At the conferences, starting around 2007 or 2008, some of the affiliate program owners said more a less the same thing right to your face and on the panels. They could no longer continue to pay staff, and continue to reinvest while paying $75.00-100.00+ per sign up on $9.95/19/95/24.95/mo. memberships that did not rebill. They were simply going to have to bring more traffic in-house.
There were a lot of examples given of whales demanding this and that, which was putting a lot of pressure on the programs to just pay them to keep traffic rolling or lose it. Basically, they have become over dependent on the affiliate whales and the demands were getting harder to meet.
When it comes to memberships and pay outs to affiliates it was entertaining to see just how few managed to actually "think" about how their payouts were even being generated in the first place. It used to humor me when affiliates would be bitching about cross sales, upsells, or traffic leaks and shit after sending a sale to some sponsor. Um.... how in the fuck do you think they were affording to PAY YOU that $75.00/$100.00 sign up bonus?!!?
It does not take a rocket scientist to do simple math.
There were a lot of examples given of whales demanding this and that, which was putting a lot of pressure on the programs to just pay them to keep traffic rolling or lose it. Basically, they have become over dependent on the affiliate whales and the demands were getting harder to meet.
When it comes to memberships and pay outs to affiliates it was entertaining to see just how few managed to actually "think" about how their payouts were even being generated in the first place. It used to humor me when affiliates would be bitching about cross sales, upsells, or traffic leaks and shit after sending a sale to some sponsor. Um.... how in the fuck do you think they were affording to PAY YOU that $75.00/$100.00 sign up bonus?!!?
It does not take a rocket scientist to do simple math.
It's the same story in adult as it usually is offline the idiocy of the masses often tends to keep everyone down as a whole. If both pay site owners and affiliates were smarter they would easily be doing ten to twenty times what they are now on average. It's safe to say the same patterns will continue.
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.
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