Affiliate marketing is growing rapidly and shows no signs of stopping. Twenty years ago, businesses spent thousands of dollars on radio, television or print advertising in hopes of increasing their popularity and annual sales. Perhaps at that time, it was the only way to increase sales, but it was very difficult to achieve marketing goals using only advertising. In addition, large companies usually spend very high budgets on advertising, which makes it more difficult for small companies. Because financially, they could not compete with big companies. But this is for twenty years ago. This is no longer the case these days. Because anyone with an internet connection and enough knowledge can earn money by using sales cooperation or affiliate marketing, in addition to helping brands grow and increase their sales. As a result, this is a win-win deal for both businesses and affiliate marketers.
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What is affiliate marketing?
Affiliate marketing is a marketing method based on performance or Performance marketing, which is used to optimize unnecessary expenses in the marketing budget. With the increase in advertising costs, businesses have turned to newer methods, including the implementation of an affiliate marketing system or cooperation in sales, in order to make the best use of their marketing costs and also to obtain the best results. Using these methods, in addition to minimizing costs, will attract more customers and thus increase sales.
How does affiliate marketing work?
Affiliate marketing is an advertising strategy where businesses partner with another person or company as a publisher or affiliate marketer. In this way, the affiliate marketer helps the company to increase sales by publishing advertisements for the product and services of that brand and placing links to landing pages on its website or social networks. When the user visits the publisher’s website or social network, clicks on the existing link and buys from it, the affiliate company pays a percentage as a commission to the publisher. Typically, payments can be based on the number of clicks, leads or sales generated.
Affiliate marketing in the world
In order to know how far affiliate marketing is growing, I draw your attention to the 2022 affiliate marketing statistics in the world:
- More than 80% of marketers allocate 10% of their budget to affiliate marketing.
- Collaborative sales systems help brands generate between 15 and 30 percent of total sales.
- Out of every 10 brands, 8 brands use sales cooperation programs.
- 2% of affiliate marketers say they earn more than $20,000 a year.
- 94% of content creators use multiple sales collaboration systems.
- The total value of the affiliate marketing industry is about 12 billion dollars.
- 40% of marketers believe that sales collaboration is an essential skill.
- Approximately 25% of collaborative sales activities are conducted in the fashion industry.
- Affiliate marketing is responsible for 16% of the global sales of electronic commerce (E-commerce).
A look at future affiliate marketing trends
Many of you may be interested to start working as an affiliate marketer and earn money.
Influencers will play a more colorful role
Influencers or influential people in social networks have many fans and are trustworthy and knowledgeable in the eyes of their audience. For this reason, brands will take advantage of this and use influencers in their sales cooperation programs.
High income areas in affiliate marketing
In addition to the field of fashion and fashion, which has the largest share in affiliate marketing, the health, wellness and lifestyle sectors are expected to experience significant growth by 2025. Technology, personal financial management and pet care are next.