How much is affiliate traffic REALLY worth?

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  • weekly
    So Fucking Banned
    • Dec 2005
    • 1785

    #1

    How much is affiliate traffic REALLY worth?

    Fifty per cent?
    Twenty per cent?
    or maybe ten per cent.

    It seems that traffic is less valuable this year than it was five years ago. So what would be a good number? Programs are running out of gas and crashing. What can they actually afford?
  • NickB.
    Confirmed User
    • Aug 2001
    • 8856

    #2
    We pay 40-50$ PPS on trial joins

    Loads of extremely valuable affiliates - great match

    Comment

    • Barefootsies
      Choice is an Illusion
      • Feb 2005
      • 42635

      #3
      A number of programs are moving their traffic generation in-house.

      This reduces the importance of this industry's affiliate model and their position for the future. It also makes programs less dependent on paying the ransom traffic 'whales' are demanding, and have been, over the years.

      Short answer,... it probably varies from program to program. Their importance is diminishing. Especially as more affiliates find it hard to make conversions and remain competitive in the 2009 market place.

      Should You Email Your Members?

      Link1 | Link2 | Link3

      Enough Said.

      "Would you rather live like a king for a year or like a prince forever?"

      Comment

      • d-null
        . . .
        • Apr 2007
        • 13724

        #4
        a sale is a sale, if the affiliate hadn't sent that sale, then the percentage earned by the sponsor is zero percent, so there is nothing wrong with the 50% arrangement

        __________________

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        Comment

        • Smokieflame
          Confirmed User
          • May 2008
          • 596

          #5
          i dont have many but i offer my affiliates 50%, like he said 50% of 0 is a big fat 0, I would rather make $14.50 then nothing
          Sig too big

          http://www.gfy.com/showthread.php?t=950962

          Want to use a large banner in your sig??? Contact Eric about getting on as an advertiser - eric AT AVN DOT com

          Comment

          • Ann-Angelcom
            Confirmed User
            • Feb 2004
            • 500

            #6
            Affiliate traffic is extremely important. Than you all who promote our sites. We appreciate your hard work!!!
            Digitalangeldollars.com 10% on all referrals!! NOW PAYING 75% OF ALL SALES!!!

            Comment

            • weekly
              So Fucking Banned
              • Dec 2005
              • 1785

              #7
              Originally posted by d-null
              a sale is a sale, if the affiliate hadn't sent that sale, then the percentage earned by the sponsor is zero percent, so there is nothing wrong with the 50% arrangement
              But what if programs move to generating their own traffic. Would that not be less expensive?

              Comment

              • Iron Fist
                Too lazy to set a custom title
                • Dec 2006
                • 23400

                #8
                I like revshare sponsors.... i've seen ALOT of programs who offer PPS crash and burn over the years, but they do it to themselves.... what do you expect paying $75 PPS of a $39.95 join which might chargeback in the end. No wonder some sponsors look negatively at affiliates...

                Which is why I avoid "$200 PPS PROMO DAYS" and PPS in general... just smells to me like a program is on it's last legs and every sponsor that does PPS does cross sales... there is just no way to make PPS profitable without fucking over someone.
                Last edited by Iron Fist; 08-13-2009, 10:24 PM.
                i like waffles

                Comment

                • kane
                  Too lazy to set a custom title
                  • Aug 2001
                  • 20684

                  #9
                  Originally posted by weekly
                  But what if programs move to generating their own traffic. Would that not be less expensive?
                  It all depends on how good they are at doing that. Say a program has 100 affiliates that are active and send a little traffic. Say these affiliates only send 2 sales per week to the program. That is 800 joins a month. Sure they could move that many joins in house. But what would be the cost of doing so. If they could hire a couple of people to work full time and generate that kind of traffic it is worth it. If they had to hire 30 people to do it, it isn't worth it.

                  Also, if you hire some people to generate that traffic, if they are good, you will have to pay a premium for them. If they can generate 300 sales a month they could be making 9-12K a month or more working on their own so I would assume you would have to pay them close to that to keep them.

                  Comment

                  • d-null
                    . . .
                    • Apr 2007
                    • 13724

                    #10
                    Originally posted by weekly
                    But what if programs move to generating their own traffic. Would that not be less expensive?
                    generating their own traffic, providing tools for affiliates to promote, hard to say what would be more expensive but any sale that an affiliate sends is still an extra sale, regardless of whether the sponsor has a shitload of their own traffic as well

                    __________________

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                    Comment

                    • AmeliaG
                      Too lazy to set a custom title
                      • Jan 2003
                      • 10663

                      #11
                      Originally posted by weekly
                      Fifty per cent?
                      Twenty per cent?
                      or maybe ten per cent.

                      It seems that traffic is less valuable this year than it was five years ago. So what would be a good number? Programs are running out of gas and crashing. What can they actually afford?


                      Bandwidth is also cheaper than it was five years ago, so who cares if an affiliate uses up a bit more bw before making a sale. A sale is a sale and I love our affiliates. Just set your price point so you can afford to take care of the people who send you traffic.
                      GFY Hall of Famer

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                      Comment

                      • Thurbs
                        The Thrilla in Manila
                        • Sep 2004
                        • 4785

                        #12
                        Originally posted by weekly
                        But what if programs move to generating their own traffic. Would that not be less expensive?
                        generating your own traffic and doing your adbuys is essentially just shifting the how you spend that same CPA in an effort to :

                        1. lower the average CPA paid when in comparison to affiliates CPA to acquire a join
                        2. be in control of the traffic, to allow you the time to develop products in a less complicated area ( Hard to tweak sites that 50% do well on and 50% doesn't , vs working on a site that you are the traffic pusher for aswell )
                        3. gain joins that you may not have had before, remember, even good sites may not always be a hit with the affiliate base, regardless of many reasons
                        4. reduce the overhead

                        remember a few things about traffic, nothing comes for free. alot of people say, oh they are making their own traffic, they don't need me. half the programs may be trying to, but not succeeding there either, its just as competitive to be the direct advertiser as the indirect or the publisher

                        prime example of this : pornhub sits on so much traffic inbound and outbound, they have 4 programs they can monetize all that traffic with. however, they know that dollar for dollar, they can't monetize it 100% all on their own, so they float some of that in to advertising you can buy, to round out the offering and increase their profit there to allow them to buy more traffic, start more projects.

                        Comment

                        • digitaldivas
                          ..I Heart Cannibal Corpse
                          • Sep 2007
                          • 4328

                          #13
                          i don't list to DDO with under 50 percent anymore. And i pick all of my sponsors now.
                          ...

                          Comment

                          • Paul Markham
                            Too old to care
                            • Jun 2001
                            • 52942

                            #14
                            Originally posted by weekly
                            But what if programs move to generating their own traffic. Would that not be less expensive?
                            IMO it depends on a few things, how good are you at generating traffic that does not cost as much as an affiliate, how well does your site convert and retain and more things.

                            If a site lost all traffic costs it could sell memberships at $10 a month no problem. The ratios would be better and the profit margin the same. I know this from the $5 sites you guys take the piss out of all the time. I can see why because if the business moved to this model it would be worse for you than Tubes. But the ratios are great on little traffic. Never pushed it because we never had the CMS to handle 200 sites which is what we planned.

                            The problem is directing traffic, buying ads and spots can cost as much affiliates. IMO sites like Paul Markham Teens need affiliates and we know from the traffic that types in or returns we could pay out more, might put up the rates soon for guys sending more than 10 hits a month.

                            Originally posted by sharphead
                            I like revshare sponsors.... i've seen ALOT of programs who offer PPS crash and burn over the years, but they do it to themselves.... what do you expect paying $75 PPS of a $39.95 join which might chargeback in the end. No wonder some sponsors look negatively at affiliates...

                            Which is why I avoid "$200 PPS PROMO DAYS" and PPS in general... just smells to me like a program is on it's last legs and every sponsor that does PPS does cross sales... there is just no way to make PPS profitable without fucking over someone.
                            Rev Share is best for the industry. Normally PPS depends on the customer buying at least two memberships off the site to afford $39.95 at $75 even more and most of the time it's about selling more sites. Rev share depends customers staying as long as possible. One method is about up selling the other about retaining, guess which one is best in the long run? If a site does not satisfy the customer you should not be selling it, no matter what you get today. Because tomorrow he may decide not to buy anything and in a business that's totally about repeat sales customer satisfaction is essential.

                            Fucking over the customer is bad policy, but one many in porn don't care about.
                            Last edited by Paul Markham; 08-14-2009, 12:16 AM.



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                            Comment

                            • ParlourCash Karl
                              Confirmed User
                              • May 2006
                              • 438

                              #15
                              We generate probably 95% of our own traffic, the other 5% comes from affiliates, obviously we wish affiliate traffic was more. We offer 50% and that is fair, it suprises me that many programs charge the affiliate for the processing fee or sometimes half.
                              We are even considering offering more to attract new affiliates. A lot of programes seem to forget that the good and honest affiliate need to earn money as well.
                              www.ParlourCash.com

                              Comment

                              • FlexxAeon
                                Confirmed User
                                • May 2003
                                • 3765

                                #16
                                i never really got the whole "generating their own traffic" thing as being the ultimate out.

                                they'd have to compete for traffic the same way we do. they don't have some magic secret formula - they're gonna be posting galleries and blogging and link trading etc (or tubing but we've heard about those conversions). depending on how much they're paying a grunt, that wage has to get factored in, along with hosting, domain(s), and all the other ancillary costs that come with hiring someone to "generate traffic" and run sites. lord help them if they hire a guru - he's gonna want a serious salary

                                even if those costs balance out, seems like less of a headache to just manage nats and cut checks
                                flexx [dot] aeon [at] gmail

                                Comment

                                • 2012
                                  So Fucking What
                                  • Jul 2006
                                  • 17189

                                  #17
                                  Are you a scumbag ?

                                  Who's your affiliate ?
                                  best host: Webair | best sponsor: Kink | best coder: 688218966 | Go Fuck Yourself

                                  Comment

                                  • 2012
                                    So Fucking What
                                    • Jul 2006
                                    • 17189

                                    #18
                                    as much as the sponsor wants to give the affiliate that month ~ about that much these days - what's your skim? stupid question
                                    Last edited by 2012; 08-14-2009, 12:35 AM.
                                    best host: Webair | best sponsor: Kink | best coder: 688218966 | Go Fuck Yourself

                                    Comment

                                    • Marialovesporn
                                      Confirmed User
                                      • Feb 2007
                                      • 579

                                      #19
                                      Originally posted by AmeliaG
                                      Bandwidth is also cheaper than it was five years ago, so who cares if an affiliate uses up a bit more bw before making a sale. A sale is a sale and I love our affiliates. Just set your price point so you can afford to take care of the people who send you traffic.
                                      Hi Amelia, I tried to contact you on icq but I didnt work. Could you add me to icq please ? I am an affiliate and need some support

                                      thanks,
                                      icq: 260397194

                                      by the way , sorry for hijacking the thread

                                      Comment

                                      • bdld
                                        $100,000
                                        • Dec 2001
                                        • 11452

                                        #20
                                        i've noticed sponsors buying traffic/links more now than ever before.

                                        Comment

                                        • seeandsee
                                          Check SIG!
                                          • Mar 2006
                                          • 50945

                                          #21
                                          Originally posted by weekly
                                          Fifty per cent?
                                          Twenty per cent?
                                          or maybe ten per cent.

                                          It seems that traffic is less valuable this year than it was five years ago. So what would be a good number? Programs are running out of gas and crashing. What can they actually afford?
                                          zero per cent
                                          BUY MY SIG - 50$/Year

                                          Contact here

                                          Comment

                                          • Lace
                                            Too lazy to set a custom title
                                            • Mar 2004
                                            • 16116

                                            #22
                                            Originally posted by Danielles Parlour
                                            We generate probably 95% of our own traffic, the other 5% comes from affiliates, obviously we wish affiliate traffic was more. We offer 50% and that is fair, it suprises me that many programs charge the affiliate for the processing fee or sometimes half.
                                            We are even considering offering more to attract new affiliates. A lot of programes seem to forget that the good and honest affiliate need to earn money as well.
                                            No offense but your site could use some work. If you need any help, feel free to hit me up and I'll give you some ideas
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                                            Comment

                                            • weekly
                                              So Fucking Banned
                                              • Dec 2005
                                              • 1785

                                              #23
                                              Originally posted by Paul Markham
                                              IMO it depends on a few things, how good are you at generating traffic that does not cost as much as an affiliate, how well does your site convert and retain and more things.

                                              If a site lost all traffic costs it could sell memberships at $10 a month no problem. The ratios would be better and the profit margin the same. I know this from the $5 sites you guys take the piss out of all the time. I can see why because if the business moved to this model it would be worse for you than Tubes. But the ratios are great on little traffic. Never pushed it because we never had the CMS to handle 200 sites which is what we planned.

                                              The problem is directing traffic, buying ads and spots can cost as much affiliates. IMO sites like Paul Markham Teens need affiliates and we know from the traffic that types in or returns we could pay out more, might put up the rates soon for guys sending more than 10 hits a month.



                                              Rev Share is best for the industry. Normally PPS depends on the customer buying at least two memberships off the site to afford $39.95 at $75 even more and most of the time it's about selling more sites. Rev share depends customers staying as long as possible. One method is about up selling the other about retaining, guess which one is best in the long run? If a site does not satisfy the customer you should not be selling it, no matter what you get today. Because tomorrow he may decide not to buy anything and in a business that's totally about repeat sales customer satisfaction is essential.

                                              Fucking over the customer is bad policy, but one many in porn don't care about.
                                              If you charge less for your memberships with no affiliate costs, do you earn more in the end? It would seem that volume sales from affiliates at a higher price would be more profitable. Huge sign up bonuses seem like a recipe for problems down the road.

                                              Comment

                                              • EscortBiz
                                                Fuck Checks, CASH only!
                                                • May 2002
                                                • 19422

                                                #24
                                                the generating in house traffic is a stupid thing to say is a big option, sure if you can do that why not but you will never beat the traffic 100's if not 1000's of affiliates can send you

                                                I mean so lets break this in house traffic down a minute so you can see how fucking stupid some of you sound, first lets list some top places for traffic

                                                SE
                                                Blogs etc
                                                Other members areas
                                                Link lists
                                                Tubes (promos)
                                                TGP's
                                                MGP's
                                                Email marketing

                                                So yeah as a program owner you do some SE on your own but come on I dont care how good you are if you have a solid affiliate program youll get 100x more SE traffic from them then you can generate on your own

                                                Blogs - I mean what are you gonna do take over every blog? Pay every blog? I mean just fucking stupid, so yeah maybe you have a few in house but again youll never be able to get on the amount of blogs aff's will put you

                                                Figure out the rest

                                                Any normal sane person will understand that there is nothing wrong with affiliates and they make or break mosts sites (obviously those who only need 15 joins a week for crack dont need affiliates).

                                                So my advice is if someone has good traffic and wants you to make an exception on payouts a increase etc do it etc

                                                Obviously know your numbers and dont go broke

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                                                Comment

                                                • Fletch XXX
                                                  GFY HALL OF FAME DAMMIT!!!
                                                  • Jan 2002
                                                  • 60840

                                                  #25
                                                  now more than ever watch out for traffic leaks on tours, like to their blogs etc...

                                                  Want an Android App for your tube, membership, or free site?

                                                  Need banners or promo material? Hit us up (ICQ Fletch: 148841377) or email me fletchxxx at gmail.com - recent work - About me

                                                  Comment

                                                  • Iron Fist
                                                    Too lazy to set a custom title
                                                    • Dec 2006
                                                    • 23400

                                                    #26
                                                    Originally posted by Danielles Parlour
                                                    We generate probably 95% of our own traffic, the other 5% comes from affiliates, obviously we wish affiliate traffic was more. We offer 50% and that is fair, it suprises me that many programs charge the affiliate for the processing fee or sometimes half.
                                                    Danielle, I've seen your content on GFY here and clicked your links.. no doubt, I would LOVE to send you traffic, but your in a a niche I just do not promote and all my time goes strictly to promoting teen models and solo girls (I do this part time over the last 5 years). I do pretty good with it and i'm sure if I spent time and built up a MILF/Humiliation network, then I could send you plenty of traffic as well, but this would take me way too much time and effort in a niche that honestly, doesn't turn me on that much...

                                                    In the end it's gotta get me excited before i'll even think about sending traffic. But once i'm hooked, i'm hooked for a long long time.

                                                    Now if you were to throw on some costumes and maybe the odd schoolgirl uniform... well you'll get traffic tomorrow....
                                                    i like waffles

                                                    Comment

                                                    • Iron Fist
                                                      Too lazy to set a custom title
                                                      • Dec 2006
                                                      • 23400

                                                      #27
                                                      Originally posted by Fletch XXX
                                                      now more than ever watch out for traffic leaks on tours, like to their blogs etc...
                                                      And to Twitter, YouTube, and god knows what else... oh and that's not limited to the tours either... i've seen that shit inside members areas as well - linking to blogs.

                                                      And what disturbs me the most? HEAVY HEAVY HEAVY cross sells in the members areas to other sites in their network without referral links. An AWFUL lot of sites are doing this now... so I can see why affiliates go for the quick cash and move out instead of promoting revshare.
                                                      i like waffles

                                                      Comment

                                                      • weekly
                                                        So Fucking Banned
                                                        • Dec 2005
                                                        • 1785

                                                        #28
                                                        But what about the original question? It wasn't so much about whether affiliates traffic is profitable, but what is affordable in today's market. Should prices as well as per centages drop to compete with all the free product out there.

                                                        Comment

                                                        • Barefootsies
                                                          Choice is an Illusion
                                                          • Feb 2005
                                                          • 42635

                                                          #29
                                                          Some of you are completely missing the point of in-house traffic generation. I'll keep it short for your comprehension level.

                                                          More control. Less unpredictability (affiliates jumping from one program to the next month to month).

                                                          No more being held ransom on PPS, or paid in advance for the month.

                                                          Better cost control.

                                                          The end.

                                                          No offense.
                                                          Last edited by Barefootsies; 08-14-2009, 09:06 AM.
                                                          Should You Email Your Members?

                                                          Link1 | Link2 | Link3

                                                          Enough Said.

                                                          "Would you rather live like a king for a year or like a prince forever?"

                                                          Comment

                                                          • FlexxAeon
                                                            Confirmed User
                                                            • May 2003
                                                            • 3765

                                                            #30
                                                            Originally posted by Barefootsies
                                                            Some of you are completely missing the point of in-house traffic generation. I'll keep it short for your comprehension level.

                                                            More control. Less unpredictability (affiliates jumping from one program to the next month to month).

                                                            No more being held ransom on PPS, or paid in advance for the month.

                                                            Better cost control.

                                                            The end.

                                                            No offense.
                                                            More overhead

                                                            More employees (who are just as unpredictable)

                                                            More time spent on generating traffic than improving content, conversions

                                                            there's two sides to those coins
                                                            flexx [dot] aeon [at] gmail

                                                            Comment

                                                            • DonovanTrent
                                                              Confirmed User
                                                              • Dec 2006
                                                              • 968

                                                              #31
                                                              Originally posted by Paul Markham
                                                              If a site lost all traffic costs it could sell memberships at $10 a month no problem. The ratios would be better and the profit margin the same. I know this from the $5 sites you guys take the piss out of all the time. I can see why because if the business moved to this model it would be worse for you than Tubes. But the ratios are great on little traffic.
                                                              I have to say that Paul could easily be right about this. Let's use the music business as a parallel. We're going to see more and more artists (program owners) going independent from the studios (affiliates) because they can make so much more money per unit (membership) by selling a far fewer number of units that THEY get all the profit on. The Internet allows them to do this, they can now market on their own vs. relying on the studios to do the work.

                                                              For most artists, the money comes from live performances. Many even LOSE money on studio releases because of all the upfront advances and costs the artist is saddled with (PPS model?). But once they're established, by going independent, they can continue making that same live performance dollar AND make money off their CD and digital releases.

                                                              Ask Prince how much money he made from his big-selling studio releases vs. how much money he made from the weird 2 and 3 CD sets he sold cheaply under his own name while independent. Those things weren't chart blockbusters, but he CLEANED UP.

                                                              Risk vs. reward. Having affiliates lowers your risk but you have to share the reward. If you can take on the risk of generating your own traffic, you can keep that portion. It all depends on how much risk a site owner is willing to take on, so the answer to the original question is "it depends."
                                                              Donovan Trent

                                                              Comment

                                                              • Barefootsies
                                                                Choice is an Illusion
                                                                • Feb 2005
                                                                • 42635

                                                                #32
                                                                Originally posted by FlexxAeon
                                                                there's two sides to those coins
                                                                Agreed.

                                                                However, there is also more stability. I would concede there is probably going to be less traffic bringing it in house. But then you no longer need to build your business model around $75-150 PPS, pre paid money to whales, or the fear that next month they pull all your traffic and you go out of business.

                                                                Bringing it in house is more conservative, and a more stable business model.

                                                                Should You Email Your Members?

                                                                Link1 | Link2 | Link3

                                                                Enough Said.

                                                                "Would you rather live like a king for a year or like a prince forever?"

                                                                Comment

                                                                • weekly
                                                                  So Fucking Banned
                                                                  • Dec 2005
                                                                  • 1785

                                                                  #33
                                                                  Bringing it in house is more conservative, and a more stable business model.
                                                                  Not sure about the in house, but I think you nailed it on the stable and conservative. When any industry matures it needs to become more stable and by nature conservative. Software is a good example.
                                                                  The chaff will get dusted off and producers will ultimately survive. There is a lot of dead men walking at the moment and boredom or lack of income will cause them to move on. It feels like we are in the middle of the big shakedown.
                                                                  Perhaps the future is fewer affiliates earning the same per centages and making more money.

                                                                  Comment

                                                                  • Barefootsies
                                                                    Choice is an Illusion
                                                                    • Feb 2005
                                                                    • 42635

                                                                    #34
                                                                    Originally posted by weekly
                                                                    Not sure about the in house, but I think you nailed it on the stable and conservative. When any industry matures it needs to become more stable and by nature conservative. Software is a good example.
                                                                    The chaff will get dusted off and producers will ultimately survive. There is a lot of dead men walking at the moment and boredom or lack of income will cause them to move on. It feels like we are in the middle of the big shakedown.
                                                                    Perhaps the future is fewer affiliates earning the same per centages and making more money.
                                                                    Summed up nicely.
                                                                    Should You Email Your Members?

                                                                    Link1 | Link2 | Link3

                                                                    Enough Said.

                                                                    "Would you rather live like a king for a year or like a prince forever?"

                                                                    Comment

                                                                    • burntfilm
                                                                      Confirmed User
                                                                      • Feb 2008
                                                                      • 972

                                                                      #35
                                                                      especially important for a new program. We wouldn't have gotten anything done without affiliates
                                                                      Sorta...

                                                                      Comment

                                                                      • FlexxAeon
                                                                        Confirmed User
                                                                        • May 2003
                                                                        • 3765

                                                                        #36
                                                                        Originally posted by Barefootsies
                                                                        Agreed.

                                                                        However, there is also more stability. I would concede there is probably going to be less traffic bringing it in house. But then you no longer need to build your business model around $75-150 PPS, pre paid money to whales, or the fear that next month they pull all your traffic and you go out of business.

                                                                        Bringing it in house is more conservative, and a more stable business model.

                                                                        i'll buy that but i'd attribute the flaw to the high PPS business model rather than the affiliate model as a whole

                                                                        i'd rather that every program switched to revshare and focused more on making their members so orgasmically happy that they rebill forever, than to have to attribute a chunk of their resources to generating traffic
                                                                        flexx [dot] aeon [at] gmail

                                                                        Comment

                                                                        • weekly
                                                                          So Fucking Banned
                                                                          • Dec 2005
                                                                          • 1785

                                                                          #37
                                                                          Originally posted by FlexxAeon
                                                                          i'll buy that but i'd attribute the flaw to the high PPS business model rather than the affiliate model as a whole

                                                                          i'd rather that every program switched to revshare and focused more on making their members so orgasmically happy that they rebill forever, than to have to attribute a chunk of their resources to generating traffic
                                                                          Then why don't you choose to promote only those programs? If more were to do that, perhaps things would change. Maybe that is the future. Like any other business, customer satisfaction wins.

                                                                          Comment

                                                                          • Agent 488
                                                                            Registered User
                                                                            • Feb 2006
                                                                            • 22511

                                                                            #38
                                                                            as long as revenue generated by affiliates exceeds that of the costs of maintaining affiliates the model will survive.

                                                                            Comment

                                                                            • Juilan
                                                                              Sultan of Swing
                                                                              • Feb 2004
                                                                              • 15141

                                                                              #39
                                                                              If you have a strong and well thought out brand, it's hard to calculate and quantify webmaster impact since affiliates can do more than simply bring in sales leads directly via there links.
                                                                              My Best Converting VOD Sponsor |

                                                                              Comment

                                                                              • weekly
                                                                                So Fucking Banned
                                                                                • Dec 2005
                                                                                • 1785

                                                                                #40
                                                                                Originally posted by budsbabes
                                                                                as long as revenue generated by affiliates exceeds that of the costs of maintaining affiliates the model will survive.
                                                                                But is that becoming an issue at the moment? There are a lot of late payments, non payments and companies sinking like a sunset. The question is why. Is the affiliate model in its current state, broken?

                                                                                Comment

                                                                                • Agent 488
                                                                                  Registered User
                                                                                  • Feb 2006
                                                                                  • 22511

                                                                                  #41
                                                                                  Originally posted by weekly
                                                                                  But is that becoming an issue at the moment? There are a lot of late payments, non payments and companies sinking like a sunset. The question is why. Is the affiliate model in its current state, broken?
                                                                                  once companies stop providing affiliate support you will know that it is not feasible for them to do so any more.

                                                                                  the issues you bring up have nothing to do with affiliates. you might want to look at an economy which has been shedding half a million plus jobs per month with foreclosure rates going up ten percent every month for some insight into their failure.

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                                                                                  • fuzebox
                                                                                    making it rain
                                                                                    • Oct 2003
                                                                                    • 22352

                                                                                    #42
                                                                                    Originally posted by FlexxAeon
                                                                                    i'll buy that but i'd attribute the flaw to the high PPS business model rather than the affiliate model as a whole

                                                                                    i'd rather that every program switched to revshare and focused more on making their members so orgasmically happy that they rebill forever, than to have to attribute a chunk of their resources to generating traffic
                                                                                    You know I read this a lot on GFY, but most the affiliates that are interested in promoting my sites contact me requesting PPS on trials. I'm going to have to implement it to be competitive.
                                                                                    Last edited by fuzebox; 08-14-2009, 12:54 PM.

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                                                                                    • Webmaster Advertising
                                                                                      So Fucking Banned
                                                                                      • Sep 2003
                                                                                      • 1360

                                                                                      #43
                                                                                      Originally posted by burntfilm
                                                                                      especially important for a new program. We wouldn't have gotten anything done without affiliates
                                                                                      Then you shouldnt have opened a program

                                                                                      To many programs are opening up without the owners being able to subsidize their own traffic/sales thinking that they can just throw a tour and a members area together and affiliates will make the money for them.

                                                                                      If you cant generate sales to your own sites then dont open a program because you are basically screwing your affiliates over for your own ends and in the process diluting the profits of the rest of the industry, there is a reason traffic is down at many of the largest programs that have been around for years, that reason is it became far to easy for people to launch thier own program with no knowledge of how to generate traffic or sales of their own.

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                                                                                      • weekly
                                                                                        So Fucking Banned
                                                                                        • Dec 2005
                                                                                        • 1785

                                                                                        #44
                                                                                        Originally posted by Webmaster Advertising
                                                                                        Then you shouldnt have opened a program

                                                                                        To many programs are opening up without the owners being able to subsidize their own traffic/sales thinking that they can just throw a tour and a members area together and affiliates will make the money for them.

                                                                                        If you cant generate sales to your own sites then dont open a program because you are basically screwing your affiliates over for your own ends and in the process diluting the profits of the rest of the industry, there is a reason traffic is down at many of the largest programs that have been around for years, that reason is it became far to easy for people to launch thier own program with no knowledge of how to generate traffic or sales of their own.
                                                                                        Pure affiliate marketing without self generation is certainly too expensive. I agree, if you can't market a high percentage of your own sales, you are not going to be profitable. Food for thought:

                                                                                        Percentage of gross sales/revenue:

                                                                                        This is probably the simplest method. Most experts recommend somewhere in the range of 2-8% of gross sales. McKinsey & Company is often quoted at 5%.

                                                                                        Most small businesses (less than $5 million gross revenue) should shoot for at least 7-8%.

                                                                                        Industry-specific:

                                                                                        Many industries have their own standard. For example:

                                                                                        * Consumer package goods: Up to 50% of projected net sales to launch a new product
                                                                                        * Industrial B-to-B: 1% of gross sales
                                                                                        * Retail: 4-10% of net revenues
                                                                                        * Banks/Credit Unions: 2-5% of assets
                                                                                        * Law firms: 1-4% of gross revenues
                                                                                        * Pharmaceuticals: Up to 20% of net sales
                                                                                        * Hospitals: 1% of net revenues

                                                                                        Comment

                                                                                        • Barefootsies
                                                                                          Choice is an Illusion
                                                                                          • Feb 2005
                                                                                          • 42635

                                                                                          #45
                                                                                          Originally posted by fuzebox
                                                                                          You know I read this a lot on GFY, but most the affiliates that are interested in promoting my sites contact me requesting PPS on trials. I'm going to have to implement it to be competitive.
                                                                                          Should You Email Your Members?

                                                                                          Link1 | Link2 | Link3

                                                                                          Enough Said.

                                                                                          "Would you rather live like a king for a year or like a prince forever?"

                                                                                          Comment

                                                                                          • wargames
                                                                                            Kliris
                                                                                            • May 2003
                                                                                            • 10423

                                                                                            #46
                                                                                            Originally posted by Thurbs
                                                                                            generating your own traffic and doing your adbuys is essentially just shifting the how you spend that same CPA in an effort to :

                                                                                            1. lower the average CPA paid when in comparison to affiliates CPA to acquire a join
                                                                                            2. be in control of the traffic, to allow you the time to develop products in a less complicated area ( Hard to tweak sites that 50% do well on and 50% doesn't , vs working on a site that you are the traffic pusher for aswell )
                                                                                            3. gain joins that you may not have had before, remember, even good sites may not always be a hit with the affiliate base, regardless of many reasons
                                                                                            4. reduce the overhead

                                                                                            remember a few things about traffic, nothing comes for free. alot of people say, oh they are making their own traffic, they don't need me. half the programs may be trying to, but not succeeding there either, its just as competitive to be the direct advertiser as the indirect or the publisher

                                                                                            prime example of this : pornhub sits on so much traffic inbound and outbound, they have 4 programs they can monetize all that traffic with. however, they know that dollar for dollar, they can't monetize it 100% all on their own, so they float some of that in to advertising you can buy, to round out the offering and increase their profit there to allow them to buy more traffic, start more projects.

                                                                                            Thurbs 100% on the money
                                                                                            ICQ 212-115-582
                                                                                            Email Steve at Vas Media Group .com

                                                                                            Comment

                                                                                            • FlexxAeon
                                                                                              Confirmed User
                                                                                              • May 2003
                                                                                              • 3765

                                                                                              #47
                                                                                              Originally posted by weekly
                                                                                              Then why don't you choose to promote only those programs? If more were to do that, perhaps things would change. Maybe that is the future. Like any other business, customer satisfaction wins.
                                                                                              Originally posted by fuzebox
                                                                                              You know I read this a lot on GFY, but most the affiliates that are interested in promoting my sites contact me requesting PPS on trials. I'm going to have to implement it to be competitive.
                                                                                              well i am just one affiliate so speaking for myself. i'm taken what i'm given. i don't gravitate towards any program based on PPS vs. revshare. for me it's all about the content & niche. so i have a mix of revshares and PPS.

                                                                                              if a company offers PPS most times i take it so that I can feel out the initial conversion ratio without having to lose a lot of $/click on sites that don't retain. if it converts, and offers revshare, i will go rev for a least a short period of time so that i can see what their retention is like. there's quite a few programs that are ONLY pps and ONLY revshare. and i'm not the kind of whale that could/would call up a program that was rev only, demanding PPS.

                                                                                              again there are two sides to the story. assuming that most / all programs would prefer to be all rev share... how do i know that they're going to retain? the only way i'm going to know if it does is when i start throwing traffic at it, and it'll be months before i get an idea of a sites' retention rate. every program swears they convert and retain up the wazoo and that you'll make the most money with them and on and on. so while i'm not that webmaster that's gonna ask for crazy PPS numbers, the ones that are might have reason to want PPS for "trying you out". but again, this is not me.

                                                                                              if every program went revshare tomorrow you'd hear me crying the least of all people. but if a company wants to be revshare only then the primary focus should be on keeping members for as long as possible, not generating insane traffic numbers.

                                                                                              literally cuz i know quite little on running a program. just my observation. correct me where wrong
                                                                                              flexx [dot] aeon [at] gmail

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                                                                                              • IllTestYourGirls
                                                                                                Ah My Balls
                                                                                                • Feb 2007
                                                                                                • 14311

                                                                                                #48
                                                                                                Has anyone said anything about how affiliates help with branding?

                                                                                                Comment

                                                                                                • weekly
                                                                                                  So Fucking Banned
                                                                                                  • Dec 2005
                                                                                                  • 1785

                                                                                                  #49
                                                                                                  Originally posted by IllTestYourGirls
                                                                                                  Has anyone said anything about how affiliates help with branding?

                                                                                                  Interesting point. How do they help? Branding is a decision made by the program owners I would think.

                                                                                                  Comment

                                                                                                  • Barefootsies
                                                                                                    Choice is an Illusion
                                                                                                    • Feb 2005
                                                                                                    • 42635

                                                                                                    #50
                                                                                                    Originally posted by weekly
                                                                                                    Interesting point. How do they help? Branding is a decision made by the program owners I would think.
                                                                                                    Exactly right.

                                                                                                    This is a business. It would be nice to see more business minded folk in this thread. The facts are the facts in 2009 and it is clear in the trades, and on the boards....

                                                                                                    Programs can't keep afford to pay these affiliate ransoms for PPS. Period.

                                                                                                    They are gouging their content budgets for traffic and crossing their toes for sales. It is not working. No new content. Rotating the old. Not rebilling for shit. Over reliance on cross sales and other tactics. Programs are teetering on collapse. Any good business owner would find a more reliable, stable, way of controlling costs and remaining in business especially in an ever competitive market place.

                                                                                                    The time has come for change, and many of the affiliates are being squeezed out. It should be interesting to see who is left in this industry come Vegas show in January.

                                                                                                    Last edited by Barefootsies; 08-14-2009, 05:20 PM.
                                                                                                    Should You Email Your Members?

                                                                                                    Link1 | Link2 | Link3

                                                                                                    Enough Said.

                                                                                                    "Would you rather live like a king for a year or like a prince forever?"

                                                                                                    Comment

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