FTC Affiliate Marketing Disclosure
Why every affiliate marketer needs affiliate marketing disclosures and how you can use this FTC requirement as leverage to make more sales.
AFFILIATE BASICS
Kent Hopkins
2/28/20253 min read
After two decades of watching the internet marketing landscape evolve, and every few years go through what seems like a condensed and accelerated rate of massive change, I've learned one thing that separates the flash-in-the-pan marketers from those who build sustainable businesses and that's simply consistent and intentional transparency.
Let's talk about affiliate disclosures – those little statements that tell your readers "Hey, I might make money if you click this link." Most new marketers view these as annoying legal requirements to be hidden at the bottom of posts in 8pt gray text. Big mistake.
The FTC Isn't Messing Around
First things first: yes, disclosures are legally required in the US (and most other countries have similar regulations). The Federal Trade Commission has made it abundantly clear that any "material connection" between you and a product/service you promote must be clearly disclosed. This isn't optional, and the penalties for non-compliance can be steep. I still see it every damn day. It might be in an email sequence I get, it might be on a review site. People are blatantly ignorant or intentionally leaving them out or both. I don't know what it is, but I challenge you to go through a day where every single piece of content you have with affiliate links also contains a disclosure. I dare you.
But here's where most newbies miss the boat entirely.
Transparency Builds Trust (And Trust Equals Money)
I remember reading about Sarah, a blogger in the parenting niche, who shared her experience on an affiliate marketing forum. She had been promoting a baby products subscription box with minimal disclosure, tucked away at the bottom of her posts. Her conversion rate was hovering around 1.3%.
After attending a marketing conference, she completely changed her approach. She began highlighting her affiliate relationships with clear statements like: "I'm an affiliate partner with BabyBox Pro because these products saved my sanity during my daughter's first year. If you purchase through my link, I earn a commission at no cost to you, which helps me continue creating free resources for parents."
Her conversion rate jumped to 3.8% – nearly tripling her results just by being upfront.
How to Make Disclosures Work For You
Here's how successful affiliates leverage disclosures to actually boost conversions:
1. Place them prominently**, not just in the footer. Put them near the recommendation itself. This signals confidence.
2. Explain the value exchange**. Tell readers that commissions help create more free content for them. Most people are happy to support content creators they enjoy.
3. Use disclosures to establish expertise**. "I've been a paying customer of ProductX for three years before becoming an affiliate" builds credibility for your recommendation.
A marketer named James shared on a webinar that one of his best-performing emails opened with: "Full disclosure: The links below are affiliate links, and I'll earn around $37 if you purchase this software. I'm recommending it because it saved my clients approximately 10 hours per week in their businesses, which is worth far more than the $199 price tag."
That email reportedly had a 31% open rate and a 6.5% conversion rate – numbers that make most marketers drool.
The "Grandma Test"
Here's a rule of thumb I picked up from a veteran marketer: If your grandmother wouldn't understand that you're making money from a recommendation, your disclosure isn't clear enough. No "This post may contain affiliate links" vagueness. Be direct: "I earn a commission when you buy through these links."
Future-Proofing Your Business
I've watched dozens of marketers get burned when platforms and regulatory bodies cracked down on disclosure violations. Building a business on shaky ethical ground is like constructing a house on sand – it might look fine until the first strong tide comes in.
The marketers who've been successful for 10+ years aren't the ones with the cleverest tricks; they're the ones who built real trust with their audiences through consistent honesty.
So take it from someone who's weathered multiple algorithm changes, platform shifts, and FTC guideline updates: your affiliate disclosures aren't just legal requirements – they're marketing opportunities. Use them to showcase your integrity, build deeper trust with your audience, and actually increase your conversion rates.
The most valuable asset in your marketing toolkit isn't some secret technique or growth hack – it's the trust of your audience. And trust begins with transparency.