With the growth of influencers, social media, and the ability to turn an online presence into a full-time job, we have seen the birth and rise of affiliate marketing.
What Is Affiliate Marketing?
Affiliate marketing is a performance-based model in which individuals (affiliates) earn commissions for promoting another company’s products or services, typically through unique tracking links. When someone buys or takes a desired action (such as signing up) after clicking an affiliate link, the affiliate is paid a percentage of the sale or a flat fee, effectively serving as an outsourced sales team for the business.
It’s a popular way for bloggers, influencers, and content creators to generate income by recommending products that they trust.
Social media platforms have integrated shopping features that simplify affiliate marketing. TikTok Shop, Instagram Shopping, Pinterest Shopping, and YouTube Shopping let affiliates tag products directly in their content, making it easier for followers and viewers to buy without leaving the app.
This integration helps to reduce friction in the buyer’s journey. Rather than clicking out to a website, customers can complete purchases within the social media app where they’re already engaged with the content.
The Three Types of Affiliate Marketing
Unattached Affiliate Marketing
Unattached affiliates have no connection to the products they promote. They typically run paid ads or SEO campaigns to drive traffic to affiliate links without personally using or endorsing the products.
This approach often generates the lowest conversion rates due to a lack of trust and authority behind the recommendation.
Example: A ‘best product’ review site that ranks products/top picks.
Related Affiliate Marketing
Related affiliates promote products in their niche or category but haven’t personally used them. This leverages existing audience trust in the affiliate’s expertise, even when specific product experience isn’t there.
Example: A fitness influencer promoting workout equipment they haven’t used.
Involved Affiliate Marketing
Involved affiliates only promote products they’ve personally used and genuinely recommend. This is the most authentic approach, as affiliates have tested the product, experienced its benefits, and can be more honest with their audience.
This authenticity builds trust and typically generates the highest conversion rates.
Example: A beauty influencer promoting skincare products they use daily.
Affiliate Marketing Payment Models
Affiliate programs compensate creators using one or more of the following models:
- Pay-Per-Sale (PPS): Earn a percentage of each sale.
- Pay-Per-Click (PPC): Earn money when someone clicks your affiliate link, regardless of whether they purchase.
- Pay-Per-Lead (PPL): Earn when someone completes a specific action, like signing up for a free trial.
- Pay-Per-Install (PPI): Earn when someone downloads and installs an app or software.
- Recurring Commissions: Earn ongoing commissions for subscription products.
Many affiliate programs combine models. Software-as-a-service (SaaS) companies often offer recurring commissions, whilst e-commerce brands typically use pay-per-sale.
Average affiliate commission rates vary by category:
- Apparel & Accessories: 8–15%
- Beauty & Personal Care: 10–18%
- Health & Wellness: 8–15%
- Food & Beverage: 8–12%
- Electronics & Gadgets: 5–10%
- Home & Lifestyle: 8–12%
- Sport & Outdoor: 8–12%
- Jewellery & Accessories: 10–15%
- Pet Products: 10–15%
Pros & Cons of Affiliate Marketing
Minimal Costs
There are very few costs associated with affiliate marketing. There may be small content creation costs, or some affiliate programmes may charge a fee, but there are no significant overheads.
Easy to Set Up
Almost anyone can get started with affiliate marketing by following a few simple steps. It becomes more effective if you already have an audience, but one can be built over time.
If a product doesn’t perform, you haven’t lost inventory. You can simply shift your focus to better-performing products.
Scalable Across Products & Services
Affiliate marketing can be applied across almost any product or service. You can focus on higher-commission opportunities, although these may be less frequently purchased by your audience.
Commission-Based Earnings
Income depends on performance. If no one purchases through your link, you won’t earn revenue.
Crowded Market
Whilst easy to enter, affiliate marketing is highly competitive. Standing out requires consistent effort, strong content, and audience trust.
Income Uncertainty
Earnings can fluctuate significantly. Some months may perform well, whilst others may be quiet, so financial planning is essential.
Affiliate Marketing Channels: Where to Promote
The most successful affiliates diversify across channels rather than relying on a single traffic source.
Blogging: SEO Drives Consistent Traffic
Blog posts can generate organic traffic for years. Product reviews, comparisons, and how-to guides work particularly well when optimised for search.
Social Media: Engage Audiences Where They Are
Platforms like Instagram and TikTok allow direct engagement through posts, stories, and video. Always disclose affiliate relationships clearly using tags like #ad or #affiliate.
YouTube: Video Builds Trust
Video content allows users to see products in action. Place affiliate links in descriptions and reference them within the video.
Email Marketing: Own Your Audience
Email gives you direct access to your audience without relying on algorithms. Focus on value-led content and segment your audience for better targeting.
Podcasting: Build Stronger Connections
Podcast listeners often trust host recommendations. Use show notes and exclusive codes to drive conversions.
Getting Started with Affiliate Marketing
Where to Find Affiliate Programmes
- Direct from Brands: Many companies run their own programmes.
- Affiliate Networks: Awin, CJ Affiliate, Impact, and ClickBank.
- Amazon Associates: Easy entry, lower commission (1–10%).
- Shopify Affiliate: Earn for referring new merchants to Shopify.
- Platform-Specific: TikTok Shop, YouTube Shopping, Instagram Shopping.
- LTK: LikeToKnowIt connects creators and brands.
The Legal Bit
Affiliate marketing in the UK is regulated by the Advertising Standards Authority (ASA) under the CAP Code.
The CAP Code applies because affiliates are paid to promote products.
You must clearly disclose affiliate relationships to remain compliant and avoid penalties. Transparency is essential.
You Might Find Interesting
- Our guide on What is Content Marketing
- Our guide on Google Ads vs Meta Ads
- Our guide on How Does Pay-Per-Click (PPC) Marketing Work