When you join affiliate programs, you'll notice different payment models. Programs may also refer to payment models as pricing structures, payment models, or conversion types.
A payment model tells affiliates what user behavior they'll be paid for. For example, if you're promoting a software product, the goal might be a free trial sign-up. For affiliate marketers promoting physical products, the goal will likely be a purchase.
Many affiliate marketing programs work with last-click marketing attribution, meaning the affiliate who receives the last click before the purchase gets 100% of the credit for the sale.
5 Ways Affiliates Get Paid
Per sale. Affiliates earn a commission for each sale made, canada phone directory a common payment model for e-commerce offers.
Per action. A commission is earned for a specific action such as a newsletter sign-up, contact request, or form submission.
Per install. Affiliates are paid for each install of an app or software generated.
Per lead. Affiliates are paid every time a lead is generated.
Per click. A commission is earned for each click on an affiliate link. This model can be used by large merchants with the goal of building brand awareness.
How much can affiliate marketers earn?
Data from 2023 suggests that most affiliates earn at least $1,000 a month from affiliate links promoted on social media. When combined with a website or other marketing channels, it's clear that affiliate marketing can be a profitable full-time business.
According to compensation software company Payscale, the average annual salary for an affiliate marketer is over $56,000, based on over 7,000 salary profiles. However, many affiliate marketers earn significantly more.
Generally, the larger the following, the more money you can make online as an affiliate marketer. But don't underestimate the power of a small audience of high-value customers: this can be just as profitable.
How much an affiliate earns depends largely on the niche. For example, business-related affiliate programs offer significantly higher commissions than book, media, or clothing programs.
At the same time, it's important to consider a niche's conversion rate — the likelihood of a successful referral. Weigh the value of a referral against the effort it will likely take.
Looking to increase your revenue with fewer sales? Explore high-value affiliate programs.
How to Start Affiliate Marketing in 4 Steps
Choose a Channel and Format
Determine Your Niche
Find an Affiliate Program
Choose Your First Product
1. Choose a Channel and Format
The first step to becoming an affiliate is to select a marketing channel to reach your audience and a type of content to create for that channel.
Common marketing channels include:
Organic search
Email
Instagram
TikTok
YouTube
Popular content formats include:
Product reviews
“Best of” product lists
Curated product recommendations
Product comparisons
Lifestyle content
When choosing a channel and format, consider the platforms you use the most and the formats you understand best. Starting with a familiar marketing channel can help produce high-quality content, leading to a more engaged audience.
No matter which route you choose, authenticity is key in affiliate marketing. Without a genuine connection with your audience, converting them into affiliate sales can prove challenging.