We hear ‘affiliate marketing’ quite often in this age of social media where almost everything is digitized. People with an audience collaborate with brands to promote their products and earn commissions when someone from their network converts to a shopper. From beauty products to clothes and sports gear to health supplements, most things have an affiliate model behind them.
Interestingly, financial products are no different; although not that common, affiliate marketing exists in this sphere and benefits people who have some influence. Sure, the rules around financial affiliate marketing are stricter than simply promoting a haircare product, but the reward is often worth it.
If you have a reasonable network and know how to market, this could very easily be a rewarding hustle. Keep reading to learn about financial affiliate marketing and only dip your toes once you’re clear about the nuances.
What is Financial Affiliate Marketing?
If we wanted to sum up financial affiliate marketing, it’d be this:
Refer → Convert → Earn
It is a performance-based partnership between a financial company and the marketer who is expected to bring in leads and eventually sales. When someone uses a marketer’s link to complete the desired action, i.e., submitting a loan application, the company pays them a commission. If there is no sale, the marketer doesn’t get anything even if they have done tons of marketing effort for a certain product.
Notably, this model doesn’t incur big risk to the financial companies because they only pay when a link converts. Therefore, banks, credit card issuers, investment platforms, and insurance companies all run affiliate programs.
Let’s understand this marketing with a quick example. Think about a personal finance blogger who writes an article on different types of financing for small businesses. He discusses term loans, accounts receivable financing, equipment financing, and a business line of credit. Now, each of these options on his blog is backed with a unique tracking link, leading back to the financing company’s website.
If a reader who needs a financial backup option for the business clicks the link for a line of credit and secures it after the application process, the finance blogger will earn a commission. This way, the reader doesn’t pay extra, the financing company gets a new customer, and the blogger gets paid for a successful referral.
The Scope of Financial Affiliate Marketing
Here’s good news: you don’t have to be in the finance field to work as a financial affiliate marketer. Anyone with a network and the ability to market can promote financing products and guide people towards credible options.
That said, here are some facts one should understand:
Financial Affiliate Marketing Participants
Affiliate marketing is open to anyone who can build content around money, no matter their background. For example, bloggers who write reviews and comparisons are the most established group because their long-form content gives them room to explain a product properly. At the same time, YouTubers can make videos that walk viewers through account setups or break down loan terms on screens.
If someone runs a newsletter, they already have subscribers who trust their judgment; hence, they can recommend products directly. And most interestingly, content creators on TikTok and Instagram who talk about personal finance, savings, and financial literacy have already garnered an audience that wants tools/products to better their finances. These creators can include affiliate products in their standard niche content and guide people towards solutions.
Common Financial Products Being Promoted
Until a few years ago, people preferred visiting banks and financial institutions (FIs) in person to discuss their loan requirements and similar questions. But now that the newer generations are making big decisions (businesses, loans, mortgages, etc), they prefer conveniently available information.
That said, the common financial products a marketer can work around include term loans, credit cards, brokerage accounts, business lines of credit, invoice financing, and equipment financing, among others.
It’s worth mentioning that credit cards and brokerage platforms offer the highest commissions in this model because a single cardholder or trading account can generate them revenue for years through interest, fees, or trading volume. And while savings accounts and budgeting apps pay less, the trade-off is faster conversion. Since opening a savings account carries little perceived risk for the reader, they tend to trust the marketer relatively easily.
Commission Structure
What you make with financial affiliate marketing comes down to your influence, credibility, and promoted products. For instance, some products have flat-fee programs that pay a fixed amount per approved signup. This structure will help you estimate your monthly earnings, but it comes with a ceiling. But if a company runs a percentage-based program, it will scale with the transaction itself. So a referral on a $50,000 business loan can pay several times what a $5,000 personal loan referral does, even though both took the same effort to generate.
Conclusion
Affiliate marketing is often ‘marketed’ as a passive income stream, but it’s not. You have to have skin in the game to garner genuine credibility, and eventually, commissions. Since people are highly skeptical regarding financial matters, marketers should also only work with proven and reliable platforms. The ROK Financial affiliate program is among the best ones when it comes to required effort and earning potential. So, cash your influence; partner with us and find a new way to make $$.
FAQs
Is financial affiliate marketing legal?
Yes, it’s perfectly legal and a widely used marketing model. However, you have to follow some disclosure rules and stay within the line between promotion and licensed financial advice.
How much money can a financial affiliate actually make?
There is no set number because earnings depend on your audience size, niche, and promoted product. Some creators earn a few hundred dollars a month, while established people in high-commission niches, like credit cards, can earn six figures annually.
Can I promote a financial product I haven’t personally used?
While it’s possible, it wouldn’t help you gain people’s trust. Readers and regulators both favor genuine recommendations over unverified claims. So if you use a product yourself and then recommend it, your expertise and honesty show, which eventually favors you.