Affiliate marketing is a performance-based marketing strategy where an affiliate promotes a company’s product or service and receives a commission for every sale or lead generated through their unique link. It is a win-win situation for both parties involved – the affiliate gets to earn money without having to create their own product, while the company can expand its reach and sales through the affiliate’s network.
History of Affiliate Marketing
The concept of affiliate marketing dates back to the early 1990s when Amazon launched its associates program. The program allowed website owners to place banner ads or text links on their sites, promoting Amazon’s products. Whenever a user clicked on the link and made a purchase, the website owner received a commission. This program proved to be a success, and soon other companies started to adopt the same strategy.
In the early days, affiliate marketing was mostly focused on promoting physical products, but with the rise of the internet and e-commerce, the industry evolved to include digital products such as software, courses, and e-books.
Market Volume of Affiliate Marketing
Today, affiliate marketing is a billion-dollar industry, and its growth shows no signs of slowing down. According to a report by Statista, the global affiliate marketing spend is expected to reach $8.2 billion by 2022, up from $5.4 billion in 2017.
The beauty of affiliate marketing is that it is not limited to a specific niche or industry. From fashion and beauty to finance and technology, there is an affiliate program for almost every product or service you can think of.
Statistics on Affiliate Marketing
Some interesting statistics on affiliate marketing:
- Affiliate marketing accounts for 15% of all digital media revenue
- 81% of brands and 84% of publishers use affiliate marketing
- The average affiliate commission rate is 30%
- In the US, the affiliate marketing industry is expected to grow to $6.8 billion by 2020
Affiliate marketing is a powerful marketing tool that benefits both the affiliate and the company. It has come a long way since its early days and has evolved to include a wide range of products and services. With its growth expected to continue, affiliate marketing is definitely something to consider for businesses looking to expand their reach and sales.