The Future Of Affiliate Marketing
In the late 1990’s I had a buddy in the mortgage business that persuaded me to jump into that market because business was booming. Real estate values were increasing at record levels and interest rates were reaching all-time lows. It was a perfect storm.
As a loan officer I could hardly keep up with all of the work. I had an endless stream of paying clients without ever having to pick up the phone to solicit new business. Nearly every person I knew working in that industry – including title insurance companies, real estate appraisers, banks, private lenders, and investors was making a six figure income almost effortlessly. Things continued like this for over a decade with seemingly no end in sight.
almost literally overnight, the party was over.
The real estate market had ballooned to unsustainable levels and when it popped, like every inflated market bubble eventually does, it took down the entire industry. The company I had been working for collapsed leaving me unemployed and with a final five-figure paycheck that bounced. Worse still I had a skill set, one that I had become quite good at, that was no longer needed.
The point of my story is that you need to be aware of the changes going on in your marketplace to avoid having the rug pulled out from underneath you like I did. Especially in the online world where things change so quickly that if you get complacent you could easily find your strategies obsolete and ineffective.
What Does The Future Of Affiliate Marketing Look Like?
- Luckily this topic came up at the Affiliate Summit West in Las Vegas just a few months ago. Industry leaders had a virtual roundtable discussion on what the future holds for affiliate marketing. Here is a recap in simple bullet points:
- The general consensus is that the future of affiliate marketing is extremely bright. Every business model (especially online) has a measurable lifespan and the affiliate marketing model has yet to reach its peak.
- The area of affiliate marketing with the highest potential and dynamics by far is mobile. Affiliate marketing has yet to establish its identity on mobile but this is an area you need to keep your eye on. Mobile is the new channel for advertising that’s poised to take off as more people spend the majority of their time on their phone rather than PC.
- Despite the emerging role of mobile, display ads are alive and well and will continue to grow through 2014.
- The role of video in affiliate marketing has become somewhat murky due to the limited real estate on mobile devices. But video can still be monetized effectively on PC channels as this issue is resolved.
But make no mistake about it… this market is still very, very young and growing rapidly. I’ll prove it to you below.
Online Retail Forecast: U.S. consumers will spend $632 billion online by 2020
As we cruise through the first quarter of 2017 e-commerce is exploding. In fact, that growth shows zero signs of slowing down into 2018 and beyond. The truth is that e-commerce is quickly becoming the future of retail sales as nearly all of the growth in the retail sector now takes place in online sales.
“BI Intelligence, Business Insider’s premium research service, forecasts that U.S. consumers will spend $385 billion online in 2016. Moreover, BI Intelligence predicts that number will grow to $632 billion in 2020.
This is hardly surprising considering e-commerce’s healthy growth. Though the U.S. retail average growth rate in the first half of 2016 was just 2% for total retail, it was 16% for e-commerce.”*
Affiliate marketing has a bright future indeed. But expect major changes in way we effectively display and convert offers in the coming months. These changes will have a direct impact on your income and your longevity in this business. Meanwhile, focus your efforts on improving and enriching your user experience. Continue to produce or share only the highest quality content you can and keep your readers coming back for more.