Quote:
Originally Posted by Nathan
The reason why the affiliate model died somewhat is also because companies realiazed they can optimize things better if they control more. The more affiliates work with our managers, the better they perform, because we can help them! But they can not expect miracles from just pushing 1000 FHG links into some gallery app and let it sit there. As JT said, work with our guys, he posted a good contact for PB plus for example, I am sure if Robbie actually contacted them he would like the results, so lets see if he reports about it in a couple of weeks...
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It's actually pretty simple. "Why buy the cow when you can get the milk for free?" pretty much sums it up. Affiliates can survive and even thrive on 1:1000 conversions at their old 2006 traffic levels. But when you have companies exploiting DMCA related loopholes it does two things:
1. It reduces the traffic available to affiliates because how many will go to a tube with 1 minute videos when there are other tubes with 30 minute videos out there?
2. Increased ratios to the 1:4000 or higher territory.
Simple math tells the story. If you reduce your traffic 50% and increase the amount of clicks needed to get a sale by 400% you get 1/8th the revenue. It's not hard to understand why many affiliates have left.