beyond affiliate income: diversification in the industry
DESCRIPTION
This presentation is from Affiliate Summit West 2014 (January 12-14, 2014 in Las Vegas, NV). Session description: The affiliate landscape has changed dramatically in the past few years. Use your skills, industry knowledge & unique competitive advantage to diversify your income within the affiliate industry.TRANSCRIPT
![Page 1: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/1.jpg)
Beyond Affiliate Income:Diversification in the Industry
Joe SousaAffiliate Coordinator, Fanatics, Inc. (Twitter @drcool73)
Robert AdlerPresident, The Link Builders, LLC (Twitter @Bofu2U)
Eric NagelPHP Programmer, ericnagel.com (Twitter @ericnagel)
![Page 2: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/2.jpg)
Robert Adler, @Bofu2U
● TheLinkBuilders.com● MicrositeMasters.com● Diversified by
○ C++/Ruby/Java Programming○ Software as a Service○ Reputation Management
& SEO Agency
![Page 3: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/3.jpg)
Eric Nagel, @ericnagel
● www.EricNagel.com○ Affiliate Summit Best Blogger
Pinnacle Award in 2011● Diversified by
○ PHP Programming○ Consulting
![Page 4: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/4.jpg)
Joe Sousa, @drcool73
● www.whatdoesjoethink.com● 15+ years in the affiliate
space● Diversified by taking a “real”
job as an OPM and then as Affiliate Coordinator for Fanatics.com
![Page 5: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/5.jpg)
What’s happening
● 20% of respondents make $50K+ a year (full time income)
● That leaves 80% who would probably like to make more in this industry
![Page 6: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/6.jpg)
Industry Shifts
● Very few “old timers” are still making a living from just affiliate income
● Very difficult to start from scratch● No longer to just build sites, you need to
build a business○ Not many can do that
![Page 7: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/7.jpg)
What to do?
● Fill a void / build a service○ Adler: The Link Builders, Microsite Masters, Arctic
Hosting● Fill a void / be a service
○ Nagel: PHP Programmer● (Re)join the “working world”
○ Sousa: Fanatics.com
![Page 8: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/8.jpg)
Stay Current
● Attend conferences● Blog● Social media● Build relationships● Masterminds
![Page 9: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/9.jpg)
Differences in ModelsAffiliate-only Service Freelancing Traditional Job
Source of income Commissions Subscriptions Clients Employer
Number of income sources
Many Many A few One
Time to first paycheck
60-90 days Slow Soon Instant
Req’d For Stability
A Miracle Less $ Per, More #’s
More $ Per, Less #’s
No Control
Consistency in pay
Every 30 days (Usually) Every 30 DaysYou can set the schedule.
Feast & Famine Weekly / BiWeekly
![Page 10: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/10.jpg)
Differences in ModelsAffiliate-only Service Freelancing Traditional Job
Barrier to entry $3 shared web hosting$8 domain nameKnowledge
Finding a void to fillBuilding itGetting the word out
$20 DBAFoot in the door
Foot in the doorSpecific SkillsetCollege Degree?
Benefits On your own On your own On your own Supplied
Growth Fast, but insane risk (PPC / CPM) - or - Slow, with low risk (SEO)
More stable, but slower
Quick to plateau Depends on people above you
![Page 11: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/11.jpg)
Differences in ModelsAffiliate-only Service Freelancing Traditional Job
How to Scale Increasing trafficBetter conversions
More subscribers Bill more hoursIncrease your hourly rate
N/A
Limitations to Growth
Market sizeBankrollOffer availabilitySold out inventory (CPM)
CompetitionMarket sizeQuality of Product
Hours in a day Your boss.Size of companyMarket sizePolitics
![Page 12: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/12.jpg)
Differences in ModelsAffiliate-only Service Freelancing Traditional Job
What can destroy you
Offer goes awayIncreased competitionGoogle slap
New competition Accounts PayableAll eggs in one basket
You’re fired
What’s your “out”?
Sell content site Being bought Just walk away (services have no equity)
Retirement / gold watch
![Page 13: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/13.jpg)
Monetization Model:Software as a Service
● Pay per Month / Year○ Microsite Masters○ Raven Tools○ SEO Moz○ Ahrefs○ For Me To Coupon
● Pay per use○ Copyscape○ iStock Photo○ Codecanyon○ Ahrefs API
![Page 14: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/14.jpg)
Monetization Model:Software as a Service
● Fulfillment happens at the same rate as billing period.○ Usually in the form of “usage”. They will have the
ability to use the product for the billing time period.■ If no payment, availability is revoked.
![Page 15: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/15.jpg)
Monetization Model:“One Off” Purchases / Selling Products● Physical Products● Virtual Products
○ WordPress themes○ WordPress plugin○ Challenges
■ How do you stop buyers from redistributing the software to others?
● Fulfillment on a Service, but only once.○ Example: one-time link building package, design,
SEO Audit
![Page 16: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/16.jpg)
Monetization Model:Money for Time - Per hour: Freelancing
● Controls Rate● Controls Hours (usually)● Reputation
○ Can dictate your hourly rate.● You don’t work, you don’t get paid
○ Vacation / sick time / conferences
![Page 17: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/17.jpg)
Skill sets to you havethat you can offer others
● Social media● Graphic design● Programming● Industry knowledge / consulting
![Page 18: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/18.jpg)
Monetization Model:Money for Time - Per hour: Traditional Job
● Doesn’t actually “control” rate. Can request.● Doesn’t control hours in most cases.● Benefits
○ Health insurance, 401K, paid holidays, etc● Steady paycheck● Stability
![Page 19: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/19.jpg)
● Government○ FTC○ Nexus○ Obamacare○ Privacy / Do not track
External Threats
● Other Company Actions○ SEO
■ Penguin / Panda can cause cancellations @ Microsite Masters
○ Financial■ Frozen PayPal
![Page 20: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/20.jpg)
What do you value?
● Independance● Stability● Do you need to stay put or can you relocate?● Steady work● Fly by the seat of your pants
![Page 21: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/21.jpg)
Adapt or Die
“Those who adapt the fastestget paid the most.”
![Page 22: Beyond Affiliate Income: Diversification in the Industry](https://reader034.vdocument.in/reader034/viewer/2022051816/5462d941af79599e2c8b4d23/html5/thumbnails/22.jpg)
Questions?
Beyond Affiliate Income:Diversification in the Industry
Joe SousaAffiliate Coordinator, Fanatics, Inc. (Twitter @drcool73)
Robert AdlerPresident, The Link Builders, LLC (Twitter @Bofu2U)
Eric NagelPHP Programmer, ericnagel.com (Twitter @ericnagel)