Affiliate Marketing, Boon or Bane to Industry?



Affiliate marketing goes hand in hand with business success. Since the dawn of internet, affiliate marketing has been in the online world and it has helped millions of businesses for a decade. The advantages and adversities of affiliate marketing are not hidden from anyone. In fact, the knowledge about affiliate marketing is so vast and complex that everyone has developed his own opinion about affiliate marketing, its benefits and its drawbacks. Here is a brief look at how affiliate marketing is affecting the business industry:


What is Affiliate Marketing?

Affiliate marketing is amongst the most deployed marketing strategies by business organizations. In this type of marketing, an advertiser gets in touch with marketing partners for the sake of customer acquisition through brand promotion. The marketing partners work as a rapport between the advertiser and the customer. These partners get commission based on the amount of traffic they bring on an advertiser’s page or business. As a result, the business organizations or any other advertiser generate more sales and leads via customer acquisition. This system of commission-based traffic generation and consumer acquisition is also termed as funnel ie channel marketing.

The current scenario:

Affiliate marketing is constantly evolving and has reached a good degree of recognition by almost all kinds of business organizations, here is why:


A Fairly Big Industry:

According to the recent reports, affiliate marketing has become a fairly big industry with more and more advertisers and marketers connecting with it on daily basis. If you are wondering how big is this industry, then the figure of $1 billion is enough to give you an idea.  These numbers alone speak volumes about the tremendously proliferating industry which the affiliate marketing has now taken the shape of.


Introduction of New Streams:

In the past, business organizations were limited to advertising their brand and services by using marketing partners only. The strategies were more or less limited to advertising on affiliate’s channels only. However, the affiliate marketing has recently welcomes two new streams i.e the influencer marketing and partnerships. The former focuses on consumer acquisition derived by advertising the brand on an social media influencers (mostly bloggers and vloggers)  page. Partnership is mainly focused on mutual advertisement by business organizations which partner to promote each other.

Undoubtedly, the discovery of these two new streams of affiliate marketing harbinger the advent of a new era and prove that affiliate marketing is here to stay for a long time to come.

High Impact Factor:

Affiliate marketing is the highest ROI generating strategy for business organizations. In fact, over 15 to 20% of the total income generated by business industry relies on a total of 80% affiliate marketers in marketing niche overall. Although affiliate marketing is slow to pay off but it is something that keeps on giving and giving for a long time to come.


Threats to Affiliate Marketing:

If in any manner the future of affiliate marketing comes to peril, the following reasons would be major contributors towards it:


Introduction of New Marketing methods:

Social media marketing, smartphone advertising and SEO have high chances of replacing Affiliate marketing if these methods continue to advance at the present pace. It is true that entrepreneurs like to take charge of everything and affiliate marketing is not among their most favorite options for brand promotion.


Saturation of Affiliate Marketing Industry:

The biggest challenge which the industry of affiliate marketing is facing today is the saturation of marketplace. Each day, dozens of affiliate marketers are added to the chain and no one can truly assure the reliability of their skills and expertise. Businesses are struggling with finding the right kind of reliable affiliate marketer and slowly giving up this strategy.

Lack of control:

With the addition of several consumer channels in the marketing funnel, affiliate marketing often gets hard to control. Although you can easily monitor the success of affiliate marketing, you may face plenty of challenges if you are looking for keeping it transparent. If proper control is not administered on affiliate marketing industry, it may soon perish to nothing but a chapter of history.


In short, affiliate marketing contains some amazing opportunities for the business organizations to grow in a slow but continuously rewarding manner. However, if it is not looked to in an organized manner it can soon end up in a worse shape.


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