Affiliate Marketing on the Rise: Compensation Models That Benefit Brands & Creators

Affiliate marketing is on the rise for social media creators, blending authentic content with performance-based results. To maximize these partnerships, brands need compensation models that are fair, flexible, and aligned with the value creators bring. In this article, we share research-backed insights to help brands and creators thrive together.

How We Know: Research at Later

Later has a full team of researchers who support our product, marketing, and service teams to make sure our user’s needs are front and center in everything we do. 

This survey was conducted in June 2024 with a panel of 198 social media creators to better understand their preferences around affiliate marketing and compensation structures. Our findings provide actionable insights into how brands can build stronger partnerships with creators while maximizing ROI.

Affiliate Marketing’s Rise for Social Media Creators in 2024

With brands getting more budget-conscious, affiliate marketing has seen a rise as a creator revenue stream. 

According to our data, affiliate revenue for creators jumped 12% from 2023 to 2024. 

Based on Later's proprietary research on Creator Compensation, 2023-2024.

But even with affiliate marketing gaining traction, brand partnerships still top the list for creator income sources, with 49% of creators earning under $1K per month through partnerships. 

For brands, this is good news. By incorporating affiliate links into influencer campaigns, they can get the best of both worlds: authentic creator content and measurable sales results.

Key Insight: Combining affiliate and influencer marketing allows brands to capture the best of both worlds—brand awareness and measurable sales, all in one campaign.

Compensation Models that Work: What Brands Need to Know

When building partnerships with creators, considering the right compensation structure is essential. 

Later’s survey of 198 creators shows that certain payment models resonate more strongly with creators. Here’s what the data reveals:

Fixed Fees: The Top Choice for Creators

When it comes to compensation, fixed fees are the clear favorite. In a fixed fee (or flat fee) model, creators are paid a set amount upfront for their work, creating content that drives awareness and engagement for brands. 

Our research shows that 83% of creators are highly willing to work on fixed fee campaigns. Creators know exactly what they’re earning in exchange for their work, which brings stability and builds trust with brands.

Data Insight: Fixed fees provide creators with fair compensation for their top-of-funnel work, offering reliable partnerships for brands and steady income for creators—a win-win.

Data from a June 2024 survey by Later’s User Research team of 198 social media creators.

Commission-Only: A Tough Sell (and Why Product Gifting Ranks Higher)

In a commission-only model, creators are paid based on the actual sales or conversions they generate. While this approach might seem appealing to brands focused on performance, it’s a tougher sell for creators.  

Only 9% of creators are very willing to join commission-only campaigns, with 41% of creators saying they’d avoid them altogether. Many creators see commission-only as high-risk and unpredictable.

Creator Perspective: “You can't pay for advertisements on television with commission. Why would this pay structure make sense for a content creator?”

For brands, it’s worth considering that commission-only models may not bring in experienced creators with highly engaged followings.

Interestingly, product gifting, a widely used practice in influencer marketing, ranks higher in preference than commission-only. 19% of creators are highly willing to participate in gifting campaigns.

Although product gifting doesn’t offer direct income, it provides creators with tangible compensation with attributable value and is generally seen as less of a gamble compared to commission-only models.

Hybrid Models: The Best of Both Worlds

A hybrid model combines both fixed fees and commissions, offering creators fair compensation for top-of-funnel work like content creation and brand awareness, along with incentives for any sales or conversions they drive. This balanced approach appeals to both brands and creators, providing a stable base fee while motivating performance through commissions.

Our data shows that 54% of creators are highly willing to participate in hybrid campaigns, as this structure values their role in driving engagement, expanding reach, and producing authentic, reusable content. 

For brands, hybrid campaigns also deliver measurable ROI: affiliate links allow tracking of clicks, conversions, and top-performing creators, aligning brand goals with the trusted influence creators bring—often resonating more with audiences than direct brand messaging.

Start Scaling Affiliate Marketing on Instagram

For brands ready to level up their affiliate marketing, Later's Mavely integration offers all the tools needed to work effectively with creators. Here’s why marketers love working with Later for affiliate marketing:

• Generate Custom Affiliate Links in Seconds: Create unique tracking links for each influencer and watch sales and engagement data roll in automatically.

• Access Real-Time Performance Insights: Track live campaign metrics including clicks, conversions, and commissions. Make data-driven decisions to optimize your campaigns.

• Automate Commission Payouts: Let Mavely handle influencer payments automatically. No more spreadsheets or manual processing is required.

• Keep Your Existing Networks: Already using Rakuten, Impact, or CJ? Perfect. Mavely supports all major networks.

• Connect with Major Retailers: Access 1,200+ brands including Walmart and Target. Send your audience where they're already shopping and boost conversion rates.

Book a demo today to get started.