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The Big Guys Fighting Back the Affiliate Model

Discussion in 'General Affiliate Marketing Forum' started by T J Tutor, Feb 18, 2014.

  1. T J Tutor

    T J Tutor Administrator Administrator moderator affiliate

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    Hi Luke, Great to see you as our next and Best Expert!

    In the last year, but going back many years, we have seen Google, Bing, Facebook, Amazon, and many other high profile companies placing incredibly tight restrictions on affiliates. Essentially killing (in some cases) the very people that gave them their footing and helped them succeed. In many cases it appears that the restrictions have been placed as a natural rise in growth which attracts a higher caliber advertiser which in turn then begins to squeeze out the mid to low level Affiliates. I understand this, I understand growth and the need to change and refine, however, these companies have done little (IMHO) to help the folks that put them where they are today adjust to the changes. "Business is greedy", the first quote I was given by a business professor at Syracuse University.

    Example: Dating Ads are still available for display on Facebook, but only when it is by the Dating Company itself. I believe this trend will continue into other product arenas with FB.

    Example: Google and Bing have all but eliminated the mid to low level marketers by eliminating the sites they own from the search results making room for the Large Companies with Larger Budgets.

    Example: Amazon last year began eliminating commissions to affiliates during any given month if the affiliates site(s) were responsible for more than 20,000 free book downloads. In other words, if my sites generated more than 20k free book downloads in a given month, then I lose all of my commissions for that month.

    Starting March 1, 2013, Associates who we determine are promoting and meet both conditions below for a given month will not be eligible for any advertising fees for that month within the Amazon Associates Program…

    1. At least 80% of all Kindle eBooks ordered and downloaded during Sessions attributed to your Special Links are free Kindle eBooks

    2. 20,000 or more free Kindle eBooks are ordered and downloaded during Sessions attributed to your Special Links


    Now I am a businessman and have both a business education and a computer science education. I understand much of this. It is part of what industry leaders strive for. It's part of the controlled growth models, some dating back thousands of years. Start with the bottom branches of the tree and make your way to the top. Eventually though, and what seems to be missing in this new era of online businesses is they are not preserving the bottom branches in the event they need to retreat and begin the trip again.

    These big companies are trimming the branches as they climb. It often makes it impossible for many to get a footing in our industry. I know many brite minds that love this business, but simply refuse to become a part of it today because the deck is now stacked against them. I think this is sad.

    Have you given this any thought, does it concern you in any way, do you have recommendations for new marketers that will give them the "leg up" they deserve?
     
    10 people like this.
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  3. LukePeerFly

    LukePeerFly Super Moderator Super Mod moderator Affiliate Manager Service Manager affiliate

    Very good question TJ and you're absolutely right. it's one of the reasons this industry is constantly changing...it has to. There options that were there that are no longer available for one reason or another. A lot of times, as you mentioned, it's because the sources have outgrown the affiliates.

    You give the example of Facebook and it's the perfect example. When I first started Facebook Ads did not exist. I've had a lot of fun with it, but it's clear that eventually my options as an affiliate are going to be extremely limited. What in the world will I do?

    It's likely that over the next few years there is going to be a new source of traffic that none of us has even considered. When that opportunity arises, I'm taking it!

    Also, there are sources that are more likely to be around longer than others. Doing direct media buys will always be an option as long as there are websites on the internet. Adware companies are going to continue to improve their games and toolbars so that we can run pop ups on people's computers.

    If you are scared of change or learning something new then this industry is not for you. If it is, stay ahead of the curve and open your pockets.
     
    6 people like this.
  4. joey babbs

    joey babbs Affiliate Manager Affiliate Manager affiliate

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    oops my message duplicated...
     
    Last edited: May 9, 2014
  5. joey babbs

    joey babbs Affiliate Manager Affiliate Manager affiliate

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    Traffic sources pop up every day.....I would not concern yourself too much about the "giants" like G and FB wiping out affiliate marketing for ever...

    There are so many traffic sources that affiliates and even advertisers and product owners really cant keep up...especially when you open up the whole world of mobile...

    there are hundreds of traffic giants craving for people to buy their traffic every day!

    In my opinion, If affiliate marketing ever dies (which it won't) it won't be because there is a lack of solid TRAFFIC sources!
     
  6. operationoffers

    operationoffers Affiliate Manager Affiliate Manager affiliate

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    Joey, you're right. there are countless amounts of traffic sources both free and paid. With mobile opening up and mobile devices become more efficient and more importantly preferred over traditional desktops, advertising sources will always be available and as long as this happens, the amount of traffic will remain plentiful and keep prices in check.
     

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