Affiliate Marketing Business

How Profitable Is An Affiliate Marketing Business? (Updated for 2024)

Pat Walls

•

Updated: July 21st, 2024

How Profitable Is An Affiliate Marketing Business? (Updated for 2024)

So you want to start an affiliate marketing business?

And the first question that came to your mind was, “well, are affiliate marketing businesses actually profitable?”

With a market size of $17B - there’s plenty of business to go around.

Especially considering:

You could start a affiliate marketing business with as low as $20
Based on our data, affiliate marketing businesses generate an average of $882K per year
You could see gross margins as high as 90% with affiliate marketing businesses

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a affiliate marketing business.

Let’s dive in!

Is an affiliate marketing business profitable?

Yes, an affiliate marketing business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $882K per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your affiliate marketing business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your affiliate marketing business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an affiliate marketing business worth it?

If you’re wondering if a affiliate marketing business is worth it, the answer is a big YES. With affiliate marketing businesses, you have the potential to earn $882K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $17B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a affiliate marketing business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful affiliate marketing businesses case studies.

Examples Of Profitable Affiliate Marketing Businesses

Here are a few examples of profitable affiliate marketing businesses, and a few more details about them:

1. Travel Blogging 101 ($660K/year)

Shelley, a former travel magazine editor, started a travel blog after leaving her corporate job.

In just two years, she became a six-figure blogger and taught others how to achieve similar success.

Through her courses and blog, Shelley has generated significant income and plans to continue expanding her business and creating more courses in the future.

Is it profitable? Yes
How much money it makes: $660K/year
How much did it cost to start: $1K

How I Run Four Travel Blogs And A Consulting Blog Making An Average Of $55K/Month

Travel blogger turns four profitable blogs into a six-figure business, increasing income by 3,113% from 2021 to 2022, and now teaches others how to scale quickly using her techniques.

Read this case study

Read by 4,790 founders

2. Zenmaster Wellness ($480K/year)

A pay cut at his job, and a friend's success in this niche inspired Matt to start during the pandemic.

Is it profitable? Yes
How much money it makes: $480K/year
How much did it cost to start: $500

I Quit My 9 To 5 & Built An Affiliate Site Making $40K/Month

Matt Oney quit his full-time job to pursue his side hustle full-time: an affiliate marketing-based content site called ZenmasterWellness that generates around 80k monthly visits and average monthly revenue of about $40,000 by leveraging SEO and affiliate partnerships.

Read this case study

Read by 9,856 founders

3. increasing.com ($480K/year)

Jamie realized the potential for Amazon affiliate links as a revenue stream while working on his social project. He added these links to his niche websites and scaled his project to commercial success.

Is it profitable? Yes
What's the gross margin? 90%
How much money it makes: $480K/year
How much did it cost to start: $500

How I Built A Bunch Of Niche Sites After Uni That Makes Me $40K/Month Through Affiliates

A 26-year-old Londoner turned to SEO and niche blogging in 2019 as a last resort to fund her social project to feed the homeless and increased her revenue to $81K in December 2022, mostly through affiliate commissions and organic searches via SEO, doubling down on affiliates for 2023.

Read this case study

Read by 6,922 founders

Learn more about starting an affiliate marketing business:

Where to start?

-> How to start an affiliate marketing business?
-> Affiliate marketing business plan
-> How to finance an affiliate marketing business?
-> How much does it cost to start an affiliate marketing business?
-> Pros and cons of an affiliate marketing business

Need inspiration?

-> Other affiliate marketing business success stories
-> Affiliate marketing business slogans
-> Affiliate marketing business names
-> Affiliate marketing business Instagram bios

Other resources

-> Affiliate marketing business tips
-> Email templates for an affiliate marketing business
-> Blog post ideas for an affiliate marketing business

How much can you make with an affiliate marketing business?

With a affiliate marketing business, you can make an average of $882K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $20. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a affiliate marketing business make a week?

Based on our data, average weekly revenue for a affiliate marketing business ranges around $19.4K. As such, you could see monthly revenues of $77.5K.

To know if your affiliate marketing business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your affiliate marketing business.

How much do affiliate marketing businesses owners make?

The income of an affiliate marketing business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established affiliate marketing business is about $19.4K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as an affiliate marketing business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Affiliate Marketing Business Profit Margins

Generally speaking, an affiliate marketing business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an affiliate marketing business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, affiliate marketing business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, affiliate marketing business owners can ensure long-term sustainability and profitability for their business.

Affiliate marketing business owner salary

The salary of an affiliate marketing business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established affiliate marketing business, in a prime position, might see an average weekly salary around the ballpark of $17.4K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, a affiliate marketing business is quite promising if you plan on starting such. With a market size of $17B, you can enjoy a potential revenue of around $882K per year with a gross margin of 90%.

Considering this information, you can enjoy a return of investment within 7 months, especially if you have a monthly profit of $69.8K. Overall, the success of your affiliate marketing business also depends on your effort and knowledge about it. If you persevere with these things, you can ensure that this affiliate marketing business is profitable.

Make sure you have a proper affiliate marketing business plan and know how to get clients for your affiliate marketing business.

Part of

Starting An Affiliate Marketing Business: Everything You Need To Know

‹

›