Affiliate Marketing & Fraud: Separated At Birth?

What is it about the Internet that brings out the worst in people?  Is it because there is so much money to be made online, and it infuriates the people that aren’t making it?  Or is it just because the anonymity provided by the computer and the distance between users that allows them to behave in outrageous ways that they never would in person?

There a lot of people that make a good living by effectively marketing a product or service to a targeted audience through many different methods including PPC, SEO, Email, PPV, and Social Media.  However, I would venture to say that there are way, way, way more people out there that are working just as hard even harder to make money by scamming & cheating their way along.

Just look at the majority of users on the Black Hat World forums, for example.  There is thread after thread on that board about how to make illegitimate monies online.  Don’t get me wrong, there is nothing wrong with automation or campaign optimization tools that make our jobs as marketers easier.  I’m all for those.  Every industry has its tools of the trade.  What irks me is when it goes farther than that.

Case in point: Packet Stuffer.  This is a tool that was designed to steal commissions from legitimate affiliates and give it to people lazy and stupid enough to use it.  I’m sure there are plenty of angles that could be argued in favor of a tool like this, but it rubs me the wrong way.  When you have spent a bunch of time building the perfect landing page, optimizing your ad copy, spending money on PPC until you get the campaign profitable and finally get back into the black, the last thing that you need is some idiot siphoning off your commissions.  It doesn’t matter if it’s only one here and there, every lead counts and can have a huge effect on the EPC of your campaign and whether or not it makes sense to keep it going.

So please, if you are a new affiliate (or even an experienced affiliate) that is tempted by the dark side of the industry and the allure of getting something for nothing, just remember the old adage: if it seems too good to be true, it probably is.  You will not make tons of money.  You will have your affiliate accounts terminated at all of the networks that you work with, and you will have wasted your time and money.  Furthermore, you are only helping to paint the entire Affiliate Marketing industry in the type of negative light that doesn’t do any of us any favors.  If you want this industry to become more accepted in the mainstream and continue to see growth over the next decade, you need to start treating it like you would any other job: with respect.

I’ve said it before and I’ll say it again, it’s not that hard to be a legitimate affiliate, just do some actual marketing and you’re all set.

Big CPA Networks = Not So Big Anymore?

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.

The Curve Ball

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.

Demand InsideAffiliate On AffBuzz

Justin Barr created a great little website called AffBuzz.  It is essentially a blog aggregator for the Affiliate Marketing industry.  If you haven’t seen it yet, you should definitely check it out.  It’s a great time saver and a good way to keep up with what’s going on in the world of affiliate marketing.

There’s only one problem: INSIDE AFFILIATE IS NOT LISTED ON AFFBUZZ!  There are about 70 blogs listed, including the likes of JohnChow.com, but no love for yours truly.

As faithful readers of this blog, if I’ve helped, entertained, educated, enlightened, enraged, stupefied, or otherwise touched you with my posts, please do me a favor and CLICK HERE then fill out the form to tell Justin to add InsideAffiliate to AffBuzz.

Power to the people!

How To Write A Post About Local Affiliate Marketing

During the last few months, there has been a rash of blog posts cropping up left and right about local affiliate marketing.  There have been good ones and bad ones and then all the guest posts by Dennis Yu.  All of that aside, if you are an affiliate blogger then you owe it to yourself to write one of these bad boys.  Here’s how it is done…

1. Tell your readers how there is a whole new world of affiliate marketing right in their backyard, where they can be their own boss and not have to worry about the big bad networks and advertisers scrubbing all of their leads.

2. Make sure to mention that Dentists, Lawyers, Massage Therapists, Insurance & Real Estate Agents and anyone else who commonly works off of referrals are the best worst possible candidates because they understand the value of a good lead.

3. Explain to them that this is going to take some good old fashioned salesmanship on their part, because they most likely have not harnessed the power of the internet yet. If that doesn’t scare them away, then mention that there will always be squabbles over what counts as a lead at the end of the month.

4. Bring up the fact that Google Voice is amazing and that you have been using it for local lead gen forever, even though 99% of your readers can’t get an invite.

5. Throw some massive numbers around, like how the keyword “San Francisco DUI Attorney” is going for over $20 per click on the search engines.  If you have the stones, substitute in your own keyword or niche to scare them away from competing with you.

6. ???

7. Profit!  Enjoy shooting fish in a barrel until the next wave of young pups learns what you have been up to and spoils all the ROI for you.

Staying in the Game

Last night I was awake until 4am because every time I laid down to sleep, my lower back would revolt.  My wife had been telling me that I needed to go to the Chiropractor, and for some reason I put it off until I was in a large amount of pain.  I tend to do that…  So today I went to the Chiropractor and he adjusted me, and we ended up talking for about 30 minutes about my situation.  It turns out that my hours and hours upon hours of sitting at the computer and lack of exercise has led to a greatly curved lower spine, which is not good.

According to him, unless I turn things around quickly by doing core exercises and regular adjustments I will be in a world of hurt by the time I am 40.  This especially sunk in because he said something similar the last time I saw him, about 6 years ago.  Things are only worse now…

So now it’s time to shape up!  No, Internet Marketing doesn’t compare physically to being a lumberjack, but it does take its own kind of toll on the body.  I had already decided to give Weight Watchers a try, and I’m about 2 weeks into that so far.  Now I’m going to add in some core exercises so that I’ll be ready when my son is born in January.  I’ve got to be in shape so we can toss the ‘ol pigskin around in the yard, right?

I guess today was just kind of a wake up call for me.  I want to stay in the game now, work hard, and crush it so that I can enjoy my later years.  That means that I need to face facts and start taking better care of myself.  It’s super easy in this industry to forget about everything but what is happening online, but until we can digitize our consciousness and upload it to the cloud, there’s still a little bit of physical maintenance that needs to be taken care of.

The Hot Offer Chaser

The hot offer chaser is constantly looking for the next big thing.  This affiliate will contact his Affiliate Managers on a weekly or daily basis to ask what the “hot offers” on the network are.  The Affiliate Manager will give him a few arbitrary offers that are performing well on the network, it really doesn’t matter what they are.  The hot offer chaser takes these recommendations, files them away somewhere, then goes along on his day of doing whatever it is the hot offer chaser does (it certainly isn’t marketing).

The hot offer chaser doesn’t create niches and new trends, he borrows, steals, or copies them.  At least that’s what he should be doing.  In all actuality he really doesn’t even do that.  Why spend the time to create a landing page and a content network campaign for the offer he was just recommended when he can ask his Affiliate Manager for the new hot offers tomorrow morning?

In case you haven’t figured by now, the hot offer chaser doesn’t make any money.  The hot offer chaser dreams of the day that he can have a $100 a day campaign.  He is so focused on getting all of the information together so that when he finally launches that magic campaign, it can’t possibly fail.  Problem is, he will never get around to it.

Don’t be a hot offer chaser.  Create those hot niches.  Pioneer those new marketing techniques.  Be creative.  Do some marketing.

The Paralysis of Analysis

There are many pitfalls that one must overcome when trying to make a living as a self-employed affiliate.  One of the toughest is conquering the little voice in your head.  You know, the one that says, “What’s the point of designing that new website, it’s just going to fail anyway.”  It is very good at talking you out of each and every good idea that you come up with before you even get started.  To be successful in business, not just Affiliate Marketing but any business, you must conquer the paralysis of analysis.

I can’t tell you how many times I have sat and stared at my LCD screen just waiting for something to magically happen.  It’s not that I think I can’t pull off the idea that I have cranking in my head, it’s that I worry that it won’t work and the time I spent will be wasted.  This is only reinforced each time an idea doesn’t pan out.  We’ve all heard the story about how it took Edison over 1,000 different tries to invent the light bulb, but Edison I’m not.  One failure can set me back days or even weeks.

One of the main reasons that this is fresh in my mind is because it happened to me just recently.  I had put a bunch of work into a website that I thought had a lot of viral potential, and I was using eBay Partner Network to monetize it.  It was fully designed, and I was just beginning to promote it and start doing the SEO work of link building and all that when I realized my mistake.  Like an idiot, I had forgotten to read the Terms & Conditions for EPN to see if they were ok with an affiliate using a website with “ebay” in the domain.  Little surprise, they are NOT ok with it…

Not a big deal right?  Wrong.  Mentally, it is a big deal because now I can’t get rid of that nagging feeling that it’s all pointless and that I’ll never recreate the success I have had with other similar sites.  This is where I kill myself every time.  I try to think about every possible way that it could fail, instead of thinking about every possible way that it could succeed.  I visualize Cease & Desist letters instead of Commission Checks.  It is almost impossible to turn everything around once you have dragged yourself through the mud like that.

However, one day you will wake up and lo and behold, there it is!  The burn.  The spark.  The hunger.  The idea.  When that happens, don’t fold your arms and start picking it apart, fire up your favorite web design program (or good ‘ol Notepad) and get cracking!  You’ll be glad you did.