance policies, loans, and financial protection products can generate many sales and contribute to the commission.
- Healthcare and fitness: Healthcare is one of the most grossing industries in terms of affiliate marketing. These products have high conversion rates and offer one of the largest commissions rates.
- Real Estate: Nowadays, almost half of home buyers find their properties online. Despite being one of the competitive markets, affiliates can generate a high commission from this niche.
- Travel: After the 2019 pandemic, people are traveling around more than ever. So products and services associated with travel are now generating a very high conversion rate. If the affiliate can choose the product correctly, they can generate enough commission within a short time.
- Gaming products: The gaming industry has seen steady growth over the years and can appeal to audiences of all ages. There are plenty of products in this niche to promote and generate a high commission percentage.
Different products from the same niche can differ in commission percentages. For example, a wide range of products is included in the health and fitness niche. Affiliates can promote different health supplements, therapy devices, and even Fitbits as health and fitness products.
As these products vary in type, the commission structure and rate can vary as well. Also, some affiliates may find different commission rates for the same products in different affiliate channels.
However, if promoted to the right audiences with an appropriate approach, affiliates can earn substantial commission from any of those products. Therefore, it all comes down to choosing the right product and audience.
There are several methods and channels to promote products. Depending on the method and channel, the affiliate earnings can vary significantly. Here are some prominent methods of affiliate promotion:
- PPC: In this method, the affiliates earn commission depending on the clicks they generate. The commission varies depending on the affiliate channel.
- Social Media: Social media is one of the powerful platforms to promote products. Almost half of the internet users use social media. Affiliates can easily find their target audience on social media and start earning their affiliate commissions
- Blogging: Blogging helps affiliates establish themselves as industry experts and allow affiliates to earn more commission with time. It is one of the proven methods for affiliates to demonstrate their expertise and can help them build a strong community.
- How-To Videos: Helpful videos can generate a better number of views and can help sell products effectively. These videos can generate commission for a very long time.
- Coupons: Coupons can help affiliates generate better conversion rates by offering consumers a good deal.
- Email Marketing: Email marketing is one of the most effective lead generation sources, and many popular brands utilize email marketing to reach their target audiences. In some cases, affiliates will be offered commissions to gather email addresses from the targeted audience to initiate email marketing campaigns.
- Webinars: Webinars help audiences connect with the brand to generate sales. Affiliates often inspire the audience to sign up for webinars.
Who Regulates Affiliate Marketing
Affiliate marketing is a combination of several works. Therefore, any affiliates looking for expanding work in different niches may need to find out who regulated the affiliate marketing.
To be honest, there is no simple answer to who regulates affiliate marketing. To simplify the answer, there are three sides to affiliate marketing:
- Affiliate marketing publishers: They are the one who influences the traffic to a website. They are often referred to as online marketing professionals and have different communities. These marketers often work with government trade organizations which indirectly connect them with affiliate marketing.
- Affiliate marketing advertisers: Local trade control organizations regulate businesses that use affiliate marketing as a marketing channel.
- Affiliate marketing companies: They are just different companies that work with affiliate vendors, affiliate marketers, or both. They are often known as affiliate forums, affiliate marketing agencies, affiliate networks, etc.
Different sources claim different data about the income of affiliates. However, it is evident that affiliates can earn commissions with appropriate measures even when they are asleep. They need to choose the right product and preach to the right audiences to grab a substantial income from affiliate marketing. With time, they can earn better commissions as they become authority figures.
Affiliate marketing is a competitive field. So, many novice affiliates can get frustrated about it. However, by following the proper measures, they can make better commissions within a few months.