We all want to get into affiliate marketing because it’s a lucrative business, but how much do people actually make there? How rare are “top earners” and can beginner affiliates even compete? Let’s take a look at cold stats to find out!
How much can you make in affiliate marketing in 2020? Or, rather, how much can you really make in the affiliate marketing business?
On the one hand, we all see the famous “dot com moguls” like Jeremy Schoemaker, John Chow, and others, who earn crazy money from their affiliate marketing business. We get so excited and inspired. On the other hand, we follow all the tips they teach us, we (seemingly) do the same, yet… We never even earn enough to be eligible for a payout.
Why is that?
There are many reasons, and in this blog post, we will cover the actual affiliate marketing statistics, payouts, affiliate mistakes, and see what you can do to maximize your profit potential.
How much can you make from affiliate marketing? (2020 Update)
- Top affiliates and influencers make over $100k a month from affiliate sales (influencers such as Pat Flynn, John Chow, Rae Hoffman, Mark Ling, Kristy McCubbin, and Shawn Collins).
- Middle-class affiliates make anywhere between $1k to $10k a month.
- New affiliates generally have ZERO affiliate earnings.
Anil Agarwal from Bloggers Passion made $200k in sales just from just one affiliate marketing product, see a screenshot of his earnings below.
James Njenga from Freelancing Hackers made over $7876 last year through the Amazon Associates affiliate program, have a look at his inspirational screenshot.
1 – How Are You Get Paid In Affiliate Marketing?
How much you earn directly correlates with how much you get paid.
By that, I mean the percentage you earn from the affiliate sale. Are you promoting a $5 Amazon product and get a 2% commission, or do you promote a hosting server and get a fixed $220 commission per sale? You will need to sell so many more $5 products with a low affiliate percentage payout, compared to referring customers who will purchase just one hosting deal.
This also means you need to put significantly more effort and build a higher traffic website to reach the same amount of revenue. This brings us to our first affiliate marketing tip of the day:
Affiliate marketing tip: work smarter, not harder.
2 – Is Affiliate Marketing Still Profitable?
To answer this question, we need to explore some cold facts. or watch the legendary Jeremy Schoemaker:
Undoubtedly, we have all seen infographics from 2010 where profits were insane, and internet moguls were wealthy. But that was 10 years ago. Since then, the affiliate marketing scene has changed, competition is like never before, and business models change rapidly. We have to look at 2020 stats to get a better picture.
3 – Affiliate Marketing Stats and Facts
Let’s start with 15 facts about affiliate marketing in 2020; you never knew before.
- Affiliate marketing in the US has reached $6.8 billion in 2020 (Source: Statista)
- 15%–30% of companies’ sales come from referral programs or affiliate marketing plans.
- 48% of affiliate marketers globally earn $20k a year (which is $1660 a month).
- Only 3% of all affiliate marketers are making over $150k a year.
- Only 34% percent of affiliate marketers are willing to invest in PPC to generate traffic and exposure. (Source: Affiliate Marketing Benchmark Report)
- Most affiliate marketers promote between 1 to 10 products only and only 7.53% of the affiliate marketers promote over 300 products (remember – work smarter, not harder).
- 80% of all brands leverage affiliate marketing in order to generate leads. (Source: Mediakix)
- 84% of bloggers use affiliate marketing to monetize their content. (Source: Rakuten Marketing)
- The affiliate marketing industry is worth $12 billion (as of 2020).
- The fashion and retail affiliate niche generates the highest revenue % globally. (Source: AM Navigator)
- The US affiliate marketing spending is perceived to grow by 10.1% each year. (Source: Mediakix)
- The interest in the search term “affiliate marketing” is consistently increasing for the past five years. (Source: Google Trends)
- In most affiliate marketing programs, 10% of affiliates contribute 90% of sales (which is even less than the famous Pareto principle). (Source: AM Navigator)
- 45% of bloggers prefer affiliate marketing because it doesn’t harm the UX on their website, unlike ads. (Source: VigLink)
- Digital products usually offer 50% affiliate commissions because they can be replicated at zero expense. (Source: Neil Patel)
What can we learn from these (apparently random) stats? And what does it tell us about our primary question – how much can you make from affiliate marketing in 2020?
- Making money from affiliate marketing is hard because everyone is doing it, and the competition is fierce.
- Most affiliate sales are run “invisibly” through coupons, deals, offers, review blog posts, and other sources where the author recommends the product instead of trying to flog it or use a display ad.
- Promoting digital and virtual products is profitable because there are no shipping or handling fees, and commissions are generally a lot higher. For example, at Scaleo we offer 30% lifetime commissions on all our plans, only because we are selling an affiliate marketing software and can afford to reward our affiliates more.
- Half of all affiliate marketers earn approximately $1660 a month, on average.
Affiliate marketing is an extremely lucrative niche, with billions of dollars in circulation, but not everyone makes it to the top.
Also check out our other popular articles:
The fierce competition resulted in many spam websites, spam emails, fake reviews, and fraud marketing schemes, all for the sake of ripping a piece from a very creamy cake we call “affiliate marketing revenue.”
After trying out in an affiliate marketing business, many people give up simply because they cannot earn enough even to cover the costs of their websites.
How to make it to the top 3%?
That’s a million-dollar question, literally.
If you want to maximize your affiliate revenue, you have to study the market and the competition.
How to choose a profitable niche for affiliate marketing?
Picking a topic just because you love it, isn’t a great idea. Imagine wasting so much time and energy, building an affiliate website on a topic that you like only to discover that there aren’t many valuable goods you can promote and sell.
If you love your niche – it’s great, but remember that it has to make money. That’s where you should begin, find a topic or a niche that is packed with useful products, so you will know you can make a profit there, even though it’s more convenient to write and work in a niche you like.
However, having an interest in your niche will make it easier for you to know your future audience, produce better content, and be more creative. This will help you market your website and your affiliate products, and you will see that when you make a significant increase in revenue.
- Health Niche (weight loss, quit smoking, yoga, muscle building, etc.)
- Dating Niche (dating advice, online dating apps, etc.)
- Making Money Online Niche (blogging, marketing, affiliate marketing, SMM, etc.)
- The ‘Learn to sing or play an instrument’ niche.
- Learn to speak another language
- The Green Energy Niche (solar power, alternative energy, recycling)
- Spirituality and Alternative Beliefs (personal development, manifestation, astrology, tarot, etc.)
- The Survival Niche (home defense, grow your own food, and recently, coronavirus).
Read our post on how to find a profitable affiliate marketing niche.
This list doesn’t mean you cannot promote other products or dive into a different niche. It simply means that these are highly competitive niches, where payout per sale is generally higher.
While you can make money through affiliate marketing in (probably) every niche, as we said earlier, it pays out to work smarter. Why not look into a niche that is already converting and selling well?
Choosing The Best Affiliate Network
According to the most recent statistics (2020), the most popular affiliate networks are:
- ShareASale: This network has more than 2,500 CPA programs to choose from. Looking through ShareASale’s offers, you will definitely find a product in your niche to promote.
- Commission Junction: CJ works with more than 3,000 brands, which you can promote and make money off. This is by far the largest pool of affiliate offers.
- ClickBank: ClickBank is similar to ShareASale – getting started is simple, thanks to its consumer-focused UI and approach.
- Amazon: It should come as no surprise that Amazon is always a safe bet for many affiliate e-shops. There are literally millions of products to promote, and you receive a commission from the customer’s entire purchase (not only the item you promoted).
Watch Nate O’Brien’s video on Top 10 Affiliate Marketing Programs For 2020:
In the chart below, you can also see, which affiliate marketing platforms are the most popular:
As you can see, the network you choose to operate in can have a direct impact on your earnings. Bigger networks tend to have a wider variety of vendors you can promote, more organized payouts, and typically more flexibility. If you are just starting out, I recommend you join one of the top affiliate marketing networks. You will find them easy to use, therefore easy to get started with affiliate marketing in general, and a higher chance of closing a sale because the tracking system would be flawless.
How to maximize your affiliate earnings on a blog?
When incorporating affiliate links in your content, keep in mind social a few tips that will help you make more money with affiliate marketing, regardless of the niche you promote or the network you work with:
- Only promote items you would have bought yourself.
- Build trust with your readers. Don’t try to sell right away.
- Be honest and personal. There is no replacement for your own voice, tone, and style.
- Storytelling: Your readers need to hear the “story” behind the items you wear/buy/promote, not just see a bunch of hyperlinked keywords in the context.
- Build a relationship with your audience; engage with them on social media or via email.
- Make it clear to your readers that you live your dream life – they would want a piece of it too.
- Focus on a micro-niche (we have a great blog post about it!)
- Be open about how you earn money on your blog or on social media. Let your audience know what happens when they click on your affiliate link. If they trust you and want to support you, they’ll be pleased to buy through your affiliate links.
Conclusion – How Much Can You Make in Affiliate Marketing in 2020?
If you are planning to start an affiliate marketing in the near future, be sure to bookmark this page, as we will frequently update it with new statistics and data, as it comes.
The affiliate marketing industry is expanding consistently. According to Statista, spending in affiliate marketing in the U.S. alone are expected to hit the to $8.2 billion benchmarks in 2022. There is definitely enough room for everyone to make money, but you have to study the market and know what you are doing. Good luck!