Quote:
Originally Posted by crockett
Those guys who were pushing $50/sales to gain affiliates killed this industry.. They kept pushing higher and higher numbers to attract affiliates to pay out those sales they needed to make more money per join and thus they started banging cards with x sales. Eventually someone figured out his numbers and realized he could buy up traffic sites and content sites programs and bang the fuck out of the cards making a quick money grab while never updating sites and that's what he did..
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if you talk her from the UNWANTED and UNKNOWN x-sales that a user have never ordered you are right. but if you talk about the biz in general it is exactly what smart marketers are doing.
i give you a small example:
mediabuyer 1 and mediabuyer 2 are promoting a similar product and because they are ONLY focused on the sales part and do not have traffic they both have to buy the traffic.
now letīs say that the customers that both are creating have a lifetimevalue of 100 dollars and they both need ammount X of clicks to get one paying customer.
and here is now the really tricky part that needs a lot of skills.
if one of the 2 is better in analyzing and he find out HOW he can minimize the number of clicks to get a paying customer he is already able to pay more for this clicks as the other. this will:
a bring the smarter one into the position to buy the traffic away from his competitor
b. force the one that is not that successful to optimize his sales also to be able to pay the higher price.
now there are a lot of tools and knowledge one can have but there is also a natural limit where it does not make sense to optimize deeper as ist will not deliver reliable numbers fast.
this is the point where both with same technology and skills will end up again as direct competitors.
the way out of that is to increase the livetime revenue from a customer.
and EVERY smart marketer will KNOW that every consumer have budgets for the different things in his life. so he will not even TRY to get all this budget for one and the same thing (i.e. porn) but he will find out what OTHER budgets this same consumer have and if he is able to find even 1 or 2 of this thousands of possibilities he might be able to get for the same costs a user what brings him 120 dollars live time.
if he is using this 20% increase for his advertisement he will get the traffic again and because he get all the traffic he is dealing with BIG numbers.
so even when he old and first calculation left him with 10 dollars in his hand after buying the traffic and made 500 sales - he will now be able to buy that much traffic that he can make 2000 sales per month. if he is an affiliate he will become an important one and the affiliate program will pay him more then his competitor.
this is called a natural FREE market evolution and it is a BASIC rule that is unchangeable.
because there is a big mass of people in this mediabuying market it is the market itself and the obligation of increasing quality that makes my business.
I am really a very professional marketer and was successful all my life with that. but i know that I can NEVER be that good as all of them together.
millions of minds will try to get more out and make the result better and with each little step the traffic will become more valuable. with this my business is growing and the biz from my publishers too.
so it is all very logic and predictable what will happen because it is market law.