More than 15% of people who do affiliate marketing earn over $50,000. That’s passive income, which means you make money from anywhere and at any time.
Making money like that with affiliate marketing is tempting, to say the least.
No wonder the affiliate industry is valued at all time high—$17 billion and it continues to grow.
In order to better understand this business and become an affiliate in your niche, it’s important to know how it works.
This article explains 3 main types of affiliate marketing: unattached affiliate marketing, related affiliate marketing, and involved affiliate marketing.
We explain which affiliate type is the most profitable, as well as what types of affiliate marketers are the most successful right now.
What are the types of affiliate marketing?
There are three major types of affiliate marketing that show how people earn money as an affiliate:
1. Unattached affiliate marketing is when you promote products or services without having any personal connection or expertise in the niche.
Unattached affiliates simply share information but are not involved in service or product on a personal level.
2. Related affiliate marketing is when you promote products or services that align with your audience's interests or the theme of your social media channels or website.
In related affiliate marketing, an affiliate doesn't necessarily personally use them.
For example, a fitness blogger can promote workout equipment they haven't tried but know their audience would appreciate.
3. Involved affiliate marketing is when you promote products or services you've personally used and believe in.
This type of affiliate relationship builds trust and credibility with your audience.
Essentially, an involved affiliate is vouching for the service's quality based on their own experience.
Which affiliate marketing type should you choose?
There are pros and cons to every affiliate marketing method, so here's a simple breakdown of what to expect:
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1. Unattached Affiliate Marketing
It's the most basic pay-per-click affiliate marketing campaign where an affiliate doesn't possess authority in the niche of things they promote.
As an affiliate, you essentially act as a neutral advertiser, and you have no personal connection to the products or services you promote.
In unattached affiliate marketing, you typically rely on paid advertising. You're not an expert in the niche, nor have you used the product yourself.
You're simply the messenger, sharing information about a product or service with your audience in exchange for a commission if they make a purchase.
Pros:
- Low barrier to entry: You can promote products in any niche, regardless of your expertise. Anyone with a social media platform and the audience can get into unattached affiliate marketing.
- Wide range of services and products: You're not limited to a specific niche, which gives you flexibility in what you promote.
- Potential for high volume: With targeted advertising, you can reach a broad audience.
Cons:
- Lower conversion rates: Building trust can be challenging without personal experience or expertise.
- Competition: Many affiliates operate in this space, making it harder to stand out.
- Dependence on advertising: You often rely heavily on paid advertising like Google AdWords or Facebook Ads to reach your audience.
- Not a real business model: The problem with unattached affiliate marketing is that since you don’t build a relationship with the user, there’s really no business relationship. Rather, this type of affiliate marketing can be viewed as an income generating model that lacks long-lasting approach.
- Targeted ad campaigns that drive traffic can get very expensive.
Example:
You run a general lifestyle blog and come across an ad for a new type of coffee maker.
You join the affiliate program and include a banner ad or link in your blog post, promoting the product to your readers.
If someone clicks on your link and buys the coffee maker, you earn a commission.
Who it's best for:
Unattached affiliate marketing is ideal for those new to affiliate marketing or those who prefer a hands-off approach.
On the other hand, unattached affiliate marketing is not a lasting business model since without your personal involvement you act as a middle-man.
2. Related Affiliate Marketing
It’s when you have an online presence through a blog, a podcast, or social media and you share affiliate links to services and products that relate to your theme. However, that doesn’t mean you use them.
This affiliate model is based how relevant the product is to your audience.
You may not have used the product yourself, but you understand its value proposition and how it fits into the broader context of your content.
Having a platform to share these affiliate links and not relying solely on targeted ads mean you have a level of authority, even if it’s low, for people to trust you and make a purchase.
Pros:
- Higher credibility: Promoting products related to your niche establishes you as a knowledgeable resource.
- Increased engagement: Your audience is more likely to be interested in products relevant to their needs and interests.
- Better conversion rates: Trust and interest lead to a higher likelihood of purchases.
Cons:
- Limited niche: You're confined to promoting products within your specific area of focus because that’s what your audience wants.
- Requires research: You need to stay informed about new products and trends in your niche. You have to rely on proper and legit resources in order to make trusted claims about products you never used yourself.
- Potential for bias: Even without personal use, it's important to remain objective in your recommendations.
- Not a quick fix: It can takes a long time and affiliate marketing strategy to generate substantial income.
Example:
You run a travel blog and partner with a luggage company.
You haven't personally used their suitcases, but you understand the needs of travelers and know that high-quality luggage is essential.
You write a blog post recommending their products based on your research and the brand's reputation.
Who it's best for:
Related affiliate marketing is well-suited for those with an existing audience and a clear niche they specialise in.
If you don’t have a solid communication channel to promote your affiliate partnership, or if you still haven’t chosen a clear niche for your products and services, this type of affiliate marketing is not for you.
3. Involved affiliate marketing
When people think of affiliate marketing, involved affiliates is the first thing that comes to their mind.
Involved affiliate marketing is based on your involvement and experience in the services and products you promote. The more involvement, authority, and expertise you have among your audience, the more irresistible it will be.
Involved affiliate marketing is the opposite of the Pay-Per-Click model in which the customers know you or even see you.
In unattached affiliate marketing, you essentially pay money to earn money, but in involved affiliate marketing, you speak directly to your customers.
That’s why you only promote products or services that you've personally used and genuinely believe in.
This approach creates a deep sense of authenticity and trust with your audience, as you're vouching for the product based on your firsthand experience.
Transparency and honesty are some of the biggest authority-building factors in the involved affiliate model.
Pros:
- Highest credibility: Your recommendations carry significant weight as they stem from your personal use.
- Stronger connection with the audience: You share your experiences, creating a relatable bond.
- Long-term partnerships: Brands value authentic advocates, leading to lasting relationships.
- Highest conversion rates: your affiliate ads are much more attractive to people when they come from your personal contexts, like experience, trial and error, skills, and expertise. That’s why an involved affiliate partnership is the most profitable affiliate model.
Cons:
- High responsibility: every product or service you promote means you vouch for it from a personal experience. If the thing you promote doesn’t live up to its promise, it can easily backfire, and you will be the one taking the blame.
- Limited product selection: You're restricted to promoting products you've personally tried and liked.
- Time investment: Testing and reviewing products requires time and constant dedication.
- Negative reviews: Honesty is key, even if it means sharing less-than-positive experiences.
- Forget the income, focus on people: contrary to unattached and related affiliate marketing, you must first serve your audience and give them valuable content. Your focus should not be set on generating income but on giving your followers the best advice you can.
Who it's best for:
Involved affiliate marketing is perfect for those with a strong passion and expertise for specific products or niches.
It’s also the best affiliate method if you already have a solid base of followers and have already established yourself as a thought leader in your subject area.
Types of affiliate marketers
It’s important to note that individuals (affiliates) normally specialize in different affiliate marketing models.
An affiliate marketer is an individual who promotes a company's products or services in exchange for a commission on the sales or leads they generate.
Affiliate marketers operate through an affiliate program, which tracks the sales or leads they generate using unique referral links or codes.
Here are the main types of affiliates:
1. Webmaster affiliates:
These website owners can promote your products through display ads, newsletters, and social media posts. They are now known as "publishers" and often have websites related to your niche. Recruiting relevant webmasters can bring quality traffic to your business. For example, TripAdvisor showcases affiliate links to hotels and travel services.
2. Search marketing affiliates:
These affiliates optimize content for search engines or run PPC ads. They are valuable because they generate targeted traffic through search phrases. However, set rules to avoid them bidding on your company name to ensure genuine new visitors. For example, NerdWallet runs PPC campaigns for financial products.
3. Social media affiliates:
They use social networks like Facebook, Twitter, Instagram, and YouTube to promote your brand. Working with influencers in your niche can effectively drive new customers. You can provide them with dedicated codes or URLs to track performance.
4. Blogger affiliates:
Bloggers can reach wide audiences through product reviews, sponsored posts, and email blasts. They can also refer other bloggers to join your program, creating a second tier of affiliates. This network effect can significantly boost your program’s effectiveness. Wirecutter, owned by The New York Times, reviews tech and home products with affiliate links.
5. Coupon site affiliates:
These affiliates rank for your company’s coupon codes and capitalize on your existing traffic. While effective for showing affiliate channel sales, pay them lower commissions to maintain ROI. RetailMeNot offers coupon codes and cashback for online shoppers.
6. Review site affiliates:
Great for niches where customers compare services or products, like dating or software. They drive sales by reviewing and comparing companies. They can also do PPC for related search phrases, making them productive affiliates. CNET provides reviews and comparisons of tech products and earns through affiliate links.
7. Loyalty portals:
These affiliates run cashback sites or membership portals. They can drive a lot of traffic but require careful monitoring for fraudulent activities. Use a robust order reconciliation process to ensure quality referrals. Rakuten offers cashback for shopping through their portal.
8. Incentivized traffic affiliates:
These affiliates offer points or credits to users for making purchases. Watch closely for valid orders and avoid this model for lead generation, as it might lead to buyer's remorse.
9. Email marketing affiliates:
These affiliates have email lists and can market your offers directly. Email-oriented affiliates can be some of the best if they have a quality email list. However, it’s important to implement strict policies to ensure regulation compliance. For example, Wowcher sends daily deals and offers to their email subscribers.
10. Large web properties:
High-traffic websites can expose your affiliate ads to a broader audience. Typically accessible through large affiliate networks like CJ or Impact, these affiliates can drive substantial traffic and sales. For example, Bored Panda hosts various affiliate links integrated into its popular listicles and content.
11. Company partnerships:
Forming reciprocal revenue-sharing partnerships with non-competitive companies can be very effective. They can place your ads on their sites and include you in their newsletters, bringing new customers. Shopify partners with companies like Mailchimp for reciprocal promotion.
12. Traditional media affiliates:
TV, radio, and print ads can be done on an affiliate basis, using unsold advertising space. Track these campaigns with dedicated coupon codes, phone numbers, or URLs to measure effectiveness. iHeartMedia occasionally runs affiliate campaigns through unsold radio ad space. iHeartMedia occasionally runs affiliate campaigns through unsold radio ad space.
13. Pay-Per-Call affiliates:
Ideal for service companies, these affiliates drive phone calls to your call centers. Track calls using a dedicated phone number and ensure calls are of high quality. RingPartner specializes in pay-per-call campaigns for various industries.
14. Mobile affiliates:
These affiliates specialize in promoting through apps and mobile ads. The mobile industry is growing, making these affiliates increasingly important for reaching mobile users. Google’s AdMob serves ads inside mobile apps and games.
15. Technology affiliates:
They provide technologies like pop-up boxes and chat widgets to improve website conversions. They monetize your traffic, so carefully manage their commissions to keep profits healthy. Honey provides a browser extension for automatic discount code applications.
16. Influencers:
Social media influencers can drive sales but often want upfront payment for promotions. Use their content in your social media ads for effective marketing. Regularly create influencer-style content for various marketing channels. This is by far the most popular type of affiliate marketer.
Key Takeaways
Over 15% of affiliates earn over $50,000 in passive income, contributing to an industry valued at $17 billion.
There are three main types of affiliate marketing:
- unattached (no personal connection to the product),
- related (products that align with the audience's interests but are not personally used),
- and involved (products personally used and trusted by the affiliate).
Overall, the affiliate marketing type involved is the most profitable due to its high credibility and conversion rates.
It also has the highest potential to become a long-lasting source of income as long as an affiliate builds:
- trust
- authority
- reputation.
These three are crucial factors in becoming a successful affiliate marketer.
In affiliate marketing, there are different affiliate marketers who specialize in various affiliate methods and platforms.
For example, social media affiliates, bloggers, and email marketers all use different platforms and strategies to promote the company's services or products.
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