Changes in the Affiliate Marketing Industry

From Pace Lattin:

I had quite a bit of mails regarding my last article and the changes the industry is going through. Many people were interested in knowing exactly what was going on in the industry, especially which companies are probably going to go out of business and which companies are having problems. I’m not going to play the name game, but needless to say there is a reason right now for the enormous changes that are happening in the industry. Companies are announcing mergers, putting themselves on the block to be sold, and many are in the final stages of shutting their doors. There is a little dirty secret that is only being talked about behind closed doors in the industry and more a lot people need to pay attention.

Last year, several major and no-so-major affiliate networks grew in leaps and bounds from nowhere. Many of these companies were making millions of dollars off of continuity programs, often with backend “flogs” and other questionable methods of promoting their programs. 2009 was a very, very good year for them, and some of them were reporting upwards of $20-30 million extra for the last quarter of 2009 in revenue from those programs lone. They went out bought other companies left and right for ridiculous amounts of money and invested in having dozens of high paid executives.

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