How Much Can You Make From Affiliate Marketing in 2021?
How Much Can You Make From Affiliate Marketing in 2021
How much can I make from affiliate marketing? Is affiliate marketing still profitable? This question pops up every time a newbie thinks about affiliate marketing. You see successful affiliate marketers post their monthly or yearly income statistics and you wonder if you can get to that stage. You wonder if you can really make that much money from affiliate marketing.
The affiliate market industry is growing and there are stats to show that it’s not going anytime soon. You have time to grow in this space. However, how much can you make from affiliate marketing? In this article, we will talk about how affiliate marketing works and how much you can make from affiliate marketing in 2021.
How Does Affiliate Marketing Work?
Affiliate marketing involves getting a commission by simply referring new leads to a product or service by sharing your affiliate links on your social media platforms or your website. When someone clicks on your affiliate link or makes a purchase through that link, you get paid. How much you earn depends on how much you get paid for a successful referral. You could be paid a certain percentage for every deal or a flat rate.
By that, I mean you could be paid 10% for every purchase made from your affiliate link. If you are promoting a product worth $50 and the deal is to get a 5% commission for every purchase made. You can make $1000 in a month if 400 people buy that product within a month. There are also marketing platforms that charge a flat rate. That means you can get $200 every time someone purchases a product through your affiliate link.
This is why you must put effort into building high traffic to make a certain amount of money every month.
How Much Can You Make From Affiliate Marketing?
There is no definite amount of money you can make from affiliate marketing monthly or yearly. The stats vary. According to PayScale, the average one makes from affiliate marketing annually ranges between $37,000, $51,000, and $71,000. Where you fall within this range depends on how much experience and traffic you have as an affiliate marketer.
According to Glassdoor, the ranges differ. You can earn between $42,000, $65,800, and $83,000 at the end of the year depending on how much experience and traffic you have as an affiliate marketer.
In another parallel universe, ZipRecruiter forecasts that you can earn up to $155,000 at the end of the year.
The differences do not matter. What matters is that no matter what angle you look at, you make a good amount of money from affiliate marketing.
Here are some more detailed stats about how much people made from affiliate marketing in 2020.
Affiliate marketing in the US has reached $6.8 billion in 2020 (Source: Statista)
48% of affiliate marketers globally earn $20k a year (which is $1660 a month).
Only 3% of all affiliate marketers are making over $150k a year.
Only 34% percent of affiliate marketers are willing to invest in PPC to generate traffic and exposure. (Source: Affiliate Marketing Benchmark Report).
15%–30% of companies’ sales come from referral programs or affiliate marketing plans. (Source: Sales Camp)
Most affiliate marketers promote between 1 to 10 products only and only 7.53% of the affiliate marketers promote over 300 products (remember – work smarter, not harder).
80% of all brands leverage affiliate marketing to generate leads. (Source: Mediakix)
The fashion and retail affiliate niche generates the highest revenue % globally. (Source: AM Navigator)
84% of bloggers use affiliate marketing to monetize their content. (Source: Rakuten Marketing)
The affiliate marketing industry is worth $12 billion (as of 2020).
The US affiliate marketing spending is perceived to grow by 10.1% each year. (Source: Mediakix)
In most affiliate marketing programs, 10% of affiliates contribute 90% of sales (which is even less than the famous Pareto principle). (Source: AM Navigator)
45% of bloggers prefer affiliate marketing because it doesn’t harm the UX on their website, unlike ads. (Source: VigLink)
These stats prove that you can make money as an affiliate marketer. However, it also shows that you have a lot of competitors in the market. This is why you need to put more effort to get as much traffic or social media followings as you can get. What stands between you earning $37,000 yearly or $71,000 yearly is how much traffic or social media followings you get.
The affiliate marketing industry is growing and will continue to grow. If you’re wondering if affiliate marketing is worth it, I hope these stats provide the answer you’re looking for. There is room for you to make money in the affiliate marketing industry. However, you need to study your market, know your target audience, and increase your reach if you are aiming to earn above $100,000 every year with affiliate marketing.