Polls
Who is the pretty boy of affiliate networks?
- Jason Baker
CommissionJunction
(26%, 78 Votes) - Lee Griffin
TradeDoubler
(16%, 47 Votes) - James Little
AffiliateFuture
(14%, 41 Votes) - Darren Newmark
LinkShare
(12%, 35 Votes) - Doug:)
Sexy beast
(11%, 33 Votes) - Adam Ross
AffiliateWindow
(11%, 32 Votes) - Mark Walters
AfilliateWindow
(11%, 32 Votes) - Chris Mockford
Buy.at
(9%, 26 Votes) - Tyson Pearcey
Buy.at
(5%, 14 Votes) - Warwick Lambert
Buy.at
(4%, 11 Votes) - Clarke Duncan
PaidOnResults
(3%, 10 Votes) - Giles Parnell
AffiliateFuture
(-22%, 10 Votes)
Total Voters: 297
Loading ...- Jason Baker
Top A4U Publishers are not the ones who make real cash
Well done to the nominations for Publisher of the Year 2008, Click Angel, Net Media Planet, Quidco, Spear, UK Web Media, eConversions.
So five ppc affiliates and one cashback site. So basically what we are talking about here are 5 companies who spend lots of cash to get traffic and make lots of cash from it and a cash back site who just give most of the money they make away.
Some simple observations about these PPC affiliates, all who openly state they put over £50 million through their accounts. Assuming they are making 5% on a deal, they will be spending atleast 3.0% to get that traffic. Hence operating profit is 2.0% of total sales. Let say they all make £1 million profit per annum excluding all other costs.
To manage 500 to 2500 merchants and ppc campaigns is labour intensive and I know most of these companies have roughly 20 staff. Lets say a staff bill of £500K, unless you are based in central London, which 3 of these companies are. So they now have to pay office costs etc etc out of the £500K. Profit now at best is £500K……scary on that turnover, the risk of getting it wrong now are massive.
Merchants are getting better and find the terms themselves and also driving the bid prices up…scary model. No wonder they all want to be agencies and manage other peoples cash and rake off a margin.
I prefer being a company who are very active in organic search, with a smaller dependency on PPC. So go on link to our new one www.latestvouchers.co.uk :)
Doug who really does not want to be doing PPC
Popularity: 1% [?]
yep!
and merchants should be building relationships with affiliates that will deliver long terms success and not simply switch off their ads when they get a bit pissed off with the merchant!
When you line up the numbers that business model is scary indeed, and not one you can get into easily without an understanding investor and some sturdy brown trousers
[...] The King is dead, long live the King? How did we go from 3 content affiliates being nominated in the inaugural a4uAwards, to none at this years vote? Is the Merchants Publisher of the Year award now just based on turnover? [...]
I’d say the profits are a bit higher than 2%, remember most of the stuff they do will be CPA based, not a percentage of basket value.
At just 2%, or 1% profit after paying the overheads, they’d be getting a better return on their cash in a bank account. I’d say operating profits were closer to 9% with almost half going on overheads. Wheras a lot of content affiliates will be closer to 100% profit.
I run a string of non PPC sites and made well in excess of £1m profit last year. How about an award based on profit rather than revenue?
Care to say who you are:)
I was being generous to the guys and explaining that is not as simple as people think.
Doug
I just read Lammo’s comments on the One Little Duck blog and he makes a very good point ( http://www.onelittleduck.co.uk/2008/06/big-up-the-content-affiliate-massive-aiii.html ). The PPC affiliates need these awards more than we do, as it helps them in the RFP process and in any PPC management work they’re going for.
For the content affiliates it’s a nice ego boost, but could just bring unwanted competition from copycats.
My hard is bleeding…….those poor guys:)