Quote:
Originally Posted by ShellyCrash
I'm curious to you guys who are closing your affiliate programs but staying in business, are you switching everything over to paid marketing? What avenues of paid marketing are you focusing on?
Personally, I've always found affiliate marketing and basically anything with a CPA payout to be the most efficent way to spend advertizing dollars. To make an attractive PPS offer you have to put out a little bit of a loss leader, but you are pretty much guaranteed a return on your investment (if you've done your math right).
When you buy ad space by impressions, by click or for a set period of time there's no guaranteed return. There's no guarantee of transactions. Even if you write into your IO a sale guarantee- as anyone who worked with iporn can probably tell you- you still can get burned and wind up holding the bag.
If you don't want to talk about the secrets in your sauce I hear you, or if you'd rather talk on ICQ I'm game. Just curious and love seeing the game from new perspecitives.
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I believe most as using it as an exit strategy. (not Mark) The bigger ones who don't have many new sales coming in basically can close up shop, lay off employees, stop making updates etc... by closing the affiliate program they can make 100% of the future rebills. This will give them a nice infusion of cash, which I assume they are banking or using for something else.
There are a few I suppose who think they can turn the ship around on their own after they cut out (screw) their affiliates and buy traffic on their own. But if they haven't bought much traffic in the past they will lose their asses. Buying traffic isn't something you learn over night, especially when you are desperate.