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Originally Posted by Paul Markham
And you know this because?
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I have a lot of experience in this business as an affiliate and have owned a pay site in the better days.
Also remember the tube discussions where people were claiming they were getting double or triple the amount of type ins as compared to people who clicked banners? Why would you think that only happens on tubes such as Pornhub? Practically every sponsor now has a url on their stuff. If the surfer doesn't click that link and types it in then the affiliate isn't getting anything.
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A better question is.
Is it cheaper to buy traffic from a broker who bought from you than is it to get sales from you direct?
Ultimately in business it comes down to ROI. Is it cheaper to get a few people to submit to Tubes, TGPs, buy banners and set up blogs, maybe, etc. Than to go on the endless hunt to get a few affiliates who demand so much to send more traffic?
Build your own traffic network and keep it growing or rely on someone who will flip to another person for an extra 5% or nicer banner.
Affiliates will always be here, the position they enjoyed in 2006 isn't the position they enjoy today.
In no way do I blame affiliates for taking advantage of the situation. I blame lazy short sighted sponsors and I only see this now with hindsight. So equally to blame. 
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It's usually not cheaper because you aren't paying them 50%, you are paying them something like 20%.
On the flip side you have to remember that the affiliate can just sell their traffic too. I make more now selling traffic resources in many cases than I do from the sponsors. I still try to push the hell out of my sponsors and do everything legal. Don't get me wrong. But the conversions are less so it's created this scenario. I guess we might expect those rates to go down soon if the traffic is not profitable to someone but so far it seems it is. If everyone's conversions were like affiliates were seeing then that traffic would be selling for 1/5th of what it does now. Obviously that's just not the case.