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Affiliates work on "no cure no pay" basis which is perfect. No risk for the program.
Advertising could be profitable but there are never any guarantees in ROI. Some programs may benefit well from advertising next to using an affiliate business model. Extra advertising is also branding next to affiliate sales. And advertising gets the affiliate attention/webmaster exposure. So affiliates might join a program from there also.
So I don't see the affiliate model disappearing, it might even grow bigger IMHO.
I think both ways will just co-exist next to each other.
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