YouTube is betting on social shopping by ramping up efforts to encourage creators to link to products below their videos.
YouTube launched an affiliate marketing program last year. The company has been secretly testing it with a small number of creators since 2021. This program pays creators a commission when they increase sales through clickable affiliate links.
Rivals Instagram and TikTok have both struggled to seamlessly integrate shopping into their platforms. Instagram will end its native affiliate program in 2022, shifting its focus to its Creator Marketplace, which matches creators with brands for paid partnerships. TikTok Shop, on the other hand, has been successful in attracting small and medium-sized businesses. Had a hard time convincing big consumer brands — and turned it off for some users who felt the app was flooded with shopping videos.
YouTube's native affiliate program is still in its infancy, but Business Insider spoke with several talent managers and creators who say the tool is having a hard time attracting creators who have plenty of other affiliate options. There is a possibility.
Five talent managers who work with YouTube creators told BI that their clients have not yet used YouTube's affiliate program or are unfamiliar with the program. Their clients use other programs from Amazon, MagicLinks, and LTK.
Influencers have long used startups like LTK and MagicLinks and the Amazon Influencer Program to earn commissions from promoting products. Many personal finance influencers work directly with programs at financial institutions, such as banks and investment firms.
These established programs can make it difficult for YouTube's affiliate features to compete.
Kelly Ann Smith, a personal finance influencer with 53,000 subscribers, said affiliate marketing is one of her biggest sources of income, but she uses YouTube programs to Not yet.
The reason is that there are no financial products that can be linked through this program. Instead, we use financial affiliate programs through financial institutions such as Citibank and Lemonade.
Some creators, like Kristen McGowan, have started using YouTube's affiliate program in conjunction with other tools.
The home decor creator, who has 1.7 million subscribers, told BI that affiliate marketing is a big part of her creator business, and she uses YouTube's affiliate program. (YouTube provided McGowan's interview after she was contacted by BI for comment on this article.)
“I started introducing links because a lot of my job is recommending products, and that has a lot to do with what you buy, like how to get the look for less. ” McGowan said, referring to YouTube affiliate links.
McGowan also uses other programs such as Amazon and MagicLinks. The description of her latest YouTube video on March 24th links to these programs as well as her YouTube in-house programs.
YouTube's success in the shopping space will depend on whether it can convince more creators like McGowan that YouTube's affiliate tools can bring in revenue in addition to the other programs they've relied on. It may depend on it. Currently, YouTube's program doesn't offer creators anything they can't get anywhere else in the area of affiliate marketing, said YouTuber Amanda Gorka.
How much does YouTube pay creators who sell through their affiliate program?
YouTube's affiliate program commissions range from 1% to 20%, according to a screenshot of the affiliate program dashboard seen by BI.
Recent YouTube commission rates shared with BI include a 15% commission on promoting Adidas leggings and Sephora Collection liquid foundation, and a 1% commission on a Samsung USB-C wall-mounted phone charger sold through Walmart. Includes fees.
These fees are comparable to existing programs such as the Amazon Influencer Program, which also offers fixed fees of 1% to 20%.
Still, YouTube's fees aren't enough to attract some creators who have ties to other programs. Last year, the company also offered bonuses to encourage creators to participate.
Golka, the creator of the YouTube channel Swell Entertainment, which has 445,000 subscribers, works with affiliate programs such as VidIQ, MagicLinks, LTK, and Amazon. She hasn't used YouTube's affiliate tools yet, she said, because she's concerned about tying all her revenue to a single platform.
For example, if Golka's YouTube channel becomes monetized, she won't be able to earn money from it because YouTube's native affiliate links are a feature through a partner program that allows creators to earn money from ads within their videos. You won't be able to get it. By using different platforms, she said, she can find the best prices for the products she promotes and diversify her income.
Another creator told BI that he wanted to take advantage of YouTube's affiliate program, but was not eligible.
Gigi Robinson, a lifestyle influencer with 1,500 subscribers on YouTube, is not eligible to participate because creators must have at least 15,000 subscribers to apply. Creators must also have a YouTube partner to participate in her program and be based in the United States. She said she hopes YouTube will eventually ease the requirements for its affiliate program and allow smaller creators to participate.