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Originally Posted by weekly
But what if programs move to generating their own traffic. Would that not be less expensive?
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generating your own traffic and doing your adbuys is essentially just shifting the how you spend that same CPA in an effort to :
1. lower the average CPA paid when in comparison to affiliates CPA to acquire a join
2. be in control of the traffic, to allow you the time to develop products in a less complicated area ( Hard to tweak sites that 50% do well on and 50% doesn't , vs working on a site that you are the traffic pusher for aswell )
3. gain joins that you may not have had before, remember, even good sites may not always be a hit with the affiliate base, regardless of many reasons
4. reduce the overhead
remember a few things about traffic, nothing comes for free. alot of people say, oh they are making their own traffic, they don't need me. half the programs may be trying to, but not succeeding there either, its just as competitive to be the direct advertiser as the indirect or the publisher
prime example of this : pornhub sits on so much traffic inbound and outbound, they have 4 programs they can monetize all that traffic with. however, they know that dollar for dollar, they can't monetize it 100% all on their own, so they float some of that in to advertising you can buy, to round out the offering and increase their profit there to allow them to buy more traffic, start more projects.