TLDRMoney
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There are many different roles in internet marketing. Most people see it as a pyramid with the advertiser at the top and the affiliate at the bottom with the CPA Network in the middle. You see a common mind set within the industry where people try to climb this pyramid . I even followed this mindset for a time until it really hit me and I understood who actually has the power in the industry.
As a novice affiliate running traffic, I often wanted to open a CPA Network. This seemed like the next logical step in the progression. If I ever wanted to achieve $1000 a day, I thought it could easily be done by running a CPA Network. I found the truth to be much different.
CPA Networks are constantly chasing affiliates for traffic but the biggest affiliates generating $1000/day generally can get access to any offer they want from any network.
I asked myself a few questions...
Why would these affiliates want to run traffic to my "New" network over someone like "Max Bounty" or another big network?
New networks often are scam jobs. They are open and closed in 3 months while they run away with affiliate commissions. Trust is a big factor in a network.
How can I get access to all these awesome offers for my network?
Will advertisers take my "New" network seriously and give me access to offers?
At the end of the day the juice just isn't worth the squeeze. Sure I picked up some affiliates but they were the ones generating a commission while I only earned a small percentage.
I started focusing on Advertisers and how they make the most money by owning the product and the back end. This seemed like the next logical step by the pyramid.
If I owned my own offer I would be set right? Wrong
Now I need to focus my attention once again to obtaining affiliates to run traffic. I can branch out to CPA Networks and get them to push my offers but I'm still chasing traffic.
It's an new set of circumstances that ultimately lead to the same problem.... Generating traffic.
Before I go any further I want to be clear. There is nothing wrong with running CPA Networks or being an Advertiser. There are many successful Networks/Advertisers living the dream and making foolish amounts of money.....but none of it happens without affiliates/traffic.
Then it finally occurred to me....
Advertisers can have the best products and offer pages but without traffic there is NO MONEY.
CPA Networks could have the top 100,000 converting offers but without traffic there is NO MONEY.
If The Key To This Industry Is Traffic....And Affiliates Generate Traffic... Then Affiliates Hold The KEYS To The Industry.
So why isn't everyone an affiliate?
Why don't CPA networks just run their own traffic instead of relying on affiliates?
Why don't advertisers just run their own traffic instead of relying on CPA Networks?
They do! In fact the biggest and most successful Networks/Advertisers have a team of "Media Buyers" or affiliates that internally generate traffic for their offers. However, this isn't as common as you might think.
Being an affiliate is the most complicated role within the industry. Understanding how to properly test campaigns or media buying is extremely valuable information.
Common Knowledge Isn't That Common
This is something I realized about 3 years ago. One day I was in talks with a network about traffic and offers.. I was eventually offered a part time job as a "consultant" for a very generous pay and roughly 5 hours a week. The amount was so generous I immediately thought that I was being over paid. I didn't see exactly what they wanted. If they are a large network, what could I possibly know that they don't?
I talked to a few seasoned affiliate friends and they said something that changed my perspective.
"They are not over paying you. The things we know and consider common are like rocket science to a majority of the industry"
And they were right. The more people that I met in the industry, the more that I realized ....Affiliates hold all the power.
I've met hundreds people working for the biggest networks both online via Facebook and offline at trade shows. A vast majority of the people you meet have NEVER been a successful affiliate. Most of these people are all looking for the same thing... TRAFFIC! Keep in mind.. most of the people you run into are affiliate managers. Affiliate managers are like vultures if you have the reputation of being a successful affiliate. They want your traffic. Period.
Affiliate Manager Is An Entry Level Position
AM's have one major job.. Find affiliates and get their traffic.
You Likely Know MORE Than Your Affiliate Manager
When an affiliate manager tells you that their "Hot New Offer" is crushing, remember the hierarchy. If this offer is "Crushing" why isn't the affiliate manager running it? Just because another affiliate in their network is having success doesn't mean you will. We don't know their traffic source, angle, targets or assets. Affiliate Managers will tell you anything if it means getting traffic to their advertisers.
Most AM's have very little knowledge of running traffic. If they understood it then they would stop chasing affiliates and start generating traffic themselves. This isn't always true as there are very knowledgeable AM's out there who have been doing it for many years. However, a majority of AM's are like mindless drones... They just want traffic.
How Do I Have "Power" As An Affiliate?
If you are just starting out and are making $100-$1000/month then you really don't hold much "power". Remember, the only reason the affiliate holds the power is because of traffic.. Without traffic an affiliate is nothing. The more traffic you have, the more leverage you have within the industry. So if you are making $100 a week, don't get too full of yourself just yet!
When an affiliate is able to generate $500+/day consistently (Super Affiliate), that's when leverage comes into play. You'll notice 100 affiliate managers offering you higher & faster payouts just for you to move your traffic to their network.
You'll even have advertisers offering for you to run traffic directly to them, eliminating the CPA network. It's not uncommon for networks and advertisers to send gifts to their biggest affiliates. If you are generating $15,000+ in revenue it's nothing for a network to spend $500 on a nice new watch or maybe the newest gaming console.
I've been part owner of a few networks and also worked for a big network. It's common practice to "wine and dine" your big affiliates at trade shows. Think of it from a network perspective.. It's a long term game. The better you treat this affiliate who is generating $$$, the longer they may stick around and avoid moving to your competitor. It's a dog eat dog industry. Treat your affiliates good or someone else will.
Conclusion
The key to affiliate marketing is the traffic and sales. It's the hardest job but the most important and rewarding. If affiliate marketing was a massive mechanical engine, affiliates would be the diesel. This is why it is so important to LEARN. This is why it's crucial for you to carefully study Powerhouse training. We are trying to set you up for a win. Powerhouse has paved a path for you. You have the keys to this industry at your fingertips. Put in the time, it doesn't happen overnight. Treat affiliate marketing as if you were in school studying engineering. It's a long term game.
"Everyone wants to be an affiliate until it's time to do what real affiliates do"
As a novice affiliate running traffic, I often wanted to open a CPA Network. This seemed like the next logical step in the progression. If I ever wanted to achieve $1000 a day, I thought it could easily be done by running a CPA Network. I found the truth to be much different.
CPA Networks are constantly chasing affiliates for traffic but the biggest affiliates generating $1000/day generally can get access to any offer they want from any network.
I asked myself a few questions...
Why would these affiliates want to run traffic to my "New" network over someone like "Max Bounty" or another big network?
New networks often are scam jobs. They are open and closed in 3 months while they run away with affiliate commissions. Trust is a big factor in a network.
How can I get access to all these awesome offers for my network?
Will advertisers take my "New" network seriously and give me access to offers?
At the end of the day the juice just isn't worth the squeeze. Sure I picked up some affiliates but they were the ones generating a commission while I only earned a small percentage.
I started focusing on Advertisers and how they make the most money by owning the product and the back end. This seemed like the next logical step by the pyramid.
If I owned my own offer I would be set right? Wrong
Now I need to focus my attention once again to obtaining affiliates to run traffic. I can branch out to CPA Networks and get them to push my offers but I'm still chasing traffic.
It's an new set of circumstances that ultimately lead to the same problem.... Generating traffic.
Before I go any further I want to be clear. There is nothing wrong with running CPA Networks or being an Advertiser. There are many successful Networks/Advertisers living the dream and making foolish amounts of money.....but none of it happens without affiliates/traffic.
Then it finally occurred to me....
Advertisers can have the best products and offer pages but without traffic there is NO MONEY.
CPA Networks could have the top 100,000 converting offers but without traffic there is NO MONEY.
If The Key To This Industry Is Traffic....And Affiliates Generate Traffic... Then Affiliates Hold The KEYS To The Industry.
So why isn't everyone an affiliate?
Why don't CPA networks just run their own traffic instead of relying on affiliates?
Why don't advertisers just run their own traffic instead of relying on CPA Networks?
They do! In fact the biggest and most successful Networks/Advertisers have a team of "Media Buyers" or affiliates that internally generate traffic for their offers. However, this isn't as common as you might think.
Being an affiliate is the most complicated role within the industry. Understanding how to properly test campaigns or media buying is extremely valuable information.
Common Knowledge Isn't That Common
This is something I realized about 3 years ago. One day I was in talks with a network about traffic and offers.. I was eventually offered a part time job as a "consultant" for a very generous pay and roughly 5 hours a week. The amount was so generous I immediately thought that I was being over paid. I didn't see exactly what they wanted. If they are a large network, what could I possibly know that they don't?
I talked to a few seasoned affiliate friends and they said something that changed my perspective.
"They are not over paying you. The things we know and consider common are like rocket science to a majority of the industry"
And they were right. The more people that I met in the industry, the more that I realized ....Affiliates hold all the power.
I've met hundreds people working for the biggest networks both online via Facebook and offline at trade shows. A vast majority of the people you meet have NEVER been a successful affiliate. Most of these people are all looking for the same thing... TRAFFIC! Keep in mind.. most of the people you run into are affiliate managers. Affiliate managers are like vultures if you have the reputation of being a successful affiliate. They want your traffic. Period.
Affiliate Manager Is An Entry Level Position
AM's have one major job.. Find affiliates and get their traffic.
You Likely Know MORE Than Your Affiliate Manager
When an affiliate manager tells you that their "Hot New Offer" is crushing, remember the hierarchy. If this offer is "Crushing" why isn't the affiliate manager running it? Just because another affiliate in their network is having success doesn't mean you will. We don't know their traffic source, angle, targets or assets. Affiliate Managers will tell you anything if it means getting traffic to their advertisers.
Most AM's have very little knowledge of running traffic. If they understood it then they would stop chasing affiliates and start generating traffic themselves. This isn't always true as there are very knowledgeable AM's out there who have been doing it for many years. However, a majority of AM's are like mindless drones... They just want traffic.
How Do I Have "Power" As An Affiliate?
If you are just starting out and are making $100-$1000/month then you really don't hold much "power". Remember, the only reason the affiliate holds the power is because of traffic.. Without traffic an affiliate is nothing. The more traffic you have, the more leverage you have within the industry. So if you are making $100 a week, don't get too full of yourself just yet!
When an affiliate is able to generate $500+/day consistently (Super Affiliate), that's when leverage comes into play. You'll notice 100 affiliate managers offering you higher & faster payouts just for you to move your traffic to their network.
You'll even have advertisers offering for you to run traffic directly to them, eliminating the CPA network. It's not uncommon for networks and advertisers to send gifts to their biggest affiliates. If you are generating $15,000+ in revenue it's nothing for a network to spend $500 on a nice new watch or maybe the newest gaming console.
I've been part owner of a few networks and also worked for a big network. It's common practice to "wine and dine" your big affiliates at trade shows. Think of it from a network perspective.. It's a long term game. The better you treat this affiliate who is generating $$$, the longer they may stick around and avoid moving to your competitor. It's a dog eat dog industry. Treat your affiliates good or someone else will.
Conclusion
The key to affiliate marketing is the traffic and sales. It's the hardest job but the most important and rewarding. If affiliate marketing was a massive mechanical engine, affiliates would be the diesel. This is why it is so important to LEARN. This is why it's crucial for you to carefully study Powerhouse training. We are trying to set you up for a win. Powerhouse has paved a path for you. You have the keys to this industry at your fingertips. Put in the time, it doesn't happen overnight. Treat affiliate marketing as if you were in school studying engineering. It's a long term game.
"Everyone wants to be an affiliate until it's time to do what real affiliates do"
