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Those questions by their very nature are too subjective to answer.
The “value” of an affiliate is directly proportional to their performance.
This value changes with time, market conditions, their search engine ranking and/or ad budget, experience level etc…
Todays “value” is not an indicator of potential or future “value” An affiliate that previously generated $60k per month in net reveune just twelve months ago may in fact now produce $5k and has a totally different “value”.
The 90/10 rule applies now more then ever. The top 10% of affiliates produce 90% of your client casinos revenue.
Bearing that in mind probably 80% of recruited affiliates end up having no “value” at all.
10% produce moderate levels of income and have “value”.
The remaining 10% are worth their weight in gold and a high enough “value” for them is impossible to establish.
I don’t know how anyone could honestly answer the question as put forth.
Thanks Prof!
Simon asked THE central question for the entire basis of affiliate marketing.
What is the value of an affiliate ?
The Professor gave THE perfect answer.
Value does depend on performance and value fluctuates and
the ” 10/90 ” rule applies.There is another dimension to this question.
Interestingly, the ” 10/90 ” rules applies for the operator as well.
Only ” 10% ” of companies appreciate affiliates.
What is the value of 1000s of people from all over the world
working for you on a PAY PER PERFORMANCE basis ?As an operator, what would it cost you to pay these 1000s of
people to do the same work for you on a salary basis where
ALL the costs are paid by you ?Pay Per Performance is the ultimate in productivity.
Not only are the 1000s of people from all over the world working for you based strictly on performance and around the clock and on demand labor but they pay ALL the FIXED costs of a normal business, ie: electricity, office expenses, hardwaresoftware costs etc etc, they pay ALL the Benefits … no holidays, sick pay, pensions etc etc etc, they pay for ALL the marketing mistakes and give the operator the ONLY thing that matters … RESULTS.
Only ” 10 % ” of the OPERATORS seem to appreciate the value
of an affiliate … and that too fluctuates with time.
This question begs more informantion still about the affiliate.
What business model is s/he running?
I prefer having many small sources of income to dependng on a few big ones. With the exception of a couple of my favorites, I am not worth a lot to most programs. I promote some 100 properties to one extent or another.
New programs I test. I will give them small exposure for a short time and see if anything moves. If it does, I will move it up a bit.
I would never take from my good performers to give to a newcomer. It makes no business sense.
Only once have I taken a new program and promoted it heavily – but that was because it was a type of program I had not been promoting before. Worked out well, too. :bigsmile:
Then there are other factors – like I cut advertising down to the bare bone in the summer – only promote a couple of places. I find the summer so slow that I am not getting the bang for my buck then. I advertise a lot more in the fall, winter and spring. My value changes accordingly.
Last not least, in general, the value of the affiliate rises with the amount of attention given and the quality of the program. There should be a tangible give and take. Not to mention courtesy and respect. To unresponsive programs, my value is zero.
A lot of affiliate programs seem to be thinking that the they have a lot of under performing affiliates (which is true) but a lot of them fail to look at thier program from the affiliates point of view.
A good example is Boss media casinos. Back in the old days i used to go to casino.com to find new boss media casinos to add in as filler in my top 40 list. All of the programs offered the exact same 20% commission, with the exact same reporting, and all had maybe 3 banners to choose from. What made me push a boss media over others? Simply offering me 25% landed them ahead ahead of the list. Of course none would have ever replaced the market champions at the time referback and casino coins, since they offered incentives, scalable commissions, and commission for reffering subaffiliates.
There’s literally 2000 casinos to promote now and a lot of them get frustrated that no one is pushing them. Quite honestly there’s not much reason to push most of these programs. While some may do all of the above correctly they use software that has proven over time to be unprofitable.
What’s most important for casinos beyond all of the above is conversions. Richwebmaster had all the contests and high commissions you could think of, but 50% of nothing is still zilch.
Antoine
There’s literally 2000 casinos to promote now and a lot of them get frustrated that no one is pushing them
True, the market is saturated and there will be a contraction soon.
Also, it is getting so that solicitations are getting really annoying, with some people being pushy and aggressive about it. And I don’t mean sending me a ton of mail – that is to be expected. I have resorted to putting my dial up number on my business cards.
I don’t know if my gender encourages them to behave like that, but with me being pushy is a sure fire way to get me walking off in the opposite direction.
What is the affiliate manager to do then?
Set up a nice program, send updates, send creatives – I have been swayed in the past by getting good HTML mailers for me to send out. These came unsolicited in the mail – but I liked them and signed up and mailed them out.
Don’t make the mail too long – make it useful.
I also like to have personal contact with the affiliate managers – it gives me more confidence in the honesty of the program.
And as of now, I will give preference to programs that list with J.Todd’s organization, the APCW. Merely the willingness to undergo scrutiny speaks volumes.
The one problem with the 90/10 rule (although it is very true).
Those non-performing affiliates may send a lot less traffic, but add them all up at the end of the week or the end of the month.
They have helped IMENSELY with Branding. Those thousands and sometimes millions of extra impressions is what gives some of the 10% their conversions.
This also works both directions, sometimes it is the branding from the 10% that will give a conversion to some affiliates in the 90%.
So it appears that the Affiliate Properties need them both.
Rick
Universal4The smaller affiliates help not only with branding but with links to
” mamma ” as well which helps the s.e.o.quote:
True, the market is saturated and there will be a contraction soon.
Again, the ” 10 % ” who get it will be the ones to profit from the
contraction.The others will suffer the consequences.
Truth or Consequences.
:rolleyes:
