Can we rely on affiliates to be so adaptable
I received an email from an old acquaintance who invested in three online internet shops, he was fairly demoralized about affiliate marketing today, having been there right at the beginning when it all started. He asked me “what happened to affiliate marketing, when did it become 70% ppc driven?” My reply to him was that when PPC first emerged, we all assumed affiliates were working on the long tail (their websites for organic seo and value added content) but could tap into immediate revenue whilst they worked on their sites. We assumed that affiliates were looking at their future in terms of business longevity. Some did exactly this and are reaping the benefits, today.PPC short term, content long term.If this trend continues, and we can assume the networks derive most of their profits from ppc, then this concerns me a little. As more and more merchants implement ppc restrictions, today its no bidding on the name, tomorrow it will be no bidding at all, what happens the day after tomorrow?. There is no doubt that this is happening already, so where will this leave the affiliate in the months and years to come? Can we rely on affiliates to be so adaptable as to find other routes? Some maybe, those that can squeeze through the gaps and have forethought.
The longevity of affiliate marketing is reliant upon good sound affiliate business models that provides their traffic with something a little different, unique even, what started in this vein seems to be fast disappearing and affiliates who shouted about spyware or shouted about other affiliates unethical practices, some seem to have lost their way in their efforts to keep their heads above water, is this indicative of the state of affiliate marketing today?If networks revenue is derived from mostly PPC and more and more merchants switch off to affiliates doing PPC, where will this leave the networks? Im not surprised that some affiliate networks are competing against affiliates, Im not surprised that some networks are slowly moving towards a traditional bespoke media agency, perhaps they see the writing on the wall?
Id like to point you to a very interesting post written by Matthew Wood on the topic of Content, he starts “A few years ago content was king…..”.
There are many more of us who are thinking a long the same lines too.
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Comments
“The reality is that to be successful means work. Lots of it.” I could not agree more! But do you think for some affiliates, they are working long hours but over too many projects, thus spreading themselves thin?
“adapt or die” Do you think that the networks do enough to help the affiliates to adapt to web trends?
“If Merchants didn’t enforce those rules it could lead to serious issues later” I agree for brands, but what about ppc restrictions for merchants who are not brands but are building a brand?
“What you might see happening in the future is the change of merchant strategy by enforcing probation periods to evaluate affiliate performance and rewarding those who really do perform.” So do we spend too much time on affiliates that dont perform?
Great post btw… thanks 🙂
I’ve been a affiliate for just over 2 and a half years. As the rules change so I’ve had to adapt and change strategies. Unfortunately many affiliates jump in and start up campaigns with the idea that it’s a quick buck. The whole idea of spending 30min to 1hour a day (the ever preached profit promise by many out there trying to sell us more stuff.) The reality is that to be successful means work. Lots of it. As for forethought there’s a saying that goes… adapt or die. Unfortunately that’s how things are out there now. The internet arena is changing at such a pace that many will struggle to keep up. Also just remember that merchants have to be accountable for their affiliates and therefore the ever changing approach to bidding policies with regards to brand names makes sense. If Merchants didn’t enforce those rules it could lead to serious issues later. For example: It’s like Tesco saying, sure we’re Tesco but we don’t mind you going ahead and rebranding a site to your liking, telling people what you feel like telling them and we’ll be happy for them to associate whatever you’re saying/promising/promoting with us cause you’re affiliated with us. Whatever the risk/outcome or consequence might be. I also don’t believe that affiliate marketing is heading out. On the contrary. I believe that good, ethical and innovative affiliates will use their initiative and evolve just as networks. And besides, why would merchants want to kill a cash cow? Free targeted advertising which they don’t have to lay out a big budget for. A much cheaper option than conventional media. If a merchant has lets say 10 good affiliates promoting his product. Would that not be 10 times better results? 10 times more outreach, 10 times more possibilities or 10 times higher sales ratios?
So no, I don’t think merchants are switching off to affiliates at all. I think they might just be becoming more selective. It’s like asset protection. What you might see happening in the future is the change of merchant strategy by enforcing probation periods to evaluate affiliate performance and rewarding those who really do perform.