Affiliate Marketing is a fast-emerging trend and a great money-maker at that. The 12 billion dollar industry has provided many businesses and online creators the opportunity and means to maximize their potential without investing too heavily into the process. Suffice it to say that Affiliate Marketing comes with a lot of benefits and some disadvantages too. So, today let us talk about all of these aspects of affiliate marketing so that you have a clear picture of whether to indulge in this field or not. But first let us understand, what is Affiliate Marketing.

What is Affiliate Marketing?

Affiliate Marketing
Affiliate Marketing

Affiliate Marketing is the process by which online creators & marketers earn a commission every time they bring a sale to an online retailer’s website. Affiliate marketers use different techniques and platforms to capture and guide users to online retail websites. The future of Affiliate Marketing is mutually beneficial for all three parties involved – retailers, marketers, and customers, all of whom gain extensively through affiliate marketing. The Indian affiliate marketing industry is already closing on a billion-dollar valuation, and an increasing number of businesses and marketers are joining the club daily. Here are some key statistics about affiliate marketing by Demand Sage.

  • Affiliate marketing is valued at over $17 billion in the year 2023.
  • Estimated spending in affiliate marketing for 2023 is approximately $13 billion.
  • Projections indicate significant growth, with the affiliate marketing industry expected to be worth around $27.78 billion by 2027, marking a 91% increase from 2020.
  • 83% of marketers utilize affiliate marketing to enhance brand recognition.
  • Major businesses globally generate a significant portion (5% to 30%) of their internet revenue through effective affiliate marketing strategies.
  • Remarkably, 80% of brands have established their affiliate programs.
EarnKaro Banner
EarnKaro Banner

How Does Affiliate Marketing Work?

Affiliate marketing commences when an affiliate marketer enrolls in an affiliate program. Once part of the program, a standard procedure is typically followed to initiate the process of generating sales for the affiliate’s promoted products. In this scenario, let’s assume that the affiliate program operates on a CPS (Cost Per Sale) commission model, where earnings are solely based on actual sales.

How Affiliate Marketing Works
How Affiliate Marketing Works

Here’s a breakdown of the process:

  1. You choose a product from another brand to promote on your blog, website, or social media (let’s call it “X”).
  2. A visitor clicks on your unique affiliate link.
  3. The visitor proceeds to purchase product X.
  4. The company or affiliate network records this transaction.
  5. Store X confirms the purchase.
  6. As a result of the successful sale, you receive a commission.

List of 13 Affiliate Marketing Benefits

Affiliate Marketing Benefits for Businesses

1. Cost-Effective Marketing

Illustration of a bag full of gold coins
Illustration of a bag full of gold coins

One of the primary advantages of affiliate programs is their low initial investment coupled with the potential for substantial outcomes. After the setup, these programs remain cost-effective when adhering to best practices in affiliate marketing.

Utilizing affiliate marketing software involves expenses for the software itself and affiliate commissions. However, the affiliates essentially generate free content for your business. In comparison to conventional advertising avenues like PPC (Pay-Per-Click), affiliate marketing is notably more economical.

The importance of affiliate marketing can be seen in the fact that over 80% of companies set aside 10% of their marketing budget exclusively for affiliate partnerships which makes searching for affiliate programs much easier.

2. Increased Brand Awareness

Illustration of people building blocks with Brand written on it.
Illustration of people building blocks with Brand written on it.

Affiliate marketing opens up access to untapped audiences through the affiliates’ existing networks, which would otherwise be challenging or costly to reach independently.

Another notable benefit is that affiliates utilize their platforms and have established followers, readership, or members. Collaborating with affiliates instantly grants you visibility within their network.

For instance, if you partner with bloggers whose content caters to a potential audience for your product, but they may not actively search for products online, the bloggers can effectively reach them through informative content. Similarly, collaborating with influencer affiliates with a substantial following on social platforms can be highly beneficial if you haven’t invested in a social media strategy.

Larger affiliates, in particular, have the reach to connect with a broad audience seeking special offers and discounts.

3. High Return on Investment

High ROI
High ROI Illustration

As per Truelist, approximately 16% of online orders directly result from the affiliate industry. These transactions incur minimal marketing costs.

Moreover, payments in affiliate marketing are tied to performance. You compensate affiliates based on outcomes, not their time or efforts. Typically, affiliate payment models are based on conversions. Affiliates promote your product or solution and earn a commission for each prospective customer they steer your way. This arrangement motivates affiliates to strive for optimal results while allowing you to maintain cost efficiency.

4. Quick Trackability

Performance Tracking Illustration
Performance Tracking Illustration

The ability to extract and leverage data from affiliate programs is crucial for optimizing results. Affiliate marketing analytics encompass two primary components: managing Key Performance Indicators (KPIs) and analyzing affiliate performance.

Here are some of the key metrics that you can and should monitor within your affiliate program:

  • Revenue and Return on Investment (ROI): Tracking the income generated and ROI helps gauge the program’s financial effectiveness.
  • Orders and Average Order Value (AOV): Monitoring order volume and AOV provides insight into purchasing trends and customer behaviour.
  • Clicks, Impressions, and Leads: Measuring these data allows you to evaluate the efficiency of your affiliate marketing activities in boosting traffic and interest.
  • Percentage of Earned Commissions: This metric indicates the proportion of commissions earned by affiliates relative to their potential earnings.
  • Conversion Rates: Analyzing conversion rates reveals how effectively affiliate referrals turn into actual customers.
  • Cost Per Acquisition (CPA) of Customers and Affiliates: Understanding the cost of acquiring customers and affiliates helps manage expenses.
  • Onboarding Length for Customers and Affiliates: Tracking how long customers and affiliates can become active participants in the program.
  • Customer Lifetime Value (LTV): Evaluating the long-term value of affiliate customers provides insight into the program’s viability.

Thanks to trackable affiliate links, businesses can efficiently monitor and analyze affiliate activities and their associated outcomes. This data-driven approach facilitates the optimization of affiliate marketing strategies for enhanced results.

5. Increased Traffic

Increased Traffic Illustration
Increased Traffic Illustration

Affiliates not only expand your audience but also direct them to your website. The distinctive strength of affiliate marketing lies in its effectiveness, low-risk nature, and affordability for boosting organic traffic to your site. Increased traffic enhances your website’s ranking and amplifies brand visibility, ultimately leading to higher sales and greater profitability.

6. Benefits A Variety Of Products

Affiliates Illustration
Affiliates Illustration

Ideal affiliate marketing products share these traits:

  • High-end or high-margin
  • Scalable
  • Online distribution
  • Niche relevance
  • Trending or in demand
  • Social traction and shareability

Amazon proved low-margin products can succeed, but higher commissions attract and engage affiliates. Balancing commissions, industry standards, and market offerings is vital.

Choosing products aligning with these traits attracts more affiliates and enhances engagement. Tailoring selections to resonate with the target audience boosts success.

Focusing on the most suitable product instead of a generic approach enhances campaign effectiveness, especially for businesses with diverse offerings.

A wide range of products can succeed in affiliate marketing, offering businesses an adaptable strategy for boosting brand visibility and sales. Partnering with influencers and aligning products with their audiences optimizes success.

Moreover, if you find it difficult to search for new affiliate marketing niches, well, don’t worry. Check our guide, where we have mentioned some of the best niches for affiliate marketing. Do give it a read.

Affiliate Marketing Benefits for Creators

7. Flexibility

Affiliate marketing provides exceptional flexibility for content creators. You can choose your work arrangement—full-time, part-time, or freelance. Set a schedule that suits you, and you’re ready to embark on your affiliate marketing journey. The beauty is that you can easily earn from home, needing only a computer and internet access.

The time and effort you invest will vary based on the type of business you’re promoting. This commitment can range from a few hours a week to a full-time endeavour. However, the level of dedication is entirely at your discretion.

Furthermore, you’re not limited to promoting a specific product or brand; you can choose to promote various products from different companies. As an independent affiliate, you earn by recommending these products or services to your audience on your blog, website, or email lists by placing your affiliate link. The great advantage is that you don’t need to purchase or stock any physical products in advance. Additionally, you can set your commission tiers and network fees based on your efforts.

8. High ROI

Engaging in affiliate marketing, promoting products or services of other businesses, can be financially rewarding. According to AmbitionBox, affiliate marketers in India earn an average of ₹2.5 LPA, with earnings spanning from ₹0.2 Lakhs to ₹12.0 Lakhs.

Affiliate Marketing Salary
Affiliate Marketing Salary

Whether it’s a part-time venture or a full-time profession, affiliate marketing offers the potential to generate substantial income. This is achieved by promoting products or services that resonate with you and align with your preferences.

9. Diversified Income

PPC Illustration
PPC Illustration

Various affiliate programs provide commissions at different stages of the purchasing process, offering content creators diverse income streams. These payment methods include:

  • Pay-Per-Sale: This widely used affiliate marketing model compensates affiliates for each sale they successfully generate.
  • Pay-Per-Click: In the pay-per-click model, affiliates earn commissions based on the number of clicks they generate, regardless of whether a sale is completed. However, this model is relatively rare.
  • Pay-Per-Lead: Affiliate marketers receive payment for the leads they generate in the pay-per-lead model. This involves earning commissions for specific actions like sign-ups or form submissions.

10. Increased Exposure

Affiliate Marketing can help content creators tap into new pools of audience through brand collaborations and sponsorships. Creators can gain access to newer age groups and demographics and ultimately increase their following.

11. Leverage Expertise

Affiliate marketing can help content creators leverage their expertise through the promotion of products and services they are knowledgeable about. By becoming an affiliate, content creators can share their knowledge and expertise with potential customers.

12. No Qualification Required

Content creators do not need any minimum qualification to become affiliate marketers. This means they can easily add a revenue stream to their list without any added expenses and without any barriers to entry. They can capitalize on existing and new viewers on their page.

13. Better Credibility

Creator taking feedback Illustration
Creator taking feedback Illustration

Affiliating with trustworthy brands and promoting good products is a great way to achieve mutual benefit. Content creators gain massive credibility when their audience finds good products through them. Creators must always look out to take frequent feedback from customers to understand their experience and shall only promote high-quality, original products and services.

Did these points make you believe in the power of affiliate marketing? If yes, then do check our recent blog, where we have mentioned some of the best affiliate marketing tips, which are helpful for beginners as well as experienced affiliates.

Some Disadvantages of Affiliate Marketing

However good anything must be, it cannot be rid of flaws. In pursuit of giving you the full picture, let us have a brief look at some of the disadvantages of affiliate marketing.

1. Fake Users

Many affiliate marketers would use dirty tricks to increase their income. These include fake clicks, fake views, etc. Low quality of traffic may hurt any brand’s SEO ranking and may result in blacklisting from the search engine.

2. Volatility

Affiliate marketing completely depends on a content creator’s ability to influence their audience to buy or even try a product. Affiliate commissions may soar in the beginning, but it can be a hard task to keep the revenue incoming at a consistent rate. This increases the importance of good content and a good following for content creators. This would benefit both the marketers as well as advertisers in the long run.

3. Difficulty in Conversions

Affiliate marketing may influence people to check a retailer’s website, but different factors, like pricing, delivery conditions, delivery time, customer perception, etc., may stop the potential new customer from placing an order. Many factors may come into play, which might make generating revenue from affiliate marketing much more difficult.

4. Reputation

Affiliate Marketers need to be really wary of whom they partner with. Suppose a customer receives a bad product/service through your affiliate link; it would not only hurt your reputation but also lead to bad word-of-mouth for the advertiser.

5. Low Negotiability

Affiliate marketers may have to agree to fixed terms and conditions from the advertisers, which makes it difficult to attain a fair position in the deal. Affiliate partners cannot negotiate on terms like commission rate, payment threshold, payout time or anything else.

How to Get Started in Affiliate Marketing?

Many beginner affiliate marketers would not want to be exclusively associated with a single brand for many reasons. However, there is a better way to go about it. Content creators can use trusted affiliate marketing websites like EarnKaro, which has partnerships with more than 150 retailers. They can promote any product from the EarnKaro partner websites and earn an easy commission any time they bring a conversion. EarnKaro affiliate links are easily trackable with easy payment options and a low payout threshold. Here is how you can get started:

Step 1

Download the EarnKaro app conveniently from the Google Play Store.

first page

Step 2

You can sign up for the EarnKaro app using your email ID, phone number, or social media account. No documentation is required during the signup process.

sign up page

Step 3

Now that you are logged in, you can start sharing deals and offers of brands listed on EarnKaro. Or you can create your own links to the products you want to promote by clicking on the Make Links icon.

home page

Step 4

To promote a specific product, simply paste the link of the desired product and click on the “Make Profit Link” button.

make link page

Step 5

Your unique affiliate link has been successfully created, and you can now start sharing it within your network. You can even automate your link-sharing process by using these affiliate marketing tools.

link created

Step 6

To review the earnings you have made through your affiliate links, you can navigate to the “My Profile” section and click on “My Earnings”. There, you will be able to see all the money you have earned.

my earnings

Step 7

To monitor the clicks and transactions made through your affiliate link, you can access the “My Earnings” section and click on “My Activity”. This will allow you to track and review all the clicks and transactions associated with your affiliate link.

my acitivity

Step 8

Once you have accumulated a minimum of ₹10 in confirmed earnings, you have the option to request payment and withdraw all your money into your bank account.

request payment

Step 9

There are two methods available for withdrawing money:

1. Bank Transfer

2. UPI

withdrawal page


Affiliate marketing is a major boon for both content creators and businesses. There are several benefits for all the parties involved. We have made sure that every reader has a fair picture of the affiliate marketing industry. Whether you are a business owner or a content creator, making an informed decision will help you increase your revenue in no time.

In addition to this we would also like you to check out our latest blog, where we have explained how you can start an affiliate marketing without a website. Do give it a read.


What are the benefits of affiliate marketing?

Some of the key benefits of affiliate marketing include

1. No specific expertise is required
2. Minimal investment
3. Passive income
4. Flexibility & Convenience
5. Performance-based earnings

What is the importance of affiliate marketing?

Affiliate marketing plays a vital role in a business’s success and here’s why

1. Effective use of advertising budget
2. Easy tracking
3. Increase SEO
4. Grow brand awareness
5. Access foreign markets

Is being an affiliate worth it?

Absolutely! The affiliate marketing industry in India is rising consistently and is expected to reach $835 million by 2025 which makes it one of the most profitable industries out there. As an affiliate marketer, you can also leverage this industry and earn good money.

What is the success rate of affiliate marketing?

The average estimated success rate of affiliate marketing normally remains around 1%.

Mansi Rana
Professional Experience. Mansi joined EarnKaro in 2022 as a Content Analyst. With over three years of experience, she is a seasoned content writer specializing in niches such as affiliate marketing. Educational Background. A Journalism and Mass Communication graduate from Amity University, Mansi channels her passion towards empowering aspiring micro-influencers through the power of affiliate marketing. More About Her. She indulges in her passion for beauty and fashion in her spare time, immersing herself in extensive research and staying up-to-date with the latest trends and innovations.


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