Is Affiliate Marketing A Scam? The Honest Truth About Legitimacy

Is affiliate marketing a scam?

No. Affiliate marketing itself is 100% legitimate. It’s a $20+ billion industry used by Amazon, Shopify, eBay, and thousands of legitimate companies worldwide.

BUT (and this is important):

There ARE scams WITHIN affiliate marketing. And the confusion between “affiliate marketing is legit” and “there are affiliate scams” is exactly what scammers exploit.

Here’s what’s actually happening:

Legitimate affiliate marketing:

Amazon Associates (earn 1-10% promoting Amazon products)
Shopify Affiliate Program (earn commissions on referrals)
ShareASale, CJ, Impact (thousands of real brands)
80-85% of affiliates make <$100/month (not a scam, just hard)

Scams disguised as “affiliate marketing”:

“Pay $2,000 to join my secret affiliate program!”
“Make $10,000/month guaranteed with my system!”
Courses teaching outdated methods for $997
Pyramid schemes calling themselves “affiliate marketing”

The industry is legitimate. Many “opportunities” within it are not.

After researching affiliate marketing extensively, I discovered a fundamental problem: Even legitimate affiliate marketing has brutal economics (need 50,000-200,000 visitors/month for $2,000-$5,000/month). That’s why I chose local lead generation instead—same SEO skills, but 100-500x less traffic needed for same income.

Let me show you what’s real, what’s BS, how to spot scams, and why there’s usually a better path.

👉 See why I chose lead gen over affiliate marketing

Table of Contents

What Is Affiliate Marketing? (The Legitimate Model)

First, let’s understand what REAL affiliate marketing actually is:

The Basic Concept

1. Company has product/service (Amazon, Shopify, web hosting, courses, etc.)

2. You (affiliate) promote it:

Write blog review
Create YouTube video
Post on social media
Email your list

3. Someone clicks your unique link

Tracking cookie placed
Lasts 24 hours – 90 days depending on program

4. They buy the product

Within cookie window
You get credit

5. You earn commission

1-30% of sale typically
Payment monthly (usually)

This model is 100% legitimate. It’s been used since the 1990s. Billions of dollars flow through legitimate affiliate programs every year.

Real Examples Of Legitimate Affiliate Marketing

Amazon Associates:

You write blog post “Best Coffee Makers 2026”
Link to coffee makers on Amazon
Someone clicks, buys $200 coffee maker
You earn $6-$10 (3-5% commission)
Legitimate, just low-paying

Shopify Affiliate:

You teach people how to start online stores
Recommend Shopify
Someone signs up through your link
You earn $58-$2,000 depending on plan
Legitimate, decent commissions

Web Hosting Affiliates:

You teach WordPress
Recommend Bluehost/SiteGround
Someone signs up
You earn $50-$150
Legitimate, commonly done

This is all real. Companies pay billions in affiliate commissions annually.

Why Companies Use Affiliate Marketing

From business perspective:

Only pay for RESULTS (sales, sign-ups, leads)
Don’t pay for ads that might not work
Affiliates do the marketing work
Cost-effective customer acquisition

From affiliate perspective:

Don’t need to create product
Don’t handle customer service
Don’t deal with inventory/shipping
Just focus on traffic and promotion

It’s a win-win partnership model when done legitimately.

Where The Scams Come In (The 8 Types)

Now here’s where it gets murky. These are the actual scams:

Scam Type 1: Pay-To-Join “Affiliate Programs”

What they say: “Join our exclusive affiliate program for just $997!”

Red flags:

Legitimate affiliate programs are FREE to join
Amazon: Free
Shopify: Free
Every real program: Free
If they charge you to be an affiliate, it’s a scam

Why it’s a scam:

They make money from affiliates, not from selling products
Product often doesn’t exist or is worthless
Real money comes from recruiting affiliates
This is actually a pyramid scheme

Example: MOBE (My Online Business Education)

Charged $49 to join, then upsells to $30,000
Promised affiliate commissions
FTC shut it down for being pyramid scheme
Millions lost

How to avoid: NEVER pay to join an affiliate program. Ever.

Scam Type 2: “Guaranteed Income” Affiliate Courses

What they promise: “Follow my system, make $10,000/month guaranteed!”

Red flags:

No one can guarantee affiliate income (it depends on traffic, conversions, offers)
Fake screenshots of income
Fake testimonials
“Limited spots available!” (pressure tactics)
Cost: $500-$2,000 typically

Why it’s a scam:

They make money from course, not affiliate marketing
Often teach outdated methods
Real affiliate marketing takes 12-24+ months
80-85% make <$100/month (can’t guarantee success)

Example: Typical pattern

Facebook ad: “$30K/month affiliate income!”
Webinar: 90 minutes of hype
Pitch: $1,997 course
Reality: Teaches basics you can learn free on YouTube
They make more from course than affiliate marketing

How to avoid: No one can guarantee income. Learn from free resources first (YouTube has everything).

Scam Type 3: Fake/Non-Existent Products

What happens:

Affiliate program promoting product that doesn’t exist
Or product is terrible/doesn’t work
Affiliates unknowingly scam their audience
Chargebacks, refunds, angry customers
Affiliate loses commissions AND reputation

Red flags:

Can’t find product reviews anywhere
Company has no website or sketchy website
Overly aggressive sales copy
“Miracle” claims (weight loss, get rich, etc.)

Example:

Promote “miracle weight loss pill”
Earn $50 commission per sale
Customers get sugar pills
Request refunds
Your commissions clawed back
Your audience hates you

How to avoid: Only promote products you’ve personally verified exist and work.

Scam Type 4: Cookie Stuffing/Hijacking

What happens:

Shady “affiliates” use malware to stuff cookies on your computer
When you buy something, THEY get the commission
Not you scamming, but scammers stealing commissions

How it works:

You visit a website
Hidden code drops affiliate cookies
Later you buy something
Scammer gets commission even though they didn’t refer you

This doesn’t affect YOU as an affiliate trying to make money (you’re the victim). But it shows the shady underbelly of the industry.

Scam Type 5: “Done-For-You” Affiliate Sites

What they sell: “We’ll build you a profitable affiliate site for $5,000!”

Red flags:

Claim site will make money immediately
Often use duplicate content (Google penalty)
Same site sold to 100+ people (competing with yourself)
No actual traffic strategy

Why it’s a scam:

Real affiliate sites take 12-24 months to earn
Can’t buy your way to success
$5,000 gets you basic WordPress site worth $200
No traffic = no income

How to avoid: Don’t buy pre-made sites. Build yourself or hire legitimate developer (not marketer promising income).

Scam Type 6: MLM Disguised As Affiliate Marketing

What they say: “This isn’t MLM, it’s affiliate marketing!”

Red flags:

Focus on recruiting others
Multiple membership levels
Need to buy product monthly to earn commissions
Income comes from recruits, not product sales

The difference:

Real affiliate marketing:

Promote product to consumers
Earn commission when they buy
Don’t recruit other affiliates

MLM disguised as affiliate:

“Affiliate program” but must recruit
Earn more from recruits than sales
Must buy product yourself
It’s MLM/pyramid scheme

How to avoid: If primary income comes from recruiting others as “affiliates,” it’s MLM not affiliate marketing.

Scam Type 7: Shaved Commissions

What happens:

Legitimate program but dishonest merchant
They “shave” commissions (don’t pay for all sales)
Hard to prove
Lose 20-40% of earnings

How it works:

You send 100 sales
They report 70 sales
You lose 30% of commissions
No way to verify their numbers

Red flags:

Earnings seem lower than traffic suggests
No transparency in reporting
Delays in payment
Complaints from other affiliates

How to avoid: Stick to major affiliate networks (Amazon, ShareASale, CJ, Impact) with reputation to protect.

Scam Type 8: The “Guru” Exploit

What it is:

Person makes money teaching affiliate marketing
Makes WAY more from courses than affiliate marketing
Uses “affiliate marketing success” as proof of expertise
Actually makes $30K/month from courses, $2K/month from affiliate

Red flags:

All content pushes you to buy course
No free value
Constant income screenshots
“Limited time” pressure

Why it’s misleading:

They’re not successful affiliate marketers
They’re successful course sellers
“Affiliate income” is selling YOU affiliate courses
Classic “sell shovels during gold rush”

This isn’t technically a scam, but it’s deeply misleading.

How to spot: Check if they actually do affiliate marketing or just teach it.

Is Affiliate Marketing Legitimate? Yes, BUT…

Let me be completely honest about legitimate affiliate marketing:

The Truth About Real Affiliate Marketing

It IS legit, BUT:

80-85% of affiliates make <$100/month

Not because it’s a scam
Because it’s HARD
Need massive traffic
Takes 18-36 months
Most quit before succeeding

To make $3,000/month legitimately:

Amazon Associates (3% average commission):

Need 2,000 sales/month
At 1% conversion: 200,000 visitors/month
Takes 24-36 months to build that traffic
This is REAL but very difficult

High-ticket SaaS (20% commission, $500 product):

Need 30 sales/month
At 2% conversion: 1,500 visitors/month
Takes 12-18 months to build
More achievable but still takes time

The math is real. The challenge is real. Not a scam, just difficult.

Why Most People Think It’s A Scam

They fail not because it’s a scam, but because:

Unrealistic expectations (thought they’d make $5K in 3 months)
Quit too early (gave up at month 6, would’ve succeeded month 18)
Chose bad niche (too competitive)
No traffic strategy (built site, hoped traffic appeared)
Fell for a scam (paid $2K for fake course)

When they fail, they say “affiliate marketing is a scam” when reality is:

They chose bad method/niche
Or didn’t give it enough time
Or fell for a scam ABOUT affiliate marketing
But affiliate marketing itself isn’t the scam

The Economics Problem

Even legitimate affiliate marketing has a fundamental problem:

You need MASSIVE traffic for modest income.

Example:

You build blog about coffee
Write 200 articles
Rank for “best coffee maker,” “coffee beans review,” etc.
Get 50,000 visitors/month (18-24 months work)
1% click affiliate links
2% of those buy
Average commission: $10
Monthly income: $100

50,000 visitors for $100/month.

To make $3,000/month:

Need 1.5 MILLION visitors/month
OR higher-ticket products
OR better conversion

This is why most affiliates fail. Not scam, just brutal math.

Why I Chose Lead Gen Instead

Same traffic skills, vastly different economics:

Affiliate marketing:

Need 200,000 visitors/month
Earn 3% commission
Make $3,000/month
200,000 visits = $3,000

Lead generation:

Need 500 visitors/month (across 3-6 sites)
Businesses pay $500-$1,000/month per site
Make $3,000/month
500 visits = $3,000

400x less traffic for same income.

Same skills:

WordPress
SEO
Content creation
Conversion optimization

Different application:

Local instead of national
B2B instead of B2C
Leads instead of products

Both methods work. One requires 400x less traffic.

How To Spot Affiliate Marketing Scams

Red Flag Checklist

Instant red flags (100% scam):

❌ Pay to join affiliate program
❌ Guaranteed income claims
❌ “Make $10K your first month!”
❌ Must recruit others to earn
❌ Can’t find product online
❌ Pressure to “act now or miss out”
❌ Can’t get refund
❌ No contact information

Warning signs (investigate further):

⚠️ Overly aggressive income claims
⚠️ Mostly focuses on recruiting affiliates
⚠️ Very high commissions (70%+) on cheap products
⚠️ Poor/fake reviews
⚠️ Can’t verify company exists
⚠️ Complicated commission structure

Green flags (probably legitimate):

✅ Free to join
✅ Clear commission structure
✅ Established company (can Google and find real info)
✅ Realistic income expectations stated
✅ Money-back guarantee
✅ Real contact information
✅ Focus on selling to customers (not recruiting affiliates)

Questions To Ask Before Joining

1. Is it free to join?

If no → Scam
If yes → Continue

2. Can I verify the product exists?

Google the product
Find real reviews
See real customers
If can’t verify → Scam

3. How do they primarily make money?

Selling product to customers → Legit
Recruiting affiliates → Scam (MLM)

4. What’s the realistic income timeline?

“Make money your first week!” → Scam
“Takes 6-18 months to build income” → Realistic

5. Can I find complaints?

Google “[company name] scam”
Check Reddit, Trustpilot, BBB
If overwhelmingly negative → Avoid

6. Who’s promoting this?

Real affiliates sharing experience → Good sign
Only “gurus” selling courses about it → Bad sign

The “Too Good To Be True” Test

If it promises:

Fast results (money in days/weeks)
High income (thousands/month immediately)
Little work (few hours/week)
No skills needed
Guaranteed success

Ask yourself: If this was real, why would they share it?

Real answer: It’s not real. They make money from YOU (course sales, recruitment), not from the method itself.

Legitimate Affiliate Programs Worth Considering

If you DO want to do affiliate marketing, these are REAL:

Amazon Associates

Free to join: Yes
Commission: 1-10% (most 3-4%)
Cookie: 24 hours
Verdict: Legitimate but lowest commissions

ShareASale

Free to join: Yes
Commission: 5-30% depending on merchant
Merchants: 5,000+ real brands
Verdict: Legitimate, one of the best networks

CJ Affiliate (Commission Junction)

Free to join: Yes
Commission: Varies widely
Merchants: Major brands
Verdict: Legitimate, established network

Shopify Affiliate

Free to join: Yes
Commission: $58-$2,000 per sale
Cookie: 30 days
Verdict: Legitimate, high-ticket commissions

Web Hosting Affiliates

Bluehost: $50-$150 per sign-up
SiteGround: $75-$150
Free to join: Yes
Verdict: Legitimate, commonly promoted

These are all real. But remember: Still need massive traffic to make meaningful income.

The Better Alternative: Why I Do Lead Gen Instead

After researching affiliate marketing thoroughly, I made a strategic decision:

The Comparison

What I wanted:

Build business online
Use SEO/traffic skills
Earn passive income
Not trade time for money

Affiliate marketing offered:

✅ Online business
✅ Use SEO/traffic skills
✅ Passive income (once built)
❌ BUT needs 50,000-200,000 visitors/month

Lead generation offered:

✅ Online business
✅ Use SEO/traffic skills (same ones)
✅ Passive income (once built)
✅ Needs 500 visitors/month total (100x less)

Decision: Lead gen was obvious choice.

The Traffic Math

To make $3,000/month:

Affiliate marketing:

Amazon route: 200,000 visitors/month
SaaS route: 10,000-15,000 visitors/month
Minimum: 10,000 visitors/month

Lead generation:

3 sites × 150 visitors/month each = 450 visitors/month total
Each site: $1,000/month
Total: $3,000/month
Need: 450 visitors/month total

22x less traffic for same income.

Same Skills, Better Application

Skills affiliate marketing requires:

WordPress/website building ✓
SEO (getting traffic from Google) ✓
Content writing ✓
Conversion optimization ✓

Skills lead generation requires:

WordPress/website building ✓ (SAME)
Local SEO (easier than national) ✓ (EASIER)
Content writing ✓ (SAME)
Sales/client communication ✓ (NEW but teachable)

95% overlap in skills. Completely different economics.

My Results

Time invested: Similar to if I’d done affiliate

Built 8 sites over 3 years
60-100 hours per site
480-800 total hours

If I’d done affiliate marketing:

Same time invested
Would need 50,000-100,000 visitors/month
Likely making $1,500-$3,000/month now
Constant content creation required

What I actually did (lead gen):

Built 8 sites
Get 1,200-2,000 visitors/month total
Making $6,000-$10,000/month
2-5 hours/month maintenance per site

Same skills. 50x less traffic. 2-3x more income.

No scam risk (I own the sites, I own the client relationships, no affiliate network to trust).

Comprehensive FAQ: Affiliate Marketing Scams

Q: Is affiliate marketing a pyramid scheme?

A: No, legitimate affiliate marketing is NOT a pyramid scheme.

Real affiliate marketing: Earn commission selling products to consumers. Don’t recruit other affiliates. Legal and legitimate.

Pyramid scheme: Primary income from recruiting others into program. Must pay to join. Illegal in most countries.

The confusion: Some pyramid schemes CALL themselves “affiliate programs” to seem legitimate. But if income comes from recruitment, it’s pyramid scheme regardless of name.

Q: Can you really make money with affiliate marketing?

A: Yes, but with massive caveats:

Reality:

80-85% make <$100/month
Top 10% make $1,000-$10,000+/month
Top 1% make $50,000-$500,000+/month

Timeline: 18-36 months typically to $2,000-$5,000/month

Requirements:

50,000-200,000 visitors/month (low-ticket)
OR 5,000-15,000 visitors/month (high-ticket)
Consistent content creation
SEO knowledge
Patience

Better question: “Is there an easier way to make similar money with similar skills?”

Answer: Yes, lead gen (same skills, 100x less traffic needed).

Q: Why do so many people call affiliate marketing a scam?

A: Because they:

Fell for scam ABOUT affiliate marketing (paid $2K for fake course)
Had unrealistic expectations (thought they’d make $10K in 2 months)
Quit too early (gave up month 8, would’ve succeeded month 18)
Didn’t understand the economics (didn’t realize need 100K+ visitors)
Chose wrong niche (too competitive)

Then they blame “affiliate marketing” when reality:

Affiliate marketing itself = legitimate
They chose bad method/niche OR
They fell for scam teaching affiliate marketing

Q: How do I know if an affiliate program is legitimate?

A: Check these:

Must haves (if missing, it’s scam):

✅ Free to join (NEVER pay)
✅ Real product you can verify exists
✅ Established company (Google-able)
✅ Clear commission structure
✅ Real contact information

Red flags:

❌ Guaranteed income
❌ “Make $10K fast!”
❌ Must recruit others
❌ Pay to join
❌ Can’t verify product exists

Good test: Would you recommend product without commission? If no, don’t promote it.

Q: What’s the difference between affiliate marketing and MLM?

Affiliate marketing:

Promote product to customers
Earn commission when customers buy
Don’t recruit other affiliates
Free to join
Legal

MLM (Multi-Level Marketing):

Recruit distributors
Earn from their sales/recruitment
Must often buy product yourself
Pay to join ($50-$500+)
Legal but 99% lose money

Key difference: Affiliate marketing = sell to customers. MLM = recruit distributors.

Q: Should I pay for an affiliate marketing course?

A: 98% of the time, NO.

Why:

Everything is free on YouTube
Most courses teach basics
Often outdated methods
Many are scams themselves

Exception: MAYBE pay IF:

From established expert (not “guru”)
Reasonable price ($50-$200, not $2,000)
Clear refund policy
Specific niche/strategy
Can verify their actual success

Better approach: Learn free on YouTube for 3-6 months. If you THEN want course for specific strategy, consider it.

Q: Is Amazon affiliate marketing worth it?

A: Technically legitimate, but worst economics:

Commission: 1-10% (most 3-4%) Cookie: 24 hours only Traffic needed: Massive (100,000+ visitors/month for $2,000-$4,000/month)

Verdict: Real but inefficient. Only worth it if:

You already have massive traffic
It’s supplemental income (not primary)
You genuinely want to help audience

Better alternative: Higher-ticket affiliate programs OR lead gen.

Q: How long does it take to make money with affiliate marketing?

A: Honest timeline:

Months 1-6: $0-$50/month (building, learning) Months 7-12: $50-$500/month (if good niche, consistent) Months 13-18: $500-$2,000/month (if traffic growing) Months 19-36: $2,000-$10,000/month (if you made it this far)

Most quit months 6-12 before seeing results.

Faster alternative: Lead gen (4-6 months to first income typically).

Q: Final question – Should I do affiliate marketing or lead generation?

Choose affiliate marketing if:

Passionate about product niche
Love creating content about products
Okay with 18-36 month timeline
Can generate 50,000+ visitors/month
Want to build audience asset

Choose lead generation if:

Want results in 4-6 months not 18-36
Prefer B2B over B2C
Like higher payouts per conversion
Can build 3-6 sites over time
Want less traffic requirements

For 90% of people: Lead gen makes more sense.

Same skills (WordPress, SEO, content). Different application. Vastly better economics.

Final Verdict: Is Affiliate Marketing A Scam?

Short answer: No.

Long answer:

Affiliate marketing itself = 100% legitimate

Used by Amazon, Shopify, thousands of real companies
$20 billion+ industry
Real people make real money
Completely legal

BUT within the industry:

Many scams exist
Many fake “gurus”
Many pyramid schemes disguised as affiliate programs
Many courses teaching fake shortcuts

The bigger truth:

Even LEGITIMATE affiliate marketing has a problem: Brutal economics.

Need 50,000-200,000 visitors/month for modest income. 80-85% never get there. Not because it’s scam. Because it’s difficult.

My conclusion after thorough research:

Affiliate marketing is legitimate but inefficient. Lead gen uses same skills with 100x better economics.

If you’re considering affiliate marketing:

Don’t fall for scams (never pay to join)
Set realistic expectations (18-36 months)
Understand traffic requirements (massive)
Consider alternatives (lead gen)

If someone’s selling you “easy affiliate riches”:

It’s a scam
Walk away
Learn free on YouTube if interested

Final thought:

The question isn’t “Is affiliate marketing a scam?” The question is “Is there a better use of my time with the same skills?”

For me, the answer was yes: Lead generation.

Same WordPress/SEO skills. 100x less traffic needed. Higher income. No scam risk.

That’s why I do it instead.

👉 See why lead gen beats affiliate marketing: Same skills, 100x less traffic, higher income (complete comparison)

Real Affiliate Marketing Scam Examples (What Actually Happened)

Let me show you actual scams that happened:

Case Study 1: MOBE (My Online Business Education)

The scam:

Promised to teach affiliate marketing
Initial cost: $49
Then: Upsells to $30,000+ “mentorship”
Claimed students making $50K-$100K/month
Reality: Money came from recruiting students, not affiliate marketing

What happened:

FTC shut it down in 2018
Charged as pyramid scheme
$125 million in sales
99% of participants lost money
Founder banned from marketing

The lesson: If primary income comes from recruiting students to program (not selling products to customers), it’s pyramid scheme.

Case Study 2: Digital Altitude

The scam:

“Learn to make money online”
$1 trial, then $37/month, then $1,997-$27,997 upsells
Claimed to teach affiliate marketing
Actually: Affiliates promoted Digital Altitude itself
Money came from recruiting, not selling real products

What happened:

FTC shut down 2020
$40 million in sales
Called “tech-enabled pyramid scheme”
Participants lost average $5,000-$20,000

The lesson: When the “product” is recruiting others to sell the product, it’s pyramid scheme.

Case Study 3: Fake Product Reviews

The scam:

Affiliate program for “weight loss miracle”
$80 commission per sale
Product was sugar pills
Affiliates unknowingly scammed customers
Mass refunds/chargebacks
Affiliate commissions clawed back

What happened:

Product pulled from market
Affiliates lost thousands in clawed-back commissions
Reputations destroyed
Some faced legal action

The lesson: Verify product is real BEFORE promoting. Your reputation is on the line.

Case Study 4: The $2,000 Course Teaching Outdated Methods

The scam:

Guru showing “$50K/month affiliate income”
Sold course for $1,997
Course taught: Article marketing (dead since 2012)
Students failed universally
Guru made money from course, not affiliate marketing

What happened:

Hundreds bought course
Zero success stories
Refunds denied (“you didn’t implement properly”)
Guru still running ads with fake income proof

The lesson: Verify the “expert” actually does what they teach (not just teaches it).

Case Study 5: Commission Shaving

The scam:

Legitimate-looking affiliate program
50% commission advertised
Behind scenes: Reported 40% fewer sales than actually occurred
Stole $300,000+ from affiliates over 2 years

What happened:

Affiliates suspicious (traffic vs earnings didn’t match)
Lawsuit filed
Company disappeared overnight
Affiliates never paid

The lesson: Stick to established networks with accountability (Amazon, ShareASale, CJ).

How To Protect Yourself From Affiliate Scams

The Pre-Join Checklist

Before joining ANY affiliate program:

Step 1: Google the company

Search “[company name] scam”
Search “[company name] review”
Check Reddit, Trustpilot, BBB
If overwhelmingly negative → Avoid

Step 2: Verify the product

Can you find it on legitimate review sites?
Does it have real customer reviews (not affiliate reviews)?
Can you verify it’s actually delivered?
If no proof product is real → Scam

Step 3: Check the commission structure

Is it clear and transparent?
Is it realistic (not “70% of $5,000 sales!”)?
Are there hidden fees?
Do they pay on time?

Step 4: Research the company

How long in business?
Can you find real office/address?
Are they registered business?
Do they have real contact info?

Step 5: Look for red flags

Pay to join? → Scam
Guaranteed income? → Scam
Must recruit? → Pyramid scheme
Can’t verify anything? → Scam

The During-Participation Red Flags

Once you’re an affiliate, watch for:

Commissions don’t match traffic:

You send 100 clicks
They report 60 sales
Your analytics say 100 clicked
They’re stealing commissions

Payment delays:

“Technical issues” every month
Excuses for not paying
Payment threshold keeps moving
They’re likely going to disappear with your money

Terms change without notice:

Commission suddenly lower
Cookie duration shortened
Requirements added
Find new program

Product quality issues:

Customers complaining
Refund requests
Product doesn’t work as advertised
Your reputation at risk, stop promoting

The “Too Good To Be True” Formula

If it promises:

(Money Amount) in (Short Time) with (Little Work)
Example: “$10,000 in 30 days with 2 hours/week”

Do this math:

$10,000 ÷ 30 days = $333/day
At 10% commission: Need $3,333 in sales daily
At $100 average sale: Need 33 sales daily
At 2% conversion: Need 1,650 visitors daily
= 49,500 visitors/month

Question: Can beginner get 49,500 visitors/month in 30 days?

Answer: Absolutely not.

Conclusion: Scam.

Use this formula on ANY claim. Math doesn’t lie.

What Legitimate Affiliate Marketing Actually Looks Like

Let me show you realistic scenarios:

Scenario 1: Blogger Who Succeeds

Background: Food blogger, passionate about cooking

Timeline:

Months 1-12: Build food blog, write 150 recipes, $0 income
Months 13-18: Start ranking, add Amazon affiliate links to kitchen tools
Months 19-24: Getting 30,000 visitors/month, making $300-$600/month
Year 3: 80,000 visitors/month, making $1,200-$1,800/month
Year 4: 150,000 visitors/month, making $2,500-$4,000/month

Total invested: 2,000 hours over 4 years Result: $2,500-$4,000/month Effective hourly: $1.25-$2/hour for first 4 years

Is this a scam? No, it’s real. Is it good economics? Debatable. Is it what gurus promise? Not even close.

Scenario 2: Tech Reviewer Who Succeeds

Background: YouTube channel reviewing tech products

Timeline:

Months 1-12: Post 100 videos, get 50,000 channel views, $0 affiliate income
Months 13-18: Channel growing, 10,000 views/month, $200-$500/month affiliate
Year 2: 50,000 views/month, $1,000-$2,000/month affiliate
Year 3: 150,000 views/month, $3,000-$6,000/month affiliate

Total invested: 1,500 hours Result: $3,000-$6,000/month Effective hourly: $2-$4/hour

Better than food blogger because:

High-ticket products ($500-$2,000 tech)
Better commissions (up to 10% some programs)
Visual medium builds more trust

Still took 3 years.

Scenario 3: Course Creator Affiliate

Background: Teaches Facebook ads, promotes related tools

Timeline:

Year 1: Build audience (YouTube, blog, email), 5,000 email subscribers, $200-$500/month affiliate
Year 2: Grow to 15,000 subscribers, promote courses/tools, $2,000-$4,000/month
Year 3: 30,000 subscribers, $5,000-$10,000/month affiliate

This is the BEST case scenario for affiliate marketing:

High-ticket products ($200-$500)
High commissions (20-50%)
Built email list (own audience)
Recurring commissions (some SaaS)

Even this took 3 years.

The Pattern

What real affiliate success looks like:

2-4 years minimum
1,000-2,000 hours invested
Building traffic FIRST, monetizing SECOND
Modest income relative to effort (first few years)
Eventually scales IF you stick with it

This is NOT what scammers promise:

Scammers: “$10K in 3 months!”
Reality: “$2K in 3 years if you work hard”

Why Most Affiliates Fail (Not Scam, Just Economics)

Let me explain the brutal reality:

The Traffic Acquisition Problem

To make $3,000/month with Amazon (3% commission, $50 average sale):

Need 2,000 sales/month
At 1% conversion: 200,000 visitors/month

How long to get 200K visitors?

Posting 5 articles/week: 260 articles/year
Average article ranks for 5 keywords
Average keyword gets 100 searches/month
You rank #5 average (10% of traffic)
Math: 260 articles × 5 keywords × 100 searches × 10% CTR = 13,000 visitors/month Year 1

To get 200,000 visitors:

Need ~3,800 articles
At 5 articles/week: 15 years

OR:

Better keywords (1,000 searches/month each)
Better rankings (#1-3 positions)
Better CTR
Maybe 3-5 years to 200K visitors

This is why 80-85% quit. They don’t have 3-5 years.

The Commission Problem

Amazon slashed rates 2020:

Before: 8% home improvement, 6% health
After: 3% home improvement, 1% health
Affiliates lost 50-80% income overnight

Result:

Affiliates making $4,000/month → $1,200/month instantly
No warning
No recourse
Platform risk

This is legitimate affiliate marketing, not scam. But shows the risk.

The Cookie Problem

Amazon 24-hour cookie:

Monday: Reader finds your review, reads it
Tuesday: Thinks about it
Wednesday: Decides to buy
You get $0 (cookie expired)

Research shows:

Average buying decision: 3-7 days for considered purchases
24-hour cookie captures maybe 20-30% of influenced sales
You’re doing the work, losing 70-80% of credit

Is this scam? No, it’s terms of service. Is it fair? Debatable. Is this what gurus mention? Never.

The Competition Problem

Example: “Best coffee maker” keyword

You: 6-month-old blog, domain authority 15
Competitor 1: Wirecutter (NYTimes), domain authority 90
Competitor 2: CNET, domain authority 89
Competitor 3: Good Housekeeping, domain authority 87

Your chances of ranking: ~0%

This isn’t scam. This is reality of competing with billion-dollar media companies.

Lead Gen vs Affiliate Marketing: Complete Comparison

Let me break this down comprehensively:

Traffic Requirements

Affiliate Marketing:

Amazon route: 100,000-300,000 visitors/month
High-ticket route: 10,000-30,000 visitors/month
Minimum realistic: 10,000 visitors/month

Lead Generation:

Per site: 50-200 visitors/month
3 sites: 150-600 visitors/month total
Need: 150-600 visitors/month

Difference: 16-200x less traffic needed

Income Per Visitor

Affiliate Marketing:

Amazon: $0.01-$0.03 per visitor
High-ticket: $0.20-$0.50 per visitor

Lead Generation:

Per visitor: $2-$5 per visitor (converting to lead)

Difference: 10-500x more valuable per visitor

Timeline To Income

Affiliate Marketing:

$0-$100: 6-12 months
$1,000/month: 12-24 months
$3,000/month: 24-36 months

Lead Generation:

$0-$500: 4-6 months
$1,000/month: 6-12 months (2-3 sites)
$3,000/month: 12-18 months (3-6 sites)

Difference: 50-100% faster to meaningful income

Ongoing Work Required

Affiliate Marketing:

Need constant content (compete with new articles)
Algorithm changes require updates
Products change (need new reviews)
10-20 hours/week ongoing

Lead Generation:

Maintenance: 2-5 hours/month per site
Occasional content update
Client communication minimal
6-30 hours/month total (for multiple sites)

Difference: Actually becomes passive

Platform Risk

Affiliate Marketing:

Network can cut commissions (Amazon 2020)
Network can ban you (terms change)
Algorithm updates can destroy traffic (Google HCU)
Cookie durations can shorten

Lead Generation:

You own websites
You own rankings
Direct client relationships
Google algo risk still exists but diversified across sites

Difference: More control over business

Skills Required

Affiliate Marketing:

WordPress ✓
SEO ✓
Content creation ✓
Conversion optimization ✓

Lead Generation:

WordPress ✓ (SAME)
Local SEO ✓ (EASIER than national)
Content creation ✓ (SAME)
Client sales ✓ (NEW)

Difference: 90% skill overlap, local SEO easier

Income Ceiling

Affiliate Marketing:

Top 1%: $50,000-$500,000/month (possible)
Typical successful: $2,000-$10,000/month
Average: <$100/month

Lead Generation:

Top performers: $15,000-$30,000/month (20-40 sites)
Typical successful: $5,000-$15,000/month
Success rate: Higher (60-70% who build 5+ sites)

Difference: Lower ceiling but higher floor and success rate

My Decision Framework

I asked myself:

Do I want to build 500 articles or 10 sites? (10 sites easier)
Do I want 200,000 visitors or 500 visitors? (500 easier to get)
Do I want $0.02/visitor or $3/visitor? ($3 obviously better)
Do I want to depend on Amazon/networks or own relationships? (Own better)
Do I want 18-36 months or 6-12 months to income? (Faster better)

Lead gen won on every metric except income ceiling.

Since I don’t need $500K/month (would be happy with $10K-$20K/month), lead gen made more sense.

For People Still Considering Affiliate Marketing

If after everything, you still want to do affiliate marketing:

Do This (Legitimate Path)

1. Pick ONE niche you’re genuinely knowledgeable about

Not “coffee” (too broad)
Not “best products” (too vague)
Example: “Home coffee roasting for beginners”

2. Start with free traffic (SEO/content)

Don’t buy ads (expensive, most lose money)
Build content consistently (3-5 articles/week)
Focus on helping people, not selling

3. Join established programs ONLY

Amazon (despite low commissions, it’s legitimate)
ShareASale
CJ
Impact
Direct company programs (Shopify, hosting, etc.)

4. Set realistic expectations

Year 1: $0-$500/month goal
Year 2: $1,000-$3,000/month goal
Year 3: $3,000-$8,000/month goal

5. Track everything

Traffic
Clicks
Conversions
Earnings
Hours invested

6. Don’t pay for courses

Learn free on YouTube
Only invest in tools (hosting, domain, maybe Ahrefs)
Never pay to join program

7. Build email list from day 1

Most valuable asset
Own the relationship
Not dependent on Google

8. Diversify across programs

Never >30% income from one source
Protects from commission cuts

Don’t Do This (Scam Red Flags)

Never:

❌ Pay to join “exclusive” affiliate program
❌ Pay for course promising fast riches
❌ Recruit others to make money
❌ Promote products you haven’t verified exist
❌ Believe “make $10K first month”
❌ Trust “gurus” who don’t show real affiliate income (just course sales)
❌ Fall for “secret” methods
❌ Buy “done-for-you” sites

Final Verdict: Scam Or Just Hard?

Let me be completely clear:

Affiliate marketing = NOT a scam

Legitimate business model
Real companies use it
Real people make real money
Completely legal

BUT:

Many scams exist WITHIN the space:

Fake programs
Pyramid schemes
Lying gurus
Pay-to-join schemes
Fake courses

AND:

Even legitimate affiliate marketing has problems:

Need massive traffic (100,000+ visitors)
Low commissions (1-10% typical)
Platform risk (networks can change terms)
Takes 2-4 years typically
80-85% make <$100/month (not scam, just reality)

My honest assessment:

If you’re passionate about a product niche and want to build audience around it, affiliate marketing CAN work. But:

Set realistic expectations (years, not months)
Learn free (don’t pay for courses)
Join only established programs (avoid scams)
Understand you need massive traffic
Have patience for 18-36+ month timeline

OR:

Consider lead gen instead:

Same skills (WordPress, SEO, content)
100x less traffic needed
Higher payouts per conversion
Faster to income
More control

For me, the choice was obvious: Lead gen.

Same skills I’d learn for affiliate marketing. Better economics. Faster results. More control.

That’s why I do it.

And why I recommend it over affiliate marketing for 90% of people.

Affiliate marketing isn’t a scam. It’s just not the best use of your SEO/traffic skills.

👉 See the complete lead gen roadmap: Why it beats affiliate marketing on every metric (full comparison + earnings proof)

Real Success Story vs Scam Story: The Comparison

Let me show you two real stories:

Success Story: Sarah’s Legitimate Affiliate Journey

Background: Fitness enthusiast, started blog 2020

Year 1: The Grind

Published 150 workout articles
Added Amazon affiliate links to fitness equipment
Traffic: 5,000 visitors/month by month 12
Income: $50-$150/month
Hours: 15-20/week writing
Thoughts: “Is this worth it?”

Year 2: Slow Growth

Published 120 more articles
Traffic: 25,000 visitors/month
Income: $400-$800/month
Switched to higher-commission programs (fitness equipment brands)
Hours: 12-15/week
Thoughts: “Okay, it’s working but slow”

Year 3: Breakthrough

Traffic: 80,000 visitors/month
Income: $2,500-$4,000/month
Built email list (12,000 subscribers)
Added digital product affiliate (fitness courses): $1,000-$2,000/month additional
Total: $3,500-$6,000/month
Hours: 10-12/week
Thoughts: “Finally paying off!”

Total invested:

3 years
~2,000 hours
$1,500 expenses (hosting, tools)
Result: $3,500-$6,000/month

Is this a scam? No, completely legitimate.

Is this what gurus promised? No, they promise “$10K in 90 days.”

Sarah’s take: “It works but took 3 years and a lot more work than anyone admits. Wish I’d known about lead gen—would’ve needed 1,000 visitors instead of 80,000.”

Scam Story: Mike’s $2,000 Course Disaster

Background: Saw Facebook ad, 2022

The Promise:

“$50K/month affiliate income possible”
“My proven system”
“Students making $10K-$30K/month”
Webinar with income screenshots

The Purchase:

$1,997 course
“Limited spots!”
24-hour deadline
Mike bought it

The Course:

Module 1: “Pick a niche” (obvious advice)
Module 2: “Build WordPress site” (YouTube tutorials better)
Module 3: “Write content” (generic advice)
Module 4: “Join Amazon Associates” (free to learn)
Module 5: “Get traffic” (just said “SEO” with no specifics)
Total value: $50 worth of basic info

The Result:

Built site following course
Wrote 50 articles
6 months later: 800 visitors/month, $12/month income
Asked for refund: Denied (“didn’t implement properly”)
Course creator still running same ads
Mike lost $1,997 + 300 hours

Mike’s take: “The course was a scam. Affiliate marketing might be real but I’ll never know—I can’t afford to invest more time after this.”

The Difference:

Sarah: Learned free, realistic expectations, stuck with it
Mike: Paid $2K, unrealistic expectations, quit

Both affiliate marketing experiences. One legitimate, one scam.

The Psychology Of Affiliate Marketing Scams

Understanding WHY scams work helps you avoid them:

Why People Fall For Scams

Desire for fast money:

People want quick solution to financial problems
Scammers promise “make $10K this month!”
Reality: Nobody makes money that fast legitimately
But hope clouds judgment

Social proof manipulation:

Fake testimonials
Photoshopped income screenshots
Paid actors in videos
“Sarah made $47K last month!” (Sarah doesn’t exist)
People believe because they WANT it to be true

Urgency tactics:

“Only 10 spots left!”
“Price doubles tomorrow!”
“Limited time offer!”
Creates panic, prevents research
Scammers know: Research = people discover truth

Authority positioning:

“I’m a millionaire” (rented Lamborghini)
“I made $10M with this method” (no proof)
Fake credentials
People trust perceived experts

Complexity disguised as sophistication:

“Advanced strategies the pros use”
Complex jargon
Makes you feel you NEED course to understand
Reality: Legitimate methods are relatively simple

How To Avoid The Psychology Traps

1. 48-hour rule:

See offer? Wait 48 hours before buying
Urgency is fake (offer will still exist)
If it disappears, it was scam

2. Screenshot test:

Income screenshots? Ask for verification (tax returns, account screenshots with dates)
They won’t provide? Fake screenshots

3. Reverse image search:

Testimonial photos? Reverse image search them
Stock photos? Scam

4. Math test:

They claim “$50K/month with this niche!”
Do the math: Sales needed, traffic needed, time required
Math doesn’t work? Scam

5. Free first rule:

Can I learn this free on YouTube first?
Answer is always yes
If they’re good teacher, their free content proves it

Your Action Plan: What To Do Next

If You Want To Try Affiliate Marketing (Legitimate Path)

Week 1-2: Research

Pick niche you genuinely know about
Research competition (can you compete?)
Find legitimate programs (Amazon, ShareASale, direct companies)
Set realistic expectations (2-3 years)

Weeks 3-4: Setup

Buy domain ($15)
Get hosting ($60-$120/year)
Install WordPress
Choose theme

Months 2-6: Content Creation

Write 3-5 articles/week
60-100 articles total
Focus on helping, not selling
Build traffic organically

Months 7-12: Initial Monetization

Join affiliate programs (free ones only)
Add affiliate links naturally
Expect $0-$200/month
Don’t quit day job

Year 2: Scaling

Continue content (2-3 articles/week)
Build email list
Diversify affiliate programs
Target: $1,000-$3,000/month

Year 3: Decision Point

Are you making $2,000-$5,000/month?
If yes: Keep scaling
If no: Consider pivot to lead gen

If You Want To Skip The Wait (Lead Gen Path)

Month 1-2: Learning

Watch WordPress tutorials
Learn basic local SEO
Understand lead gen model
Pick first niche + city

Month 3-5: Build Site #1

Create WordPress site
Write 5-10 pages of content
Local SEO setup
Total: 60-100 hours

Months 6-9: Waiting/Ranking

Let site rank (patience required)
Monitor rankings monthly
Maybe start site #2

Months 10-12: Get Client

Outreach to businesses
Show rankings and leads
Negotiate $500-$1,000/month
First passive income!

Year 2: Scale

Build sites #2-4
Each takes 60-80 hours (faster now)
Total: 3-5 sites
Income: $2,000-$5,000/month

Year 3: Financial Freedom

Build sites #5-8
Total: 6-10 sites
Income: $4,000-$10,000/month
Work: 20-40 hours/month maintenance

This is the faster path with same skills.

How To Spot A Fake “Success Story”

Since scammers use fake testimonials, here’s how to verify:

Red Flags In Success Stories

Too perfect:

“I made $0 to $50K/month in 90 days!”
No struggles mentioned
No learning curve
All upside, no downside
Real success has setbacks

Vague details:

“I followed the system and money appeared!”
No specific strategies mentioned
No niche mentioned
No traffic numbers
No timeline
Real success has specifics

Income only, no proof:

“$100K/month” claimed
No screenshots WITH dates
No Google Analytics shown
No account statements
Real success has verifiable proof

Stock photo person:

Reverse image search testimonial photo
Find it on stock photo sites
100% fake testimonial

Green Flags In Real Success

Realistic timeline:

“Took me 18 months to hit $3K/month”
Specific dates
Shows progression
Real people don’t succeed overnight

Struggles mentioned:

“I almost quit month 9”
“First 6 months made $0”
“Had to learn SEO the hard way”
Real success includes challenges

Specific details:

“I focused on XYZ niche”
“Built 47 articles about ABC”
“Traffic grew from 1K to 25K visitors”
Real success has specifics

Verifiable proof:

Screenshots with dates visible
Google Analytics shown
Account statements (with sensitive info blurred)
Real success can be verified

How To Verify If Someone’s Successful

If someone claims affiliate success:

1. Ask for specifics:

What niche?
How many articles?
What’s your traffic?
Which programs?
If they dodge questions → Fake

2. Check their content:

Do they have actual affiliate content online?
Or just content about teaching affiliate marketing?
If only teaching content → They make money teaching, not doing

3. Look for consistency:

Been doing it for years?
Or jumped on trend recently?
Real affiliates have long history

4. Reverse engineer:

Find their supposed affiliate site
Check traffic (SimilarWeb, Ahrefs)
Does traffic match claimed income?
Math should add up

Final Thoughts: Choose Your Path Wisely

Affiliate marketing:

✅ Legitimate business model
✅ Used by major companies
✅ Real people make real money
❌ 80-85% make <$100/month
❌ Need 50,000-200,000 visitors
❌ Takes 2-4 years typically
❌ Many scams exist within space

Lead generation:

✅ Same skills (WordPress, SEO, content)
✅ 100x less traffic needed
✅ Higher per-visitor value
✅ 6-12 months to first income
✅ 60-70% success rate (who build 5+ sites)
❌ Lower income ceiling
❌ Requires client communication

My choice: Lead gen

Why: Better economics, faster results, same skills, more control.

Your choice: Depends on goals

If you:

Love a product niche
Want to build audience
Okay with 2-4 year timeline
Don’t need money urgently
Willing to need 100K+ visitors
→ Try affiliate marketing (legitimately)

If you:

Want faster results
Prefer B2B over B2C
Like higher value per visitor
Want more control
Can build 5-10 sites over time
→ Try lead generation

Either way:

Never pay to join programs
Never believe “get rich quick”
Set realistic expectations
Learn free first
Track everything
Be patient

And remember:

“Is affiliate marketing a scam?” = Wrong question

Right question: “What’s the best use of my time with these skills?”

For me: Lead generation

For you: Your choice, but now you know the truth

👉 Ready to skip affiliate marketing’s brutal traffic requirements? See the lead gen alternative (same skills, 100x less traffic, higher income)

Mark

Mark is the founder of MarksInsights and has spent 15+ years testing online business programs and tools. He focuses on honest, experience-based reviews that help people avoid scams and find real, sustainable ways to make money online.

See Mark’s No.1 Recommendation Here