Aug 12 2025
AI Shopping Tools Threaten Affiliates

Chatbots and AI shopping tools that generate gift ideas and recommend products could disrupt affiliate marketing and distort attribution in the 2025 holiday shopping season and beyond.

Ecommerce shops that rely on affiliate traffic for low-cost shopper acquisition during the peak holiday season should closely monitor traffic and sales volume and consider a backup plan if affiliate traffic falls short of expectations.

The reason for this potential disruption is that AI is typically easier for shoppers. Type “gift ideas under $50 for a 10-year-old gamer” into ChatGPT, Grok, or Gemini, and you will get a relatively straightforward answer, not a list of sites for further research.

While such a list may provide more in-depth information or product details, generative AI is easier to use.

This is especially true on Google Search when the results include the AI Overviews summary. Zero clicks needed.

Male working on two computer screens at an office desk

Ecommerce marketing managers may want to watch affiliate production during the 2025 holiday season to gauge AI’s impact.

Lost Traffic

Shoppers who ask AI for products or services effectively bypass affiliate review and recommendation sites. Skipping affiliate content could lead to lost or unattributed traffic.

Each could impact a store’s revenue, although lost traffic could hurt most.

Lost traffic. Affiliate content, such as gift guides or product roundups, may attract a smaller fraction of the consumer holiday audience in 2025.

The big affiliate review sites — Wirecutter, The Inventory, or BestProducts.com — have historically thrived by capturing search traffic for “best X” or “gift ideas for” queries, especially around Black Friday and Christmas.

AI search tools, such as ChatGPT and Google’s AI Overviews, offer similar content without clicking to a separate website. Fewer clicks lead to fewer readers, which could equal fewer ecommerce sales via the affiliate channel.

While observers have raised this concern, the outcome is speculation. If AI does disrupt affiliate traffic, the 2025 peak shopping season might be the first indication.

Attribution. The second problem relative to AI and the affiliate channel is attribution.

AI’s shopping recommendations are almost certainly trained on and derived, at least partially, from affiliate channel content.

Emarketer’s Sara Lebow put it this way in a May 2025 article, “sites like the New York Times’ Wirecutter offer curated recommendations ChatGPT can scrape, personalize, and regurgitate.”

If true, this might mean that some of the sales an ecommerce shop earns via search or AI this Christmas are, at least in part, the result of affiliate efforts.

In the near term, that is a bonus to merchants: sales without commissions. Over time, however, it is a disincentive. If affiliates earn less, they likely will produce less or find other ways to profit without ecommerce referrals. The result could be less traffic and fewer sales.

Opportunities

I see three ways ecommerce operators can respond to affiliate marketing changes:

  • Collaborate with affiliates,
  • Create content,
  • Find alternatives.

Collaboration. Affiliates are acutely aware of AI’s disruptive potential and are seeking alternatives. Ecommerce merchants can collaborate with these partners to test and invest in some of these options.

For example, affiliates have long used advertising arbitrage to find readers, deliver traffic, and ultimately earn commissions. For good reason, merchants often place restrictions on how and what an affiliate can advertise. But stores and affiliates could work together, perhaps using hybrid commission models or multi-touch attribution to make it easier and less risky for affiliates to buy ads.

Separately, many affiliate sites have robust email lists. These lists were once complementary traffic drivers, but they represent an owned audience. Merchants can buy ads or advertorials in these email broadcasts with a hybrid commission — part fixed, part percentage.

Create content. Ecommerce merchants concerned about the demise of affiliate traffic could also produce more of their own content. Affiliates have proven the value of content to attract shoppers.

Find alternatives. Merchants can seek alternatives to affiliate marketing for similarly low customer acquisition costs.

One such alternative could well be ChatGPT, which could add affiliate revenue through its shopping recommendations. Emarketer suggested this might take the form of paying review sites a flat fee or sharing affiliate revenue with review sites when the AI result draws from their content.

First Test

AI will not kill affiliate marketing, but it will change the traffic mix and attribution math.

The 2025 holiday season may be the first clear test of whether ecommerce brands can adapt fast enough, rebalancing their partner portfolios, optimizing for AI discovery, and building direct connections to customers, so they are not wholly dependent on any single referral channel.

Ecommerce MGMT 0 Comments
Apr 12 2025
A Playbook for Influencer Marketing

Josh Durham launched Aligned Growth Management, an influencer marketing agency, in 2020. He says the influencer industry has evolved from the halcyon days a decade ago when affiliate-based creators could generate 5x returns.

Influencer marketing circa 2025, according to Josh, is a long-term play. Success depends on quality products, engaged creator audiences, and content that supports multiple channels.

In our recent conversation (his second on the podcast), he and I discussed the essentials for scalable, high-performing influencer programs.

Our entire audio is embedded below. The transcript is edited for length and clarity.

Eric Bandholz: Tell us about yourself.

Josh Durham: I’m the founder of Aligned Growth Management. We manage influencer partnerships for ecommerce brands such as HexClad cookware, Ridge wallets, PopSockets phone cases, and Divi hair care. Some clients already have influencer programs; others are starting from scratch. Our focus is building scalable influencer systems, either running them ourselves or helping in-house teams.

Influencer marketing isn’t like it was in 2015, when a post would easily generate a 5x return from affiliate commissions. It’s hard today to motivate those creators to work on an affiliate basis. We typically offer free products or, in some cases, fixed fees.

Today, it’s more about reach, trust, and content creation that supports paid social, email, and other channels. The goal is to build awareness and credibility, strengthening your overall marketing.

A well-aligned creator with an engaged audience adds credibility. Whether seeing your product used authentically in content or having multiple creators supporting your brand, that influence drives conversions in ways traditional ads can’t.

We focus on creators’ outreach, opt-in rates, post frequency, and average views. For example, with HexClad we built the program over three years and generated 400 million organic impressions. That came from creators who genuinely liked the product and posted consistently, sometimes over years.

High-value products help. HexClad has Gordon Ramsay as the face of the brand, and the quality is top-tier. It’s easy to integrate into the products in his recipe videos. Creators use the pans naturally in their content. Many are cooking at home, maybe lifestyle creators cooking for their family and coming up with new recipes using a HexClad item. It’s not exclusively an ad, but then they’re using it, and on average, three times per creator. Even 50,000 average views per video compound over time.

Bandholz: What’s the direct revenue impact from influencers, typically?

Durham: We’ve seen high ROAS when using influencer content in ads. We’ve handed over top-performing influencer content to paid social teams. That content, especially when it feels organic, performs exceptionally well.

We’ve also seen over $1 million in revenue tied directly to influencer marketing from post-purchase surveys. But you need to invest for six to twelve months to see the results. Influencer marketing is not a short-term play.

Affiliate links can still work, especially on Instagram Stories, where direct-response performs better. However, Stories have a limited reach. For lasting content and virality, Instagram Reels or TikToks are better. That’s where you see longer shelf life and organic growth.

Bandholz: Can gifting products to creators work for lower-priced items?

Durham: Definitely. We’ve worked with many lower-priced products, such as PopSockets. They already have substantial brand equity, which helps, but it comes down to having a differentiated, desirable product.

If your product feels generic — just another moisturizer, for example — creators won’t be excited to post. But if it’s novel, beautifully packaged, or has a great story, it will drive opt-ins and content. A product that stands out will generate more posts, views, and traction. We may still pay influencers money (versus free products), but that’s after thorough testing.

Bandholz: What size influencer audience do you typically work with?

Durham: We usually target creators with 10,000 to 100,000 followers for gifting. We like to test a range — smaller audiences (10,000 to 20,000 followers) are often very engaged.

For male-targeted brands, using female creators with engaged male audiences, like girlfriends or spouses shopping for their partners, can be effective. There are fewer quality male creators, and they’re expensive. So it’s about testing different audience segments, increasing product value in the gifting package, and adjusting deliverables or creative rights to improve opt-ins and posting rates.

Bandholz: Do you take on smaller brands as clients?

Durham: Yes. For brands under $10 million in annual revenue, it’s often smarter to run influencer programs in-house. So we created a training product based on our internal processes. We use it to train their team — social media managers, influencer leads, and even virtual assistants.

We provide our standard operating procedures, build a custom strategy, and support their team via Slack and strategy calls. The goal is to help them gift 100 creators in 90 days. That builds organic reach and a content library, which they can use in social media ads. It’s a cost-effective way to scale without hiring a full agency.

Bandholz: Who’s the ideal person to manage an in-house influencer program?

Durham: Someone who understands social media and content creation — usually on the social or creative team who can manage outreach, gifting, and relationships. The person needs to be organized and able to communicate with creators effectively.

Running an influencer program isn’t just outreach — it’s relationship building, content tracking, negotiating usage rights, and reporting. But with the right systems and support, a small internal team can run a robust program that drives real results.

Bandholz: Where can folks get in touch with you?

Durham: AlignedGrowthManagement.com, or shoot me a direct message on X — @JoshJDurham.

Ecommerce MGMT 0 Comments
Dec 10 2024
Influencers Are Remaking Product Discovery

A metric in Adobe’s 2024 Cyber Monday recap caught my attention: a whopping one-fifth of all U.S. sales came from influencers and other affiliates.

Yet I’m not surprised. Influencers are no longer just trendsetters; they’re remaking how consumers discover and choose products, including holiday gifts. Many shoppers now rely on influencers’ gift guides, curated recommendations that simplify the often stressful process of holiday gift-giving.

But what drives shoppers to such trust?

The answer lies in the principles of persuasion, as outlined by renowned psychologist Robert Cialdini.

Male and female inflluencers holding a smartphone

Influencers guide shoppers’ decisions and remove the stress of holiday gift-giving.

Influencers and Persuasion

In his seminal book “Influence: The Psychology of Persuasion,” Cialdini identifies six principles of influence that drive human behavior. Two stand out in social media: authority and social proof.

Authority: trusting the expert

Authority is the tendency to follow someone who appears knowledgeable or credible in a particular field. Authority figures provide valuable reassurance that the shopper is making the right choice. Influencers wield authority by positioning themselves as experts in their niches. Whether it’s a beauty guru demonstrating the perfect skincare routine or a tech reviewer breaking down the latest gadgets, influencers earn trust by consistently delivering valuable insights.

For many consumers, this authority transforms decision-making from a tedious task into a confident choice. Why spend hours researching when your favorite influencer has already done the homework? This trust becomes particularly crucial during the holidays when gift-givers seek assurance that recipients will value the selections.

Social proof: following the crowd

Social proof is the human tendency to align with others, especially in uncertain situations. Influencers who showcase products alongside third-party testimonials, unboxings, and reviews create a validation ripple effect. Followers see the influencer’s endorsement and the community’s collective approval.

This principle is especially potent for gift-giving, which can trigger shopper anxiety about choosing the right item. Seeing a potential gift praised and used by both the influencer and consumers reassures that the product is desirable.

Psychology of Gift-Giving

Gift-giving is psychologically complex. Shoppers must balance the recipient’s preferences, relationship, and the message the gift conveys. Many fear projecting their own tastes onto others, leading to second-guessing and decision fatigue.

That’s where influencers excel. They simplify decision-making and provide the emotional assurance that a product will delight the recipient. By combining authority and social proof, influencers address the dual psychological pressures of uncertainty and social validation, making them indispensable during the holidays.

Brands must understand and apply these psychological principles to harness influencers’ impact.

Here are three strategies.

  • Focus on a niche. Selecting influencers with large followings is tempting, but data shows that engagement is highest with niche expertise. Authority grows when influencers specialize. The more aligned their knowledge is with your product and brand, the more persuasive influencers’ recommendations will be.
  • Encourage authenticity. Genuine interactions with your products make influencers more effective. This can include feedback from their followers, real-time product testing, and unfiltered reviews. Authenticity amplifies social proof, making the endorsement relatable and trustworthy.
  • Embrace long-term collaborations. Building trust takes time. Long-term partnerships allow influencers to integrate your brand into their content naturally, reinforcing their authority and strengthening trust. The result is a natural link between an influencer and your products.

More Influencers

As social commerce evolves, the number of influencers and their role in product discovery will likely grow. Influencers’ ability to combine authority and social proof helps guide consumers through the purchase journey.

Hence leveraging influencers will become an essential marketing component for many brands. By understanding the psychology behind influencer persuasion, brands can tap into a powerful force that drives engagement, builds trust, and ultimately converts followers into loyal customers.

Influencers’ holiday gift guides are more than helpful tips — they’re the new frontline of consumer decision-making.

Ecommerce MGMT 0 Comments
Jun 22 2024
Stay-at-home Moms Drive Totally Dazzled

Natalie Mounter is a stay-at-home mom and entrepreneur. Her company, Totally Dazzled, sells craft supplies for weddings and creative projects. She says the business has prospered due to other stay-at-home moms — her employees and affiliates.

She told me, “Being a stay-at-home mom and hiring other stay-at-home moms has been key to our success.”

Mounter and I recently spoke. She shared Totally Dazzled’s origins, its affiliate marketing success, and the value of smart, hardworking moms.

The entire audio of our conversation is embedded below. The transcript is edited for length and clarity.

Eric Bandholz: Give us the rundown of what you do.

Natalie Mounter: I’m the owner of Totally Dazzled. We sell sparkly craft supplies, mainly for weddings and creative projects. We launched in 2012 with an Etsy store. We are now 100% Shopify. It’s a lifestyle business for me. I started it when I was pregnant with my first kid.

We experienced huge growth during the pandemic because everyone started buying online and was looking for things to do at home. The crafting market took off.

We ordered much more inventory and ended up being overstocked. We had to do a lot of discounting this year to get back to a healthy inventory position. We’re in a better place now.

I started the business because I was looking for something to do at home and work the hours I wanted. I read “The 4-hour Work Week” and thought it sounded perfect for motherhood.

As the business grew, I was fortunate to find key people who were independent and hardworking, who I could offload stuff onto and keep my hours to a minimum. Being a stay-at-home mom and hiring other stay-at-home moms has been key to our success. I get quality employees for an affordable price. Moms are the best team members because they’re smart, hardworking, and very efficient.

Bandholz: How do you find stay-at-home moms?

Mounter: HireMyMom.com is a great resource for stateside help. I also use local networking.

My cousin was my first team member. That was 10 years ago. She had recently had a baby and was looking for a stay-at-home job. I was shipping all of my products from Canada, where I live, but most of my customers were in the U.S. My cousin is in California. So I sent her all my inventory to fulfill for me.

She also handles customer service and social media dialog. My other key team member, another stay-at-home mom, is like a one-woman marketing agency. She does all of our Facebook ads, email marketing, and SMS. I do the planning and the vision. We meet monthly. It’s very hands-off for me. They both do an amazing job.

We have a couple of time-sensitive tasks, such as sending texts to our SMS list when our affiliate brand ambassadors go live on Facebook. We rely on an assistant in the Philippines for that.

Bandholz: Are affiliates your primary marketing tactic?

Mounter: Affiliates are our top traffic source. I love working with them because they’re less stressful and risky than Facebook ads, where we spend money and hope and pray the ads will work.

We recruit affiliates by sending them a free product and then incentivize them with a commission. We’re not out any cash until they make a sale. I would much rather pay female content creators than Mark Zuckerberg!

When I first began looking for affiliates, I typed “DIY broach bouquet” into Google and contacted the creators making those types of videos. You can find people’s contact methods on their YouTube channels. I emailed them and asked if they would promote us and earn commissions on sales. We’ve had a lot of success with that strategy.

Initially the outreach felt daunting. It took a lot of time. But once we had a network of affiliates, the word in the community got out. Other creators saw the videos promoting Totally Dazzled and wanted to do the same. We still do some outreach, but not nearly as much as in the old days.

We use affiliate management software to track performance. We can see how much traffic each drives and whether they are making sales. If they’re doing well, we’ll send them a bunch of free stuff. We keep tabs on our affiliates and spoil the high performers, but we keep the others engaged because they’re still talking about us. Those additional touchpoints eventually drive sales.

We offer a 20% commission and a 30-day cookie window. Both are pretty generous. I believe in generosity because sometimes affiliates are not rewarded for their referrals. Someone might see their content and then go straight to our website.

Success in affiliate marketing requires building long-term partnerships versus being metrics-driven. Many sellers fail with affiliates for that reason.

Plus, audience size is not the only sales predictor. One of our top-performing affiliates generated $30,000 in one day. She has 1.7 million followers on Facebook. Another high performer has about 200,000 followers on Facebook, but her audience is highly aligned with our product.

Bandholz: How do you stay engaged in the business after 12 years?

Mounter: What helps me stay motivated is remembering the why and focusing on gratitude. I’ve been able to raise my kids, never miss their events, and avoid stress when they’re sick. I take time off when I want.

Bandholz: Where can listeners support you or buy your products?

Mounter: Our site is TotallyDazzled.com. We’re on Facebook, YouTube, and Instagram.

Ecommerce MGMT 0 Comments