It sounds so simple that many people suspect affiliate marketing is a scam. “How can you make money so easily?” you wonder.
After all, the global affiliate marketing industry is said to reach $27.78B by 2027. The hype must be real.
So, is this booming industry everyone’s talking about worth your time?
This article explains how and why affiliate marketing is a legit way to promote a brand and earn money, as well as the biggest risks and scams to avoid in this saturated industry.
Is affiliate marketing legit?
Yes. It is legit.
Affiliate marketing is also:
Legal, if you comply with your country’s laws and regulations in your turkey phone number list country. You should comply with the U.S. Federal Trade Commission’s (FTC) guidelines. That means you should clearly disclose your affiliate partnership.
Ethical, if promote only the services and products that you genuinely like or believe in.
On the other hand, affiliate marketing can be:
A scam if you deal with the wrong company
A hard way to earn money, if you don’t have a solid customer base yet. While it may seem like applying for the affiliate program is easy, the truth is that not everyone gets approved. Even after you get approved as an affiliate, you have to work on scaling your affiliate business, growing your audience, building your reputation, aligning your brand values, and many other things.
Unlawful, if you don’t comply with disclosure laws. If you don’t clearly and openly disclose your affiliation partnership and affiliate links to your audience, you can face liability under the FTC Act. The company selling the product or service can also face liability.
Why can affiliate marketing be a legitimate income source?
There are many reasons why we can safely make this conclusion. Let’s look at some of them:
1. Top affiliates make a fortune
Many popular social media influencers and YouTubers are highly successful businesses that earn substantial income through affiliate marketing.
For example, Pat Flynn of Smart Passive Income has generated significant revenue through affiliate marketing, particularly promoting web hosting services like Bluehost.
His monthly revenue is said to be around $125K. His transparent income reports have become very popular, demonstrating the potential for high earnings.
Meanwhile, Michelle Schroeder-Gardner of Making Sense Of Cents makes over ($100,000 monthly from blogging and has earned over $5,000,000) in total from her blogging business.
A famous Youtuber Sean Cannell from Think Media earned his first six figures through affiliate marketing when he found his niche in a faith-based content. He now makes
2. Major companies rely on affiliates
Leading companies across various industries use affiliate marketing programs to drive sales and leads.
Amazon Associates is one of the most prominent examples; it’s Amazon’s affiliate program, relied upon by countless bloggers, influencers, and content creators to promote its vast range of products.
Similarly, software companies like Adobe and web hosting giants like Bluehost and HostGator have robust affiliate programs that contribute substantially to their customer acquisition strategies.
Many news websites also earn money this way like the New York Times, The Verge, NerdWallet, and more.
3. Affiliates pay taxes
In the U.S., affiliates receive a 1099 form from the companies they work with, detailing their earnings for the year. This ensures that their income is properly documented and subject to taxation, just like any other form of business income.
For instance, top affiliates working with platforms like Amazon Associates, ShareASale, or C.J. Affiliate must report their earnings and pay taxes, underscoring the legitimacy and accountability of their operations.
