How Lucrative is the Affiliate Marketing Opportunity?
Affiliate marketing opportunity covers almost all the globe.
You know that everyone must have a place the affiliate marketing business. But just how good is the affiliate marketing opportunity? How big the market size really is? How can a common guy build a successful affiliate marketing business?
You are not alone on this question. Market size and opportunity are the subjects that everyone entering a business may question. Here are some list of the questions demanding answers:
- How big is the online market really is?
- Does the online market continue to grow?
- Is there really such online business opportunity?
- Is a niche really feasible for an affiliate marketing?
Here we will see the answers to those questions.
In this article we'll see:
- world population and market growth
- factors that affect online market growth
- sample: coffee as a specific subject
World Population and Market Growth
Size of a market is directly related to population. The increase in demand for basic necessities is proportional to the number of people in a market.
Now let’s take a look at population data. Currently, as of December 29, 2023, according to worldometers.info, there are more than 8.08 billion people on earth, and counting.
It is a huge number. And each soul has needs and wants every day and night, which need also differs for every occasion.
A baby needs clothing starting from the day the little creature is born, and this need continues until he or she dies. According to statista.com, there are about 133 million births every day. Let’s not forget, that even before a baby is born, purchases are already made by the parents, such as health service, to keep the baby healthy until delivery.
So How Big is the Online Market Size?
With expansion of the internet coverage and mobile applications, shopping at everyone’s fingertips. Statista.com predicted that retail e-commerce sales would reach 8.148 billion US dollars in 2026. More than 100,000 entrepreneurs made $100,000+ in sales at Amazon in 2017.
This has not accounted other online sellers. The market is huge.
Factors that Affect Online Market Growth
The online market is growing steadily. At least four factors have effects on this:
(a) population growth
World population grows by about 1.07 % per year. Considering the current population of 8 billion, that’s 81 million additional human beings each year, whose needs will be served by markets.
(b) economy growth
Economy improvement in many countries also increases market capitalization. According to World Bank Data, global economy grew by 3.152% in year 2017. The US economy alone grew by 2.3%.
(c) Internet coverage expansion
In many countries, internet coverage (areas and price) is still growing. In North America (from https://www.internetworldstats.com), the growth of internet users is 218% in 18 years from 2000 to 2018.
(d) the shift to online market transactions
Consumers are getting busier than ever, having less and less time to shop. This necessitates easy and quick shopping method, which is quite frankly, is satisfied by the online market.
Currently there are ongoing big shifts to the online market in many countries, especially the developing countries. New online sellers are emerging rapidly. Many products, in particular products with fixed, non-personal emotion related stuff are shifting to online markets. Offline stores are now thriving to survive on some places.
Sample: Coffee as a Specific Subject
coffee, a very popular drink
Let’s say we love coffee, and choose coffee as the affiliate marketing niche.
Coffee is a global favorite drink for busy people. The world’s coffee production, according to nationalcoffee.blog for year 2018/2019 is 171.2 million bags (1 bag is 60 kg). US coffee consumption alone was predicted be 27 million bags.
How many people take coffee? In US, 50% of the population drink coffee. That’s about 150 million people. Independent coffee shops make an equal to $12 million in sales (www.e-importz.com).
This is pretty much the amount of people who have interest in coffee in US (they should, since coffee is addictive, and addiction plays a significant role in the market).
If only half of these coffee drinkers have access to the internet, they are exposed to online the coffee-related stuff market.
What discussions can be made around coffee? More exactly, what would the target market need when it comes to coffee as the main subject?
There are many ways the coffee subject can be examined a marketable product. They can be:
(1) The coffee as a consumption product. A search for ‘coffee’ on Amazon site returns more than 300,000 results, with possible search refining by brand, specialty type (kosher, organic, vegan, etc.), caffeine type, roast, nutrition, flavor, calories, format, FSA or HAS eligible.
(2) Coffee supplementary products /issues. This could be creamers, review of café, coffee communities, home coffee brewing, health issues, or others.
(3) Equipment. With popularity of home brewing, there come coffee machines, presses, grinders, cups, mugs, saucers, or others.
These are only few samples of the possible subjects around coffee.
How do the products sell?
Let’s look at Amazon. A search for “coffee makers” gave a result as the following picture:
Search result for coffee makers
The best value for 2018, Hamilton Beach 49980A had 4,853 reviews, which means it has been sold at least in that number. Sure it’s the low price product. But the high end, OXO Barista Brain 9 Cup had 975 reviews, which is no small feat either.
The best seller, Keurig K55, had 8,340 reviews.
This is quite a lot, which signifies how elaborately coffee lovers explore the subject.
I don’t know much about coffee. But I have friends who know and love coffee who always dig into deep, lengthy conversations when they discuss coffee. It’s pretty much gives an illustration how enthusiastic people when they get into things they like.
This also applies to any subject people love. As long as there is enough demand, a market will develop. If the market grows to a significant size, there is a place for an affiliate marketer to make his sales. And the affiliate business can be started as a home business opportunity.
So how lucrative is affiliate marketing? This small example may show that the online market is quite lucrative for an affiliate marketer.
A more detailed basics on marketing can be found here. Just prepare yourself to build a successful affiliate business.
If you have any questions or comments, leave a message in the comment box below or email me at hendra@worldbestaffiliate.com.
Your response will be much appreciated.
Thank you and have a nice day!
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