The following is what Ely Asher of the Sins of… or Achievements of a Corporate Stupidity blog had to say in response the the question, What is wrong with affiliate marketing and how can it be improved?
It’s amazing, but I just published an entry on this topic on “Sins of… or Achievements of a Corporate Stupidity” blog.
In short, it’s a simple math. There could be people who do well, but there are too few of them. The rest of us have to hit the dust.
Suppose a merchant gets in 1 year 1600 affiliates as some affiliate engines suggest. How much he will make? Let, say, $50,000 a month — quite a hefty amount, isn’t it?
Now do the math. If he pays all these money to his affiliates, each of them will get on average $50,000/1,600 = $31.125, yes, 31 dollar and 12 and a half penny a month.
Of course, this calculation uses pretty much a dotted line for estimates, but in essence, the message is clear: it’s very tough to sell on Internet, even if you sell your own merchandize, why do you think selling for mere 10% of that money will be any easier?
How would you answer the question, What is wrong with affiliate marketing and how can it be improved? There are no right or wrong answers – just opinions that can help improve the industry.
The author of any response that is published at affiliatetip.com or affiliatesummit.com will receive a limited edition “It’s an affiliate thing, you wouldn’t understand.” t-shirt.
Share your thoughts now at http://www.surveymonkey.com/s.asp?u=56601070891