{"id":100631,"date":"2023-09-21T12:59:49","date_gmt":"2023-09-21T12:59:49","guid":{"rendered":"https:\/\/www.authorityhacker.com\/?p=100631"},"modified":"2024-03-04T14:38:27","modified_gmt":"2024-03-04T14:38:27","slug":"is-affiliate-marketing-dead","status":"publish","type":"post","link":"https:\/\/www.authorityhacker.com\/is-affiliate-marketing-dead\/","title":{"rendered":"Is Affiliate Marketing Dead In 2024? (Stats Don’t Lie)"},"content":{"rendered":"\n

If you read the posts in the average affiliate marketing Facebook group, you\u2019re bound to see some people claiming that the industry is in a death spiral. <\/p>\n\n\n\n

However, the results from our affiliate marketing survey<\/a>\u00a0show that this is a vocal minority. 83.1% of respondents say they\u2019re optimistic about the future of the industry, and forecasters predict the global affiliate market size will grow by 63%<\/a>\u00a0in the next four years. <\/p>\n\n\n\n

When you look at the raw data, it seems that the answer to \u201cIs affiliate marketing dead?\u201d is a resounding no. <\/p>\n\n\n\n

However, the latest changes to the industry \u2013 including AI content and turbulent search algorithm updates \u2013 seem like the most disruptive yet. <\/p>\n\n\n\n

It\u2019s worth examining both sides of the argument to see if the naysayers are simply spouting their usual negativity \u2013 or if they\u2019re on to something few others are seeing.<\/p>\n\n\n\n

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Why Do Some Think Affiliate Marketing Is Dead?<\/h2>\n\n\n\n

Let\u2019s walk through the most common reasons people say the affiliate marketing industry is done for and see if their points have any merit. <\/p>\n\n\n\n

Competition Is Always Growing<\/h3>\n\n\n\n

Affiliate marketing competition has never been higher. It\u2019s been around since the early days of the Internet, and it\u2019s now a well-understood method for making money online. It\u2019s also easier than ever to get started thanks to wide-coverage programs like Amazon Affiliate and the availability of WordPress and other modern CMS\u2019s to build websites.<\/p>\n\n\n\n

These days, even huge brands and publications are involved in affiliate marketing. They tend to dominate high-value products and keywords, too. A good example of that is this article from BobVila.com that targets \u201chome products\u201d and tells you right up front they\u2019re using affiliate links:<\/p>\n\n\n\n

\"Affiliate<\/figure>\n\n\n\n

There is still opportunity in affiliate marketing<\/a>, but you have to work harder and smarter than ever to be successful.<\/p>\n\n\n\n

Rules and Regulations Are Becoming Tougher<\/h3>\n\n\n\n

Privacy laws and regulations all around the world are becoming tougher and more widespread. And, while they often share core principles, each new standard introduces new guidelines that websites need to account for.<\/p>\n\n\n\n

For instance, a glance at the map of global privacy laws<\/a> from DataGuidance shows that Europe (GDPR), the United States (CCPA and others), and Canada (PIPEDA) all have different privacy standards.<\/p>\n\n\n\n

In the U.S. alone, the IAPP Privacy Legislation Tracker<\/a> shows 16 states with privacy laws in place or active bills as of August 2023. More than a dozen other states have proposed bills that are currently inactive.<\/p>\n\n\n\n

Brands like Amazon and eBay often have their own standards for affiliate disclosures<\/a>, too. Add it all together, and keeping an affiliate website in compliance is a tedious undertaking. <\/p>\n\n\n\n

Amazon Constantly Changes Their Commission Structure<\/h3>\n\n\n\n

Amazon is the most popular affiliate network<\/a>, and the one that most people start with. Many affiliate marketers like it because it features products that fit just about every niche.<\/p>\n\n\n\n

But Amazon is constantly changing its commission structure, and there\u2019s been a clear downward trend in recent years. Creators are making less from Amazon over time, and as the commission rates fall, so does the profit margin for content production. <\/p>\n\n\n\n

For instance, between 2019 and 2023, Amazon slashed the commission for many of the most popular product categories. <\/p>\n\n\n\n

Category<\/th>Old Rate<\/th>New Rate<\/th>% Change<\/th><\/tr><\/thead>
Home<\/td>8%<\/td>3%<\/td>-62.5%<\/td><\/tr>
Home Improvement<\/td>8%<\/td>3%<\/td>-62.5%<\/td><\/tr>
Furniture<\/td>8%<\/td>3%<\/td>-62.5%<\/td><\/tr>
Pet Products<\/td>8%<\/td>3%<\/td>-62.5%<\/td><\/tr>
Lawn & Garden<\/td>8%<\/td>3%<\/td>-62.5%<\/td><\/tr>
Beauty<\/td>6%<\/td>3%<\/td>-50%<\/td><\/tr>
Headphones<\/td>6%<\/td>3%<\/td>-50%<\/td><\/tr>
Outdoors<\/td>5.5%<\/td>3%<\/td>-45%<\/td><\/tr>
Sports<\/td>4.5%<\/td>3%<\/td>-33%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Brands Are More Selective than Ever<\/h3>\n\n\n\n

With increasing competition among creators, brands can be more selective when choosing their affiliates. Screening has become more stringent, and beginners often have trouble meeting the requirements.<\/p>\n\n\n\n

That\u2019s especially true if you\u2019re applying to a top-earning affiliate marketing program. It\u2019s not uncommon to be turned down on your first try. For example, here\u2019s a rejection email I received from an affiliate program<\/p>\n\n\n\n

\"Affiliate<\/figure>\n\n\n\n

SEO Changes Can Squash Profits<\/h3>\n\n\n\n

Constant Google algorithm updates can shake up the search engine results pages (SERPs) and can tank your organic traffic. As a site owner, that leaves you scrambling to maintain or regain rankings by updating your content. <\/p>\n\n\n\n

On the flip side, great evergreen or targeted content may benefit from Google changes.<\/p>\n\n\n\n

Either way, changes in traffic lead to changes in affiliate commissions. If your visitor count plummets, your affiliate revenue will too. <\/p>\n\n\n\n

A painful example of the effects Google algorithm changes can have is GearHungry.com<\/a>, who got hit hard with Core Updates in 2020 and 2021:<\/p>\n\n\n\n

\"GearHungry<\/figure>\n\n\n\n

This site made huge gains from early 2018 through late 2019, but those were all wiped out by April of 2021. Overall, they lost millions of monthly visitors to their product review pages, all of which are monetized with affiliate links.<\/p>\n\n\n\n

Possible Scams Erode Creator Trust<\/h3>\n\n\n\n

Affiliate marketing is a magnet for get-rich-quick programs that target content creators. The glitzy promotional campaigns often associated with these schemes can make them feel cheap and scammy.<\/p>\n\n\n\n

Some of the programs really are nothing but scams<\/a>, while others are just gimmicky repackaging of old ideas. But all of them can make affiliate marketing as a whole seem illegitimate, eroding trust in the industry.<\/p>\n\n\n\n

It was a really bad look, for example, when SteathGenie got shut down by the FBI<\/a>.  This illegal spy app promised huge commissions and high-intent keywords that (almost) lured in<\/a> successful affiliate marketers \u2013 including us! <\/p>\n\n\n\n

\"Stealthgenie<\/figure>\n\n\n\n

To make matters worse, people often mistake affiliate marketing for multi-level marketing<\/a>, or MLM. But, while the two share a few basic aspects in common, they\u2019re worlds apart when it comes to legitimacy in generating income.<\/p>\n\n\n\n

AI Is Changing the Affiliate Marketing Industry<\/h3>\n\n\n\n

Since the release of ChatGPT at the end of 2022, the AI explosion has made affiliate marketing easier in several ways:<\/p>\n\n\n\n