Affiliate Marketing Billionaires...

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chris22

chris22

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Jun 24, 2006
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Can the sky be truly the limit with affiliate marketing? Just how much can one affiliate marketing website be worth?

Well, 2 British guys may well have set the bar at a new all-time high for the affiliate marketing industry. The prestigious Sunday Times newspaper in London recently profiled the astonishing success of web entrepreneurs Duncan Cameron and Simon Nixon.

The UK-based entrepreneurs only started in the affiliate marketing business in 1999 and their business is now valued by the Sunday Times at an astonishing - $925 million – Yes, you did read that correctly. This makes them near-billionaires, and achieved largely via affiliate marketing in less than 5 years! It also makes them probably the wealthiest affiliate marketers in the world today!

More importantly, what does their success tell us about the affiliate marketing industry and what can we learn from their astonishing level of success?

The amazing thing is that affiliate sites often significantly outrank some of the biggest corporations in the world. That, more than anything else, shows the power that can rest with the little guy or gal, working at home on their affiliate marketing business.

So, should we all go out today and build ourselves a range of affiliate marketing websites?

Well, the business model is certainly valid and clearly there is a lot of money to be made. However, the competition out there is fierce so be aware of this. Never though, has the small business operator been able to so effectively compete with large corporations.
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Posted for motivational purposes...:banana_sml:
 
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"B-student, worked hard but not an intellectual." That makes it even more motivating, you don't have to be a genius you just gotta work your tail off. Now I want to get into the mobile phone biz, more than just ringtones that is.
 
It's not surprising they're big. They're becoming quite a brand name in the UK.

Good story though - shows the money's there if you can just get the traffic :)
 
chrislingle said:
gee people you need motivation from someone else? how long does that last? motivate yourself first!
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Thats the stupidest comment i have ever heard you make chris.

Regardless of who you are something has to motivate you! You would have never gotten into websites yourself if you would not have heard that you could make money at it.

Everyone has gotten motivation from either reading something, talking to someone or seeing success stories on the web.

WTF is this motivate yourself? You cant motivate yourself to do something if you havent heard or seen someone with the end results or on their way to it.
 
Great point MILL.. everyone has gotten Motivation from someone...LIke Tiger Woods he got his motivation from his dad look at him now, 10 years later he has made over 60 million dollars... not saying i want to be a golfer but i see people making big dollars doing affiliate marketing that gave me motivation...I just started doing this back in april and now that i join wickedfire i got more motivation to do this biz.....:drinkup: Just my 2cents:2twocents:
 
GREAT story Chris - thanks for sharing!

I just blogged about it on the 5 Star Affiliate Blogs with a link over here for people to read it. Hopefully it will help send Jon some new members.

Affiliate Internet Billionaire - Comparison Shopping Rakes in the Cash
http://affiliate-blogs.5staraffiliateprograms.com/2006/09/07/affiliate-internet-billionaire/

Like the pic of the guy holding a bunch of MILLION dollar bills?
Thought it was fitting!

If you like the story you can Digg it. :food-smiley-010:
at Design/Affiliate_Internet_Billionaire

Thanks again Chris, I love succes stories like this!
 
sounds like this guy started what is the UK equivalent of bankrate.com here in the US. i've always thought Bankrate cleans up financially - this pretty much verifies that.
 
So who would pay 1 bil for a company that won't break $60 mil profit this yr?

I think the valuation is a little far-fetched unless they go public.
 
engaged said:
So who would pay 1 bil for a company that won't break $60 mil profit this yr?

I think the valuation is a little far-fetched unless they go public.
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It's in GBP, not USD. £60M was in 2004 though. Nixon said they're on target for over a £100M (about $188M) turnover this year.
 
That was my exact thought too.

Firstly, just because the company *may* be worth $1bn doesn't mean the owner is a billionaire, because the only way it's gonna be worth that much is if they go public, and obviously the current owner wont own all of it :)

Secondly, I haven't actually found where the Sunday Times have valued it at that amount. They're shooting for £100m turnover this year. The PROFIT is far far less.

So yeah... it's worth a lot, but perhaps not a billion? :)
 
Hmmm..

"It gets between four million and five million visitors a month to its sites, and numbers are 125 per cent ahead of last year. Nixon estimates that it probably sells between 150-200,000 leads a day."

I don't get it.. 4-5 million visitors a month, generates 150-200,000 leads per day. If you assume, in their favor, that there are about 20 business days in a month, that translates to 3-4 million leads a month.. Are they saying they provide approx. one lead for every 1.5 visitors?

Found this little blurb from the founder:

http://www.e-consultancy.com/internetdecade/n/simon-nixon-111.html
 
Google turned a $1.4 billion profit in 2005. Its market cap is 115 billion. Public markets + a leader in a growth industry can result in some crazy valuations, and an inflationary monetary system is just the icing on the cake.

Brian, I wouldn't be suprised if some visitors generate more than one lead a vist -- plus they probably have a pretty big e-mail list.
 
Chromate said:
That was my exact thought too.

Firstly, just because the company *may* be worth $1bn doesn't mean the owner is a billionaire, because the only way it's gonna be worth that much is if they go public, and obviously the current owner wont own all of it :)

Secondly, I haven't actually found where the Sunday Times have valued it at that amount. They're shooting for £100m turnover this year. The PROFIT is far far less.

So yeah... it's worth a lot, but perhaps not a billion? :)
Click to expand...

The company's revenue is over $100M a year - it is worth a billion. The more money you have to work with, the more you can put into it for higher returns. If revenue was £60M (equal to over $100M) in 2004, I have no doubt they'll pass £100M this year.

When you sell a company (whether public or not), you sell it for multiples of annual revenue. Any company that has no debts, and pulls in over $100M a year, is easily worth a billion dollars. If you sold it for less than that, you would be the most worseless ass clown to ever roam the planet.

You said their profit is far far less? Remember, this biz has no overhead, and the ROI is insane. Ask Jon how much he spends vs. how much he makes. Or ask Keiron, or Shoemoney, or any Super Affiliate that doesn't mind talking about it.

UK's richest people in 2004 (Source) :
187. Simon Nixon (Internet) - £237m (almost $500M) - And that's from 2004. It's 2 years later now, so I'm sure they're closing in on the billion dollar mark. ;)
 
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