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  1. #1
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Exclamation Death of Affiliate Marketing?
    As amazing as paid search has been -- and just pull up the numbers that Google(Nasdaq: GOOG) and Yahoo!(Nasdaq: YHOO) have been posting lately -- you don't really hear too much about the flip side of the equation. After all, if websites everywhere are taking to contextual ad blocks, doesn't logic suggest that graphic banner ads and affiliate marketing are being pushed off the page?

    You don't need to guess. I can assure you that DoubleClick(Nasdaq: DCLK) wouldn't have accepted a buyout offer last month for a mere $8.50 a share if it thought that the future was bright. If graphic ads were all the rage, do you think that Fastclick(Nasdaq: FSTC) would have shed a third of its price since going public at $12 two months ago despite serving up 5 billion ad impressions a month?
    More ...
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  2. #2
    ABW Ambassador buy_online's Avatar
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    Death?, no. There's a trend though, or should we call it writing-on-the-wall?

    Fred

  3. #3
    More Cheesier Than Ever Cheesehead's Avatar
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    From what I gather, they are saying that traditional affiliate marketing will be replaced by google adsense?

    It seems this article is a bit limited in scope. It seems to address "content" and "information" sites. A sales-type site could not work on adsense alone.
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  4. #4
    Member Jazz Times's Avatar
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    The author does not discuss the full range of affiliate marketing sites. Or seem to understand Individual Product Links. Just banners etc. A very limited view of the industry.

    Jazz T.

  5. #5
    Special Liaison
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    Yeah, he's just discovered that text links work better than banners. Wow!

    Doesn't mention anything about advertisers having to pay for mere clicks rather than actual sales.

  6. #6
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    I agree Ben... just goes to show what people who are "outside" know about affiliate marketing.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  7. #7
    ABW Ambassador
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    I think somebody at the Fool gave this a guy a story to work on and he did 10 minutes of research to get it done:
    "Why would any webmaster feature a single graphic ad when that same space could be replaced by as many as five targeted text ads from Google?"

    That quote shows you how deep his knowledge of affiliate marketing goes.

  8. #8
    Internet Cowboy
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    I agree that this is at best a superficial analysis. I can't imagine a company that currently sees $100 million in sales annually through their Affiliate (CPA) channel is going anywhere at all, nor can I see an affiliate doing $3 million is sales annually getting out of the business.

    I have seen some affiliate sites in the site review forum that were simply pages full of banners. Those must be the affiliate marketers this article refers to.


  9. #9
    Defender of Truth, Justice and the Affiliate Way
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    Agree he seems to think:
    text ad = contextual advertising (ie google, yahoo)
    graphic ads = affiliate marketing

    <LI class=textBodyBlack>And if things weren't bad enough, even Google is now offering content publishers graphic banner ads.
    Now if he would have said that AdSense and such has grabbed a piece of the Affiliate Marketing share, I would have agreed.

  10. #10
    Moderator MichaelColey's Avatar
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    Does he really think banners and affiliate marketing are the same thing? Not even close.

    The future of affiliate marketing is bright!
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  11. #11
    Prince of Content Vinny O'Hare's Avatar
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    Sounds to me like I could of written that article except he doesnt know the differnce between text and and graphics lol.

    A sales-type site could not work on adsense alone.
    I think it can and have been doing this for a while it just has to be done right
    Vinny O'Hare - OPM - Contact Info email: vinny at teamloxly.com ~ 702-582-6742 Twitter

  12. #12
    ABW Ambassador Sam Bay's Avatar
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    Only if he had searched around ABW for 30 minutes. He would penned a much more insightful article.

  13. #13
    Action Jackson - King of the World
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    I think it can and have been doing this for a while it just has to be done right
    But if all you have on the page is Adsense it is no longer a sales site

  14. #14
    Prince of Content Vinny O'Hare's Avatar
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    I dont agree with that either lol but I know that doesn't surprise you either
    Vinny O'Hare - OPM - Contact Info email: vinny at teamloxly.com ~ 702-582-6742 Twitter

  15. #15
    Action Jackson - King of the World
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    What are you selling with Adsense? Nothing! You need to have products to be selling something

  16. #16
    Google Adsense ain't really effective for marketing type site...

  17. #17
    Member Jazz Times's Avatar
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    Most outsiders are baffled by this industry. My husband made the mistake of trying to "explain" to co-workers yesterday just what I do. I was raked over the coals last night at dinner by them. Some had read the article and told me that I had better find a new way to make a living. Maybe the article will keep down competition.

    I attempted to look scared and demoralized. (I'm laughing all the way to the bank.)

    Jazz T.

  18. #18
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Quote Originally Posted by Jazz Times
    ...made the mistake of trying to "explain" to co-workers yesterday just what I do. I was raked over the coals last night at dinner by them...
    Bahahahhaaa! Been there. Have had meetings with my old consulting clients because they thought I was now into something illegal. Had a former channel business partner from Vancouver call my cell phone and ask me if I left my old consulting gig cuz I was evading authorities - I said "What?" - she said she heard I "went underground and was operating anonymously from the Internet" - sounds cool - but no (and all my sites are public registers - not privacy option). Have had friends ask me to come to their house and sit down and explain it because they just couldn't get it without me taking them to their computer and walking them through it. Have had a few ask me to meet their friends as a group for pizza and beers and spend a few hours showing them how it works.

    Then I'll meet someone who gets it in 2 seconds - someone without a biz background or without much internet expereince. So I ask questions to make sure they get it - and they do. It's like a 7th sense - people either see it as obvious and simple - or they don't. My son sees it. My brother doesn't. I tried to get my brother to sign up for a two tier program - so I could sign up under him - he said "I don't want any part of it. It just sounds crooked. I don't want the cops knocking at my door." This was after I had just spent 30 minutes telling him all about my business. He said no to over $10k / year for doing nothing.

    I am in the habit now of telling people I sell shoes on eBay.... I don't sell shoes anywhere. I haven't been to eBay in months - and only go there as a consumer - not as a business person. But everyone gets "shoes" and "eBay".

  19. #19
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Another person told me I was on the fringe of society... I told them we're so mainstream and numerous that we have a magazine for affiliates... they demanded I show them a copy otherwise they'd "know I was a liar"...

  20. #20
    Super Sh!t Stirrer SSanf's Avatar
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    Got a nice letter from the IRs that said they are sorry that they haven't heard from me for a few years and would I please try to stay in touch more often. I guess, someone misses me there.

    Anyway, made my tri-annual trip to my accountant. Even though he knows what I do for a living, I had to go over it again and explain it all. He seemed relieved to say that it doesn't sound all that bad. Guess, he was afraid I am doing something shady of illegal other than being slow to write my friends at the IRS.
    Comments are opinion unless otherwise noted. Remember, pillage first. Then burn. Half of all people in the world have IQs under 100. You best learn to trust ol' SSanf!

  21. #21
    Web Ho - Design B!tch ~Michelle's Avatar
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    The easiest way I have found to explain it to someone is I tell them I work for commission basically. I then tell them that if someone clicks on a link to Walmart (for example) from my site, they are taken to Walmarts site and if they buy something, I get a commission. When they ask how Walmart knows the person came from me, I tell them there is a little piece of code added to the link to identify my site.

    Most people get it, some people never will. *LOL*

    I have had people ask if it is legal too. It makes me chuckle.
    ~Michelle
    "All I ask is a chance to prove that money can't make me happy."
    "Work to become, not to acquire." -- Confucius

  22. #22
    Affiliate Manager
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    Being a journalist is a tough job: you have to familiarize yourself with a wide range of topics, all the while knowing you'll never be an expert on most of them.

    Like the other posters here, I feel the Henny Penny warnings in that article seem misplaced. Like any other industry, staying ahead means staying current with change and being willing to do a little work now and then.

    How is that different from life before AdSense?
    And how will it be different from the Next Big Thing?
    Richard Gaskin
    Developer of WebMerge: Publish any data feed on any site
    http://www.fourthworld.com

  23. #23
    Outsourced Program Manager
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    Hey;
    I just throw them Amazon .com everyone knows what Jeff has done. It works and even my daughter gets it.

    Long live affiliate marketing!!
    Richard
    Affiliate Marketing Manager AMWSO
    Digestinol, Luxe-Design


    Every child is an artist. The problem is how to remain an artist once we grow up. Pablo Picasso

  24. #24
    Full Member deepestblue's Avatar
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    Re:
    >>>I am in the habit now of telling people I sell shoes on eBay.>>>

    Perhaps it is in the explanation of AM, because if someone cannot understand a concept as straightforward as AM, then just maybe they are living in the past and destined to stay there.
    Last edited by deepestblue; May 23rd, 2005 at 09:17 AM.

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