Quote:
Originally Posted by RawAlex
The 80/20 rule applied here, 80% of your sales will come from 20% of your people... and conversely 20% of your sales will require 80% of your support staff time to make happen.
Buying from Zango is the ultimate "cut out the affiliate" move, especially if you buy your own keywords. It means you pay Zanog a pretty much fixed fee per click regardless of what you do. If you manage your traffic well, you can always make a profit.
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Which sounds like a smart business plan... to someone who knows nothing about business.
But frustrating as it may be, the 20% who make most of your money, don't simply appear out of thin air. They come from within the ranks of that 80%. Those sponsors who squeeze - honestly or not - their small affiliates to pay extra to the "whales" fail to grasp that point and the impact will increase as competition gets tougher. What happens is that newcomers who have what it takes, join this kind of sponsor and soon move on to someone more productive. In the end that 80% is made up entirely of no-hopers and you have no-one left to replace any who cease to be top-rank producers.
Similarly, the present affiliate model needs, if not to be replaced, at least a complete overhaul. But becoming dependent on just a few traffic sources, particularly if their life expectancy is limited, is madness. You would basically be making your own business hostage to their fortunes and policies.