Affiliate Marketing: How to Earn Passive Income in 2025

Affiliate marketing has exploded into a multi-billion dollar industry, with brands investing more heavily than ever in creator partnerships throughout 2025. With this growth, brands and content creators continue to benefit from working together. Brands get access to the motivated audiences of bloggers, podcasters, magazines, and social media influencers. In return, creators make a commission on sales or referrals, providing a stable way to monetize their content.

This guide explains how to become an affiliate marketer and make money by promoting products. Below, find tips from affiliate marketing experts and examples of popular affiliate programs.

Looking to start an affiliate program? Here’s how to recruit and manage affiliates for your business.

What is affiliate marketing?

Affiliate marketing is a performance-based strategy where publishers, or affiliates, earn commissions for promoting products or services. When someone purchases through an affiliate's unique tracking link, the affiliate receives a reward from the brand they're promoting.

Affiliates drive traffic through affiliate links that track referrals. While most programs pay for sales, some reward free-trial signups, app downloads, or other valuable actions.

This model has become a cornerstone of online business strategy for creators, entrepreneurs, and those seeking a flexible side hustle.

How affiliate marketing works

Many affiliate programs are free to join. Affiliate programs work by allowing individuals or businesses to promote and sell the products or services of another company in exchange for a commission on each sale.

The affiliate earns a commission each time someone makes a purchase through the unique affiliate link associated with their recommendation.

Here’s how affiliate marketing works at a high level:

• An affiliate promotes an affiliate link to their website visitors, blog readers, or social network.
• An audience member clicks the link. 
• The audience member makes a purchase.
• The affiliate network records the transaction.
• The affiliate gets paid a monetary commission.

Commission rates for affiliate sales vary depending on the product, industry, and the agreement negotiated between the affiliate and brand.

Low-price, high-volume products in niches such as pet food or skin care might earn an affiliate 5% of each sale. High-ticket affiliate programs in sectors such as finance and software can offer affiliates more than 20%.

Successful affiliates may negotiate bespoke deals with their partners for even higher percentages. Some affiliate marketing programs provide a flat rate per sale instead of a percentage.

Social commerce and affiliate marketing

Social commerce has transformed how affiliates promote products. Platforms like Instagram and Pinterest now offer integrated shopping features that allow creators to seamlessly incorporate affiliate links into their content.

This integration creates a shorter path to purchase, with users able to discover products and complete transactions without leaving their preferred social platform. For affiliates, this means higher conversion rates and more commission opportunities.

Many brands now prioritize social commerce in their affiliate strategies, offering special incentives for creators who drive sales through these integrated channels.

3 types of affiliate marketing

1. Unattached affiliate marketing

Unattached affiliate marketing is when the affiliate is a general advertiser or promoter. They are not associated with the affiliated brand, product, industry, or niche, and may promote a wide range of affiliate products to multiple audiences.

Unattached affiliate marketers often use pay-per-click (PPC) advertising campaigns to reach customers on social media and search engine results pages.

2. Related affiliate marketing

Related affiliate marketing is the practice of promoting products or services that are relevant to your existing audience. An affiliate in this category has invested resources to build a following through blogging, YouTube, TikTok, or other types of content marketing.

Related affiliate marketers may be influencers, making them a trusted source for recommending products.

3. Involved affiliate marketing

Involved affiliate marketing refers to the creation of content that includes an affiliated product or service. This could be a product review, a walkthrough, or other content demonstrating the product’s benefits.

Many involved affiliate marketers gain a reputation for trustworthy, impartial product recommendations. Earning an audience’s trust is a sustainable way for beginners to build an affiliate marketing business.

Pros and cons of affiliate marketing

Affiliate marketing spending is expected to reach $12 billion in 2025. For creators, it’s a low-cost way to start a business that almost anyone can try.

Before diving in, consider these pros and cons of affiliate marketing.

Affiliate marketing pros

Easy to execute

In affiliate marketing, the main goal is straightforward: refer customers to your partner retailer. Affiliates can focus their efforts on marketing and leave other difficult tasks, such as product development and order fulfillment, to the retailer.

Low investment and risk

Joining an affiliate program typically doesn’t cost anything. Once an audience is established, affiliates can start earning money by promoting a product without additional investment. This can lead to (relatively) passive income from commissions.

Ability to scale

When successful, affiliate marketing can increase earnings without the need for additional employees or resources. Affiliates can introduce new products to their audience, negotiate higher commissions, or reinvest earnings to expand their reach.

Affiliate marketing cons

Takes time

Contrary to some online commentary, affiliate marketing is not a get-rich-quick scheme. Growing an audience and gaining influence requires time and dedication. It may take several years of consistently creating and publishing content before you earn a regular income.

Limited control

Affiliates have to follow the rules set by an affiliate program. This may include limitations on how a product can be promoted.

Another limitation of affiliate marketing is the commission-based revenue model, which means that affiliates will earn only a fraction of each sale.

If you are successful at referring customers to a particular company, you may be able to negotiate with them for better commissions, bonuses, and access to more impactful marketing content (such as promotions) for your audience.

Who should become an affiliate marketer?

For new businesses, affiliate marketing is a way to earn money with low overhead costs. For established creators, it’s a chance to generate additional income from an existing audience or content portfolio.

Here are four signs that affiliate marketing could be a good fit for you:

1. You have access to an audience

If you’ve built an engaged following, you could be in a prime position to leverage affiliate marketing. This could be a large general audience or a smaller community of dedicated hobbyists and enthusiasts.

For example, a wellness podcast could partner with products aligned with its audience’s interests, like a vitamin supplement, meditation app, or a luxury mattress.

2. You’re a content wizard

If you have a knack for pleasing platform algorithms and reaching a large number of users, affiliate marketing could be a relevant business model.

Many affiliate marketers generate referrals by optimizing a website to rank highly in search engine results. Others are pros at creating viral content for Instagram Reels or YouTube.

3. You’re a trusted guru

If you’re an expert on a range of niche products, you can use your knowledge to succeed in affiliate marketing. Creating educational content is a powerful way to persuade customers to click through to partner websites.

4. You run a newsletter or podcast

Newsletter creators and podcasters have unique opportunities in affiliate marketing. With direct access to engaged subscribers, these creators can integrate relevant product recommendations that feel like natural extensions of their content.

The intimate nature of these formats helps build stronger trust with audiences, often resulting in higher conversion rates than traditional social media platforms.

How affiliate marketers make money (and how much)

As you explore affiliate programs in 2025, you'll encounter various compensation models. Understanding these payment structures helps you choose programs that align with your content strategy and target audience.

Affiliate payment models

Affiliate programs use different triggers to determine when and how much to pay their partners:

1. Revenue sharing (commission per sale): The most common model, where you earn a percentage of each completed purchase. Commissions typically range from 5% to 50%, depending on the industry.
2. Cost per action (CPA): You receive payment when users complete specific actions like signing up for a newsletter, filling out a form, or requesting a quote. This model works well for lead generation in service industries.
3. Cost per install (CPI): Popular with app developers and software companies, this model pays for each successful application installation through your referral link.
4. Subscription commissions: An increasingly popular model where you earn recurring payments for as long as referred customers maintain their subscriptions—ideal for SaaS and membership sites.
5. Hybrid models: Many programs now combine multiple payment types, such as a flat fee per lead plus a percentage of sales, providing more stable income for affiliates.
6. Tiered commissions: Programs that increase your commission rate as you reach certain performance thresholds, rewarding high-performing affiliates.

Most affiliate programs still use last-click attribution, meaning the affiliate who drove the final click before purchase receives full credit. However, multi-touch attribution models are gaining popularity, recognizing the various affiliates who influenced a purchase decision.

How much can affiliate marketers make in 2025?

Recent industry surveys indicate that affiliate marketing income has increased since 2023. While beginners might start earning a few hundred dollars monthly, established affiliates report much higher earnings:

• Entry-level (0-1 year): $500-$2,000 per month
• Intermediate (1-3 years): $2,000-$10,000 per month
• Experienced (3+ years): $10,000-$50,000+ per month

According to compensation software company Payscale, the average annual salary of an affiliate marketer is approximately $56,000 as of early 2025, based on over 7,500 salary profiles. However, this figure doesn't account for top earners who significantly exceed this average.

Your earning potential depends on several factors:

• Audience size and engagement: While larger audiences generally lead to more conversions, even smaller, highly-engaged audiences can generate substantial income.
• Niche selection: High-commission industries like finance and software typically offer better earning potential than retail or fashion.
• Content quality: Detailed reviews, tutorials, and comparison content typically convert better than basic promotions.
• Promotion strategy: Multichannel approaches (combining a website, email list, and social media) generally outperform single-channel strategies.

The most successful affiliate marketers focus on building trust with their audience rather than maximizing short-term commissions. This approach leads to higher conversion rates and more sustainable income over time.

How to start affiliate marketing in 4 steps

1. Pick a channel and format
2. Determine your niche
3. Find an affiliate program
4. Choose your first product

1. Pick a channel and format

The first step to becoming an affiliate is selecting a marketing channel for reaching your audience—and a type of content to create for that channel.

Common marketing channels include:

• Organic search
• Email
• Instagram
• TikTok
• YouTube

Popular content formats include:

• Product reviews
• “Best of” product lists
• Curated product recommendations
• Product comparisons
• Lifestyle content

When choosing a channel and format, consider the platforms you use most and the formats you understand best. Starting with a familiar marketing channel can help produce high-quality content, leading to a more engaged audience.

No matter which route you take, authenticity is key in affiliate marketing. Without a genuine connection with the audience, converting them into affiliate sales may prove challenging.

2. Determine your niche

When selecting a niche, affiliate marketers usually follow one of two paths:

• They choose a niche they’re passionate about
• They select a niche based on audience analysis

Choosing a niche you’re already knowledgeable about can help you appear authentic and trustworthy to potential customers. It also aids in evaluating which products and brands to promote.

Say you started a blog when you adopted a dog, to document your journey as a new pet owner. In this situation, it would make sense to select an affiliate niche within pet care. This allows you to promote products relevant to your content and audience.

On the other hand, selecting an affiliate marketing niche based on audience analysis can uncover potentially profitable areas that are less competitive. This approach might help you establish a presence in untapped areas before other affiliates spot the opportunity.

However, this method means you’ll be competing with content created by people who likely know more about the topic than you do. To succeed, you’ll need to use affiliate marketing tools like social listening, website analytics, and social media insights to understand your audience’s preferences.

3. Find an affiliate program

To earn revenue as an affiliate marketer, the items you promote need to be relevant to your audience. Getting this wrong can hinder your success and diminish your credibility. 

If you’re unsure where to find products or brands to partner with, browse affiliate networks, which host hundreds of programs. Popular networks include:

• Impact
• CJ
• ClickBank
• FlexOffers
• LinkConnector
• ShareASale

Another option is to visit the websites of businesses to see if they work with affiliates. Many businesses offer affiliate programs, such as the Shopify Affiliate Program.

A more direct approach is to reach out to the owner of a product you find appealing and inquire if they have an affiliate marketing program. If they don’t, they might be open to setting up an arrangement, such as providing a special coupon code for you to share with your followers.

Remember, affiliate marketing programs have terms of service you need adhere to, so always read the fine print. For instance, your affiliate link will usually have a cookie with a specified timeframe, and some programs don’t allow pay-per-click ads using the product or company’s name.

4. Choose your first product

As you brainstorm products or browse through affiliate platforms, the most important criteria to keep in mind is that the products you promote should be aligned with your audience, or the audience you hope to build.

Ask yourself:

• Is this product something my target audience would find valuable? 
• Does it fit with my area of expertise? My brand?

Also, ensure the product or service you’re promoting is suitable for the platform you’re using. For instance, home décor and clothing might perform well on image-heavy platforms like Instagram. However, for more complex purchases, like software, your conversion rates might be higher on platforms that allow for more in-depth content, like a blog or YouTube.

How to join Shopify’s affiliate program

The Shopify Affiliate Program is open to educators, influencers, and content creators from across the globe. Shopify affiliates inspire people to begin their entrepreneurship journey with Shopify—or show existing merchants the benefits of moving their business.

It’s free to become a Shopify affiliate. Once accepted to the program, you’ll earn a commission each time a Shopify merchant completes a free trial and commits to a full-price plan.

Here’s what you need to know about becoming a Shopify affiliate.

Affiliate criteria

To be considered for Shopify’s affiliate program, you must:

• Own and run a website
• Have an established audience
• Create original content, such as online courses, articles, or videos
• Have experience with Shopify or other ecommerce platforms

As an affiliate, you’ll also need to comply with Shopify’s brand guidelines to make sure you’re correctly using branded assets.

Application process

To become a Shopify affiliate, fill out this application form. It takes around five minutes to complete.

As part of the application process, you’ll need to accept Shopify’s contract terms, which include payout amounts for referrals by location. The terms also explain how you’ll be paid.

Tell Shopify how you plan to refer merchants—for example, by creating review content, offering courses, or talking to your existing audience.

After that, you can connect your promotional channels to your application. Add your website, social accounts, podcast, newsletter, or other methods of reaching potential customers.

Unless you already use Impact (Shopify’s affiliate management platform), you’ll also need to sign up for an account. You can do this within the application form.

Impact

Shopify uses Impact, a third-party software, to manage its affiliate program. Affiliates can generate and manage referral links through Impact.

Inside Impact, you’ll find thousands of pre-made referral URLs and creative assets, which the Shopify design team has uploaded. Each asset has been tested to ensure it drives conversions.

You can also attach affiliate links to your assets and add tracking codes to see which links perform well. Shopify’s tracking cookie window for affiliate links is 30 days.

Once you’ve applied

Shopify will review your application and let you know the outcome, usually within three to five days.

If your application is approved, you’ll get an email confirming acceptance, along with links to some tools to help you get started.

Check out this help documentation for more information about the Shopify Affiliate Program, including how affiliates get paid and tips for building your affiliate strategy.

Affiliate marketing trends for 2025

The affiliate marketing landscape continues to rapidly evolve. Here are the key trends shaping the industry.

AI and automation in affiliate marketing

Artificial intelligence is transforming how affiliate marketers create content, analyze performance, and optimize campaigns. AI tools now help affiliates generate product descriptions, identify high-converting keywords, and personalize recommendations based on user behavior.

Smart affiliates are using AI to analyze vast amounts of performance data, identifying patterns that humans might miss and adjusting strategies accordingly. This technology also enables more sophisticated A/B testing and campaign optimization.

Mobile-first affiliate strategies

With mobile commerce continuing to dominate, successful affiliates are prioritizing mobile-optimized content and experiences. This includes ensuring fast loading times, simplified checkout processes, and content formats designed specifically for mobile consumption.

Affiliates who neglect mobile optimization are seeing declining conversion rates as consumers increasingly complete purchases on smartphones and tablets rather than desktop devices.

Video and short-form content

Video content—particularly short-form videos on platforms like TikTok, Instagram Reels, and YouTube Shorts—has become essential for affiliate marketers. These formats deliver higher engagement rates and allow for more authentic product demonstrations.

Successful affiliates are creating "shoppable" video content where viewers can click directly on products featured in the video, streamlining the path to purchase.

Voice search optimization for affiliates

As voice-activated devices become more prevalent, forward-thinking affiliates are optimizing their content for voice search. This means focusing on conversational keywords, question-based content, and local search optimization.

Voice search optimization requires understanding how people speak differently than how they type, with longer, more natural language queries becoming increasingly important for discovery.

10 tips for affiliate marketing success

1. Build trust

Of all the affiliate marketing tips from experts, one is universal: Be trustworthy. Don’t risk your brand image for any affiliate partner or product.

Being trustworthy means publishing honest content. If you’re reviewing a product, share your genuine opinion based on your experience. The more open you are, the more authentic you seem.

Trust becomes more vital in certain niches. For example, promoting a $1,000 online course requires more trust than selling a $20 t-shirt.

Desirae Odjick, founder of personal finance blog Half Banked, suggests building trust by sticking to a “limited number of affiliates, or by only promoting products you personally use.”

She says, “For instance, people trusted my recommendations for Canadian financial apps, but I might not have been successful as a Sephora affiliate."

2. Talk to product users and experts

Consider interviewing people who use the product or service you’re promoting. Alternatively, create content about a product’s brand or inventor.

Contextual content can add depth to your reviews and create a narrative for readers to engage with.

3. Create a product tutorial

Another effective strategy is to create a tutorial for the product or service you’re promoting.

People frequently search for how-to guides, like “How to save money for college” or “How to decorate a laundry room.” By offering a tutorial that solves a searcher’s problem and clearly highlights a product’s value, your referrals provide a stronger incentive for the customer to purchase the product you’re recommending.

4. Build an email list

An email list is an effective way to stay connected with people after they’ve logged out of social media and closed their internet browser.

Consider writing and sending a weekly newsletter to your subscribers that promotes your affiliate partners. Aim to provide something valuable to your readers, such as:

• Free downloads
• Reports
• Insights into your life or business
• Entertaining stories
• Updates and news
• Special deals

If a subscriber responds to your email, make sure to reply. Consistency in the frequency and quality of your newsletters is key. Occasionally, you can promote an affiliate product or two.

There’s no strict rule on how often to send promotional emails. However, avoid sending them every time you have a promotion, as this may appear spammy and damage your trustworthiness.

5. Find relevant search terms

If you’re promoting a product through a blog post, research the keywords someone might type into a search engine to find your content.

The Google Ads Keyword Planner is a useful tool for this purpose. It’s free to use, but you’ll need to create an account.

6. Use the product

Creating first-hand instructional or tutorial content is a good way to encourage your audience to try a product for themselves.

For example, you could create a video where you demonstrate a physical product in common real life scenarios, or explain how to get the most out of a digital product. Your personal experience and insights can add depth to your content and make it more relatable.

Unboxing posts are a popular type of involved affiliate marketing. If you receive the product in the mail, consider documenting your experience of opening it. This can create a sense of anticipation and excitement among your audience, making them more likely to consider trying the product themselves.

7. Set your distribution strategy

Once you’ve written your promotional content, share it on your website or social media platforms. If you have a subscriber list, you can create an email marketing campaign.

8. Lead with a discount code or bonus offer

Sometimes, marketers promote affiliate programs by offering bonuses to anyone who purchases the offer. For example, you could give a free ebook to any follower who makes a purchase.

Promotions like this encourage customers to buy by sweetening the deal. They’re especially persuasive if the bonus you offer is something you normally sell, because shoppers can appreciate its dollar value.

For example, Talking Shrimp is an affiliate of the online entrepreneurial course B-School. It offers bonus access to its own copywriting content, which is likely to be of interest to B-School subscribers.

9. Keep things legal

Always disclose when content contains affiliate links. Not only is this required by the FTC, but explaining your affiliation can help build trust.

For example, financial independence blog Frugalwoods offers this disclosure: 

“Frugalwoods.com contains affiliate links. Meaning frugalwoods.com receives commissions for purchases made through those links, at no cost to you. Please understand that we have experience with all of these companies and recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something.”

If you need help figuring out what language to use in a disclaimer, it’s worth taking time to consult a legal professional.

10. Consider ethical considerations and compliance

Beyond legal requirements, ethical affiliate marketing builds long-term trust with your audience. Be transparent about potential biases, only promote products you genuinely believe in, and respect user privacy in your marketing practices.

Stay updated on industry standards and platform-specific guidelines, which continue to evolve as affiliate marketing grows. Following the FTC's latest guidelines on disclosure requirements is essential for maintaining compliance and audience trust.

Affiliate program examples

Take a look at these popular affiliate programs to understand the different payout models, products, and services that you can promote.

Shopify

Shopify’s Affiliate Program is a community of entrepreneurs, educators, influencers, and creators who refer customers to Shopify. Joining the affiliate program is free—all you need to do is apply.

Once approved, affiliates receive a unique link to share with their audience. Each time someone signs up using this link, the affiliate earns income.

On average, Shopify Affiliates earn $58 for each user who signs up for a paid Shopify plan. Earning potential is unlimited and depends entirely on the success of your marketing strategy.

Smart Marketer’s Ezra Firestone considers the Shopify affiliate program one the most accessible he’s encountered in more than a decade of digital marketing. 

“Shopify made it easy for me to promote their product, make money, and provide value to my community,” he says.

Many Shopify affiliates use social media to promote their affiliate links, creating engaging YouTube videos about how to use Shopify, or shorts for TikTok showing successes achieved by Shopify merchants.

Others make long-form educational content, such as online courses that take new entrepreneurs from an initial business idea to their first sale and beyond.

Healthish

Water bottle retailer Healthish used affiliate marketing to build a million-dollar brand. It partnered with Instagram influencers to build awareness for the launch of its keystone product, the WB-1 bottle.

The Healthish affiliate program continues to work with influencer accounts with 100,000 followers or more It works with around 300 creators per month to create content that markets and sells at scale.

Amazon Associates

Amazon Associates is one of the world’s largest affiliate marketing programs, allowing publishers to monetize Amazon’s vast catalog of goods. Commissions vary by product category, generally ranging from 1% to 10%.

Thanks to Amazon’s universal reach and strong brand reputation, Amazon affiliates often enjoy higher than average conversion rates for their promoted links.

Juice Beauty

Juice Beauty is a skin care brand based in California that offers an affiliate program via Rakuten. Commission rates start at 6% on all sales and affiliates are provided with special deals and discounts. Juice Beauty doesn’t charge any application or membership fees to its affiliates.

EcoFlow

EcoFlow is a brand of smart solar solutions. It makes products including portable air conditioners and generators. The company works with two different affiliate program partners and offers a 5% commission on each sale. Keep in mind, however, the average order value is $1,000—meaning a $50 commission for your marketing efforts.

Manduka

Yoga brand Manduka offers a number of referral and affiliate programs for yoga teachers, influencers, and affiliate publishers. The diversity of this affiliate marketing strategy means that Manduka can connect the right partners with a program tailored to their channels or audiences.

Good To-Go

Camping food brand Good To-Go offers an affiliate program with a 10% commission rate and other perks. Due to its niche market, Good To-Go can partner with social media influencers in the outdoor living space to run affiliate campaigns targeting its desired audience: campers and backpackers.

Affiliate marketing mistakes to avoid

Focus on helping, not just selling

Regardless of your platform—be it blogging, YouTube, or Instagram—your content should aim to assist rather than sell. For example, if promoting a meal kit subscription service, a blogger might write a detailed review discussing how it caters to specific dietary needs. Or, a YouTuber could partner with a chef to get an expert’s take on the recipes.

This approach provides genuine value and builds trust with your audience, making them more likely to consider the purchase.

Avoid publishing low-quality content

It’s crucial to align the quality, tone, topics, and delivery style of your content with what’s successful in your niche.

Observe top performers in your area: What formats do they use? What topics do they cover? How do they engage their audience? For instance, if top tech gadget reviewers on YouTube use high-energy, detailed unboxing videos, consider adopting similar elements to connect and resonate with that audience.

This strategy ensures your content meets the expectations and preferences of your target audience, increasing credibility.

Don’t ignore SEO

Effective SEO involves more than just keywords—it requires an understanding of platform algorithms and content optimization.

For YouTube, this might mean focusing on video engagement signals (like watch time, likes, and comments) alongside proper tagging and descriptions.

For bloggers, SEO not only involves using keywords but also ensuring your site is mobile-friendly and fast-loading.

Instagram influencers should engage with followers through comments and stories to boost post visibility.

Learn the specifics of each platform’s algorithm and tailor your content to maximize reach and impact.