Affiliate marketing has emerged as one of the most widely adopted performance‐based strategies in digital commerce, garnering the attention of both established corporations and emerging digital enterprises. But is affiliate marketing legit?
In recent years, its legitimacy has been scrutinized by academics and industry experts alike. This scrutiny has led to a nuanced conclusion. When executed with transparency and adherence to ethical guidelines, affiliate marketing is not only a valid marketing strategy, but also a potent driver of revenue growth.
What is Affiliate Marketing?
To understand whether or not affiliate marketing is legit, you first need to grasp the principles of the strategy. Affiliate marketing refers to a revenue sharing model in which talent, usually an influencer, YouTuber or blogger, advertises a product or service. In return for this endorsement, the talent earns a commission from the merchant. Most commonly, the commission comes in the form of a percentage of each sale the talent generates.
Reputable companies such as Amazon, eBay, and Booking.com have successfully integrated affiliate channels into their broader marketing strategies, reinforcing the credibility of this marketing strategy. While challenges such as fraudulent practices and deceptive tactics (e.g., cookie stuffing or misleading “get-rich-quick” schemes) exist, these issues are typically addressed through rigorous compliance measures and advanced tracking technologies, as supported by contemporary research.
Today, companies invest in affiliate marketing for more than just sales. With competition for digital attention at an all-time high, brand awareness is just as valuable. That’s why many affiliate programs use a pay-per-click model, where affiliates earn a commission each time their audience clicks a link leading to the merchant’s website. Similarly, a pay-per-lead model rewards affiliates whenever someone clicks their link and submits their contact information.
Why Use Affiliate Marketing?
Affiliate marketing is cost-effective. Depending on the equity of the brand, some affiliates will agree to endorse the brand in exchange for free product. When commission is offered, it’s often a very small percentage of sales.
If a brand chooses affiliates who align well with its mission, these partnerships can drive traffic to its sites and improve overall brand awareness. The success of an affiliate marketing campaign depends heavily on the level of engagement from the affiliate’s audience and how authentically the two brands pair together.
It is always very apparent when an affiliate is not an actual user of the product or service. As the internet evolves, skepticism around constant ‘influencing’ has grown. It’s now common for affiliates and brands to face backlash when partnerships don’t feel authentic.
Getting Started With Affiliate Marketing
Beyond its affordability, affiliate marketing has a low barrier to entry. Merchants simply need to invest in a network that connects them with affiliates who meet specific criteria. Many platforms invite a wide variety of affiliates to link their social accounts, making it easy to assess audience size, demographics, and engagement.
Once a merchant is onboarded, the network handles key logistics, from pairing affiliates with opportunities to providing the necessary technology, such as personalized tracking links that measure activity and conversions. At the end of a predetermined period, the network calculates commissions and processes affiliate payouts.
These networks facilitate simple management of affiliates by being very data focused. At a moment’s glance, a brand can look at the network dashboard and see clearly which affiliates are providing significant return on investment.
A well-designed affiliate program not only contributes to sustainable revenue growth but also offers flexibility in audience targeting and brand positioning. Ideally, marketing teams can optimize these strategies while effectively mitigating associated risks.
Is Affiliate Marketing Dependable?
So, is affiliate marketing legit? If done right, yes. While the constant “click the link in below” call-to-action is becoming synonymous with what some find a soul sucking capitalistic marketplace, countless brands have successfully built their entire business model around affiliate marketing.
Fabletics, a women’s athleisure brand, used affiliates to scale their business. Amazon has an affiliate program in place to allow creators to link almost everything they use in their daily life. Platforms like LikeToKnowIt and ShopMy are built entirely on an affiliate model, providing simple proof that it works.
Is Affiliate Marketing Right For Your Business?
Whether or not affiliate marketing is the right choice for your business depends on your goals, audience, and resources. With the creator economy continuing to expand and online engagement holding steady, affiliate marketing offers a valuable way to diversify your marketing efforts. It can add color to your strategy without much extra labor. When executed authentically and thoughtfully, it can be a powerful tool in building long-term brand visibility and increasing sales.