I just came across a very interesting post at Dave Taylor’s blog on the affiliate business model. The comments posted were as interesting, insightful and fit for a good amount of debate among the affiliate marketing community. While I may be a bit late I still thought I must share it with all my affiliate friends due to its relevancy even today. I am giving below my own comment which in itself could be likened to an article on the subject of affiliate marketing.
I think you have literally kicked the hornets nest and most of the comments here are very interesting as well as the posts are knowledgeable.
I thought I would add my bit albeit a bit late.( I hope that rhymes well) because the issue is still current after a lapse of 4 years.. As far as the affiliate model of business goes, it is a genius of an idea if it serves the original purpose – that anyone can start the business with low investments and find an alternative living to the 9-5 option. However as your own PPC budgets suggest it is not within the reach of most of the aspirants.
While on the subject of PPC spending 9350 to earn 650 is not a sound business idea as some posts have made to be on the basis of returns. One may well keep in mind that the investments are not in any assets but on notional values (ad rates) which may or may not give a return. If it does give a guaranteed return of $650 consistently then it may be a risk worth taking. But there are no guarantees on the consistent return. I don’t think any Wall Street whiz kids would even touch it with a barge pole.
This business cannot be compared to the brick and mortar retail business which serves a different segment of the market that are looking for the product to be bought and walks into a store. In the online world the need is created to a potential audience by persuasive copy and he may decide to buy the product as it may meet a certain need.
Here too to reach the potential audience a lot of work is done at considerable investment to create traffic through various sources.
While this is a most interesting subject to debate, I feel affiliate marketing could be the right business model if the tools of the trade are within affordable reach of the majority of the wannabe entrepreneurs and deserves to be developed.”
I urge my readers to read the article of Dave at his Intuitive.com as the topic of ” Is Affiliate Marketing a Good Idea” is still relevant today and for some useful insights.