Andy Black
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The downside to PPC arbitrage or direct affiliate marketing is that you're cracking open the champagne and celebrating when visitors LEAVE your website.
It can be a quick way to build capital, learn traffic acquisition skills, and buy data about demand and supply.
'The Purpose of a Business is to Create a Customer'
(Peter Drucker)
Who is your customer when you're converting your visitors into someone else's customers?
I've worked for companies doing the PPC arbitrage and affiliate marketing on massive scales. The problem with them all is that they can't get out of that mindset. They are so busy making cash, that they don't build customers.
The problem with being an affiliate is that Google for one will hate you, so your traffic source can be turned off instantly (ask me how I know). The other problem with being an affiliate is that the offer you've worked for months getting profitable can be pulled in an instant. So no control either end.
The other BIG problem for you is that your average visitor life-time-value (LTV) sucks compared to the competition. Unless you're being smart about it, you're not building a list that you can sell to repeatedly. So your earning-per-click (EPC) is rubbish compared to businesses that can. So you can't bid much. So you get minimal traffic. You're then living off scraps that fall off the table. The only way to make it work is to get super good at PPC, and scale to hell.
There's benefits alright, if you know what you're doing, and for the data you acquire, but by the time you've skilled up, you would have built a proper business anyway.
It's the difference between building a business with foundations, or building a cash making machine on sand.
I liken the allure of PPC arbitrage and (direct) affiliate marketing to going to Vegas and playing the slot machines to make extra cash.
What's the worst thing that could happen to you if you started on the slot machines?
You could win.
You might make $1k a day profit. You might get a bigger mortgage, a bigger car, bigger credit cards, and a bigger lifestyle.
Then what would happen?
You could end up losing more than you have now.
It can be a quick way to build capital, learn traffic acquisition skills, and buy data about demand and supply.
'The Purpose of a Business is to Create a Customer'
(Peter Drucker)
Who is your customer when you're converting your visitors into someone else's customers?
I've worked for companies doing the PPC arbitrage and affiliate marketing on massive scales. The problem with them all is that they can't get out of that mindset. They are so busy making cash, that they don't build customers.
The problem with being an affiliate is that Google for one will hate you, so your traffic source can be turned off instantly (ask me how I know). The other problem with being an affiliate is that the offer you've worked for months getting profitable can be pulled in an instant. So no control either end.
The other BIG problem for you is that your average visitor life-time-value (LTV) sucks compared to the competition. Unless you're being smart about it, you're not building a list that you can sell to repeatedly. So your earning-per-click (EPC) is rubbish compared to businesses that can. So you can't bid much. So you get minimal traffic. You're then living off scraps that fall off the table. The only way to make it work is to get super good at PPC, and scale to hell.
There's benefits alright, if you know what you're doing, and for the data you acquire, but by the time you've skilled up, you would have built a proper business anyway.
It's the difference between building a business with foundations, or building a cash making machine on sand.
I liken the allure of PPC arbitrage and (direct) affiliate marketing to going to Vegas and playing the slot machines to make extra cash.
What's the worst thing that could happen to you if you started on the slot machines?
You could win.
You might make $1k a day profit. You might get a bigger mortgage, a bigger car, bigger credit cards, and a bigger lifestyle.
Then what would happen?
You could end up losing more than you have now.
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