Beyond Affiliate Income:Diversification in the Industry

Joe SousaAffiliate Coordinator, Fanatics, Inc. (Twitter @drcool73)

Robert AdlerPresident, The Link Builders, LLC (Twitter @Bofu2U)

Eric NagelPHP Programmer, ericnagel.com (Twitter @ericnagel)

Robert Adler, @Bofu2U

● TheLinkBuilders.com● MicrositeMasters.com● Diversified by

○ C++/Ruby/Java Programming○ Software as a Service○ Reputation Management

& SEO Agency

Eric Nagel, @ericnagel

● www.EricNagel.com○ Affiliate Summit Best Blogger

Pinnacle Award in 2011● Diversified by

○ PHP Programming○ Consulting

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

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

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

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

Stay Current

● Attend conferences● Blog● Social media● Build relationships● Masterminds

Differences in ModelsAffiliate-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 DaysYou can set the schedule.

Feast & Famine Weekly / BiWeekly

Differences in ModelsAffiliate-only Service Freelancing Traditional Job

Barrier to entry $3 shared web hosting$8 domain nameKnowledge

Finding a void to fillBuilding itGetting the word out

$20 DBAFoot in the door

Foot in the doorSpecific SkillsetCollege 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

Differences in ModelsAffiliate-only Service Freelancing Traditional Job

How to Scale Increasing trafficBetter conversions

More subscribers Bill more hoursIncrease your hourly rate

N/A

Limitations to Growth

Market sizeBankrollOffer availabilitySold out inventory (CPM)

CompetitionMarket sizeQuality of Product

Hours in a day Your boss.Size of companyMarket sizePolitics

Differences in ModelsAffiliate-only Service Freelancing Traditional Job

What can destroy you

Offer goes awayIncreased competitionGoogle slap

New competition Accounts PayableAll eggs in one basket

You’re fired

What’s your “out”?

Sell content site Being bought Just walk away (services have no equity)

Retirement / gold watch

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

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.

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,

SEO Audit

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

Skill sets to you havethat you can offer others

● Social media● Graphic design● Programming● Industry knowledge / consulting

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

● Government○ FTC○ Nexus○ Obamacare○ Privacy / Do not track

External Threats

● Other Company Actions○ SEO

■ Penguin / Panda can cause cancellations @ Microsite Masters

○ Financial■ Frozen PayPal

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

Adapt or Die

“Those who adapt the fastestget paid the most.”

Questions?

Beyond Affiliate Income:Diversification in the Industry

Joe SousaAffiliate Coordinator, Fanatics, Inc. (Twitter @drcool73)

Robert AdlerPresident, The Link Builders, LLC (Twitter @Bofu2U)

Eric NagelPHP Programmer, ericnagel.com (Twitter @ericnagel)