Tag Archives: economy

Big CPA Networks = Not So Big Anymore?

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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.

Is Affiliate Marketing Recession-Proof?

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The economic meltdown has garnered a ton of press & blog time as of late.  There is a lingering question in the industry about how we will fare during a nationwide recession.  There are the naysayers that cry that consumers will sit on their wallets in a crisis, and when no one is spending money then it is hard for companies to justify their ad spend.  Would online marketing budgets be the first on the chopping block?  Given the nationwide decline of newspapers and their ability to drive revenues, I highly doubt it.

We are in a unique position among most workers in the United States, because when something threatens our position and our viability in the marketplace, we can actually do something about it.  If consumers are behaving differently than they do in an upward market, we can adjust our campaigns accordingly.

What types of offers could do well in a situation like this?  Well let’s think about it…  Consumers are worried because times are tight… They need money.  How about Cash Advance?  Maybe Foreclosure Avoidance?  What about Credit Repair?  These are all verticals that are going to be in high demand during this time.  You just have to be creative, and think about new ways to appeal to consumers.  If they can’t afford to buy a vacation, perhaps they would be more likely to enter an Email Submit offer where they could get a trip for free, or a $1,000 Gas card.  There are a ton of these types of offers on most affiliate networks out there.

In essence, there might be less money to throw away on a Shamwow or the latest diet product, but people always are going to have a need for something or have a problem to solve.  Your goal as an affiliate marketer is to be the solution to that problem.

These hard economic times aren’t going to last forever, just yesterday we had the highest single-day rally in the stock market since the 1930’s.  If you build a solid foundation to your business by diversifying your campaigns, you will be ready to capitalize when the economy comes back.  Look on the bright side, you know you aren’t going to go in to work on Monday morning to hear that you have been laid off!

So forget the noise, it is a great time to be an affiliate marketer.