Is affiliate marketing oversaturated in 2024? (No, but…)

Is affiliate marketing oversaturated in 2024? Well, no. There are some extremely competitive niches in affiliate marketing but there is also still room for starters in 2024.

What does it mean by affiliate marketing oversaturation?

Oversaturation is when you have more of something than people want or need. This can make it harder to sell that thing and earn money from it.

Firstly, you can picture that an affiliate is an extended arm of the brand, helping the brand reach users and making the brand’s presence stronger in the digital environment. In return, the brand pays them a commission.

Everything is still going well and it’s still a win-win situation for the affiliate and merchant.

But what if there are too many other affiliates doing the same thing in the same niche or market? What if everyone is trying to sell the same products or services to the same people?

That’s when affiliate marketing is saturated. It means there is too much competition and not enough demand. It means affiliate’s promotions are less effective and your commissions are lower. 

That’s when supply is greater than demand. That’s when saturation turns into oversaturation.

In the context of affiliate marketing, “oversaturated” refers to a situation where there is an excessive number of affiliates or publishers promoting the same or similar products or services within a specific niche or market. When a market becomes saturated, it can lead to increased competition among affiliates for the attention of the same target audience.

Is affiliate marketing oversaturated? 

Is affiliate marketing oversaturated? Or will it be oversaturated? These claims are among many myths surrounding affiliate marketing.

Short answer: affiliate marketing cannot be saturated. The reasons are: 

• Low-risk for entrepreneurs 
• High affiliate job demands due to opportunities
• New niches to promote every year

At last, please note that though there is always room for starters, some niches can be extremely competitive. Read the following for further information! 

1. Firstly, affiliate marketing is an effective, sustainable business model. 

Brands never stop using affiliate marketing. Indeed. It is one of the most effective and sustainable business models, and it is legalized worldwide.

Why do entrepreneurs love this strategy? 

The key reason is affiliate marketing is performance-based. Or, in short, the merchant only pays affiliates if they generate successful deals. For merchants, affiliate marketing is a  low-risk solution.  Affiliate Marketing brings a Return on Investment of 1,400%. This means they may get $14,000 in revenue for each $1,000 investment in affiliate marketing.

There is no reason for a brand to stop using this strategy. the affiliate marketing industry is thriving still (and never be outdated). Stats do not lie: 

• Affiliate marketing global spending is expected to reach $14.3 billion in 2023 and rise further to $15.7 billion in 2024.
• The global number of affiliate marketing-related service offerings grew by 26% in 2021 alone, to reach a staggering 10,000 firms offering or specializing in affiliate marketing services2.
• More than 80% of advertisers use affiliate marketing as part of their online marketing strategy. 
• Interest in affiliate marketing rose more than 264% between 2020 and 2022.
• More than 25% of brands utilize bloggers in their affiliate marketing campaigns.

2. Affiliate marketing is always in demand. 

As businesses increasingly recognize the effectiveness of affiliate marketing, the need for skilled professionals has skyrocketed. As long as there are brands that need more customers, boost sales, and enhance reach,  they will proactively look for affiliates that can help them reach their target audience. 

As a result, there are a lot of people who choose affiliate marketing to start. 

Many individuals with expertise in affiliate marketing find themselves in high demand, with diverse roles ranging from affiliate managers to content creators, reflecting the pivotal role affiliates play in driving online success.

If you look at Google Trends, you will see that terms like “affiliate marketing” and “affiliate program” are still very popular and growing. It is proof that many hustlers care about being an affiliate. 

Side facts: The average annual salary for affiliate marketers in 2023 is around $56,9162. However, this figure can range from $38,000 to over $1 million, depending on the level of success and income sources of the affiliate marketer

3. Many new and untapped niches for affiliates every year

The diversity of affiliate marketing is revolving around the diversity of products. 

This means there are endless possibilities, as there are new and improved products every year. 

You don’t have to stick to the same old niches that everyone else is doing ( just like health, fashion, or finance). You can make your path with emerging niches that have less competition and more potential customers who are looking for solutions to their problems or interests.  

For example, cryptocurrency, virtual reality, or e-sports are some of the hot topics that you can tap into as an affiliate marketer. Affiliates are suggested to explore further details and insights on such niches for more choices.

4. There are niches that are overcrowded

Please note that though affiliate marketing cannot be saturated and there is room for newbies to start, there are still some niches with extreme competitiveness.  

Just like bustling city streets during rush hours. Think health, finance, tech, and dating – everyone wants a front-row seat.

Even though affiliate marketing, in its essence, is an ever-expanding city for everyone.

So, you don’t need to go the same roads, just like anybody. There are many roads for you to go to your destination. It could be longer, but compared to the traffic jam, you may end up going to the destination sooner. 

Why are some affiliate marketing niches oversaturated?

A popular niche can also have a downside: oversaturation. When a niche becomes too crowded with affiliates, it can be harder to stand out and make sales. So what causes a niche to become oversaturated? Here are some of the main factors:

1. Popular Niche/ Brand 

Some brands can be great enough to be a niche itself. For example, Lego,

Some niches are naturally more popular than others because they appeal to a large and diverse audience. For example, health and wellness, finance, and technology are some of the most popular niches, and more popular than ceramics

As they attract more affiliates, they typically offer lower commission rates. Lego offers a 3% commission compared with an average of 7% of the toy industry. It seems to be a fair trade somehow as affiliates take advantage as big brands have already built followers around the world – what a mall one cannot offer. 

Anyway, popularity can also lead to competition, as many affiliates end up promoting the same or similar products or services. 

If you want to start promoting Lego right now on YouTube, believe that your video will appear when anyone searches for the term “Lego” in the YouTube search bar. Well, rethink if you believe you can be able to beat this Hafu Go guy who has over 3M subscribers. 

But it is still monetizable anyway, there are tons of people who love Lego in every corner of the world. Just make sure to choose a less competitive niche, such as Lego 18+ Set. 

2. The number of affiliates 

Some niches are so crowded with affiliates. Well, there are a few reasons for that. 

One of the main reasons is that some people get too hyped up about affiliate marketing. They see all these success stories online and think they can make money overnight by copying others. They don’t bother to do any research or create any original content. They just follow the trends and jump on the bandwagon of the most popular niches, making some mess and then it even harder for customers to find what they are looking for.

Another reason is that some affiliate programs are very easy to join. They give you everything you need to promote their products, like banners, links, and landing pages. You don’t need any special skills or experience to become an affiliate. 

Sounds great, right?

 Well, the problem is that this also attracts a lot of people who don’t care about the niche or the products. They just want to make a quick buck by spamming their links everywhere. This lowers the quality of the niche and makes it harder for customers to trust the affiliates.

3. Lax of content standard 

One of the reasons for affiliate marketing saturation is the lax content standards from advertisers. Many advertisers do not care about the quality or relevance of the content that their affiliates produce, as long as they generate clicks and conversions. This leads to a lot of low-quality, spammy, or misleading content that floods the internet and harms the reputation of affiliate marketing. 

What are some less popular but potentially profitable niches for affiliate marketing?

If you’re looking for a niche to start your affiliate marketing journey, you might be wondering which ones are the most popular and profitable. After all, you want to make sure you’re choosing a niche that has enough demand and potential customers

For example, cryptocurrency, virtual reality, or e-sports are some of the hot topics that you can tap into as an affiliate marketer.

1. Woodworking 

This niche is about creating and selling various wooden items, such as furniture, toys, crafts, or tools. Woodworking is a hobby that many people enjoy and are willing to spend money on. According to Ahrefs, the keyword “woodworking” has a global monthly search volume of 1.1 million and a keyword difficulty of 18, which means it is relatively easy to rank for. Some of the products that you can promote in this niche are woodworking plans, tools, materials, courses, or books.

2. Sustainability 

This niche is about reducing the amount of waste that is generated and sent to landfills or incinerators. Zero waste is a lifestyle that many people adopt for environmental, ethical, or health reasons. The keyword “zero waste” has a global monthly search volume of 246,000 and a keyword difficulty of 10 on Ahrefs, which means it is very easy to rank for. Some of the products that you can promote in this niche are reusable or biodegradable products, such as bags, bottles, straws, containers, or utensils.

3. Artistic Interior 

This niche is for people who appreciate or create artistic interiors, such as paintings, drawings, sculptures, photography, etc. You can promote products such as interior supplies, prints, frames, online galleries, courses, etc. Some sub-niches are Japanese art, abstract art, China ceramics, futurism lifestyle, etc.

How do you stand out in an oversaturated affiliate marketing niche? 

1. Find Your Niche

In a saturated market, you cannot go fast in a busy street. You can do this by focusing on a specific sub-niche, audience, problem, or solution that is not well served by the existing competitors. For example, instead of promoting generic weight loss products, you can target a specific group of people, such as busy moms over 40, or a specific method, such as intermittent fasting. 

Your people will find you!

2. Offer value-added services

Think about tossing in extra goodies with your product or service. If you’re peddling web hosting, why not throw in some web design, SEO, or content creation? People love freebies, and it keeps them coming back for more. Win-win!

3. 80/20 rules

Ever heard of the 80/20 rule? It’s like the VIP pass for your products. Focus on the magical 20% that brings in 80% of the results. Test the waters, research, and figure out what’s making the cash register sing. And, please, don’t waste time on junk – your reputation will thank you.

4. Keep It Real

In a world of copycats, be honest and authentic when making content. Your authenticity is your secret sauce. Be upfront, and honest, and share your story. Nurturing your credibility is nurturing trust among your follower’s community. Your customers will see you as their online BFF, not just another salesperson. Trust, my friend, is everything.

Conclusion

So, is affiliate marketing oversaturated in 2024? The answer is yes and no. 

Yes, because many niches and markets are already saturated with affiliates competing for the same customers and commissions. 

No, because there are still opportunities to find less competitive niches and levels, or to create your unique value proposition and brand. 

The key is to do your research, be creative, and offer something that stands out from the crowd. Affiliate marketing is not dead, but it is not easy either. You need to work hard, be consistent, and adapt to the changing trends and customer needs. If you do that, you can still succeed in this lucrative online business model.