Beyond Affiliate Income:
Diversification in the
Industry
Joe Sousa
Affiliate Coordinator, Fanatics, Inc. (Twitter @drcool7...
Robert Adler, @Bofu2U
● TheLinkBuilders.com
● MicrositeMasters.com
● Diversified by
○ C++/Ruby/Java Programming
○ Software...
Eric Nagel, @ericnagel
● www.EricNagel.com
○ Affiliate Summit Best Blogger
Pinnacle Award in 2011

● Diversified by
○ PHP ...
Joe Sousa, @drcool73
● www.whatdoesjoethink.com
● 15+ years in the affiliate
space
● Diversified by taking a “real”
job as...
What’s happening
● 20% of respondents make $50K+ a year (full
time income)
● That leaves 80% who would probably like to
ma...
Industry Shifts
● Very few “old timers” are still making a living
from just affiliate income
● Very difficult to start fro...
What to do?
● Fill a void / build a service
○ Adler: The Link Builders, Microsite Masters, Arctic
Hosting

● Fill a void /...
Stay Current
●
●
●
●
●

Attend conferences
Blog
Social media
Build relationships
Masterminds
Differences in Models
Affiliate-only

Service

Freelancing

Traditional Job

Source of income Commissions

Subscriptions

...
Differences in Models
Affiliate-only

Service

Freelancing

Traditional Job

Barrier to entry

$3 shared web
hosting
$8 do...
Differences in Models
Affiliate-only

Service

Freelancing

How to Scale

Increasing traffic
Better conversions

More subs...
Differences in Models
Affiliate-only

Service

Freelancing

Traditional Job

What can destroy Offer goes away
you
Increase...
Monetization Model:
Software as a Service
● Pay per Month /
Year
○
○
○
○
○

Microsite Masters
Raven Tools
SEO Moz
Ahrefs
F...
Monetization Model:
Software as a Service
● Fulfillment happens at the same rate as
billing period.
○ Usually in the form ...
Monetization Model:
“One Off” Purchases / Selling Products
● Physical Products
● Virtual Products
○ WordPress themes
○ Wor...
Monetization Model:
Money for Time - Per hour: Freelancing
● Controls Rate
● Controls Hours (usually)
● Reputation
○ Can d...
Skill sets to you have
that you can offer others
●
●
●
●

Social media
Graphic design
Programming
Industry knowledge / con...
Monetization Model:
Money for Time - Per hour: Traditional Job
● Doesn’t actually “control” rate. Can request.
● Doesn’t c...
External Threats
● Government
○
○
○
○

FTC
Nexus
Obamacare
Privacy / Do not track

● Other Company
Actions
○ SEO
■ Penguin...
What do you value?
●
●
●
●
●

Independance
Stability
Do you need to stay put or can you relocate?
Steady work
Fly by the s...
Adapt or Die

“Those who adapt the fastest
get paid the most.”
Questions?
Beyond Affiliate Income:
Diversification in the Industry
Joe Sousa
Affiliate Coordinator, Fanatics, Inc. (Twitt...
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Beyond Affiliate Income: Diversification in the Industry

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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.

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Beyond Affiliate Income: Diversification in the Industry

  1. 1. Beyond Affiliate Income: Diversification in the Industry Joe Sousa Affiliate Coordinator, Fanatics, Inc. (Twitter @drcool73) Robert Adler President, The Link Builders, LLC (Twitter @Bofu2U) Eric Nagel PHP Programmer, ericnagel.com (Twitter @ericnagel)
  2. 2. Robert Adler, @Bofu2U ● TheLinkBuilders.com ● MicrositeMasters.com ● Diversified by ○ C++/Ruby/Java Programming ○ Software as a Service ○ Reputation Management & SEO Agency
  3. 3. Eric Nagel, @ericnagel ● www.EricNagel.com ○ Affiliate Summit Best Blogger Pinnacle Award in 2011 ● Diversified by ○ PHP Programming ○ Consulting
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. Stay Current ● ● ● ● ● Attend conferences Blog Social media Build relationships Masterminds
  9. 9. Differences in Models Affiliate-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 Days You can set the schedule. Feast & Famine Weekly / BiWeekly
  10. 10. Differences in Models Affiliate-only Service Freelancing Traditional Job Barrier to entry $3 shared web hosting $8 domain name Knowledge Finding a void to fill Building it Getting the word out $20 DBA Foot in the door Foot in the door Specific Skillset College 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
  11. 11. Differences in Models Affiliate-only Service Freelancing How to Scale Increasing traffic Better conversions More subscribers Bill more hours Increase your hourly rate N/A Limitations to Growth Market size Bankroll Offer availability Sold out inventory (CPM) Competition Market size Quality of Product Your boss. Size of company Market size Politics Hours in a day Traditional Job
  12. 12. Differences in Models Affiliate-only Service Freelancing Traditional Job What can destroy Offer goes away you Increased competition Google slap New competition Accounts Payable All eggs in one basket You’re fired What’s your “out”? Being bought Just walk away Retirement / gold (services have no watch equity) Sell content site
  13. 13. 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
  14. 14. 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.
  15. 15. 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,
  16. 16. 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
  17. 17. Skill sets to you have that you can offer others ● ● ● ● Social media Graphic design Programming Industry knowledge / consulting
  18. 18. 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
  19. 19. External Threats ● Government ○ ○ ○ ○ FTC Nexus Obamacare Privacy / Do not track ● Other Company Actions ○ SEO ■ Penguin / Panda can cause cancellations @ Microsite Masters ○ Financial ■ Frozen PayPal
  20. 20. 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
  21. 21. Adapt or Die “Those who adapt the fastest get paid the most.”
  22. 22. Questions? Beyond Affiliate Income: Diversification in the Industry Joe Sousa Affiliate Coordinator, Fanatics, Inc. (Twitter @drcool73) Robert Adler President, The Link Builders, LLC (Twitter @Bofu2U) Eric Nagel PHP Programmer, ericnagel.com (Twitter @ericnagel)

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