Quote:
Originally Posted by Supz
god forbid they try to make money outside of the affiliate program.
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Quite obviously my viewpoint won't be popular here - but affiliates often don't realize (
or deliberately choose to ignore) it takes more to keep the whale afloat, than the little fish that swim alongside. Yes, it's a symbiotic business relationship - but all too often the tail thinks it's in a position to wag the dog.
The overhead expenses for an affiliate directing traffic pale in comparison to production costs.
Let's say a sponsor offers a 50/50 affiliate program - giving half the revenue of every member sign-up to the affiliate. From his remaining 50%, he has to pay models, pay for all the gear (
cameras, lighting, makeup, outfits, props) needed to produce the content, the studio/remote location, photo/video editing, website operation, income tax, etc.
And after all those expenses are deducted from his 50% - he gets the marginal remaining as his personal income.
Speaking from experience - in a small ma-and-pa operation - the remaining revenue stream is incredibly small. On a good month it's slightly above break-even. It's a primary reason so many ma-and-pa production companies have evaporated over the years. They simply can't sustain the revenue needed for ongoing production.
What expenses does the typical affiliate incur? (serious question - I'd like to hear).