Affiliate marketing is a form of performance-based marketing where companies pay third-party publishers or “influencers” a commission for driving traffic or sales to the company’s products or services.
Influencers earn commissions by promoting affiliate links within their content; content like websites, social media posts, product reviews, and of course “in the description down below” as every Youtuber reminds us. When we click on an affiliate link and make a purchase, the influencer receives a percentage of the sale price as their commission payout (and we’re not talking about two or three percent here!).
The affiliate model allows companies to only pay for actual sales, making it cost effective and performance-based. For influencers, it provides a way to make money from their content and audiences. It’s a win-win.
Except…
It’s pretty obvious that affiliate commissions can, and let’s be real, probably do, lead to biased endorsements. Of course every affiliate claims they only endorse products they use themselves, trust, find amazing, etc., etc… But no matter how glowing the recommendation, influencers typically promote just one item, they don’t rigorously compare it alongside others, AND THEY ARE GETTING PAID TO ENDORSE THE PRODUCT. The higher the commission, the more suspect their advice probably is.
Affiliate marketing is a popular strategy for companies to reach new customers—and third-party, paid Etsy research tools are no exception.
How Many Etsy Research Tools Offer Affiliate Programs?
Of all the third-party Etsy research tools in my Etsy research tool Reality Check program, at least 9 offer affiliate commissions, ranging from $7(?) to 35%.
Here’s a spreadsheet with my findings:
Is it really a coincidence that all the most popular tools also pay commissions?
Big commissions.
Affiliate programs make sense for those offering them. They are very cost effective, and there’s nothing illegal or immoral in earning affiliate commissions (but they have to be disclosed upfront in many jurisdictions).
But as a consumer, we just need to be cautious of the advice given by those who are paid on the basis of the advice they give.
But you’re a grownup. You knew that.
But maybe you didn’t know just how much influence affiliate commissions appear to have on the uptake of Etsy research tools.