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How much is affiliate traffic REALLY worth?
Fifty per cent?
Twenty per cent? or maybe ten per cent. It seems that traffic is less valuable this year than it was five years ago. So what would be a good number? Programs are running out of gas and crashing. What can they actually afford? |
We pay 40-50$ PPS on trial joins
Loads of extremely valuable affiliates - great match |
A number of programs are moving their traffic generation in-house.
This reduces the importance of this industry's affiliate model and their position for the future. It also makes programs less dependent on paying the ransom traffic 'whales' are demanding, and have been, over the years. Short answer,... it probably varies from program to program. Their importance is diminishing. Especially as more affiliates find it hard to make conversions and remain competitive in the 2009 market place. :2 cents: |
a sale is a sale, if the affiliate hadn't sent that sale, then the percentage earned by the sponsor is zero percent, so there is nothing wrong with the 50% arrangement :2 cents:
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i dont have many but i offer my affiliates 50%, like he said 50% of 0 is a big fat 0, I would rather make $14.50 then nothing
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Affiliate traffic is extremely important. Than you all who promote our sites. We appreciate your hard work!!!
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I like revshare sponsors.... i've seen ALOT of programs who offer PPS crash and burn over the years, but they do it to themselves.... what do you expect paying $75 PPS of a $39.95 join which might chargeback in the end. No wonder some sponsors look negatively at affiliates...
Which is why I avoid "$200 PPS PROMO DAYS" and PPS in general... just smells to me like a program is on it's last legs and every sponsor that does PPS does cross sales... there is just no way to make PPS profitable without fucking over someone. |
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Also, if you hire some people to generate that traffic, if they are good, you will have to pay a premium for them. If they can generate 300 sales a month they could be making 9-12K a month or more working on their own so I would assume you would have to pay them close to that to keep them. |
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Bandwidth is also cheaper than it was five years ago, so who cares if an affiliate uses up a bit more bw before making a sale. A sale is a sale and I love our affiliates. Just set your price point so you can afford to take care of the people who send you traffic. |
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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. |
i don't list to DDO with under 50 percent anymore. And i pick all of my sponsors now.
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If a site lost all traffic costs it could sell memberships at $10 a month no problem. The ratios would be better and the profit margin the same. I know this from the $5 sites you guys take the piss out of all the time. I can see why because if the business moved to this model it would be worse for you than Tubes. But the ratios are great on little traffic. Never pushed it because we never had the CMS to handle 200 sites which is what we planned. The problem is directing traffic, buying ads and spots can cost as much affiliates. IMO sites like Paul Markham Teens need affiliates and we know from the traffic that types in or returns we could pay out more, might put up the rates soon for guys sending more than 10 hits a month. Quote:
Fucking over the customer is bad policy, but one many in porn don't care about. |
We generate probably 95% of our own traffic, the other 5% comes from affiliates, obviously we wish affiliate traffic was more. We offer 50% and that is fair, it suprises me that many programs charge the affiliate for the processing fee or sometimes half.
We are even considering offering more to attract new affiliates. A lot of programes seem to forget that the good and honest affiliate need to earn money as well. |
i never really got the whole "generating their own traffic" thing as being the ultimate out.
they'd have to compete for traffic the same way we do. they don't have some magic secret formula - they're gonna be posting galleries and blogging and link trading etc (or tubing but we've heard about those conversions). depending on how much they're paying a grunt, that wage has to get factored in, along with hosting, domain(s), and all the other ancillary costs that come with hiring someone to "generate traffic" and run sites. lord help them if they hire a guru - he's gonna want a serious salary even if those costs balance out, seems like less of a headache to just manage nats and cut checks |
Are you a scumbag ?
Who's your affiliate ? |
as much as the sponsor wants to give the affiliate that month ~ about that much these days - what's your skim? stupid question
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thanks, icq: 260397194 by the way , sorry for hijacking the thread |
i've noticed sponsors buying traffic/links more now than ever before.
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the generating in house traffic is a stupid thing to say is a big option, sure if you can do that why not but you will never beat the traffic 100's if not 1000's of affiliates can send you
I mean so lets break this in house traffic down a minute so you can see how fucking stupid some of you sound, first lets list some top places for traffic SE Blogs etc Other members areas Link lists Tubes (promos) TGP's MGP's Email marketing So yeah as a program owner you do some SE on your own but come on I dont care how good you are if you have a solid affiliate program youll get 100x more SE traffic from them then you can generate on your own Blogs - I mean what are you gonna do take over every blog? Pay every blog? I mean just fucking stupid, so yeah maybe you have a few in house but again youll never be able to get on the amount of blogs aff's will put you Figure out the rest Any normal sane person will understand that there is nothing wrong with affiliates and they make or break mosts sites (obviously those who only need 15 joins a week for crack dont need affiliates). So my advice is if someone has good traffic and wants you to make an exception on payouts a increase etc do it etc Obviously know your numbers and dont go broke |
now more than ever watch out for traffic leaks on tours, like to their blogs etc... :)
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In the end it's gotta get me excited before i'll even think about sending traffic. But once i'm hooked, i'm hooked for a long long time. :thumbsup Now if you were to throw on some costumes and maybe the odd schoolgirl uniform... well you'll get traffic tomorrow.... :) |
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And what disturbs me the most? HEAVY HEAVY HEAVY cross sells in the members areas to other sites in their network without referral links. An AWFUL lot of sites are doing this now... so I can see why affiliates go for the quick cash and move out instead of promoting revshare. :thumbsup |
But what about the original question? It wasn't so much about whether affiliates traffic is profitable, but what is affordable in today's market. Should prices as well as per centages drop to compete with all the free product out there.
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Some of you are completely missing the point of in-house traffic generation. I'll keep it short for your comprehension level.
More control. Less unpredictability (affiliates jumping from one program to the next month to month). No more being held ransom on PPS, or paid in advance for the month. Better cost control. The end. No offense. :2 cents: |
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More employees (who are just as unpredictable) More time spent on generating traffic than improving content, conversions there's two sides to those :2 cents: coins |
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For most artists, the money comes from live performances. Many even LOSE money on studio releases because of all the upfront advances and costs the artist is saddled with (PPS model?). But once they're established, by going independent, they can continue making that same live performance dollar AND make money off their CD and digital releases. Ask Prince how much money he made from his big-selling studio releases vs. how much money he made from the weird 2 and 3 CD sets he sold cheaply under his own name while independent. Those things weren't chart blockbusters, but he CLEANED UP. Risk vs. reward. Having affiliates lowers your risk but you have to share the reward. If you can take on the risk of generating your own traffic, you can keep that portion. It all depends on how much risk a site owner is willing to take on, so the answer to the original question is "it depends." |
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However, there is also more stability. I would concede there is probably going to be less traffic bringing it in house. But then you no longer need to build your business model around $75-150 PPS, pre paid money to whales, or the fear that next month they pull all your traffic and you go out of business. Bringing it in house is more conservative, and a more stable business model. :2 cents: |
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The chaff will get dusted off and producers will ultimately survive. There is a lot of dead men walking at the moment and boredom or lack of income will cause them to move on. It feels like we are in the middle of the big shakedown. Perhaps the future is fewer affiliates earning the same per centages and making more money. |
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especially important for a new program. We wouldn't have gotten anything done without affiliates
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i'd rather that every program switched to revshare and focused more on making their members so orgasmically happy that they rebill forever, than to have to attribute a chunk of their resources to generating traffic |
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as long as revenue generated by affiliates exceeds that of the costs of maintaining affiliates the model will survive.
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If you have a strong and well thought out brand, it's hard to calculate and quantify webmaster impact since affiliates can do more than simply bring in sales leads directly via there links.
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