Quote:
Originally Posted by Stephen
Part of why I wrote that article is because I keep hearing "the affiliate model is dead"
Paying an independent agent a sales commission is as old as sales itself and will never go away -- there will always be middlemen.
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Yes. In 2012 adult it's usually not much unlike asking whether or not it is profitable to hire a employee for $1 or $2 an hour. Usually it is. At least for the employer. The question is whether or not it is profitable for the employee. One reason many adult affiliates are leaving is because it's no longer profitable for them in that there is something else they could be doing. Mainstream, flipping burgers, whatever it might be.
In a few years I expect the new adult affiliates will outnumber the old adult affiliates 3:1. Many of the old will leave to other things or become new affiliates themselves. Piracy is a big reason for this. As conversions get worse it makes less sense to push a pay site for an affiliate. Whether sponsors want them or not old affiliates just aren't going to stick around as such when average ctr becomes 2% and conversions are 1:10,000. There's just no profit with that. It'll be like working for $1 an hour for most in that case.