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RANT Just saw MJ DeMarcos article on affiliate marketing

Discussion in 'Hustles, Freelancing, Bootstrapping' started by nradam123, Apr 10, 2019.

  1. nradam123
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    nradam123 Silver Contributor Read Millionaire Fastlane Speedway Pass

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    Hello guys,

    Its been a while. Perhaps 2 years since i posted here.
    Last 3 years for me was life changing.

    I tried everything i could. From Fiverr to Freelancing to building a tech startup to ecommerce.
    I got sales here and there, but i could not have a financial breakthrough.

    Then i found a mentor who thought me affiliate marketing. Things started moving after that.
    I had my first 2 figures a day. And recently I have gone all the way upto managing 4 figures (of profits a day) but stable 3 figures a day is the norm.

    This is paid media buying in display, native, social media and search traffic sources promoting offers from affiliate networks such as insurance, games and what not. I think I can finally call myself an expert, as I am getting really comfortable with my skillset. Of course, I am still scaling and trying to make it big.

    Anyway, then i saw this video by MJ DeMarco


    I know its true, there is a large lack of commandment of control in the affiliate marketing space.

    But the catch is, i know people who are doing 6-8 figures of yearly income, with 100 person companies (We are just 6 now) and I havent met a single company who does not partner with other companies in some way. Joint ventures, key clients and partnerships are the norm in every company I know. We recently started working on creating a SaaS application to help marketers, and even that includes using services from APIs of several third party applications.

    And there are always strategies you can use to minimize risks. In affiliate marketing we can stack offers so that when one goes down we have another one. We can also diversify niches so that there is always something going on. I think most businesses will need to build strategy to overcome the lack of commandment of control.

    I am sorta thinking about my future and how to build my company from where it is now, and I wanted to hear your thoughts on commandment of control in your own businesses.

    Thanks
     
    ruzara5, Xeon, Mr.C and 7 others like this.
  2. Maxboost
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    I sure hope this isn't a pitch to sell a course....
     
  3. nradam123
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    Roli and AgainstAllOdds like this.
  4. lludwig
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    As someone who just sold my biz which was based on affiliate marketing only, MJ is 100% correct.

    So I'm not following what's the issue here.
     
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  5. TreyAllDay
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    TreyAllDay Whatever it takes Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

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    I'm glad to hear MJ talk about this a bit because I've been watching these very convincing videos online about people buying lambos via affiliate marketing, was curious about this.
     
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  6. KeepGoin
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    For me, affiliate marketing is a way I can monetize a blog following. It has worked and I’ve learned how and what it takes to rank a website by failing at it a lot.

    You don’t have control, but if you produce high-quality content for targeted keywords you can do pretty well.

    CPA marketing is what nradam is talking about and that is a whole different ballgame. I know of people blowing lots of money trying to figure it out and still failing. It seems to have incredible potential if you figure it out. Just like converting a Facebook or google ad to a sale, it’s the same premise it’s just not your product.
     
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  7. 404profound
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    404profound Gold Contributor I've Read UNSCRIPTED Speedway Pass

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    Interesting, may be a good strategy to build into my app.
     
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  8. astr0
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    astr0 Grinding Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    I think MJ hasn't talked about the professional approach to affiliate marketing in his video. More of a SEO/content marketing for some big company affiliate program like Amazon/AliExpress/etc.

    You're doing paid traffic. You have different traffic sources to work with.
    You're carefully testing and picking offers from different networks.
    You don't care that much if an offer stays there for a week or for a couple of months.
    You're having some systems.

    That's pretty advanced and it's more a marketing agency that uses affiliate marketing network as a lead source and has results-oriented pricing :smile:

    P. S. I've learned/tried it for a few months. Got 3-figure total profit with few low-margin-profitable campaigns. Quit cause one of my campaigns suddenly started to produce very bad, almost the opposite results. Tried to figure out what happened, everything seemed fine. The I've tried to look at it from Brazilian IP (it was for Brazil)... They totally replaced their landing with some scam stuff that I was sending 4-figure traffic to...

    I've decided that it's full of crap and immoral, but still believe it pretty much CENTS and profitable. With Time as the main issue, as for pretty much every other service-business.
     
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  9. MJ DeMarco
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    That video is probably ten years old. Things might have changed, but the control issue still pervades, and as technological oligarchs grow stronger and more dominant, control will continue to be a bigger and bigger challenge for us smaller players. Affiliate marketing or not...
     
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  10. nradam123
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    Interesting. Its hard to sell a CPA marketing company like mine, as we dont have a lot of assets except the team. Thats what i will be focusing on now, building assets like internal automation software. Making high traffic websites by creating content is not my thing at the moment.

    Its true. Like i said in the opening post, I know people who are making 6-8 figures in a year. I am sure there are people who makes 9 figures too. But its not easy, most of them have a decade of experience.
     
    Last edited: Apr 11, 2019
  11. nradam123
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    If you have an app I recommend monetizing it using ads (Google Adx .etc because they pay in CPM basis and not CPC like Google Adsense. Its harder to get in, you will need atleast 100,000 visitors a month to get approval). I know a person who dominates app, has atleast a 50 person team who just builds app (This is India so hires are cheaper)

    I think last year his in-app revenue was 18000 dollars, but his ad revenue on the same apps where 150 times. We had a mastermind and I saw this stats from his facebook app annie screenshot. His apps combined got downloaded 3 million times. You can use app annie to track all this info.

    I am not the app guy, so I cant help much there.
     
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  12. nradam123
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    nradam123 Silver Contributor Read Millionaire Fastlane Speedway Pass

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    100%. Affiliate networks scrape leads, traffic sources send bot traffic. Its the wild west in there. But you need to figure out how to tackle everything. Its a roller coaster ride for sure.

    Usually service based businesses are linearly scalable. The thing about CPA affiliate marketing is that it is exponentially scalable. If something works out, you can scale to the moon. Its common to scale a campaign that runs at 100% ROI at $50 a day to 50% ROI at $1000 a day. Almost same effort.
     
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  13. nradam123
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    nradam123 Silver Contributor Read Millionaire Fastlane Speedway Pass

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    I agree. Its good to hear from you. Its true that all companies are starting to work in collaboration these days, its good in some way because you are able to plug and play without building infrastructure yourself (You can use Google Cloud ML and speech engine through Google Cloud instead of building your own machine learning models, stuff like that) but you also depend on several other companies.

    PS: I am gonna buy your new book unscripted, just saw it yesterday :)
     
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  14. aminmo
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    aminmo Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

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    Well, I'm not in affiliate marketing, but I do the next worst thing: Dropship from China. Here's my experience with the topic of "control":

    I made around $1MM in revenue in 2 months alone during 2017, and I currently have a new store that's done around $600k in sales so far (probably quite a bit more) which I've only started in Jan of this year. I've also had days where I've made over $7k in pure profit.

    But guess what? I had to shut my first store down after being in business for less than a year, and I'm now in the processing of scaling down my current store (and planning on eventually shutting this one down too).

    Why is this? It's simple. It's because both stores violated the commandment of control.

    I gave up control of the most important aspects of an ecom business to people over in China (who don't give a rat's butt about me): my inventory, the quality of my products, my shipping times, etc.

    The only thing I really had was my advertising, my website, and my customer service.

    But at the end of the day, these things don't mean much when I don't have control over the things that REALLY matter. The real money is in the repeat business, and without control over the quality of my products and control of my shipping times, people just wouldn't come back to buy more. And don't even get me started on supply issues that end up turning into tens of thousands in refunds and chargebacks.

    Can you make a lot of money with a business that violates the commandment of control? Of course. But will this money last? Probably not.

    Obviously, this doesn't necessarily mean that your affiliate marketing business will face the same fate as my ecom stores, but this is just an example that proves MJ's point.

    So now I'm currently transitioning to importing products in bulk and having them stored at a fulfillment center (with the goal of eventually opening up my own warehouse so I can have total control), but once I have these things implemented, I'll be unstoppable. My advertising is top tier, my website design is sleek (and loads lightning quick), the products I sell are unique as hell, and my customer service is second to none. And once I have control over my shipping times and my product quality, well, lets just say money won't be an issue for me anymore.

    That's just my experience though and doesn't mean it'll be the same for you.
     
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  15. nradam123
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    nradam123 Silver Contributor Read Millionaire Fastlane Speedway Pass

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    I agree 100%. I think the move you are making now with fulfillment centers is the right way to go. Branding is huge as well. Using clickfunnels can increase the ROI too rather than using a general shopify store. But seeing your revenue, you dont need me to tell these things lol.

    The roller coaster ride I have is very similar to yours. It scares me that things will get worse at some point.

    I know the biggest affiliate marketers in the industry market there own products.
     
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  16. lludwig
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    That's because I didn't sell a site that was about landing pages and just conversions.

    It was creating content and establishing a brand. That was where I added value.

    No one is going to buy an affiliate marketing company who is performing purely an arbitrage game.
     
    Last edited: Apr 11, 2019
  17. MJ DeMarco
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    Wow, safe to say if you can do well there, you're going to kill it elsewhere. You should be stoked about the future, hope you're proud of what you've accomplished. Impressive!

    +1, the essence of the Control Commandment, very similar to Entry.
     
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  18. ideasunlimited1
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    ideasunlimited1 Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    IU is doing a lot of focus in affiliate marketing and growth this year. I've found that that, out of everything else, has probably led to our greatest increase in presence in the US market. We've been really successful globally, and I tend to view that Eastern countries care more about how much a product or company is being talked about, where in the US other companies can be the gate keeper and it is more about WHO is talking about you. I'm definitely going to pass MJ's vid onto my boss.
     
  19. eliquid
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    I got started in affiliate marketing back in late 90's/2000.

    There is no control for "most" of the industry.

    As an affiliate ( in the most general sense that people think of ), you are the bottom of the totem pole and you always will be.

    It's not until you "control the chain" that you can move up. Most affiliate do not do this though.

    • Until you control the payouts
    • Until you control the product(s)
    • Until you control the caps
    • Until you control the scrubs, shaves and lead carrots
    • Until you control the spy tools
    • Until you control the data the network collects
    • Until you can own the traffic
    • Until you control ( a lot of other areas )
    You gonna be at the bottom.

    I eventually got out of being just an affiliate near 2010.

    Now I own my own offer. I own the payout process and the caps. I don't get shaved or scrubbed or deal with lead carrots and people ratting out my traffic sources and pages.

    I'm still working on controlling the traffic sources, but Im doing better than ever... and I did very well just being an affiliate when I was one.

    Yes you can make a lot of money, but you never know when the "gig is up" if you are "just an affiliate" in the sense everyone thinks of.

    .
     
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  20. shubham525
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    Affiliate is good , but it hurts when the campaign you have been working for years gets pulled down in an instant.

    Like the case of Flipkart in India.
     
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    MJ's advice is wise.

    And it reminds me of what marketing expert Dan Kennedy says, "The worst number in business is one!"

    In other words, reliance on just one customer/client, marketing or advertising method, prospect, employee, product/service, skill, etc.

    If any problem comes along that wipes out your one whatever, you’re toast, or in deep trouble.

    Simple but valuable lesson.
     

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