The Future of Affiliate Marketing
19 Jun / The Future of Affiliate Marketing
Lately, I’ve been getting asked what I feel is the future of where the Internet marketing and affiliate marketing space is headed towards. I realized this back in 2009 when it all hit me one day.
The best way I can simply explain is by splitting the affiliate space into three main components: advertisers (the person who owns the product), affiliates (all the guys who get paid a commission to market the product), and the networks (the middleman who brings the advertiser and affiliate together).
Each one of these three components makes a pretty decent margin with all the revenue they generate. I’ve been fortunate enough to be on all three sides.
The affiliate makes anywhere between 25-50% net margin afterthey get paid their CPA or commissions from the advertiser and subtract the cost of getting the traffic to the advertiser’s site. The network makes their 20-35% margin for being the middleman. And the advertiser makes their 20-40% margin long-term each customer they acquire. Of course, all these margins vary depending on the industry, type of product/service, etc., but you get the point.
Now what if you eliminate the network and went straight to the affiliate? Or even better, what if you already knew the affiliate side and now learned how to properly build your own online offer/campaign? Not only do the margins increase, but more importantly, you can dominate the industry. How so?
Let me give you an example. If most of the affiliates are capped at paying $0.50 per click in order for them to make their margins and still be profitable, then they will try to get as many $0.50 clicks of the same type of traffic. They can’t really go much higher, or else their margins start to dwindle. They don’t have much room.
Now if you’re an advertiser buying your own traffic directly with no affiliates or network, raising t to $0.60 or even $0.70 should be no problem. This will allow you to get more traffic than anyone else and get the larger market share. These direct advertisers will almost always win at the end.
Now we are many years away from that happening, but it’s happening more and more each day. Not only myself, but I know other advertisers who are doing this exact thing. There’s nothing holding them back and they are some of the biggest and most successful people in the Internet marketing space.
I’ve been told that learning to be a super advertiser is the “holy grail” of the affiliate space because you have complete control of your destiny. I’d have to agree.