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Old 04-17-2008, 02:21 PM   #1 (permalink)
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Wfexclusive Why affiliates are the bitch of the industry: Part 2

In response to Part 1.

Before we get into specific marketing techniques, I wanted to do another post to re-clarify the notion that affiliates really are handicapped from the beginning. Let's take a moment to discuss the dynamics of the advertiser - network - affiliate relationship in greater detail.

Let me preface this by saying that, despite how this post sounds, I'm not anti-affiliate network by any means. By and large I think affiliate networks, and most affiliate managers, play by the 'rules' - not that there are any rules, really; we're all in it to make money, and there definitely is a LOT of money to be made. More on that later.

Part one discussed how affiliates start at the bottom of the food chain. Many people agreed, some disagreed. Apparently NickyCakes (whom I met at ASW, and despite his online personality of being a know-it-all asshole is actually really nice and a cool guy) only works for two hours a day and plays video games, the rest of us that have realized any sort of success work our asses off probably work 10-12 hour days or more. I know I do.

So back on the the networks. Both the advertisers and the networks, like yourself and every other business in the world, are in it to make money and maximize their profits. Here's how it works. First, the advertisers/merchants decide how little they can pay the networks for promoting their offer. Second, the networks decide whether it's more profitable to run the offers themselves or open it up to their affiliates. If they open it up to affiliates, they pay them as little as possible to maximize their own profits. Simple concept.

--- this post is going somewhere folks, bear with me ---

Next, Let's talk about some of the shadier tactics the networks can/will employ. One bad thing that can happen is that your affiliate manager discusses an offer that is working well as well as your marketing tactics with either a.) another one of their top-affiliates or b.) another affiliate manager, who in turn shares this information with their own affiliates.

Here's why: Affiliate Networks, and more specifically, affiliate managers, are actually incentivized to create your competition (I think that is a direct quote from Diorex somewhere here on WF). They more money their affiliates make, the more money they make. Of course it is never an affiliate network's policy to do this, and publicly most affiliate networks would condemn this sort of business - but it happens all the time.

What's worse - you're at an even greater risk if you change networks. Let's say you're making decent money with a non-exclusive offer on XYZ Network, but XYZ Network refuses to increase your payout. ABC Network comes along and offers you 15% more, so you hop on board. Now that you've taken business away from XYZ,do you think your old Affiliate Manger (who is now taking home less each month because of your decision) is going to just shrug her shoulders and say 'oh well'? Hell no, they are going to replace that income by letting their other top affiliates in on the offer & marketing tactics you used.

"But wait, that's why you never show the networks your websites, or discuss your marketing tactics, etc." I know, there are many tactics to strip referrer, cloak referrer, etc. This really is only marginally effective. With a little investigation, you're whole campaign can be figured out... big deal.

This post is not just a bitch session. The point of this post to try and cleanse your mind about everything you've learned about affiliate marketing and understand where you truly stand as an affiliate, so you can approach your business in a different way.

So how do you take yourself out of affiliate bitch-mode and make some cash? What I can say is that every successful affiliate - and really any business in general - is really good at two things: building a long-term marketing strategy, and creatively thinking outside of the box.

The next few posts will cover these two topics in detail, and I'll try to throw in some real-life examples for relevance. Until then, stay tuned...
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Old 04-17-2008, 02:22 PM   #2 (permalink)
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Hats off to you AIM - good work here.
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Old 04-17-2008, 02:54 PM   #3 (permalink)
 
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I am intrigued by your ideas and wish to subscribe to your newsletter.
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Old 04-17-2008, 02:59 PM   #4 (permalink)
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I am willing to pay for your beloved ebook too.
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Old 04-17-2008, 03:06 PM   #5 (permalink)
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It's in the affiliate company's best interest to have a number of high performing, loyal affiliates. To stifle a promising affiliate for short term gains, by giving info to top affiliates, is simply bad business sense and I'm sure that's not a business strategy of most quality affiliate companies. They will have much better long-term success through attracting affiliates with good referrals and loyalty of affiliates, not through stealing ideas. So no, I don't agree with your theory that the system is stacked against affiliates, or that it's only the AM's top account that they care about, although I'm sure there is alot of talking that goes on.

To make things better an affiliate should start investing time and money into their own brand rather than someone else's, which alot of bloggers have got going for them.
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Old 04-17-2008, 03:17 PM   #6 (permalink)
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Hmmmm.... this all seems vaguely familiar.....

But I still agree.
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Old 04-17-2008, 03:20 PM   #7 (permalink)
 
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Quote:
Originally Posted by PinstripeRambo View Post
It's in the affiliate company's best interest to have a number of high performing, loyal affiliates. To stifle a promising affiliate for short term gains, by giving info to top affiliates, is simply bad business sense and I'm sure that's not a business strategy of most quality affiliate companies. They will have much better long-term success through attracting affiliates with good referrals and loyalty of affiliates, not through stealing ideas. So no, I don't agree with your theory that the system is stacked against affiliates, or that it's only the AM's top account that they care about, although I'm sure there is alot of talking that goes on.

To make things better an affiliate should start investing time and money into their own brand rather than someone else's, which alot of bloggers have got going for them.
"Promising" affiliates tend to get offers early too, in the hopes they'll become big. They perhaps get them slower than the current top performers, but still.
You're completely kidding yourself if you don't think it's in the company's best interests to give the high performers offers early.
They want to keep those top earners that make up a huge percentage of their income with them. So as a result, they need to get fresh offers out to the top guys before it's saturated, and before another company shows them the offer.
It's absolutely amazing how different of treatment I get by the different companies.
Advaliant and Copeac for example, if I have a request or are looking for a fresh campaign, I'll have a response. Fast. Because they know I can drive volume through them.
Other companies that I haven't sent much to or harbor a grudge against(CPAStorm and CPAempire) don't give me crap. Any question I make to one of those companies is treated like a major hassle. They may lie about their ability to raise payouts. Getting an offer early? forget it. Just because I haven't sent them much before.

And you know what? It works. It takes a BIG offer to get me to switch from my "tried and true" places like Copeac. Sometimes merely outbidding them isn't enough.

The one exception to this rule I've found is RocketProfit. I haven't ran much through them(a little) but no matter what I get treated well, and get tips if an offer in my niches comes up.
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Old 04-17-2008, 03:31 PM   #8 (permalink)
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Originally Posted by DirSP View Post
I am willing to pay for your beloved ebook too.
I don't have an ebook. There is no newsletter. Your sarcastic little comments are pretty witty though. Really, they are.

Actually these are posts that were originally slated for my blog, but I've decided that I don't really like blogging and frankly don't have time. So I'll just post them here on Wickedfire.
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Old 04-17-2008, 03:56 PM   #9 (permalink)
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Quote:
Originally Posted by aim View Post
I don't have an ebook. There is no newsletter. Your sarcastic little comments are pretty witty though. Really, they are.

Actually these are posts that were originally slated for my blog, but I've decided that I don't really like blogging and frankly don't have time. So I'll just post them here on Wickedfire.
I don't get what all the complaints are about. We are bitch of the government. Now that is worse than being a bitch of the AM industry.
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Old 04-17-2008, 04:24 PM   #10 (permalink)
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Quote:
Originally Posted by xmcp123 View Post
"Promising" affiliates tend to get offers early too, in the hopes they'll become big. They perhaps get them slower than the current top performers, but still.
You're completely kidding yourself if you don't think it's in the company's best interests to give the high performers offers early.
They want to keep those top earners that make up a huge percentage of their income with them. So as a result, they need to get fresh offers out to the top guys before it's saturated, and before another company shows them the offer.
It's absolutely amazing how different of treatment I get by the different companies.
Advaliant and Copeac for example, if I have a request or are looking for a fresh campaign, I'll have a response. Fast. Because they know I can drive volume through them.
Other companies that I haven't sent much to or harbor a grudge against(CPAStorm and CPAempire) don't give me crap. Any question I make to one of those companies is treated like a major hassle. They may lie about their ability to raise payouts. Getting an offer early? forget it. Just because I haven't sent them much before.

And you know what? It works. It takes a BIG offer to get me to switch from my "tried and true" places like Copeac. Sometimes merely outbidding them isn't enough.

The one exception to this rule I've found is RocketProfit. I haven't ran much through them(a little) but no matter what I get treated well, and get tips if an offer in my niches comes up.
Of course they will treat you well if you do high volume. The question is will they screw over new affiliates for the sake of slightly helping their top guns? (Who, making lots of money already, do not need "secrets" from noob affiliates anyways) Don't buy into the conspiracy theory.
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Old 04-17-2008, 04:57 PM   #11 (permalink)
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speaking of being somebody's bitch... it could be worse...
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Old 04-17-2008, 05:19 PM   #12 (permalink)
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It's only the rage and fury of being screwed out of leads by merchants that keeps me motivated to screw them back.
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