A growing industry, Affiliate Marketing, is utilised by 81 percent of brands and 91 percent of publishers, in 2024. So, in this article, we have come up with “How Affiliate Marketing Works,” scams, and myths related to the industry. We have briefed the article with the latest stats to simplify it for the readers.
An Industry statistics report, shared by Statista, claims that the affiliate marketing Industry is expected to witness a surge, leading to a jump in its valuation by $21.1 billion in 2024. And another similar report, published by Astute Analytica, claims the industry’s valuation will see a surge up to $31.6 Billion by 2030. While the affiliate industry is constantly growing bigger, its safety tips have always been a concern. This article gives a classification of whether affiliate marketing is a legitimate way to make money online and its reported safety tips.
What is Affiliate Marketing?
Affiliate marketing is a method utilised by affiliates to earn money in the form of “commission” by advertising one’s product. Generally, the affiliates look for a product or service they can endorse, advertise, and earn a steady income from it.
Affiliate marketing, not only for the affiliates but also for the brands, is one the most beneficial and profitable strategies.
Affiliate Marketing Worth Through The Latest Stats
“Is Affiliate Marketing worth it?” is one of the asked questions, as stated by the experts. So, below, we have detailed the answer with enough stats to support the query.
The Market Growth
Astute Analytica, in February 2023, shared an opportunity forecast report. The published report estimated the affiliate marketing valuation, by 2031, will see a towering surge of up to 3.9 Billion.
The Trends
While searching “Affiliate Marketing” in Google Trends, we saw a surprising and clear surge, as per the July 2024 trends.
Rising Investments
The latest report titled “The State of Affiliate Marketing” was published by the Influencer Marketing Hub. Here we witnessed that an estimated $1.5 billion has been invested in the industry which is a 15.38 per cent increase.
Marketing Budgets
As per the latest news, the businesses and brands have set approximately 9 percent of their entire marketing budget for Affiliate Marketing.
Surge in Average Salary
Stats by PayScale, reported in 23 May, 2024, states that the “affiliates” can expect a salary of $64,802. A base salary inclusion of bonuses, profit-sharing, and commissions, could be a total of $41,000 to $102,000.
Jobs And Employment Listings
Currently, there are more than 3700 job listings that have a similar keyword “Affiliate Marketing.” Meanwhile, on Indeed, as of 2024, there are more than 6500 jobs listed with similar keywords.
Also read – Mastering ICP Marketing: A Comprehensive Guide to Ideal Customer Profiles
What Are Affiliate Marketing Scams?
As the affiliate marketing industry continues to grow, it has also attracted a list of scammers. Generally, the scammers fall under two categories,
- The scam “affiliate marketers” are trying to charge you for a process or service which is either “inexpensive” or “free.”
- The “dupe” affiliate marketers who are trying to merge you with an unrecognisable or unsuspectable brand.
1. The “Get Rich Immediately” Schemes
An average internet user must have gone through the flashy advertisements and “clickbait” headlines.
While affiliate marketers involve the practice of enticing the audience, the promise made by them might not be “fulfilling.”
Case Study: MOBE, abbreviated My Online Business Education, was accused of fraud and deceit. The MOBE featured a “proven” 21-step system which promises to teach learners how to earn “immediate” cash. However, it turned out that FTC did not purchase MOBY flash claims, accused them of duping customers with “fake” and “flashy” claims, and did not deliver its promises.
2. Pay-to-Join Affiliate Programs
This affiliate marketing scam, which demands “fees”, is one of the industry’s largest frauds. While such programs are rare and we don’t have an example, one can easily detect such programs by checking the industry’s credibility.
3. Fake Teaching Courses
Another affiliate marketing skill is endorsing fake products and services. This company sells certifications and courses that promise an amazing result; however, after you sign up, you detect inappropriate teaching.
Such trick companies tend to make money through selling courses rather than affiliate marketing.
4. Fake Services or Product
Owing to earning money and higher commissions, several companies end up with “fake” products, which promise to provide “impossible results”.
For instance: Herpes, an incurable virus, does not have a vaccine yet. However, several blueprints promise to serve a 100 percent cure for the virus, which is, according to science, impossible.
What Are Some Common Affiliate Marketing Myths?
Besides scams, the newly introduced affiliates are also surrounded by a list of myths. The common of them are;
Affiliate Marketing is Easy
A common misconception, keeping up in the industry is easy. However, the affiliates have to include severe hard work to promote and generate sales for the product.
More Products, More Earnings
The amateur affiliates tend to take as many advertisements as they can. Nevertheless, this decision can make them fall for several scams and fraudulent marketers.
The larger the traffic, the more the sales
While accelerated traffic is good, it might not reciprocate into profit. Research says that only 5 per cent of the visitors to affiliate websites convert into sales.
Skills Are Not Necessary
An affiliate marketer, in general, should have technical and marketing skills, to venture into the industry. If you are interested in the industry, we would recommend developing some related skills.
Wrapping Up
In essence, the majority of affiliate marketing is not a scam and could be a legitimate way to make money online.
However, similar to other growing industries, this marketing industry has some “rotten apples” that you must be aware of. With a conscious mind and affiliate marketing safety tips, one could easily learn and grow in the industry. With this article, we have tried to break down the common scams and myths that an interested professional should be well-educated on.