The Future Of Affiliate Programs

I tell myself on a daily basis to be positive, unfortunately I'm seeing too many changes, happening a little too fast, and I think it spells a rough road ahead for affiliate marketers. The internet is not immune to the troubles in the US and foreign economy, therefore we should start preparing for trends in online businesses just as we have seen them in 'brick 'n mortar'. I'm referring to cut-backs, lower wages (see affiliate commissions), and less accessibility.

First let's look at what companies must do to become more profitable in a failing economy. Consumer confidence is way down, so even fewer people will be buying online, therefore less impulse buying. The less impulse buying the less companies will need to rely on affiliates to bring in the long tail consumers. Either a consumer will know what they want and go to the source, or they won't be interested at all. Expect companies to withdraw existing affiliate programs and even more will wait to enter the market place with programs in place.

Lowering wages is a great way to pad your profit margin and in our case it means lower commissions. Lowering a commission on a program becomes much easier when it's spread out over thousands of affiliates, instead of just a handful of employees. Expect large cuts in commissions and new offers looking flatter than usual. I've actually lost track of how many programs are actually adjusting their commission rates from MaxBounty, luckily these have yet to effect me personally. One only needs to look at eBay for another example of 'cutting commissions', in regards to their recent hack of affiliates and the reorganization of their ACRU tiers.

Lastly, accessibility in regards to the ease of joining an affiliate program. At one time even larger affiliate managers accepted almost anyone into their programs, no matter traffic, or even visitor quality. Now things are getting tighter and bandwidth costs money, the days of sending traffic that doesn't convert to affiliate sites may be over. Expect to not be allowed to sign up unless you have a record of targeted traffic, or existing affiliates should start taking steps to record where and how their traffic is arriving on their site and where they are being sent to the affiliate sites. Finding the fine line in fewer affiliates and higher quality converting traffic will save a company countless dollars on less man power, for managing worthless affiliates(in their eyes) and remove thin affiliate competition from search engines.

The moral of this story is to start diversifying now, so if one revenue stream starts failing or making cuts you're not left out to dry. To an extent I'm speaking from experience and to another I'm kicking myself in the ass. Good luck and happy earning.