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  1. #1
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    Is Afilliate Model Dead/Dinosaur?
    Would love to hear the opinions of everyone here.

    Talking to some fellow industry vets over the last few weeks, I keep hearing that the Affiliate Model is not the way to go anymore. I am told Ad Networks are the rising star and method.

    Here is my arguments AGAINST this. I still think a prper affilaite model works, if you have the RIGHT product. What better way to promote what you have than having a few thousand people promoting your products.

    What are your thoughts/opinions on this? Would you hesitate starting a new affiliate program if you had good products and services to promote?

  2. #2
    ABW Ambassador 2busy's Avatar
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    I keep hearing that the Affiliate Model is not the way to go anymore.
    This is a recurring rumor - affiliate marketing is dead, blah blah and it comes back from the dead every once in a while to be batted back into oblivion again, but never permanently. I personally think the the rumor is begun each time by some entity that wishes it would happen.

    Ad networks have a history of dying and being reborn while affiliate networks are still alive and well and apparently expanding. I am not concerned.

  3. #3
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  4. #4
    ABW Ambassador Greg Rice's Avatar
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    Didn't display ads evolve in a better model for merchants, a performance model called affiliate marketing? I think pay for performance is a better model than pay per view. I'm sure the ad networks started the rumor, instead of evolving, so let's start our own rumor-Ad Networks are dying out in favor a affiliate marketing.
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  5. #5
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    Quote Originally Posted by Nick Sab View Post
    Would love to hear the opinions of everyone here.

    Talking to some fellow industry vets over the last few weeks, I keep hearing that the Affiliate Model is not the way to go anymore. I am told Ad Networks are the rising star and method.

    Here is my arguments AGAINST this. I still think a prper affilaite model works, if you have the RIGHT product. What better way to promote what you have than having a few thousand people promoting your products.

    What are your thoughts/opinions on this? Would you hesitate starting a new affiliate program if you had good products and services to promote?
    You're right and you fellow industry vets are wrong.

    It's a very, very simple model and I can't see how people don't get the beauty of it. You basically have people out there (affiliates) spending their own time (and sometimes money) trying to send you sales. And you only have to pay them if they're successful. If they fail, they get nothing. I can't think of a better model.

  6. #6
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    lol, I guess it was time. It's been a few months since the last rumor.
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  7. #7
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    Thank you for the responses to date.

    It is NOT a rumour, it is a discussion I have been having with some esteemed collegues and I would like the opinion of the members of the community is all

  8. #8
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    *you* may think it isn't a rumor, however if you search the archives here you will see that this "fact" shows up once a year or so and has since 2003. Apparently the industry is still very much alive.

    Your esteemed colleagues should come here and see for themselves.
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  9. #9
    Outsourced Program Manager e-Gazer's Avatar
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    The industry IS very much alive and well. The way affiliates tackle their promotions has evolved some over time and with the introduction of social media and the uptick in people understanding it's importance there's been more focus/discussion about that recently than before, but affiliate marketing is still a GREAT way for any merchant to add value to their marketing and sales plan and it's still a very viable way for affiliates to earn $$ when they approach it properly. Definitely just a recurring rumour. I just launched another new program and it's off to a great start. I can't say in the least there's any indication our industry is being put to bed anytime soon.
    Last edited by e-Gazer; October 28th, 2010 at 03:12 PM. Reason: typo

  10. #10
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    Quote Originally Posted by 2busy View Post
    This is a recurring rumor - affiliate marketing is dead, blah blah and it comes back from the dead every once in a while to be batted back into oblivion again, but never permanently. I personally think the the rumor is begun each time by some entity that wishes it would happen.

    Ad networks have a history of dying and being reborn while affiliate networks are still alive and well and apparently expanding. I am not concerned.
    I agree, I think sometimes those rumors come from the marketing department of those ad networks

  11. #11
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    Oh dear, I guess I'm making a living doing something that's dead... better halt that expansion quick..

    I'm kidding. but the model is far from dead.. or dying.

    There are many publishers who try and fail because they don't put in the time & effort. Or they spend too much money before fully understanding how to build a site that converts. As for merchants, perhaps they launched a program, but didn't manage it properly, or find the right affiliates.

    Then they place the blame on the "dying" affiliate marketing industry, ie. the model is at fault, not their own selves. They can't imagine others succeeding where they failed.

  12. #12
    Newbie Web Aurum's Avatar
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    Not dead and doing well. Don't listen fools.

  13. #13
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    I was reading about this the other day online, think some of it comes down to Affiliates not having the control (say over customer service etc) vs the networks, which didn't seem like a big thing in the past but seems more so now.

  14. #14
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    Quote Originally Posted by BackLinkPro View Post
    I was reading about this the other day online, think some of it comes down to Affiliates not having the control (say over customer service etc) vs the networks, which didn't seem like a big thing in the past but seems more so now.
    As a web publisher who makes money via affiliate marketing/adsense, the last damn thing I want to deal with is customer service or order fulfillment. One of the greatest benefits of affiliate marketing/web publishing is that you do NOT have to deal with that. Of course, there are "costs" with that too - nothing is free in life. But those costs/tradeoffs of affiliate marketing/adsense are to me worth it.

  15. #15
    ABW Ambassador writerguy's Avatar
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    Quote Originally Posted by jimh009 View Post
    As a web publisher who makes money via affiliate marketing/adsense, the last damn thing I want to deal with is customer service or order fulfillment. One of the greatest benefits of affiliate marketing/web publishing is that you do NOT have to deal with that. Of course, there are "costs" with that too - nothing is free in life. But those costs/tradeoffs of affiliate marketing/adsense are to me worth it.
    Agreed 100%!!

    If I wanted to get involved with product supply, customer service, etc., I'd set up a site and do dropshipping, or try to sell stuff on eBay or Amazon, or something.

    Nope. To me one of the "givens" of affiliate marketing is that you aren't a merchant, you're at best perhaps a "merchant partner" and your primary job isn't to sell products -- it's to "presell," getting a potential customer eager to buy, then passing him on via an affiliate link to the true merchant.

    Lord knows ignorant site visitors who insist on railing at me about product and customer service issues are bad enough now, though few and far between. Wouldn't want to deal with that regularly -- which is why I have seriously visible TOS and Privacy and Disclaimer pages, explaining that I'm NOT a merchant.
    Generate more fake news.

  16. #16
    ABW Ambassador isellstuff's Avatar
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    Quote Originally Posted by jimh009 View Post
    As a web publisher who makes money via affiliate marketing/adsense, the last damn thing I want to deal with is customer service or order fulfillment.
    I agree, it is a pain, but in my case, I do answer questions from my websites visitors, in that they can use a "feedback" widget to send me an e-mail. Sometimes people abuse the feedback widget to submit sales questions, (e.g. does this come in green, how can I buy parts, I bought this from you and want to return it, etc) but sometimes those questions result in me making a large commission.

    The most valuable thing about feedback, is hearing people's perception on my website. You just can't predict what people will think about your web UI and workflow... So I'd love to not interact with my visitors, I get some real crazies, but the feedback is too valuable to ignore. I've gotten pretty good at spotting the crazy people and not responding to them... ackkk! I hate it when I respond and a couple of e-mails in you realize, "This person just ain't right in the head..."

    About the state of affiliate marketing... I've noticed an increase in affiliate programs, especially an increase in affiliate programs with datafeeds. Things are good...
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  17. #17
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    Been hearing this rumor for thirteen years of affiliate marketing.

    Probably a plot by successful affiliates who want to scare away newbies.

  18. #18
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    Quote Originally Posted by writerguy View Post
    Agreed 100%!!

    If I wanted to get involved with product supply, customer service, etc., I'd set up a site and do dropshipping, or try to sell stuff on eBay or Amazon, or something.

    Nope. To me one of the "givens" of affiliate marketing is that you aren't a merchant, you're at best perhaps a "merchant partner" and your primary job isn't to sell products -- it's to "presell," getting a potential customer eager to buy, then passing him on via an affiliate link to the true merchant.

    Lord knows ignorant site visitors who insist on railing at me about product and customer service issues are bad enough now, though few and far between. Wouldn't want to deal with that regularly -- which is why I have seriously visible TOS and Privacy and Disclaimer pages, explaining that I'm NOT a merchant.
    No thats what I mean, when they come back to you b/c the the actual merchant is screwing around or not full filling their obligations etc. It's out of your hands so sucks to deal with. Or like in CPA how google is on a banning rampage right now even on high quality score sites/landing pages and legit offers... of which you could spend a ton of time on and money with ppc only to have them shut it off and ban your account, yet they do nothing about the actual network let alone the networks promoting more of the scammy offers. Seems their after affiliates in cpa, which makes no sense considering the amount of $ this generates for google with adwords in general.

  19. #19
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    The concept of affiliate marketing is not going to die. But for sure some affiliate networks like cj, ls, gan are doing everything in their power to kill it. They can't because affiliates and merchants don't really need them.
    What do you think of systems like skimlinks, drivingrevenue or now viglink after their acquisition by google ventures? Is it still Affiliate Marketing? I wonder.
    Have you been looking at the insame amount of cookies set?
    Monetizing all outbound links... it means setting cookies overwriting other affiliates cookies. RMN, eBates, Fat Wallet and all affiliates have to worry.
    How the clowns running the main networks compliance dpts are going to validate the clicks from skimlinks or viglink? No way.
    It's going to be an other eBay, Hogan, CJ story...

  20. #20
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    Good points Zeus.

    The rumors that affiliate marketing is dead is not that crazy but it most definitely is alive. I would guess people that only had a few income streams got destroyed when the Internet owner whoops I mean Google pulled the plug on a lot of ways people could make money easily online up to about 2 years ago. You could have any old domain, slap some content up, throw some links or banners on it, adsense or whatever and watch the checks roll in. Datafeed sites were making a killing too even with no content or originality...

    Now days you need to do a lot of work to make an income but it's still very possible. Nothing has changed for me, I just continue to make many different opportunities and treat the whole thing as a business which means I still start the day with a coffee and breakfast and spend the day on improving websites, finding ways to promote, making use of current technologies and fashion. Joining new networks and signing up with new Indy's because each time you do these things, it's another potential revenue stream. I have been doing this for many years as have others here, it has become a lot harder but my revenue is still sustained because if one revenue stream dries out then another will come through. I still have never touched PPC, the day I have to do that then it will be the day I will move on to something else.
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  21. #21
    CPA Network Rep sponsormobberlin's Avatar
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    I'd be curious to know who the industry vets are ... are they really experts, or merely people with opinions on this

    And I would also agree with 2busy, that we don't have to worry about anything, because affiliate networks are alive and thriving. Thanks for the insight!

  22. #22
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    You don't have to worry about anything as long as your cpa network is paying your salary and you can play in your cubicle.

  23. #23
    Newbie Dani Bulatovic's Avatar
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    good to hear positive opinions on this subject. I am new in Affiliate marketing and wouldn't like to start with something what is going down.

    The idea of affiliate marketing is really good for all sides. So far, I can't see it going down in near future.

  24. #24
    The "other" left wing davidh's Avatar
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    Has Amazon heard about this?
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  25. #25
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    Quote Originally Posted by davidh View Post
    Has Amazon heard about this?
    Amazon started someting similar (one line of JavaScript allowed Amazon to automatically create affiliate product links from the text of a page) but they had to shut it down. Possible reasons:
    Sales tax, misleading claims, fraud risks...
    As the affiliate, how do you control where, when the ads are inserted...
    Is it still Affiliate Marketing? or Advertising.

    skimlinks or viglink are Amazon affiliates but I'm not sure Amazon knows exactly what they are doing. If I remember skimlinks ceo said they have no authorization.

    You have a big risk of fraud if you use JS scripts on an affiliate site. A company like viglink can take control of other gadgets and widgets installed on your site.

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