Affiliate marketing: what it is and is it worth it?

Working with businesses via affiliate programmes is an increasingly popular way to earn money online, driven in part by the surge in popularity of social media and influencers with large follower bases. However, they aren’t the only people who can earn big from affiliates.

Affiliate marketing can prove fruitful, but it’s important to understand the regulatory requirements when using affiliate links, especially before you sign up to the advertising model. 

This article will explore what affiliate marketing is, how to do it, and the regulatory rules you must follow.

What is affiliate marketing?

Affiliate marketing refers to a business working with a third-party to promote its product or service with the aim to generate traffic and sales. 

The third-party publishers are known as the affiliates, and these people earn a commission fee when promoting the business. Affiliates in the modern era can be individuals with huge social media followings, or a blog or profitable affiliate website with a specific niche.

Types of affiliate marketing

There are three main types of affiliate marketing: unattached, related, and involved. It’s important to understand the difference between these to know which best suits the business model you have in mind. 

You may decide that all three work for you, or perhaps you want to double down on just one – there’s no right or wrong approach, but the former could help you earn more cash.

Unattached affiliate marketing

This refers to a type of affiliate marketing that does not use, endorse, or have any deep knowledge about the products advertised. It’s the most basic form of affiliate marketing, with the primary goal of earning a commission. Examples include Google Ads on a blog or Facebook Ads.

Related affiliate marketing

Related affiliate marketing is where you have an online presence via a podcast, social media, or similar and have affiliate links to products related to your niche. However, such links are for products you don’t use. 

For example, a fashion influencer may talk about a new pair of expensive designer boots that they’ve bought but may share affiliate links to more affordable dupes of the boots because they know they will be more accessible to their followers, and therefore more likely to buy them and earn the influencer commission.

Involved affiliate marketing

As the name suggests, this type of affiliate marketing refers to links to products or services you’ve used – perhaps you post a baking video and link to the hand mixer you’ve used, or maybe you link to a kitchen company you used as part of renovation-related content.

Examples of affiliate marketing

Here are a few examples of how content creators make money through affiliate links. The principles of how you monetise remain the same – it’s mainly a question of where you’re reaching out to an audience.

1. Imagery

Many influencers make money through affiliate deals with brands via photography. They advertise products to their followers via photos shared on social media platforms like Instagram and earn a commission on any sale.

Affiliate marketing for ecommerce in this format is usually done via clickable links on Instagram stories or discount codes put in the descriptions of posts.

2. Video content

Many affiliates use videos shared on YouTube or TikTok Live to promote products and brands. They then provide affiliate links to the product or brand and recoup commission via the use of that link.

Links to the products will be included in the description of the video, and the content creator will earn a percentage of a sale whenever someone viewing the video clicks through and makes a purchase.

3. Blogging

Although not as popular as it once was even just five years ago, blogging still holds a significant opportunity when it comes to affiliate links. Bloggers simply need to write their posts and then link to products or services in the copy.

Pros and cons of affiliate marketing

Affiliate marketing offers a huge potential to make extra income, but there are also some downsides to consider before taking the leap and signing up for an affiliate platform. Let’s look at both the advantages and disadvantages of affiliate marketing.

Pros of affiliate marketing

There are many different perks of joining an affiliate programme. These include:

1. Minimal expenditure

There are very few costs associated with affiliate marketing. There may be small costs related to the content creation that you use your links with or the affiliate programme you sign up to may ask for a fee, but there are no other associated costs.

2. Easy to set up

Almost anyone can set up affiliate marketing – you simply need to follow some basic steps when signing up to a platform. Of course, it will be more successful in the long run if you already have a following or footfall on your website or social media platform, but you can work on this if not.

3. Extensive products and services

You can use this type of marketing for pretty much any service or product, making the earning potential huge. If you wanted to, you could focus your attention solely on the products or services that earn you the highest commission, although these may be things that your audience doesn’t buy as often. 

Cons of affiliate marketing

It’s important to consider the downsides to affiliate marketing too when thinking about launching your own business in this field. These include:

1. Commission-based payments

Affiliate marketing is commission-based, meaning you usually only earn when someone purchases via your link. So, if no one uses your link, you won’t earn a penny.

2. Standing out from the crowd

While it’s easy to get set up in affiliate marketing, it’s harder to gain traction. It’s an increasingly crowded market with a lot of great talent fighting for the attention of consumers, so it takes a lot of hard work to stand out from the crowd and encourage followers or users to use your links.

3. Uncertainty

You may have a successful month earning high levels of commission, and then the next few months may be very quiet. You have to be ready for this level of uncertainty when you’re building a business around affiliate marketing. It isn’t for everyone, and you need to be financially savvy to manage your finances.

Affiliate marketing platforms

To create affiliate links, you need to get set up on an affiliate platform. There are lots to choose from, with the bigger, more popular ones taking a larger cut from your commission – so be mindful that while they could give you more opportunity, you may end up paying for the luxury.

Some popular affiliate platforms in the UK include:

• Commission Junction (CJ Affiliate): this is one of the world’s largest affiliate networks, with programmes and affiliate partners available in many regions around the world.
• Amazon Associates: Amazon needs no introduction, which is why a lot of people trust it and why its affiliate programme is top-rated.
• Shopify Affiliate Marketing Programme: as one of the world’s largest ecommerce platforms, Shopify has countless small businesses on its books with whom you can set up partnerships. The only downside is that you will be limited to brands selling only on Shopify.
• Like To Know It: LTK is the influencer marketing network for agencies and affiliates to find influencers and creators to promote their client’s brands. If accepted onto the affiliate programme, influencers can earn a commission when followers click their LTK links shared on their socials and make a purchase.

How do affiliate marketers make money?

You can make a lot of money through affiliate marketing as there is no ceiling to how much you can earn through affiliate revenue if you reach a big enough audience. However, it takes time, effort, and patience to succeed in this field and it certainly isn’t for those who are looking to get rich quickly.

What kind of commissions can you get?

The commission you receive depends on the affiliate platform you are using and the brand you have partnered with. 

On Shopify, referrals earn commission payments if the merchant signs up to the platform by using your referral link. If you’re in the UK, it’s $150. 

On LTK, the average commission rate is between 10-25% but can reach up to 30%.s Retailers set their own commission rates for their products.

For Amazon, affiliates can receive up to 20% commission on any qualifying product purchase, but most sit around 3-4%. 

You can earn more through direct links (links that go directly to an item) than indirect links, which send the consumer to the search page for an item type, showing multiple options. Let’s look at the commission you can earn for different categories:

 

Product category	Direct qualifying purchases	Indirect qualifying purchases
Amazon Games	20%	1%
Amazon Fashion (under £15k sales per month)	10%	1%
Consumables like baby, beauty, and grocery (under £20k sales per month)	6%	1%
Amazon devices, like Kindles (under £5k sales per month)	3%	1%

As you can see, your earnings could really add up if you achieve a high amount of clicks, and focusing on the more profitable product sectors could prove more fruitful if it suits your platform, too.

Tips to make affiliate marketing work

Anyone can succeed in affiliate marketing, but you need to understand that there is work to be done before you begin to see the fruits of your labour. Here are some of our top tips to boost your chances for success:

1. Create the best content you can: Creating engaging, on-brand content will encourage followers to use your affiliate links. Savvy internet users will look at bad-quality content that’s had little thought put into it and keep scrolling.
2. Network, network, network: Affiliate partnerships are a great way to work with brands and offer something mutually beneficial, as they send you a free product and you get a percentage of any sale off the back of you posting about it. Networking within these circles can help you get further partnerships too.
3. Persistence is key: No one is an overnight success when it comes to affiliate marketing. Putting in the time and effort to create brilliant content that attracts an audience and builds up a following will prove worthwhile in the long run.

Do you have to disclose that you do affiliate marketing?

When it comes to advertising, there are rules and regulations that must be followed in the UK. These are set by the Advertising Standards Agency (ASA) and follow guidelines set by the Committee of Advertising Practice (CAP). The rules are in place to protect consumers from being mis-sold or falsely misinformed about a product or service.

The CAP code applies to affiliate marketing because it is an agreement to promote a brand’s products in exchange for payment.

To adhere to the CAP code and ensure you aren’t subject to any criminal penalties or complaints to the ASA, you must ensure you are transparent about any affiliate relationships with the products or services you are marketing throughout your content.

Is affiliate marketing worth it?

When done correctly, affiliate marketing can be a brilliant way to earn money, be it as a side hustle or as a full-time income for those who are dedicated to the cause. Thoughtful, engaging, and interesting content is at the heart of success for this type of advertising, as you need to build up intrigue with the relevant audience to encourage them to click your affiliate links. 

For more ways to earn extra money, check out our top ideas for earning a passive income in 2025.