$3.4 billion was lost in 2022 because of fake affiliate traffic. This loss is expected to rise around $100 billion worldwide, leaving question in mind: Is affiliate marketing legit?
The product, My Top Tier Business, was listed as fraud, & its affiliate marketers were charged with scamming alongside it.
Yet the truth is, affiliate marketing is acknowledged by many marketers, making it a trendy option to make money online with almost no investment.
Then what are the scams in affiliate marketing? Before identifying them, it’s important to answer the question: Is affiliate marketing legit?
Is Affiliate Marketing Legit or Just a Scam?
Yes, Affiliate Marketing is 100% legit.
In affiliate marketing, marketers promote products or services of other companies. In return, they get commissions when customers click on links to purchase products through their promotions.
Is affiliate marketing worth it? Totally worth it!
Marketers are generating thousands of dollars through affiliate marketing, proving its authenticity. Meanwhile, affiliate marketing is a good-to-go marketing option for companies as well.
Affiliate Marketing is Real (Proofs)
Affiliate marketing is changing fortunes, with stats & facts as the proof.
So let’s explore these proofs about affiliate marketing & help clear up the confusion.
Statistics on Internet
Stats are worth knowing.
The beauty of stats is that they are based on solid research. Rely on trusted sites for stats about affiliate marketing. These sites will answer the question, “Is affiliate marketing legit to make money?”
Some of the statistics below are living proof of its legitimacy.
- 54% of marketers think of affiliate marketing as one of the top three customer acquisition channels.
- 20% of brand marketers believe affiliate marketing is their most effective channel (AffiliateWP).
- 83% of marketers use affiliate marketing to increase brand awareness (Forbes).
- Big brands generate 5% to 25% of their total sales from affiliate marketing (InBound Blogging)
- Affiliate Marketing Spending will be $15.7 billion globally by the end of 2024.
- Affiliate marketing has increased by up to 85% since 2017.
- Retail businesses generate more revenue than any industry through affiliate marketing.
Trusted Companies Leveraging Affiliate Programs
$1.28 billion in revenue was made by Amazon from affiliate programs in Q1 2023.
Shopify & Amazon affiliate program are big players in affiliate. In addition to Amazon affiliate marketing, there are many other trusted companies providing affiliate programs.
Here is some of it:
- ShareASale
- ClickBank
- Airbnb
- eBay
- HubSpot
- SkillShare
- BigCommerce
Marketers are Generating Revenue
Making money itself is proof.
On average, an affiliate marketer makes $8,038 each month. And more than 81% of affiliate marketers earn over $20,000 a year.
Bloggers & YouTubers are making thousands of dollars from affiliate marketing. If they can earn, so can you.
However, affiliate marketing demands time & effort, giving you greater rewards in return.
Taxes for Affiliates
Why would the government tax scammers? Instead, they press charges against them.
In the U.S., major affiliate networks issue taxes to marketers. These taxes are paid by those who earn a specific amount of money from affiliate marketing. The inclusion of marketers in the tax system makes affiliate marketing a real deal.
See What Reddit Users Are Talking About
Platforms like Quora & Reddit are great for sharing personal experiences. Just type “Is affiliate marketing legit reddit” into Google, and you’ll find people discussing their affiliate marketing experience.
This can help provide more clarity.
Good thing if answer to the question “Is affiliate marketing legit?” has been cleared. But that’s only one side. Now let’s take you to the darker side of this industry.
Is Affiliate Marketing Legit – 11 Scams You Should Be Aware Of
Wondering is there any risk in affiliate marketing? Yes, scams are a real concern in affiliate.
Like any other industry, affiliate marketing has its positives & negatives. Scammers in affiliate marketing can cost you a lot, from stealing your data to landing a major financial hit. Such losses happen because people are unaware of the games played by scammers.
More than 60% of marketers are worried about affiliate marketing scams (Persuasion Nation)
Affiliate marketing has great potential for you. So, don’t let these scammers shake your confidence. Try to learn about scams so you can avoid them & set sail safely.
Affiliate Marketing Scams Hurting Marketers
New marketers are easy targets, and the reason is clear.
Marketers taking their initial steps don’t usually keep their one eye open for scams. Instead, they get more curious about opportunities, not knowing the deceptions behind them.
Below are 6 types of scams that can hurt marketers.
Good-for-Nothing Mentors & Courses
Affiliate marketing is a hot topic today. Many fake gurus are charging thousands of dollars, promising premium learning. These so-called experts focus only on selling courses without providing any value.
I remember getting scammed by a fake mentor three years ago. After signing up for his master class, I ended up purchasing his course. I was excited to try out new things.
You can now probably guess what happened next. The course turned out to be nothing more than outdated and basic content. Type of content you can always find on YouTube with little effort. To cut to the chase, I learned nothing.
Make sure to check authenticity before enrolling yourself in an affiliate course. Researching mentors & reading reviews of courses can make things easier.
Fake Products
Scammers sell products that don’t exist.
They promote products using the names of reputable brands & try to gain customers’ trust. This results in stealing visitors from other affiliate marketers.
Is Affiliate Marketing a Get Rich Quick Scheme – Fast Money Scams
Anything that promises to make you rich within days is likely a scam.
Many fake affiliate programs offer marketers quick wealth within a short period. This results later in stealing marketers’ sensitive information.
Authentic programs have a continuous process that requires time, especially in affiliate marketing. You generate thousands of visitors to your site or ads to see success. Attracting such high traffic is the work of several months.
Thus, affiliate marketing cancels all the get-rich-quick schemes.
Pay-to-Enroll Programs
Brands do not ask you to pay for promoting their products.
Promoting their products & generating sales is enough for them. Hence, one who asks you to pay before joining any program is a fraud.
We now know that affiliate marketing requires no investment but time & effort. So, make sure to say clear NO to anyone asking for the payment.
Cookie Stuffing
Cookie stuffing, also known as cookie dropping, is a common tactic scammers use to manipulate the process.
Scammers place various tracking codes on visitors’ computers from different affiliate networks. When a visitor purchases after clicking the link, scammers earn a commission.
Spoof Traffic
In spoof traffic schemes, fraudsters use bots to generate fake clicks & impressions. They make those clicks look real. Clicks are then displayed as referrals to the retailer’s site. And scammers earn money from those clicks.
This scheme is usually applied to Pay-per-click affiliate programs.
Affiliate Scams Harming Businesses
Affiliate marketing is one of the biggest channels used by brands to generate sales. Unfortunately, fraudsters are using it to commit scams, making companies lose millions.
Let’s find out how.
Fake Transaction
Fake transactions is one of the big reasons people are asking “Is affiliate marketing legit”.
Scammers are using stolen credit card information to make transactions. This is harming not only companies but also credit card owners and marketers.
Companies end up paying commissions for fraudulent transactions that happen through affiliate links. This also leads to paying fees for purchases that are claimed to be fraud.
Google ads hijacking
Google Ads hijacking is a scam technique to create fake sites or products using another brand’s name.
A large portion of traffic gets distracted from the brand’s site when scammers run ads on the brand’s name.
Hijacking harms the SEO of brands. This results in slow performance and a loss of traffic afterward. Companies must keep an eye on such scams.
Fake Leads
Fraudsters create fake leads to earn commissions from companies. How do they create these fake leads?
They use stolen data from online forms and convert that data into fake leads. As a result, companies end up paying for these leads.
Click Spam
Scammers use bots to create fake clicks & generate dummy traffic. This costs companies a lot of money due to several spam clicks on their ads.
How to Avoid Affiliate Marketing Scams as a Marketer?
It’s time to take the right steps.
Identifying if something is a scam or a real thing requires awareness. The following points will help you with your affiliate marketing journey.
Select Products You’re Familiar with
You’ll be a step ahead in making better decisions if you choose products you have experience with. Plus, it’ll be easier to spot scams.
And it’s an ethical rule of business to sell something you have experience with.
Read the Terms and Conditions
Read the terms & conditions at the company’s site to know what they are offering.
Have a good idea about the payment procedure & their expectations from affiliate marketers. It’s doubtful if they have confusive statements with no clear payment procedures.
Look for Reviews
Is affiliate marketing legit? Is a particular affiliate program reliable to work with? Reviews give trusted answers to these questions.
Before joining any program, check reviews across various platforms. Several negative reviews will be an obvious sign to not engage with such affiliate.
It’s possible that you might not find any reviews on the company’s site. Such companies are also considered red flags.
Examine their Website
Take a closer look at the company’s website.
Is the design professional? Even if the design looks good, is the content useful? See how they have showcased their products and services. Have they included any case studies?
Contact Customer Support Team
Real businesses revolve around their customers.
A good company will have a solid system & a team working to help their customers. Contact the company’s customer support to see if they prioritize their customers.
Ask them all your concerns about affiliate programs. Then answer the following questions:
- Are they responsive?
- How professionally do they answer questions?
- Do they have a clear payment process?
- Are they promising anything unrealistic?
Verify Contact Information & Physical Address
A legitimate company is not hesitant to display their verified addresses & contact information. Companies always try to make it easy for customers to contact them. Meanwhile, scammers try to be secretive.
Check if the company has listed their physical addresses or contact information.
Partner with Trusted Affiliate Programs
Many affiliate networks connect reliable merchants with active affiliates.
To avoid confusion, always go for trusted affiliate networks from the beginning.
Talk to Affiliate Marketers
Others’ experiences can either be guidance or warning.
Search for affiliate marketers who have experience with the affiliate programs you are interested in. If you find any, ask them about all the essentials.
Start by asking: Is this affiliate program legit? A negative answer will save you from investigating further.
Do They Have a Proper Privacy Policy to Prevent Scams?
See if they have a policy to deal with scams. Scams can hurt both marketers and companies. Companies will always want to protect their customer journey.
You can be confident about the company if they have a proper system to prevent scams.
How to Start Affiliate Marketing?
Is it worth trying affiliate marketing? Beyond a shadow of a doubt, yes!
Starting affiliate marketing can be a smart move if you are ready to put in the work to make it successful.
Check out articles below to learn affiliate marketing. They’ve done an excellent job making affiliate marketing easy to understand.
- Affiliate marketing for beginners (Ahrefs)
- Step-by-step guide to learn affiliate marketing (Diggity Marketing)
- Complete guide: How to get started (Monetized Future)