Ever since I learned about the industry I’ve constantly been hearing about “The Death of Affiliate Marketing”, “Affiliate Marketing is dead” and many different variations. All of them have a combined theme, someone (or some people) thought that the industry was dying, shrinking or disappearing. Normally the people saying this are new to the industry and have not found success and are frustrated or people who have been around for a while but failed to diversify and had their profits dry up. Either way, it’s normally someone frustrated, upset or angry.
Recently a reputable, mature and great network announced that they are closing their doors. I’ve seen many networks come and go over the years. Most were still new and growing, but I’ve also seen a few similar to Peerfly, such as Copeac (some might remember). It’s almost the nature of affiliate marketing that people and companies will come and go. It’s very sad to see Peerfly go, but it’s time to move on.
Is affiliate marketing really dying or dead? Hell no. Affiliate Marketing is still alive and well. People are still making money and as long as people are making money, the industry will live on. However, as always, it is a constantly changing industry. For merchants and business owners, this is a great model. Think about it, if you sold shoes for $100 a pair and you agreed to pay an affiliate $25 for each sale, you’d be making $75 per pair sold through the affiliate, as long as your profit is higher than $25 per pair, you are making money. You also only pay per confirmed sale, there is no guess work in advertising or marketing. It really is a great model for merchants and business owners, the affiliates take most of the risk! Hence why some of the payouts can be ridiculously high and lucrative.
So, if Affiliate Marketing is really alive and well, why did Peerfly close? You can read it yourself, they admitted the business model which they were using was outdated. You shouldn’t be worried about every other affiliate network closing their doors. It is possible, but at this point it looks like it’s just Peerfly.
Now, how do we protect ourselves against this and other changes in the affiliate marketing industry? Diversification is key. Try to work with a handful of different affiliate networks instead of just relying on one. Use different traffic sources, use different offers, etc. Don’t put all of your eggs in 1 basket. The other thing to consider to work on projects outside of affiliate marketing as well, don’t just give up on affiliate marketing, just diversify into other business models.
Affiliate Marketing is alive and well, if you want proof, check out affLIFT, they are a relatively new forum and have nearly 20,000 members already!