I think you’ll agree that one of the things you want to do when beginning affiliate marketing is find information that will help you make an informed decision and bring you success.
The problem with not being able to find information and not being able to make an informed decision is it causes you to lose out on the income you desire and that you know is out there. It causes you to settle for whatever comes along no matter if it’s something that works or not. I was in the same boat. But that changed when I started learning the truth about affiliate marketing.
I started hearing about actual success stories and hearing about people making a lot of money doing the correct thing and getting paid good money for doing it. People like Jason Stone who made $7 million in one year with affiliate marketing.
I’m going to share those numbers with you so you will have them before you to show you how much success you can have.
Affiliate Marketing Demographics
- Male – 54.23%
- Female – 42.97%
Preferred Commission Payment Method
- Direct deposit – 48.69%
- Paypal – 19.16%
- Wire – 14.62%
- Check – 8.21%
- Payoneer – 4.32%
- Bitcoin – 2.69%
- Store credit – 2.31%
One way we can look at this stat is that people want to make it as easy as possible to get their earnings. Direct deposit is preferred more than twice than any other method.
How do I choose an Affiliate Marketing Program
- Payment and Methods – 6.09%
- Merchant reputation – 10.14%
- Marketing terms of service – 6.49%
- If the products are already being used – 1.16%
- EPC – 6.17%
- Cookie duration – 2.15%
- Commission – 5.41%
- Brand, terms, and affiliate management team – 1.10%
- Brand awareness – 10.11%
- Product or service relevancy – 18.15%
- Affiliate Marketing reputation – 15.97%
- Affiliate network or tracking platform – 11.58%
- Ad unit and optimized landing page – 4.16%
- Combination of all that’s mentioned above – 1.32%
Here we find that the most important thing people look at when choosing a program or network is it’s service relevancy. People want to make sure they are giving legitimate reviews of something that they themselves use.
How do I find out about new Programs
- Info on merchant’s website – 24.46%
- Gooogle and other search engines – 19.21%
- Affiliate/CPA network site – 17.52%
- Conferences – 9.36%
- Affiliate manager reaching out – 9.23%
- Word of mouth – 7.44%
- My competitor’s site – 7.44%
- Searching affiliate sites – 3.85%
- Affiliate Marketing sites – 3.45%
This didn’t surprise me. Most people I know of found their programs the same way.
Who makes the decision to start
- I always make the decision – 81.16%
- I sometimes make the decision – 12.18%
- I don’t make, or influence the decision – 3.19%
- I influence the decision, but I’m not the final say – 2.81%
- I’m kind of new to the business – .19%
- My wife makes all the decisions – .47%
There has been the almost humorous stories and coaching about how to get past the gatekeeper, or the person who really makes the decision on what decisions are made.
Top traffic sources for marketing
- SEO – 69.22%
- Leveraging social networks – 67.32%
- Blogging – 64.48%
- Email marketing – 41.47%
- PPC – 34.28%
- Word of mouth – 22.16%
- Video or images – 21.31%
- Display advertising – 19.13%
- Offline marketing – 11.2%
- Guest Posting – 4.12%
- Comment marketing – 3.17%
SEO, or the usage of Google’s algorithm, to draw traffic to their site. Really this seems a natural result since some of the ways that Google has modified the results you get when you search for something. The goal, which has been fine-tuned now, is to make sure you get the most relevant answer in the most direct way possible.
Programs per Network
- Avantlink – 695
- AWIN – 320
- CJ Affiliate (formerly Commission Junction) – 1,709
- Rakuten – 1,412
- ShareASale – 5,594
ShareASale is one of the oldest Affiliate Marketing networks. It’s been around 19 years or more and has only existed as an affiliate marketing company.
US Affiliate Marketing Trends
- US Affiliate Marketing spending is near $5 Billion
- By 2008, Amazon’s affiliate program had already reached 2 million participants
- Rakuten acquired eBates for $1 Billion
- Over 50% of the top AM fall into 4 categories: fashion, sports, health and beauty, travel
- Over 80% of all brands utilize affiliate marketing
- In most AM programs, less than 10% of affiliates drive 90% of traffic and conversions
- ShareASale has more than 1,000,000 members
The US affiliate marketing network is different from the foreign market in that the US market is covered by large networks over large areas. If you wanted to do the same thing in a foreign market like the UK you would have to belong to multiple networks depending on where you were and which ones were available.
Foreign Affiliate Marketing Trends
- UK Affiliate Marketing drives ~1% of the countries total GDP
- Affiliate Marketing ROI amounts to 15 lbs for every 1 lb spent in UK
- More than 75% of Australian AM market is owned by 1 company called Commission Factory
- UK Affiliate Marketing sales increased by 9.2% between 2016 – 2017
The info that tells us that there are so many markets that are owned by big companies is explained by what I said above. You have big companies that are holders of the multiple networks but are covering smaller areas.
Digital Marketing Trends
- 40% of marketing professionals list Affiliate Marketing as the most desired digital skill
- Around 15% of all digital media industry revenue comes from Affiliate Marketing
- Pay per Call AM campaigns convert at 10%-15%, whereas online converts at 2%-3%
- SEO traffic converts 7x more than all other forms
- Publshers expect 87% growth
- 40% of merchants used Affiliate Marketing
- 49% of publishers used Affiliate Marketing
- 15% of digital advertising revenue is from Affiliate Marketing
Digital marketing is the wave of the future for sure at this point. Publishers are expecting 87% growth and you have huge amounts of advertising budgets that are devoted exclusively to affiliate marketing.
Mobile Marketing Trends
- About 50% of all affiliate related traffic originates from a mobile device
- Over 50% grab their phones the first thing in the morning
- 80% of internet users own a phone
- 71% believe mobile marketing is the key to their success
- Mobile offers are redeemed 10x more than print offers
- Estiimates say mobile transactions will account for 50% of all digital spent
With the statistic that shows that the first thing people do when they wake up is grab their phones, it is hardly surprising that marketers would be focusing on finding ways to market to them. Another stat that’s not shown here is if an ad is sent via text message, it is responded to with within minutes.
How do You recruit new people
- Searching affiliate network boards – 83%
- Attend events hosted by affiliate networks – 79%
- Using join network button on brand website – 71%
- Hosting your own events – 56%
I guess I’m not super creative with this topic. I simply clicked on the button.
Perception of Affiliate Marketing Importance
- 9 out of 10 advertisers said it was very important
- Over 80% devoting more than 10% of marketing budget to it
- 2016-2017 Affiliate Marketing spending increased by 49%
- “Affiliate Marketing” search interest grew 30% in one year
- One Affiliate Marketing influencer generated $7 million in one year
- Affiliate Marketing is generating 16% of all orders
It is beginning to be apparent that most businesses recognize how much money can be made with it. I wanted to include the marketer that brought in $7 million in one year to show you what potential there is in it.
Top 10 Niches in Affiliate Marketing
- Fashion – 23.27%
- Sports and Outdoors – 18.16%
- Health and Beauty – 13.81%
- Travel – 10.74%
- Home and Garden – 8.7%
- Computer and Electronics – 6.65%
- Education and Training – 5.37%
- Business – 5.12%
- Finance and Insurance – 4.35%
- High-end Luxury stores – 3.83%
This is one of those questions that many want to know when they start affiliate marketing. Probably one of the reasons that fashion is so big is how many things are included in it. Everything from clothing, makeup, to hair styles are a part of it. It is a huge category.
eCommerce Sales through Affiliate Marketing
- Affiliate Marketing – 16%
- Paid traffic – 20%
- Search – 21%
- Email marketing – 16%
These stats bear out with some others I saw earlier. Earlier one of the stats said that SEO represented almost 70% of the sources for affiliate marketing. Here we find that sales were 16% for affiliate marketing along with search which was 21%. These two categories in themselves truly represent what we do in Affiliate Marketing.
Current worth of Affiliate Marketing
- Worldwide – $12 Billion
- US – $4.78 Billion
- UK – $1.7 Billion
- Germany – $1.3 Billion
- Rest of the world – $4 Billion
When you talk to people about affiliate marketing it’s almost like you’re talking about some unknown little business that has no financial backing and is just a waste of time. However, $12 Billion is not a small business that has no future. Remember, in the UK, affiliate marketing equals half the GDP.
Growth of Affiliate Marketing
- Global – 27% CAGR
- US – 10% CAGR
- UK – 15.1% CAGR
It has appeared in my research that the UK takes affiliate marketing more serious than the US does and this chart bears that out. CAGR is the compound annual growth rate is the rate of return that would be required for an investment to grow from its beginning balance to it’s ending balance provided its profits are reinvested at the end of the year. This is according to investopedia.
Top 10 Affiliate Marketing Websites and Programs
- ShareASale Affiliates
- Amazon Associates
- EBay Partners
- Shopify Affiliate Program
- Rakuten Marketing Affiliates
- Lead Pages Partner Program
- StudioPress Affiliate Website
- CJ Affiliate Publisher’s Program
- Bluehost Affiliate Program
Here you go. Here are 10 of the top programs you can be involved with and honestly, I wish I would have seen a list like this in one place when I was looking for them.
This introduces you to your client. It introduces you to the affiliate marketing and who uses it. We are often told in copywriting training that you need to pretend that your ideal client is seated across from you in creating content. All of this type of information would be what creates that idea client sitting across from you.
Mr O’Connor recognizes the potential there is in Online Marketing and the power of the written word. As such, he is trained in Copywriting, Affiliate Marketing, Blogging and the publisher of 4 Kindle books.
Read Larry’s story, “From Prisoner to Producer.”
Feel free to send Larry a message here.