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  1. #1
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Affiliate marketers generally take an optimistic view of their business, but a recent report from MarketingSherpa suggests that affiliate marketers should pay more attention to the potential pitfalls.

    The report--"Affiliate Marketing 2005--Do Merchants & Affiliates Have Unrealistic Expectations?"--reveals that a whopping 91 percent of merchants and 82 percent of affiliates said they expect revenue growth in 2005.

    But, despite the marketers' rosy view, challenges loom for 2005. For one thing, the industry has not yet resolved several of the high-profile hiccups that appeared in 2004--widespread reports of illegal cookie stuffing, adware and spyware companies' use of duplicate pages and invisible redirect tags, compliance problems with the Can-Spam Act, and click-fraud, to name a few.

    Another potential problem area for affiliate marketers is paid search, especially if Google decides to crack down on affiliate marketers for bidding on trademarked terms in 2005, as has been widely rumored. Last week, Google won a closely watched trademark infringement trial against insurance company Geico, which had sued over Google's practice of allowing advertisers to bid on their rivals' trademarks.

    The report states that between 30 and 40 percent of affiliates depend almost entirely on search engine marketing to drive referral commissions. Half of MarketingSherpa's survey respondents said they wouldn't work with a merchant that banned paid search in its affiliate agreement; 27 percent said they wouldn't work with a merchant that banned trademarked ads.

    JupiterResearch analyst Gary Stein noted that, for many affiliates, "the biggest challenge is that the practice is really dependent on both paid and algorithmic search." He said that should Google decide to restrict affiliate marketers from bidding on the same merchant search terms, it would affect a handful of people who totally depend on that tactic, but not the majority.

    Another potential problem area for merchants is e-mail. Only 13 percent of merchants said they proactively police affiliate e-mail marketing campaigns, and only 11 percent of merchants require affiliates to run their "do not e-mail" lists against theirs. Nearly half the merchants surveyed (45 percent) said they passively police affiliates' e-mail activities--meaning that they wait for spam complaints to cut affiliates.

    Sixty-five percent of merchants expressed concerns over cookie stuffing and adware/spyware programs. These are practices involving affiliates who receive commissions for traffic they didn't actually drive to a merchant's site.
    <HR></BLOCKQUOTE>
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    Thoughts?
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  2. #2
    ABW Ambassador
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    "a whopping 91 percent of merchants and 82 percent of affiliates said they expect revenue growth in 2005."

    That says it all. And i agree.

  3. #3
    Troll Killer and best Snooper!
    I decide when the pigs fly!
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    I also expect to see an increase in sales/income this coming year. I attribute that to two things: 1) I finally figured out how to monetize my content sites, 2) I work my butt off. There are also some changes that are not under my control that have helped recently (e.g., CJ's new domains which circumvent ad blocking software).

    While I'm most unhappy about the problems that cause me to lose income to thieves, I realize I can't control that, so I just have to work that much harder and smarter to compensate for the losses. I think 2005 is going to be a good year.

  4. #4
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    I don't understand why there would not be revenue growth in 2005. There was quite a bit of growth in 2004, so what is going to change. The article doesn't really explain what is going to happen. There are some statistics thrown out but not elaborated on.

    I expect my revenue to fall quite a bit in 2005.

  5. #5
    ABW Ambassador
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    Overall, there's always going to be growth in affiliate marketing/online shopping. Every year i see people posting links to articles of how this year was better than last. Well of course. That's going to be every year. Every year you have people getting computers for the first time in their life, shopping online for the first time in their life etc. So with all that growth you're always going to have merchants out there that want more sales, make more money. And that's what we're here for.

  6. #6
    Outsourced Program Manager Jorge - SHOPiMAR's Avatar
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    > doesn't think any of the problems raised in the MarketingSherpa report will curtail revenue by that much in 2005.

    > according to new figures from the upcoming Jupiter report, 78 percent of merchants with affiliate marketing programs expect to increase their total number of affiliates in 2005--and 38 percent plan to increase the number by 25 percent or more.

    This statement I think is more accurate.

    I've seen friends, and even family members shop online, but when your teenage kids and their friends want to buy certain products online as I have witness, who says it's going to stop.

    2005 AM will be even better.

    Like Trust says "that's what we're here for"


  7. #7
    Content $ Queen Ebudae's Avatar
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    Well, lets see - I don't do any "cookie stuffing" or pay for click so that is not a problem. My sites do quite well in the search engines due to good content and natural backlinks - so no problem there... I don't do any email campaigns either.. I'm not in bed with the parasites..

    The future looks bright to me
    Ebudae


  8. #8
    ABW Ambassador darkstar7's Avatar
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    With online shopping increasing year after year, I expect our growth to continue too. As far as Google restricting affiliates, that seems to happen with every algo change.

    I say build loyalty with your customer base and continue to grow.
    Luke
    Have you promoted your brand name today?

  9. #9
    Resident Genius and Staunch Capitalist Leader's Avatar
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    I'm optimistic about 2005.
    There is no knowledge that is not power. ~Hemingway

  10. #10
    Internet Cowboy
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    I have made a living on the web since 1998 and have made more money each year than the previous year.
    I think that many of us can say that and we sometimes relax and rest on our laurels because of this. Sooner or later the natural increase will no longer exist and only the smart ones will see gains each year.
    To that end, I am making a commitment to work smarter in 2005, to be more organized and concentrate on things that I can control or at least things that I can affect to some degree.
    This is where my gain will come from in 2005.


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