The affiliate marketing industry’s momentum is undeniable; analysts expect the affiliate marketing sector to grow at a compound annual growth rate (CAGR) of 18.86% between 2023 and 2032, reaching a value of nearly $40 billion by the end of the forecast period.
Yet, despite its impressive expansion and popularity among marketers, affiliate marketing remains misunderstood by many. Questions persist about how it works, what models exist, and which approach is best for different goals. In this blog, we’ll break down the various types of affiliate marketing so you can pick the one that is best for you.
What are The Different Types of Affiliate Marketing?
Understanding marketing in general begins when you learn that there is no one way to do things. In this section, we’ll explore different types of affiliate marketing based on aspects such as affiliate involvement, pay models, and more.
Based on Affiliate Involvement
As an affiliate marketer, you have to decide how involved you want to be with the advertising. Do you have the time to build a connection with the audience and promote the links? Or are you just looking for passive income without investing much time? Here are some affiliate marketing types based on how involved you want to be in the process.
Unattached Affiliate Marketing
If you want to jump into affiliate marketing quickly without building a blog, social media following, or personal brand, unattached affiliate marketing is a straightforward option. In this case, you promote products you have no personal connection with, and you run basic pay-per-click marketing campaigns. Here’s what you need to know:
How it works:
- You create ads with your affiliate links targeting potential buyers.
- When someone clicks on the link and buys the product, you get a cut of the sale.
- There is no direct interaction between you and the buyer. You only share the link as ads.
Best for: Beginners who want to start earning immediately, people who don’t want to spend time building an online presence, and anyone who wants passive income by running a few ads.
Example: If you search for “video editing tools” on Google, your search results will have “sponsored” links on top of the search results. Most of these ads are run by affiliates. You can also run such ads and earn a commission anytime anyone makes a purchase through your link.
NOTE: You don’t need any presence or authority in the niche or a set of followers. There is no need to endorse a product personally as well. All you have to do is post the affiliate links as ads. However, the lack of a loyal following may also mean that people won’t buy from the links. You will need to invest in Adwords, but it may be hard to earn a commission that way. Your success depends on your ability to run ad campaigns.
Related Affiliate Marketing
Another form of affiliate marketing is related affiliate marketing, wherein affiliates promote products relevant to their audience or niche (e.g., bloggers, influencers). You need to have some sort of online presence, like blogs, podcasts, videos, or social media, to do this type of affiliate marketing. Basically, you share affiliate links for products or services that align with your content and are genuinely useful to your audience.
How it works:
- You create your affiliate links through any affiliate platform.
- Then you can incorporate affiliate links into your content, such as blog posts, YouTube descriptions, podcast show notes, Instagram story links, YouTube recommendations, or banner ads, or text links.
- Please note that you need to share products and links that are relevant to your existing audience. Recommend products or brands that naturally fit into your niche and content, rather than running random ads.
- If someone purchases through your affiliate link, then you get paid.
Best for: Anyone who has a decent online presence, like bloggers, influencers, podcasters, or YouTubers.
Example: Take Shubra Vaity, a well-known Indian beauty and fashion influencer. She collaborates with luxury brands and recommends their products through her Instagram Reels, Pinterest, and YouTube videos. Her audience trusts her opinions, so when she shares an affiliate link or a product review, it feels like a genuine recommendation rather than a sales pitch.
Involved Affiliate Marketing
Involved affiliate marketing is when you have used a product and genuinely endorse it. In this affiliate marketing model, you become the voice of the products you truly love. So, you are not just involved with your audience but also deeply believe in the brand.
How it works:
- You create a loyal follower base on any social media platform or your website.
- Then you interact with the brand and experience its products. If you love the product, you share the recommendation with your audience.
- Affiliate links are embedded naturally into your content, be it Instagram reels or blog posts; the links are not casually placed in banners or sidebars.
- Once you have established trust, your audience will start believing your recommendations and buying from your unique affiliate links.
Best for: Influencers, bloggers, YouTubers, or reviewers with a dedicated following who have a high level of credibility with the audience. You can also be involved in this if you are willing to invest significant time and effort into building long-term relationships with both brands and their audience.
Example: A great example is OutdoorGearLab. Their team rigorously tests outdoor gear, then publishes detailed, unbiased reviews on their website. Affiliate links are included within their reviews, so readers can purchase the tested products directly. The trust they’ve built with their audience comes from their hands-on approach and honest reviews.
NOTE: While related affiliate marketing and involved affiliate marketing may seem the same, involved affiliate marketing requires a close relationship with a brand so that you can vouch for it. With related affiliate marketing, the links you promote just have to be relevant. However, in involved affiliate marketing, the product should be tried and tested before you personally recommend it to your audience.
Based on Pay Model
To be an affiliate marketer, you need to understand the various payment models in the industry. Here’s a look at the different affiliate marketing types based on the pay model.
| Pay Model | Description |
| Pay Per Sale (PPS)/Cost Per Sale (CPS) | You get a commission for each sale made through your affiliate link. |
| Cost Per Acquisition (CPA)/ Cost Per Action (CPA) | You will be paid based on the action completed by the referred person, like a sale or a sign-up. The type of action is decided by the merchant. |
| Pay Per Lead (PPL)/Cost Per Lead (CPL) | You get paid for every lead generated, like a user registration, form subscription, or email sign-up. |
| Pay Per Click (PPC) | You will get paid for each click generated from the affiliate links. |
| Pay Per Impression (PPI) /Cost Per Mile (CPM) | You will get paid for the number of impressions on an ad, regardless of the sales or clicks. |
| Pay Per Call (PPCall) | You will be paid based on the number of calls you drive to the merchant/brand. |
| Recurring/Revenue Share | You earn a percentage of the revenue generated by the referred customer. |
| Tiered Commission | You can earn at different commission rates based on performance tiers and sales volumes. |
Different brands have specific types of payment models based on their business model. While these are the most common types of affiliate marketing payment models, brands can use their own ways of rewarding affiliates and can also combine various models (hybrid) to reward the affiliates.
Types of Affiliate Partners
vYou can be several types of affiliate partners, including a blogger, influencer, or even a search affiliate. Understanding the options you have will make it easy for you to pick a type that benefits you and matches your skills.
Content Creators
As a content creator, you have multiple ways to become an affiliate partner. It is as easy as sharing affiliate links on platforms like Instagram, YouTube, Facebook, TikTok, and LinkedIn or through podcasts, blogs, and newsletters. This approach lets you turn your authentic content into a steady income stream. Simply choose the right programs, share relevant content, and earn your commissions!
Email and Newsletter Affiliates
If you are into tech or SaaS or know how the industry works, then this can be a good option for you. You can become an affiliate by integrating product recommendations and affiliate links into your regular newsletter and email campaigns. Embed the links into your content organically and earn commissions when users engage with the links. In order to succeed as an email or newsletter affiliate, you need to consistently provide valuable content to your audience.
Social Media and Influencer Affiliates
In the day of Instagram and TikTok, when people spend most of their day scrolling, there is no better platform to earn money.
How does influencer marketing work?
As a social media influencer, you can use platforms like Instagram, TikTok, Facebook, and even YouTube to build an audience and promote products. Firstly, you need to pick a niche- may it be fitness, fashion, or cooking. Then create content that engages the audience. Once you have amassed a decent number of followers, you can start promoting products. You can share discount codes, product reviews, unboxing videos, or GRWM videos, encouraging your followers to purchase through your links.
Search Marketing Affiliates
Anyone who is good at SEO or paid search advertising can use the knowledge to drive traffic to a merchant’s /brand’s page. You can drive traffic by creating high-ranking, quality content or doing PPC campaigns. Start creating relevant content that your users are using, and make sure it’s SEO-optimized. This way, you can target users who are actively searching for the brands/relevant solutions and convert them into buyers.
Which Platforms Offer the Best Affiliate Programs?
It can be difficult to find affiliate programs that are right for you. We have curated a list of the best affiliate programs below:
| Affiliate Program | Commission Rate | Cookie Duration | Payment Duration | Sign-Up Process | Notes |
| GrabCash | Up to 32% on top brands (varies by brand) | 30 days (but may vary) | 8 days to 90 days | Fast sign-up, easy process, and no approval needed | GrabCash has partnered with 200+ brands. Share links easily and track the performance in one dashboard. |
| Amazon Associates | 1%-20% (varies by product category) | 24 hours (cart additions, up to 90 days if it is still in cart | 60-day delay | Easy, quick approval but must make sales within 180 days of joining | Payment done via direct deposit or Amazon gift card |
| Rakuten Advertising | Varies on individual advertiser rates | Varies by the advertiser | Rakuten paid in 30 days and you get paid the following week | Straightforward approval process | Cashback platform with multiple commission structure like dynamic, coupon and multitouch |
| Shopify Affiliate Program | Up to $150 per plan referral | 30 days | Bi-weekly or custom threshold | Free and easy, but requires approval | Payment in USD via direct deposit or PayPal |
| AWIN | Varies by brand | Typically 30 days (but varies) | Varies by brand | Refundable $5 deposit along with a compliance check | Access to 25,000 advertisers |
| ClickBank | 1%-75% (but varies by product) | 60 days | Flexible ( weekly or bi-weekly ) | Very easy and no approval needed | More focused on digital products that offer high commission rates |
These platforms also have apps that you can use. If you want to know more about money earning apps, you can check this out. There are also apps that allow you to earn 100 rupees daily, so if you want to know more you can read this as well.
How Do Affiliate Networks Track Sales and Referrals?
To understand how affiliate marketing works and how you get rewarded, you need to know the various ways in which the affiliate networks track the affiliates and their contribution. In this section, we will describe the various ways through which affiliate networks track sales and referrals.
Unique Tracking Links
Affiliate links are different from other links because they have a specific element: a unique ID. When you use the unique links, every click and conversion is recorded. The affiliate networks can monitor the traffic and sales that are generated by your affiliate link. Unique tracking links help affiliate networks to:
- Track sales and leads generated by the right affiliate to compensate them fairly.
- Track referrals and reward partners, as well as affiliate partners for successful recommendations.
- Analyze the performance of affiliates and plan their marketing strategies accordingly.
First-Party Cookies
Cookies are small pieces of data stored in a user’s browser when they visit a website. When a visitor clicks on an affiliate link, a cookie is placed in their browser. This cookie contains the info on the affiliate’s ID and their campaign info.
When the user/visitor makes a purchase with the recommendation of the affiliate, the cookie registers this information. How is this helpful? Well, in cases when the user makes a purchase later, say, 7 days or 30 days after visiting the affiliate link, it can still attribute the sale to the correct affiliate. So, if the cookie hasn’t expired, then you will get the commission made by the user through your affiliate link, thanks to cookies!
Tracking Pixels
What are tracking pixels? It is an invisible 1X1 pixel image on the merchant site that collects data such as IP addresses, referral URLs, and more. These pixels work in an interesting way: collecting information whenever a user completes an action. For example, if a user visited the merchant website using your affiliate link and placed an order, the tracking pixel will register the information on the affiliate network’s analytics system.
But how are they different from cookies? While cookies expire after a certain time, tracking pixels don’t expire or rely on the browser storage. They offer real-time insights and share them with the affiliate networks.
Server-to-Server (S2S) tracking
Server-to-server tracking, also known as a postback URL, is an advanced way to track affiliate sales and activity. In this case, there is direct communication between the affiliate’s server and the merchant’s server, using postback URLs. It is a more secure option than cookie tracking because it does not require data storage on the user’s browser. Many confuse S2S tracking with Pixel tracking as well, but they are different.
| Server-to-server Tracking | Pixel Tracking |
| Operates on the server side | Works on the client-side |
| Bypasses limitations and offers more reliability and accuracy | Can be affected by ad blockers and privacy restrictions |
API Tracking
Affiliate networks use API tracking to track affiliates’ performance. They integrate merchant systems and help with data exchange, so every click and conversion is recorded. While cookies and pixel tracking are browser-based methods, API tracking bypasses all this, making it a more secure option to track. It is more resilient against privacy restrictions, ad blockers, and browser issues while supporting compliance with regulations like GDPR. API tracking is a powerful and modern solution for tracking affiliate marketing.
Reporting and Analysis
Reporting and analysis help you track sales and referrals by providing detailed data on clicks, conversions, and commissions, so you know exactly which affiliates and campaigns are driving results. With these insights, you can design your marketing accordingly, like adjusting creatives or budgets, to boost performance. For example, if a particular affiliate consistently generates high sales, you can reward them or increase their commission.
How to Choose the Right Affiliate Type for My Niche?
Picking the right niche to start your affiliate marketing career is easy. All you have to do is consider your interest, the market, and the money. Here is how you can choose the right niche:
- Identify topics and areas you have an interest in and are passionate about. Shortlist a few niches that excite you.
- Do market research and analyze the products and services you will be promoting in your niches.
- Then learn about the earning potential of each niche and which affiliate programs are the highest paying and have profitable commissions.
- Understand the audience’s needs and preferences, what kind of content they want, and their needs and interests.
- Observe your competitors and learn from other affiliates and what they are doing. Try to observe their strategies and learn from them.
Once you have done ample research, you can narrow down your list and analyze which niche has long-term growth potential.
PRO TIP: Go for niches with lower search volumes and competition rates but strong industry growth projections. This will give you a chance to build authority and capture market share in an emerging sector.
Wrapping it up
There are plenty of affiliate marketing types, starting from involved affiliate marketing to pay per sale; you can pick any one that suits your interests and goal. Remember something that will be profitable for other affiliate marketers won’t be profitable for you. So, do your research, pick a niche, build an audience, and promote your links accordingly. If you want to get started with affiliate marketing, GrabCash offers an easy way for you to start. You don’t need verification or a lengthy sign-up process; just log in using your phone number and share links!
Frequently Asked Questions
Which affiliate marketing niche is most profitable?
There are several affiliate marketing niches that have high profit potential, such as software and SaaS, personal finance and investment, and travel. However, there are other high-paying niches as well, such as health, beauty, skincare, makeup, and tech.
Can affiliate marketing be passive income?
Yes, affiliate marketing can become a source of passive income. Once you’ve created quality content and embedded your affiliate links, you can continue to earn commissions from clicks and sales over time, even while you focus on other projects or take time off. However, you need to maintain and update your content regularly to keep sharing relevant information.
What’s the difference between CPA and CPS models?
While the CPA model stands for cost per action, wherein you get paid when a user takes an action like signing up or buying. CPS stands for cost per sale, where you get a commission for each sale made through the affiliate link.
