why isn't affiliate marketing monopolized by a single affiliate ?

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99luft

Banned
Oct 12, 2010
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I have been curious about this for a long time.

there are hundreds of thousands of affiliate marketers out there. why doesn't 1% of those marketers completely drain all the profits from small time marketers ? Saturating the market with their ads and completely leaving no profits for small marketers ?

for instance, while bidding for keywords and such, couldn't someone or some company with a large pocket simply buy the entire ad inventory by bidding very high price and keep all the CPA conversions/sales to themselves ?

I used to be a daytrader so it worries me that I don't have a clear picture of the AM market and it's players. If there are large enough affiliates they theoretically should leave no room for small marketers but it seems like lot of people here make at least $100 a day, some even millions.

With pay per sale payout scheme, the affiliate takes all the risk in marketing the product. With cost per acquisition scheme, both the producer and marketer shares risk, is this correct ? Why don't the producer simply market their own product ? Can anyone create an educational package or guide and list their product on networks like Neverblue and hope the affiliate marketers can do a better job of marketing it ? Why rely on affiliates to market your product ?


Maybe I am thinking too academically....if someone can help me out with this logic, I could sleep more easily.
 


There simply is enough traffic to go around. You cannot have too much money to spend on all the different traffic sources: in either paid traffic or labor to do free traffic methods.

The reason someone doens't just dump several billion dollars into AM and dominate is that AM requires loss of money just as much as earning. A lot of testing. Who the hell would risk paying all that labor all that time doing all that testing. Just dump it in what makes easier money: hedge funds, wars, oil... or whatever. I'm no billionaire.
 
99luft said:
Maybe I am thinking too academically....if someone can help me out with this logic, I could sleep more easily.
Click to expand...

Let me help you out with this issue OP:

SHUT THE FUCK UP and get back to work. There is an affiliate/internet marketer kingpin dominating the space: his name is Google. You do you.

Now may you get some better rest.
 
do you know every affiliate? Who's to say a few marketers aren't dominating the market already?

You can't know everything, so don't try
 
If small advertisers had the time and talent to market their products internationally, they would. Before IM, full service ad agencies hired first gen. affiliates/employees (copy writers/art directors/promotion experts) to create ads and market them in magazines/billboards/direct mail/radio/TV. Affiliate marketing and the internet allow more creative product marketing, get new marketing ideas out faster, reach huge customer bases and let more people run their own businesses. This is capitalism at it's best.
 
why isn't the technology market dominated by a single company?

how can intel/amd/hp/acer/apple/compaq/cisco/netapp/sun/IBM all POSSIBLY coexist!?!?
 
you were a day trader, how many day traders were sitting next to you in your office? Why the fuck your company hired them when you can do all the work? forget that, if u r a trader you know how your clients work with multiple brokers to get the best brokerage and best service. Why do all the work yourself when yo can get 100 people to do it for you for a nominal fee.

Ps: I worked for the world's largest investment bank for 7 yrs in asia
 
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