Affiliate marketing is the quiet economic engine of the internet. It drives sales, rewards publishers, fills gaps in SEO, and connects consumers with products. But behind the industry’s growth numbers, small businesses are struggling in the affiliate ecosystem.
How things have changed
Affiliate marketing was once fueled by small players: bloggers, niche sites, hobbyists turned entrepreneurs, OPM agencies, and mom-and-pop ecommerce shops.
Today, large publishers negotiate exclusive commission rates, and multinational brands strike direct deals that smaller companies cannot compete with.
Venture-backed commerce engines dominate search results and external factors (like Google’s algorithm changes and the rise of LLMs) make it harder than ever to recognize and reward small publishers’ work.
Why it matters
Small businesses (publishers, influencers, retailers, tech solutions, and even agencies) are the source of innovation and authenticity. They are the niche experts, the local retailers, emerging SaaS technologies, and the scrappy agencies serving clients on shoestring budgets.
These small voices are the reason consumers trust affiliate marketing at all. They’re the companies large players often acquire to boost their own services.
The economic case
Market consolidation decreases innovation, competition, and consumer welfare. A diverse affiliate ecosystem fuels: price competitiveness, product discovery, entrepreneurship, and tech advancements.
When dominant companies push out competitors, they create monopolies that impose unreasonable terms on partners. Those partners eventually leave or shut down, ultimately harming consumers and even the dominant companies themselves.
What needs to change
Protecting small businesses in affiliate marketing is not about charity but rather sustainability. What can we do?
- Commission rates that reward not just volume but also quality.
- Equal access through industry trade bodies
- Transparent and consistent tracking to ensure fair payouts.
- Advocacy and adherence to fair business practices.
Affiliate marketing is said to follow the 80/20 pattern: 20% of companies generate 80% of the revenue. But the other 80% provide the creativity, niche expertise, diversity, and consumer trust. Without supporting them, the industry will consolidate and stagnate.
