When Did Affiliate Marketing Start? [A Brief History of Affiliate Marketing]

Affiliate marketing is an online business model, and it plays an essential role in the growth of e-commerce brands and other businesses. It has existed since the dawn of digital marketing and is almost as old as the internet itself.

Affiliate marketing is the process of earning commissions when you refer customers to go buy a product. While the roots of affiliate marketing go back pre-internet with things like brand ambassadors, selling partners, and commission sales, the unique configuration of online affiliate marketing came to life in the early 1990s alongside the very first online business models.

In this blog, we’ll answer the question “when did affiliate marketing start?” and reveal the full history of affiliate marketing – plus ClickBank’s place in it! Enjoy!

The History of Affiliate Marketing

It’s no surprise that affiliate marketing is so prominent today.

For affiliates, it’s a no-risk income stream where you can partner with brands you love.

For brands, it’s an inherent part of any strong e-commerce strategy that helps diversify your revenue streams and reach customers you otherwise wouldn’t be able to.

Affiliate marketing continues to grow with the help of large affiliate platforms and networks like ClickBank, which makes affiliate partnerships easier than ever.

If you’re curious about how affiliate marketing starts, let’s rewind the clock to the early 1990s!

When Did Affiliate Marketing Start?

Where does affiliate marketing come from?

As we mentioned, affiliate marketing’s roots are as deep as commerce itself. Businesses have always looked for partnerships and sales strategies that allow them to reach beyond the walls of their shops and offices.

From children selling newspapers to Shakespeare’s royal patrons, the elements of independent sales and influencer partnerships have been there all along. Commissions also developed through the retail sector as hired salespersons were given a bonus for every customer they converted.

Of course, affiliate marketing as it is today could not exist without the internet. It’s no surprise that the two developed at almost the same time. As the web became a public place of business, affiliate marketing naturally came into being.

The first person to officially implement affiliate marketing was William J Tobin, the veteran founder of PC Flowers and Gifts. This was one of the first brands to sell products electronically. In 1989, Tobin started building a network of affiliates and offered commissions for online customer referrals. 

Tobin would later submit a patent for affiliate marketing, which would be granted by the year 2000. But by then, the strategy had already taken off with vast networks and thousands of other online brands.

Fun Fact: The first banner ad was introduced in 1994. Rumor has it that it was for AT&T.

The Amazon Era (1996): The Start of the History of Affiliate Marketing

To really start with the history of affiliate marketing, Amazon was the first brand to popularize this business model (and open it up to the masses).

It was way back in 1996 when Amazon was still just an online bookshop and sold only books. It had yet to expand to the commerce giant that it is today, but Amazon was already gaining prominence as one of the premier online brands. You could definitely say that affiliate marketing played a significant role in Amazon’s meteoric rise.

Amazon essentially kicked off the history of affiliate marketing. In 1996, Amazon launched its popular affiliate program, Amazon Associates, where anyone could sign up, share links to books for sale, and earn commissions if those links resulted in a customer purchase.

Because Amazon was one of the first big e-commerce companies on the internet, this introduced the idea (and the opportunity) for affiliate marketing to the greater public. While not everyone was interested in selling books, the trend had officially begun, and others would soon embark on either building affiliate networks or seeking out affiliate partners to grow their online brands!

The Age of Affiliate Networks (1998)

By the late 90s, the earliest affiliate networks were beginning to appear. In 1998, ClickBank was founded by Tim and Eileen Barber. As a network, ClickBank’s platform opened the door for smaller retailers to get involved in affiliate marketing, connect with affiliates, and benefit from the rapid growth that affiliate partnerships can bring.

Back then, ClickBank established a unique focus on digital products, which contrasted with other traditional e-commerce affiliate opportunities from around that same time. ClickBank allowed small businesses with digital goods and services to form affiliate partnerships and networks and pursue growth into new audience markets.

Other affiliate networks were also starting to form, offering different environments, tools, and specializations. They have made affiliate marketing into the industry foundation that it is today.

Fun Fact: This is also the year that the first affiliate marketing brand, PC Flowers and Gifts, reached 3,000 affiliate marketing partners.

Affiliate Marketing in the 2000s

Now, let’s head to another “start” of the history of affiliate marketing back in the 2000s. Affiliate marketing has naturally grown along with the complexity and connective qualities of the internet.

During the 2000s, people were ever-more connected through the emerging world of social media platforms, online videos, and forum communities. This generated a new potential for audiences, influencers, and content sharing.

Affiliate marketing naturally grows to become more powerful when you’re in that environment.

In 2001, eBay launched its affiliate program, making affiliate marketing even more accessible for individual sellers, not just official retail brands and companies. In 2003, MySpace became the first central social media platform to reach over a million active users monthly.  Then, in 2004, Facebook was founded and began to make its rise. YouTube was launched in 2005, Twitter in 2006, and Tumblr in 2007.

With the rise of social media, sharing content inspired the world of content creators and audience building. With YouTube and video hosting technology, it became possible to publish longer, more immersive content and independently host video series. Together, these became the new foundation for affiliate marketing through influencer content, from hosted reviews to featured products and everything in between.

The 2000s also saw the introduction of tracking technology. The ability to track links, affiliate performance, and customer behavior after following an affiliate link caused the affiliate industry to evolve again. It became possible to credit affiliates with more complex conversions. In 2006, the global affiliate industry revenue reached $6.5 billion.  

Affiliate Growth Through the 2010s

Let’s also discuss affiliate growth through the 2010s as part of the history of affiliate marketing. The “tens” represent a time of continued growth for affiliate marketing. Web technology advances and social media grows at an exponential rate. New platforms, bigger audiences, and the age of e-celebs take the internet by storm.  

In 2012, the first professional conference on affiliate management was held in San Francisco. Then during 2013, 40% of Amazon’s $60 billion revenue was brought in through affiliate links. In 2015, affiliate marketing brought in up to 16% of US e-commerce sales. In 2017, retailers spent over $5.4 billion on affiliate marketing for the year and continued to increase their spending by 10% each year.

Affiliate marketing continues to play a vital role in the growth of e-commerce as online stores, digital brands, social commerce, and mobile shopping become a dominant part of the modern economy. Affiliates direct significant customer traffic today, and as a result, brands in every sector are continuing to adopt affiliate marketing as a known and proven strategy for growth. 

Affiliate Marketing Today (2020s and Beyond)

In the 2020s, affiliate marketing now represents a significant avenue for online sales. From brands cultivating a hand-picked network of partners to accessing vast partner networks through affiliate platforms like ClickBank, companies can boost their online sales by accessing audiences through their affiliates.

At the same time, becoming an affiliate is more accessible than ever. In a digital environment where anyone can build an audience, it’s also possible for anyone to become an affiliate marketer and earn an income by sharing products they believe in. There are many popular affiliate networks and many potential business models that make use of affiliate marketing through different partnerships. 

ClickBank is among the leading platforms in today’s affiliate marketing industry, connecting affiliate brands and marketers across many online business sectors. If you’re interested in learning more, please check out the ClickBank account signup page!

Looking Ahead in Affiliate Marketing

I hope you learned a lot about the history of affiliate marketing through this article. Knowing when affiliate marketing starts and the path it travels can help you get a clearer view of how affiliate marketing works today!

Affiliate marketing has grown with the internet and has been a part of our economy for as long as there has been e-commerce. From  PC Flowers and Gifts and the rise of Amazon to the complex, free-for-all market that exists today, where any brand and any content creator can form an affiliate partnership through platforms like ClickBank, affiliate marketing has come a long way – and now, it’s an essential part of the internet and how we interact with it and each other.

Ultimately, affiliate marketing is an excellent opportunity for both product owners/brands and affiliate marketers. On ClickBank, hundreds of our Platinum affiliates generate sales of more than $250K+ on our platform and have made their dreams of an income online real, without even having to create their own product. Click the link to see some of ClickBank’s most popular customer stories.

Last but not least, be sure to sign up for a ClickBank account to begin your journey as an affiliate marketer or as a brand wanting to grow with affiliates. Best of luck!