Inside Affiliate

As a CPA network owner myself, I am a member of a lot of CPA networks.  We do business with a lot of them, others we used to business with, and some we mean to but just haven’t gotten around to it yet.  So many offers, so little time…

Anyways, when you are a member of a lot of CPA networks you get a lot of newsletters from said networks.  One thing that they always like to do is put the names and contact info (and sometimes a picture) of all the Affiliate Managers at the bottom of the email.  Over the last year, I’ve noticed an interesting trend: the number of Affiliate Managers per network is shrinking!

This trend is especially evident in large CPA networks such as Affiliate.com and MediaTrust (formerly AdValiant).  So why is this happening? I think it’s simple: the industry is evolving in favor of smaller boutique networks instead of the giants that thrived before.  With margins on offers getting cut razor-thin, it’s the companies with low overhead and lower expenses that are winning the favor of affiliates today.

The new CPA network business model isn’t going anywhere anytime soon, since new affiliates are joining the industry by the day and these boutique networks are better at training and growing the revenue of these newbies.  It’s almost getting to the point where affiliates (especially super affiliates) are becoming like superstar athletes, and CPA networks are like agents.  Can you run an agency with just a couple of key clients?  Absolutely.  That’s why this trend is not going to stop any time soon.

At some point there might be too many networks for the affiliates out there, but I think that day is a long ways away.  As long as new people keep flowing into the industry, and as long as network owners keep innovating new ways to educate and involve the affiliates in their business model, there will be a place for them in the performance economy.

In 2010, I believe we are going to see some serious changes in the online world, and the affiliate industry.  There were definitely some changes brewing throughout 2009, both on the Affiliate side of the game (see the Oprah lawsuits) and the Advertiser side of the game (merchant account madness).  Neither of these are the death knell of Affiliate Marketing, but they certainly gave the impression that business would not just continue as usual in 2010.  Will Affiliates be looking for new offers to promote when all the rebills suddenly dry up?  Will the FTC be cracking down on Affiliate Bloggers for littering their posts with unmarked Affiliate links? Doubtful.  Every time this industry and its denizens have to comply or die, they find a way to do it and still make money, if not even more than before.  They are a very resourceful bunch.

Another big shakeup that is coming (in my opinion) is in the world of Traffic Sources.  Affiliates have complained for years now about Google’s terrible practices of banning its own Advertisers with no notice, killing profitable campaigns with Quality Score changes, and just flat pushing people around.  A viable alternative became very popular in 2009 with Facebook Ads, but that opened up a whole new can of worms.  Facebook has been just as fickle as Google about what types of offers they allow, and the approval process is bad enough to give full time Affiliates recurring nightmares of the DENIED status.

So what’s next? One word: mobile.  AdMob has been busy building the biggest mobile advertising network over the last couple of years, and although some Affiliates have tested it, there aren’t a whole lot of mobile-targeted offers to promote just yet.  But don’t worry, that is on the horizon and approaching fast.  Especially since Google just snapped up AdMob, easily taking a big piece of the mobile pie for themselves.  Also, in an interesting move, Apple has put it in a bid to buy Quattro Wireless.  Apparently they were interested in AdMob too, since many of the ads are served on the iPhone, but Google beat them to the punch.  It will be interesting to see how Apple handles the responsibility of running an ad network, especially in the tumultuous new field of mobile.

Will it be more of the same, just on a smaller device?  Will it be a revolution in marketing akin to the initial launch of Google AdWords and Facebook Ads?  Or perhaps it will open up new and expansive opportunities that our feeble marketing brains haven’t even thought of yet.  Whatever the case, 2010 is going to be an interesting year, and a brilliant start to the new decade.

Oh yeah, and Facebook is going down. That’s my doomsday prediction.

Since it is December and the new FTC rules for bloggers have taken effect, I have been looking for the easiest way to make everything compliant.  I know that it’s probably a long shot that the FTC would ever take an interest in my blog, but better safe than sorry, since I found a pretty easy way to do it.  Of course you could write your own custom disclosure like Shoemoney does, but who wants to take the 15 minutes to write it…That’s where CMP.ly comes in.  They have created a simple way to add the proper disclosure to your page, similar to the URL shorteners that you know and love.  CMP.ly is totally free, and there are 5 levels of their standard disclosure, as well as a custom one that you can create if you want to sign up for an account and take the time to do it.  For most people though, the standard ones will work fine.  They are:

• CMP.ly/0 – No Connection, Unpaid, My Own Opinions (Legit post)
• CMP.ly/1 – Based Upon a Review Copy (Review copies plz?)
• CMP.ly/2 – Given a Sample (Sample of what?)
• CMP.ly/3 – Paid Post (Zac Johnson’s favorite)
• CMP.ly/4 – Employee/Shareholder/Business Relationship (Matt Cutts’ favorite)
• CMP.ly/5 - Affiliate Marketing Links (My favorite)

So it might not be the sexiest thing to spend an hour doing, adding these links to all your blog posts.  But it’s not that much work and it’s definitely not worth it to get busted by the FTC in case some young buck in the department is trying to make a name for himself by taking down the evil affiliate bloggers that are polluting the online world for all the rest of us. (/sarcasm)

Check it out today at JonathanVolk.com

It’s about time, but my partner in crime over at TriFoxMedia, Boone Riddle, now has a blog at last!  Check out his first post.  Heck, subscribe to the RSS feed and make sure you get all of the juicy posts before anyone else.

Google has just launched a brand new type of ad unit for AdWords that is now in Beta, called the YouTube Video Targeting Tool.  Every time there is a new ad marketplace that opens up, there is a massive displacement that can be taken advantage of by savvy marketers.  The people that jump in early are going to have a definite advantage in this game.

One of the coolest things about the new YouTube Video Targeting Tool is that you can get very specific with your targeting, right down to selecting individual videos.  You can also target by demographics, channels, and some other methods.

You can choose from two different ad units, InVideo Overlay and In-Stream Video.  The InVideo Overlay can be setup as Text Ads or 468×60 image ads.  The In-Stream Videos are a “15/30 second in-stream video + image companion”.  I’m not exactly sure what that boils down to, since I haven’t had the chance to actually put any ads live yet.

People have been marketing via YouTube for quite a while now, especially in the Ringtones space.  The tried-and-true method is to rip the music video of your favorite artist, put a watermark on it with your Domain leading to the Ringtone offer, and try to get as many views as possible through both natural and artificial means.  This method has become less and less effective as YouTube has been getting wise and closing some of the loopholes used to inflate views to videos and game the rankings.  This new Video Targeting marketplace could be a game-changer for people that have been looking for a way to have a sustainable business model on YouTube without worrying about the impending Account Bans and Video Bans that come with the old method.

The only odd thing I noticed when playing with the interface is that when I searched for some of the YouTube mega-hit videos like the “JK Wedding Dance” and the infamous “Leroy Jenkins” video, they didn’t appear in the list.  Also, most of the videos that were in the list seemed to have relatively low view counts.  I’m assuming that this is because the program is in Beta still, and hopefully the big videos will be fair game once the program has the kinks worked out.

So what are you waiting for?  Head over to http://google.com/videotargeting and check it out!

In the affiliate marketing game, you get thrown some major curve balls.  Usually these only happen once or twice a year, sometimes more in a really bad year.  It’s when the status quo gets shaken up.  Things that you took for granted are either gone or severely changed, and suddenly your income is taking a major hit.  Usually the curve ball happens when a traffic source dries up or gets wise to the ways that you have been exploiting it.

Google loves to throw curve balls in the form of “quality score updates” that destroy your campaigns and take up a bunch of your time.  The latest one was thrown by Facebook after the Techcrunch Scamville Post (sorry Arrington, no link love here) and the follow ups that have been the talk of the industry this entire month.  It’s one thing to hear about it on a blog, and it’s another thing entirely to have it affect your business in a very real way.  As a network owner, the Facebook shakeup certainly put a large dent in our bottom line.

But that’s where my favorite part of the affiliate marketing business comes in: adapting to change. The people in this industry have an uncanny ability to adapt and update their business models to deal with the ever-changing online landscape, and this is no different.  Sure things will be slow for a while, but unlike your Average Joe in a 9 to 5 job, we have power to do something about it.  When Average Joe gets sent a curve ball, like getting laid off for example, it is devastating.  Suddenly his income is gone and he is completely at the mercy of somebody else to get it back.  He has to find another company to hire him and demonstrate to them that he is worth the risk.  All affiliates have to do is reach inside themselves, grab the motivation it takes to get things going again, and get back to work.

That’s why I love this business.  Sometimes it takes a curve ball to realize that there is a whole new opportunity right around the corner, or an income stream that you may have overlooked when your steady campaign was rolling.  At the end of the day, you are in control.  It’s your business and you are the boss.  Even if you are working 80 hours a week for yourself, that’s better than working 40 for someone else.  Next time you are thrown a curve ball, remember the alternative.