Today’s affiliate marketing: What you should know

By Destiny Uko

The Nigerian affiliate marketing space is valued at over ₦15 billion as of 2024, with significant growth expected due to increasing digital adoption.

This points to the reality that affiliate marketing, a marketing model where third parties bring leads to the company’s products and services, has evolved significantly.

 It has moved from being a small side hustle to a multi-billion dollar industry with grounds across almost every nook and cranny of the digital space. 

 As a core modern advertising strategy, it ranks among the most accessible ways to earn passive income, especially in a time where smartphones and social media serve as tools for both content creation and commerce.

But despite its wide application, many people still do not understand how it works or how to leverage it to their advantage. This article breaks down the foundational principles of affiliate marketing, with a closer focus on its current trends and evolution.

Basically, affiliate marketing is a performance-based marketing niche where individuals known as affiliates earn commissions and royalties for promoting products or services. When someone clicks an affiliate’s unique link and makes a purchase (or performs a specific action), the affiliate earns a commission.

Parties and models of affiliate marketing

Affiliate marketing involves four key parties. The first is the brand or seller, the one offering a product or service for sale. The second is the affiliate, who can be a blogger, influencer, YouTuber, or anyone willing to take on the job. The third party is the consumer, the person who views the affiliate’s content and makes a move to purchase. The fourth is the affiliate network, a platform that links merchants and affiliates, keeps records of sales, and disburses payment.

Popular international affiliate networks include ShareASale, CJ Affiliate, Impact, and Rakuten Advertising. In Nigeria, common networks include Expertnaire, Stakecut, SabiMentor, and Learnoflix Affiliate.

There are different models to affiliate marketing, based on how commissions are earned. One of these models is the pay-per-sale. It pays only when a consumer buys a product or service through the affiliate link.

Then there is the pay-per-click model, which rewards affiliates when customers simply click the link, whether or not a purchase is made. 

Another one is the pay-per-lead model, which compensates affiliates when a consumer completes a particular activity, such as signing up or filling out a form. 

Finally, there’s the two-tier model, where affiliates can earn a commission not just from their own referrals but also from other affiliates they recruit.

Recently, affiliate marketing has become more intentional and professional. It is no longer enough to scatter links across social media platforms and expect a blast. Successful affiliates today are strategic; they upskill in content marketing, search engine optimization (SEO), email marketing, and consumer psychology and spend money on paid advertising. 

Before you start

Before starting, one must understand a few critical points. First, choosing the right niche is key. Affiliates should promote products in areas they are passionate or knowledgeable about as well as products and services that are in irresistibly high demand. This builds confidence and consumer trust and drives massive sales. 

Second, reading and understanding the terms of each program shouldn’t be bypassed. Some brands are particular about how and where links can be shared, among other regulations.

Third, affiliates must be transparent with their links. The Federal Trade Commission (FTC) mandates that any affiliate relationship be disclosed to protect consumers.

It is always better to choose quality over quantity. It is more effective to promote a few trusted products than to chase every high-commission offer without proper vetting.

 Lastly, patience is the vehicle that will lead you to your desired destination: success. Affiliate marketing is not a get-rich-quick scheme; it takes time, testing, and trust-building to reach consistency and stability.

However, there are habits to avoid. One common mistake is spamming links everywhere without prior convincing explanations and enlightenment. This can ruin an affiliate’s reputation and hinder conversions between the affiliate and the prospective consumers. 

Another is doing affiliate marketing without SEO, which means your content may never reach the people searching for it. 

Finally, it is tempting to promote irrelevant products with high commissions, but this doesn’t give a good mark on the affiliate’s credibility and may lead to disengagement from their audience in the long run.

In conclusion, affiliate marketing rewards people who are committed, creative, and have strong convincing power. It is suitable for students looking for extra income, a stay-at-home parent with a passion for certain products, a content creator building a digital brand, and anybody determined enough.