06.26.08
The Death Of Affiliate Marketing? Gimme a Break…
Time and again, I find a blog post or a forum discussion or a heated teleseminar predicting the death of Affiliate Marketing. Now, this is not a new phenomenon. People have been writing about the ‘Death of Affiliate Marketing’ for years now, and they continue to do so.
Whenever I see such a piece, all I do is smile, roll a shoulder and wonder at the naivety of some earthly creatures. Well, they do have their reasons to believe that Affiliate Marketing will die soon. But I am not convinced with any of their reasoning. I just fail to see the logic in their arguments.
But first, let’s see how Wikipedia defines Affiliate Marketing..
“Affiliate Marketing is a web-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s marketing efforts”
When we read this, we see that their are 4 groups involved in Affiliate Marketing:
1) The Business (normally referred to as ‘Merchants’ in the Industry)
2) The Affiliates
3) The Customers
4) The Web
Let’s look at each group one by one. Merchants are companies that sell their products and/or services on the Internet. They run a website that serves as a medium to accomplish this. Long back, when e-commerce was just born, these websites had to rely on self-generated traffic to make these online sales. This often cost the merchants a lot of money.
And then came Affiliate Marketing. A concept that, almost overnight, gave these online merchants a large number of sales people. That’s what affiliates are, right? A salesforce for the merchants they choose to promote. And what could be better for the merchants? They paid these sales people only if they performed (made sales, generated leads, whatever). This was like a dream come true for them. And it still is.
What’s my point? The point is that merchants just love affiliates and Affiliate Marketing. They can never be part of a conspiracy that leads to the ‘Death of Affiliate Marketing’. Agreed, some affiliate practices piss them off. But that doesn’t mean they will suddenly pull the plug on affiliates. Like I said, they just love affiliates and will continue to do so.
The second group are the affiliates themselves. This group has been highly rewarded from the concept called Affiliate Marketing. It has enabled them to work for themselves and yet earn more than a regular job. Some affiliates have even created multi million dollar companies - these are the guys who run the comparison sites, the cash back and the coupon sites, etc. This is one group
that will never endorse the ‘Kill Affiliates’ campaign.
How about customers? Well, for a large part, the customers are not even aware of something called Affiliate Marketing. But, even unknowingly, they are the most rewarded group. How is that? Think about it - it’s because of affiliate marketing that the customers enjoy comparison shopping, discount coupons and cash backs. Its affiliates who bring these wonderful goodies to the
prospective customers. I am sure this group has nothing to complain about either.
Which brings me to the last group - The Web. Well, it’s not really a group.. rather a medium. But this medium is, by and large, controlled by a group of Web giants like Google, Yahoo, MSN, AOL, and now the hugely popular Web 2.0 websites, etc etc. This group of giants, amongst themselves, enjoy bulk of the Web share.
So what’s their take on Affiliate Marketing? Barring certain wrong practices, this group enjoys the benefits of Affiliate Marketing too. It adds a whole lot to their bottom line. The search engine majors have a large number of affiliates paying for their sponsored ads, which accounts for a large part of their revenue. Agreed Google and other companies impose restrictions every now and then. They have their own reasons for that, but they are not shunning affiliates altogether.
And hey, PPC is just one of the many media for affiliates. So even if that goes out, their are other ways for them to reach customers. With the growing popularity of Web 2.0 companies, their is a whole new medium awaiting affiliates. Companies like Facebook, etc have just opened the doors to Social Marketing - which is poised to become a giant in the years ahead. And they are vying for the affiliate pie.
The point is - affiliates contribute a large amount to the Internet Advertising space. So if one web giant shuts their doors to affiliates, others will jump on to the opportunity and gladly embrace us affiliates. We have seen this happen before, and it will continue to happen. Affiliates will never run out of advertising choices, because these Web giants are fighting for a piece of their business.
To sum up… 3 out of the 4 parties involved in Affiliate Marketing are more than happy with the concept. And the 4th group (The Web), which serves as a medium for affiliates to find customers, have a lot at stake if they decide otherwise.
In fact, I will go a step further to say that the 4th group (the medium, the web) is the only changing factor in the entire equation. The merchants, the customers and the affiliates are the stable factors. Only the medium will change over time.
Bottom line… Affiliate Marketing is here to stay. The ‘Death Of Affiliate Marketing’ is, in fact, a dead argument.
I would love to hear your thoughts on this. Please leave a comment below and let me know what you think.
Sandi Baker said,
June 26, 2008 at 1:12 pm
Affiliate Marketing is here to stay! It is such a great way for beginners to the world of internet marketing to begin.
I just completed an 8 week course with my subscribers on Affiliate Marketing so I know how many people out there are looking into this avenue.
I am now taking those lessons and putting them together, as they were chapters, and my full book will be out soon. So those that missed it can now read it in full.
Sandi Baker
Let Us Get It Done
Amin said,
June 26, 2008 at 1:15 pm
Agreed, Alok.
Affiliate marketing is here to stay. Ever since Ray Krock (spelling?) bought out the McDonalds business and started franchising the entire planet, affiliates have been making money - for themselves as well as the business owner.
There are always stories about the demise of something. We seem programmed to be more interested in such stories. I mean after all, who would read a headline like this:
“Affiliate Marketing Still a Good Deal”
Nobody.
We do it ourselves as marketers, anyway. What else is the scarcity tactic, other than suggesting that an opportunity is about to slip away?
If large numbers of people leave affiliate marketing because of reports like that, it just leaves more for those who are left still working. And that’s never a bad thing.
Chris Simpson said,
June 26, 2008 at 1:19 pm
I agree that Affiliate Marketing is here to stay. There are so many different affiliate programs available for products from almost every niche imaginable that it is almost impossible not to be able to tap into a niche and start earning from it.
One thing to bear in mind, however, is that affiliates will need to keep up to date with the latest trends and techniques of advertising and promoting their affiliate sites. What may work well today may not be so effective in the future so affiliates must be prepared to adapt as changes in Web technology demand.
Jonathan said,
June 26, 2008 at 1:21 pm
I agree - affiliate marketing will only die when marketing itself dies. Affiliate marketing as we know it online is only an extension of what has been happening offline for years and years - businesses giving each other referrals. The concept is here to stay - anyone claiming otherwise is trying to be a sensationalist.
Tom Turner said,
June 26, 2008 at 1:23 pm
You make a LOT of sense!
I’m an OLD programmer; started in the 50’s. Had so much fun doodling in science, math, and coding algorithms thru the years, didn’t take time to pay attention to $$. Now I see that sales is a mighty process and the Web is a mighty engine that boggles the imagination.
I want to learn from you and apply what I learn. Maybe I can still leave something for my kids and theirs.
Ricardo said,
June 26, 2008 at 1:48 pm
I liked your article and Affiliate Marketing is here to stay for a while.
Vince said,
June 26, 2008 at 1:53 pm
Well, I sure hope that affiliate marketing is here to stay, otherwise all the effort I am putting into my current project is moot
Ray Patrick said,
June 26, 2008 at 1:57 pm
when the world ends affiliate marketing will be the first to make a profit
…..a silly question as far as I see it, maybe I am ignorant but business is business no matter what kind, shape or form it comes in.
‘ affiliate marketing ‘ is age old, ancient, buying and selling ……. the question for me makes no sense, if not to deter people from seeking something they are told since birth they can never have.
smiles
Ray Patrick
Bryan Hee said,
June 26, 2008 at 2:31 pm
I’m disagreed with the statement ‘Death of Affiliate Marketing’.
Million of affiliate marker earning full time income from Affiliate marketing.
Affiliate marketing is the easiest online business model that can be “replicate” by following the proven system and right mentor.
Systems always Works, People fails.. It’s that simple!You’ve heard that success stories.. Now It’s your turn to become one by following proven system!
“Affiliate marketing never die”!
To Your Success
Bryan Hee
Timothy Watson said,
June 26, 2008 at 4:20 pm
Great article! Affiliate marketing will always be around.
Doug Allitt said,
June 26, 2008 at 4:46 pm
Give me a break too! There will always be someone somewhere who is positive the sky is falling. Because product owners will never have the time to market successfully as well as produce product they will always need an army of affiliate marketers. At the end of the day it’s just a great system for all concerned.
Justin said,
June 26, 2008 at 5:12 pm
As long as there are businesses and products to market, affiliate marketing is here to stay. Of course, some affiliates are more successful than others, but businesses cannot do all the marketing themselves. Therefore, it is necessary for affiliates to market for them.
So no, affiliate marketing is not dead, nor is it going to die anytime soon.
Douglas Spencer said,
June 26, 2008 at 5:41 pm
Great Article!! How can you stop Marketing… it’s a way of life has been since the start of business and I say marketing since affiilate marketing is nothing but another way of Marketing. So, who ever thinks it’s going to die just doesn’t understand business.
lincoln ong said,
June 26, 2008 at 6:59 pm
i agree 100%
internet marketing blog said,
June 26, 2008 at 9:07 pm
we hear a lot of talk like this, but most of it is usually just setting things up to launch another product or maybe trying to build people’s interest in another type of promotional method..
affiliate marketing is as strong as ever.. its a total no brainer…
will product owners ever stop producing products to sell? NO
will product owners stop using affiliates to promote their products and thereby making the circle of promotion and reach smaller? NO
will affiliate marketers stop becoming affiliates? YES, but only to create their own products that they get an army of other affiliates to help them market because of the huge scope and reach an army of the right affiliates can deliver
will people every STOP wanting to make a buck the easy and simply way without having to worry about product creation, site maintenance, accounting stuff and all the hassles of being a product owner? NO
Affiliate Marketing lives. Cased closed.
Rika Susan's Online Money Made Easy said,
June 26, 2008 at 11:29 pm
Thanks for an interesting post. I am sure that the way we work will evolve over time. That is just common sense. But affiliate marketing on its death bed? No way. It is way too successful to be dying. My system rocks and it will only get better.
Johnny said,
June 27, 2008 at 3:16 am
I wear two hats. One as a merchant and the other as an affiliate marketer. So yes Alok, affiliate marketing from my perspective is here to stay.
Anshu Sharma said,
June 27, 2008 at 3:22 am
I am very new to the field. In fact I just learnt the term ‘affiliate marketing’. It will be nice if someone can teach me more about making money through this
MADY said,
June 27, 2008 at 3:37 am
Good Article on Affiliate Marketing. I feel that there is no death for affiliate marketing. It will continue in some or other form inspite of advent of new marketing channels
Kamal Talib said,
June 27, 2008 at 5:18 am
Yes Alok , you are right , affiliate marketing is here to stay.
When they say affiliate marketing is dead is the same saying as the web is dead which is not believable.
Thanks and looking forward for your new product ( if any ).
Kamal
HIMA R said,
June 27, 2008 at 6:30 am
Hi Alok,
Thanks for your valued article exposing us the points
Affiliate marketing is not an easy subject as onliner remakrs DEATH.
Its a huge subject with lots of scope and money if porperly implemented.
Its needs patients and consistencey and techniques to earn money.
mohamed ahmed said,
June 27, 2008 at 12:30 pm
Thanks for an interesting post.
Justin said,
June 27, 2008 at 6:01 pm
I agree with Internet Marketing Blog’s post. I have seen that stuff about “The Death of Affiliate Marketing”, but a lot of that is just an attempt to promote someone’s new info product.
Justin said,
June 27, 2008 at 6:03 pm
…moreover, something like “The Death of Affiliate Marketing” sounds like a product someone would create and try to sell in order to make an online income.
Motorola H700 Bluetooth Headset said,
June 29, 2008 at 1:25 pm
Like you said, Alok, the only thing that will ever change is the face of affiliate marketing! New methods are being applied all of the time and affiliates are finding more and more methods to affiliate market online. For the few non-believers out there that still need some convincing, I pose a question: If affiliate marketing is dying, then why is there such an information overload on the thousands of methods available to affiliate market? Most of the gurus will tell you that if there’s anything that will kill your own personal efforts in affiliate marketing its being bombarded with so many various methods that it makes it hard to even begin!!! Stick to one method and see it through- affiliate marketing will out live us all!
Domingo Arenal said,
June 29, 2008 at 6:51 pm
Hi Alok,
We have been bombarded lately with “Death of” advertisements. We know it’s a great advertising ploy, but when overdone…it sucks!!!
I’ll bet my bottom dollar “death of affiliate marketing” will not happen at least in our generation.
The ONLY SWEET reason or motivation affiliate marketing or any type of marketing exist is m-o-n-e-y (profits). The vendor sells his/her wares through affiliates they both collect profits and everybody is happy!!!
Warm regards,
-Ding F. Arenal
Pitogo, 4308 Quezon Prov., Philippines
oliver said,
July 15, 2008 at 4:56 am
market existence is usually decided by the needs, supply and method of supply of the needs. unless the priciple changes that merchant will always want to sell and sell more, affiliates markets will always be around. It is not illegitimate or unnecessary. As long as the merchant need the A. markets and the customers utilize the A. markets, It’s rather unwise to say the market will extinct. Naturally, i dont think it will go out except there’s a possibility of calculated extinction. Is there any? pls let me know
Lyne said,
August 1, 2008 at 1:20 pm
Good Article! Affiliate marketing will always be around and is here to stay.
Lyne
Adsense Niche Guide said,
August 11, 2008 at 2:02 pm
Are we supposed to run for cover whenever these doom prophets come along
We are here for the long run
Affiliate marketers are such an ingenious group of business entrepreneurs, we find new ways of marketing products, always coming up with a different angle.
The marketing world needs us and we are here to stay