The DEATH of Affiliate Marketing?

22 replies
Sounds kinda dramatic.

Ok, let me qualify that a tad - for the online RECRUITING marketers...

I'll go one further.

The DEATH of the so-called "funded proposal" community

How is this likely to happen? Ok, it's NOT going to! BUT...

There is a new sheriff in town. Its name is the ONE HUNDRED PER CENT COMMISSION.

I arrived at this development in IM history myself well over a year ago, yet managed to dance around it, NOT deploying it, making it all PURTY and such, and finding ENDLESS excuses NOT to unleash it (perhaps instinctively KNOWING what a disruptive WAKE it would leave behind)

And then, a CLIENT beat me to it. Which would make MOST marketers tear their freaking HAIR OUT!!

Not this boy, however. You see, precisely BECAUSE it is 100 per cent, it makes precisely ZERO DIFFERENCE just WHO comes out with it!! Everyone gets the same level playing field.

EVERYONE!! Including my client, who ponied up over 50,000 clams to develop it!

Now, WHY ON EARTH would he just give the whole dang farm away, you ask (logically)?

Simple

MASSIVE TRIBE DEVELOPMENT (the "meeting AFTER the meeting" kind of thing.

Oh, AND he'll reel in 100k per month or more just SELLING THE DANG THING HIMSELF!

LOL

I took the liberty of digging up some of the history of the model. Several years back, I want to say it was Dennis Becker or someone associated with him who sold the Seven dollar script.

Initially deployed as a "set-and-forget" listbuilding device - (logic) Give away ALL the profit and let someone ELSE build your list for you.

So, I broach the subject with my PHP developer, who tells me flatly that he was using 100% commission approaches in the MAJOR BBS ERA of the mid 1990's!! hahaha

So, I suppose it is an idea that's been around for awhile. The difference now is the SIZE of the products - hundreds, even thousands of dollars in value - and thus the ABSURD INCOMES it can generate - and I do mean SHOULD-BE-ILLEGAL sized incomes. (laughing)

Ok, so besides the obvious (developer takes nothing for himself), what is the real secret behind it?

  1. It sells because it sells! huh? yep - if something is ez, people BUY IT
  2. It pays quickly - US-based participants all have merchant accounts. outsiders use paypal - soon, the whole thing will be all merchant-based
  3. It lures in the hitters, thanks to the absurd leverage of the passup sales system. A LOT of the growth (maybe more than half) is hitter-related activity
  4. The content inside isn't a bunch of mamba-jamba crap - this stuff is REAL - I haven't seen over-delivery of content like this in 20 years, and I've seen a HUGE amount of content. It's worth 10x, 50x, perhaps even 100x what they're asking (of course, they can't say that, but I SURE CAN)
  5. There's a community or family feel - ethics - transparency - a MOVEMENT about the thing that is exciting, and refreshing in a world of ho-hum, boring, been-there, done-that biz models - it's contagious.
I've said this before and I'll say it again here - the choices are STARK :


Either you get on board the 100 per cent bus



or


You get MOWED DOWN BY IT


I can't see any middle ground (perhaps I'm just too close to see it)
#affiliate #death #marketing
  • Profile picture of the author travlinguy
    It seems you're making the assumption that the 100% commission model will sweep all markets online. I doubt it will. There are plenty of markets out there that haven't been touched by this trend at all.

    And what has really changed? The 100% has more than one application. Some use it exclusively to build a list. Some use it as the first stop in their sales funnel. Some mix and match the two.

    There's a smart Warrior right now with a WSO who is offering 100% on both front and back end products as well as a vintage Mustang to the most successful affiliate. And all of that is nothing more than preparation to sell her new 'subscribers' a very high ticket program.

    This stuff has been around for years in marketing. It's called a "loss leader."

    In the WSO market there are many people who believe your offer will flop without offering 100% commissions. That's false.

    I think it's always going to come back to the basics. Create a product or service that offers massive value and you'll always have customers and affiliates. And you won't have to give away the farm unless you choose to.
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    • Profile picture of the author Steven W Johnson
      Originally Posted by travlinguy View Post

      It seems you're making the assumption that the 100% commission model will sweep all markets online. I doubt it will. There are plenty of markets out there that haven't been touched by this trend at all.
      Umm, no - only DIGITAL DELIVERY products could be vulnerable, and primarily digital products related to the recruiting space - less so, the more traditional niches

      There's a smart Warrior right now with a WSO who is offering 100% on both front and back end products as well as a vintage Mustang to the most successful affiliate. And all of that is nothing more than preparation to sell her new 'subscribers' a very high ticket program.
      Right, Lee McIntyre converted his entire model over to the above, settling on a 200% commission to provide the leads for his backend

      This stuff has been around for years in marketing. It's called a "loss leader."
      Ok, but I'm not so sure being in command of a 50,000 or 100,000 marketing tribe who ALL HAVE MERCHANT ACCOUNTS would be classified as a "loss"

      Wouldn't you think there might be a tiny bit of branding and loyalty generated?


      I think it's always going to come back to the basics. Create a product or service that offers massive value and you'll always have customers and affiliates. And you won't have to give away the farm unless you choose to.
      Granted. I just think a whole bunch more marketers are going to catch the VIRUS that is 100% and ride it all the way to HUGE brands and massive organizations (given they've performed the above, as you say) And those who are still paying the old, tired 50% (or less) are going to suffer for it.
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  • Profile picture of the author travlinguy
    There're only a small percentage of Internet marketers who give a rats ass about branding. The rest are in it to ride whatever trend is popular. As for the 100% commission thing being a virus, maybe so, maybe not. And sure, some will use it successfully as a way to brand themselves.

    Up front you mentioned you might be too close to this. I think that might be the case. And maybe that's so because this 100% commission stuff is really strong in the MMO market. But this was going on 10 years ago and even before. It's picking up a bit of momentum now but so what? Maybe it's the future and maybe it's the flavor of the season. Who cares?

    If it becomes a standard smart marketers will use it. It's a good model and easily adaptable to most businesses. As I've mentioned, this is nothing more than slight variation on the loss leader, which has been around since the earth cooled.

    Take a look at markets outside of MMO info products and related stuff. Are you seeing the 100% commission model? You might find some. But people in more "stable" markets are likely to be reluctant to pay so much simply because they don't have to. And again, if you're right and this movement goes viral or whatever, it's a very flexible business model with many possibilities.
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    • Profile picture of the author VegasKid777
      Originally Posted by xxxJamesxxx View Post

      Great! Another "The Death of ...." Thread!

      James Scholes
      Well, we all want to make an eye catching headline, seems to be what a lot of people settle on
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    • Profile picture of the author Steven W Johnson
      Originally Posted by xxxJamesxxx View Post

      Great! Another "The Death of ...." Thread!

      James Scholes
      haha - "death of thread" - love that!!

      <start screenplay>

      Curtain rises on DAY ONE


      Hitter #1 to Hitter #2: "Hey, are you doin that DEATH OF thang?"

      Hitter #2 back to Hitter #1: "Naw, that's stooopid!"

      Hitter #1: "Ok, Whatever"

      Curtain rises on DAY TWO

      Hitter #1 to Hitter #3: "Hey, are you doin that DEATH OF thing?"

      Hitter #3: "What's that?"

      Hitter #1: "100 pct commishgoofyresidualushouldgetin!"

      Hitter #3: "Where do I sign?"

      Curtain rises on DAY THREE

      Hitter #3 to Hitter #2: "Hey, I just got into DEATH OF under Hitter #1, are you in?"

      Hitter #2: "uhhh, nope"

      Curtain rises on DAY FOUR


      Hitter #2 signs, (grumbling that he lost Hitter #3)
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  • Profile picture of the author Joseph Robinson
    Banned
    We're all gonna die! To the bunker.

    ...Oh wait, it's just one of these threads again.
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    • Profile picture of the author Steven W Johnson
      Well, I suppose I could have called it "The 100 pct commission monster comes out of hiding" or some such silliness...

      Was just hoping to start a thinking person conversation about the whole thing.
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      • Profile picture of the author Joseph Robinson
        Banned
        Originally Posted by Steven W Johnson View Post

        Well, I suppose I could have called it "The 100 pct commission monster comes out of hiding" or some such silliness...

        Was just hoping to start a thinking person conversation about the whole thing.
        Do you know where you are

        But seriously, to start a thinking person conversation you should have a thinking person title, don't you think?
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      • Profile picture of the author travlinguy
        Originally Posted by Steven W Johnson View Post

        Was just hoping to start a thinking person conversation about the whole thing.
        Hmmm... a thinking person, huh? Maybe a thinking person would be puzzled by your idiotic headline. How would affiliates getting 100% commissions be the death of affiliate marketing? A thinking person would be likely to reason just the opposite. :rolleyes:
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        • Profile picture of the author Steven W Johnson
          haha - well 12 posts in an hour sounds to me more like COPYWRITING than idiotic, or perhaps it's both? (snickering)
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          • Profile picture of the author Joseph Robinson
            Banned
            Originally Posted by Steven W Johnson View Post

            haha - well 12 posts in an hour sounds to me more like COPYWRITING than idiotic, or perhaps it's both? (snickering)
            Copywriting? So you are admitting to starting a sensationalist thread for sig bait?
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            • Profile picture of the author Steven W Johnson
              Originally Posted by Joe128139 View Post

              Copywriting? So you are admitting to starting a sensationalist thread for sig bait?
              naw, just bored. but that sounds like a TACTIC!

              i bet Mr. Says frowns on that one...
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              • Profile picture of the author Joseph Robinson
                Banned
                Originally Posted by Steven W Johnson View Post

                naw, just bored. but that sounds like a TACTIC!

                i bet Mr. Says frowns on that one...
                Well...the off topic forum is for bored people like you.
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  • Profile picture of the author nm5419
    I thought this thread was going to address what Google is doing with affiliate Adword ads! Because what Google is doing definitely spells the death of affiliate marketing. 100% commission? I really don't think that has much chance of living far past its birth.
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  • Profile picture of the author ChadH
    You're a good copywriter

    David W. was a client of yours? That's pretty sweet if so.

    So where's the software to set this all up? I love how empower got everyone to get merch accts. It's quite the launch they did.

    There are offers on CPA networks that have 1000%-2000% commission. But it's cool to see them do it right through the funnel on high ticket stuff.
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    • Profile picture of the author Steven W Johnson
      Originally Posted by ChadH View Post

      You're a good copywriter
      aspiring is more like it, but thx!

      David W. was a client of yours? That's pretty sweet if so.
      I build Twitter for a lot of big marketers who couldn't be bothered with it. Much like the past 10 years of "fixing" products and web copy for many of the industry's top names, I do a fair amount of pay-it-fwd relationship-development stuff (I even have a name for it - "hitter curation" ) - works, too.

      So where's the software to set this all up? I love how empower got everyone to get merch accts. It's quite the launch they did.
      You mean software to do what? build a biz? build an empowernet presence? or build Twitter? I use different software for all 3 of those
      and different dedicated servers (I have 3 - my own dedis on the Internet backbone for 17 years now) - just finished hardening a Quad Xeon 12GB 100-Terabyte per mo. monster - biggest box to date - fun!



      But it's cool to see them do it right through the funnel on high ticket stuff.
      Right - my fav 100 pct asset sells for 10k - when those arrive via fedex, it's almost better than sex. lol
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    • Profile picture of the author Joseph Robinson
      Banned
      Originally Posted by Iamroyce View Post

      Seriously, another BS.

      Sorry,

      Royce
      SO WHY DID YOU BUMP IT?!

      Calm down, Joe. It's Christmas. Let it go.:rolleyes:
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      • Profile picture of the author Royce Space
        Originally Posted by Joe Robinson View Post

        SO WHY DID YOU BUMP IT?!

        Calm down, Joe. It's Christmas. Let it go.:rolleyes:
        Nah, it's just annoying another "Death" thread comes again.

        So, let's say, if it's really death of affiliate marketing then let's go back to our old jobs?

        What do you think?

        Hahaha.
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        • Profile picture of the author Joseph Robinson
          Banned
          Originally Posted by Iamroyce View Post

          Nah, it's just annoying another "Death" thread comes again.

          You are entirely right, it was annoying. 15 days ago. If you are going to bump an old thread, at least add to it. You didn't.
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  • Profile picture of the author CDarklock
    Originally Posted by Steven W Johnson View Post

    Either you get on board the 100 per cent bus

    or

    You DON'T
    Fixed that for you.

    We've had 100% commission for years. It's not new. Even in physical products. We've even had over 100% commission.

    It didn't take over then. It won't take over now.
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    "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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