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Does Affiliate Marketing Still Work in 2020? Here’s My Raw Opinion

Does Affiliate Marketing Still Work in 2020? Here’s My Raw Opinion


hey what’s up my friend calc and I here
and in this video you know we’re gonna be talking about you know is affiliate
marketing still relevant in 2020 and for that matter relevant in 2020 and beyond
so before I give you kind of my final answer on this I’ve got a few things
that I think that are important to cover right now I’ve got a few notes on my
computer so you can see it may see me glance down from time to time so forgive
me on that so the first thing I would say is that there are some very
important changes taking place in the market place and probably one of those
bigger the biggest changes is that the cost of advertising are increasing right
so it’s not that long ago just a few years ago the majority of the people
that were buying ads on sites like Facebook YouTube Twitter Google and a
plethora of others right for that matter the majority of those were affiliate
marketers or solopreneurs digital marketers that were promoting their own
products whatever right what have you however over the last few years I’d say
maybe over the last five or six years we’ve seen an increasing amount of
larger brands taking to social media and taking a social media advertising as a
means of expanding their brand message now these big brands have enormous
budgets right so they’re buying up the majority of the inventory that’s
available on these platforms which means that with their giant budgets they’re
able to kind of in a way squeeze out the little guy right it’s no so it should be
known news to anyone that CPMs have gone up the cost per click has gone up you
know the cost per lead has gone up on these platforms over time it’s not that
long ago that you know I was getting 15 cent 18 cent 20 cent leads off of
Facebook which would now be $2 or more okay so because big brands are moving
into the space because more and more people are opening up to the idea of
digital marketing the inventory is going faster there is a finite amount of ad
inventory on any of those platforms and for it’s just the the age-old law of
economics right supply and demand there is a finite supply and as demand
increases costs will rise to meet that demand and weed out the people that are
not able to compete effectively in the marketplace now with that said I still
have friends that are doing remarkably well as affiliate marketers as I’m
shooting this video right now just last week Affiliate Summit West was out here
in Las Vegas and I was hanging out with some of the best of the best in the
industry when it comes to affiliate marketing I was having over over dinner
and drinks one night I was having a conversation with a buddy of mine he is
still today selling thousands of physical products per day with very slim
margins of twenty thirty maybe forty dollars of commission that he gets on
selling most products he still has a team of seven media
buyers they’re still profitable every day spending tens of thousands of
dollars on ads and earning tens of thousands of dollars more in other words
you know spending a little bit on advertising right sending it to an offer
people are buying that offer they’re earning a commission that’s basically
affiliate marketing he’s still doing that to the tune of thousands of units
per day so obviously it’s not impossible now I think that here is the thing
that’s going to be the most important is that when competition increases right
the the need or necessity for an affiliate marketer to become a master of
their craft is going to increase in order to compete effectively in the
marketplace that means that the the need to become a phenomenal media buyer right
and all of the things that go along with media buying targeting analytics
adjustments creatives basically just being that data-driven decision making
that helps a media bar buyer succeed in the game of arbitrage which has spend
this much to acquire this much right those skills are going to become more
and more important it’s not that long ago that you know as an affiliate
marketer when I was getting started I would show a few friends a few quick
little thing and they would take to Facebook and
start making money right away those days are probably behind us right so there’s
an ever greater need for those who want to compete in the space to continue to
become a master of their craft right on top of that it’s not just media buying
it’s things like copywriting and influence right the ability to influence
somebody with the written word or with a spoken word it through an ad creative
that’s going to actually help them make the decision to buy right and influence
their decision making process so with all of that said I here’s what what else
I know all uh maybe not all but a vast majority of the world’s biggest brands
are also incorporating affiliate marketing into their business model
right Amazon you can become an affiliate of Amazon and sell Jesus every product
known to man at this point on that website brands like BestBuy Macy’s
Nordstrom there’s a host of others very very large brand names that still rely
on affiliate marketing as part of their models so as for some portion of the
revenue so I don’t think that the affiliate marketing game is going
anywhere the good news is that yes it’s still relevant in 2020 yes I see it
being relevant over the next five to ten years for sure quite possibly longer but
it does mean that we are going to need to hone in those skills in order to
compete effectively in the marketplace now one advantage that a beginner will
have or might utilize is maybe potentially considering selling high
ticket offers versus you know sub hundred-dollar offers right so when I
say high ticket I’m talking about products that you can sell or promote
that are $500 or $1,000 or more and pay commissions of 500 to a thousand dollars
or more and the reason for that is very simple we are playing the game of
arbitrage right we pay this much – we pay X amount of dollars to get somebody
to click on an ad and for every click we earn X amount of dollars on average when
they buy something and hope that you know that amount is larger
right that is arbitrage so the difference between the cost of the click
and the value of that click would be arbitrage or the cost of the lead versus
the value of the lead arbitrage so if we’re gonna play the arbitrage game then
obviously the higher the margin or the higher the earnings that you’re able to
earn as an affiliate the greater the likelihood that you will that your
campaign will be profitable which means that you have essentially the ability to
make more mistakes out of the gate right so if I’m just getting started and I’m
completely brand-new let’s say and I’m you know I have in let’s say a monthly
advertising budget of $500 okay and I can sell $100 item and for every $100
product I sell I make 50 bucks or I can sell $1000 item and for every thousand
dollar item I sell I can make $500 assuming that all other things are equal
I will I have the likelihood of making that ad campaign profitable is greater
if I can earn more money per sale now some people tend to think of course
newbies tend to think well it’s a hunter it’s $100 product versus a $1000 product
you know it’s 10 times the cost that’s gonna be 10 times harder to sale no it’s
not you’re right there is a 10 times greater price and therefore a 10 times
greater Commission but the difficulty of selling a product that is 10 times more
is actually disproportionate meaning it’s usually not in my experience to
sell a product that is 10 times price higher in price is not 10 times more
difficult meaning I don’t need to get 10 times as many leads or 10 times as many
clicks to make that happen that’s simply not the case
especially as I contend you get better and better at those skills so if all
things being equal if I’ve got the equal amount of skill set in the equal budget
and I have the different I have the opportunity to sell a $100 product for
$50 Commission or $1000 product for $500 Commission and all likelihood as a
beginner I’m going to be better off trying to sell that thousand dollar
product for a 500 dollar Commission because that means I can spend my whole
monthly budget just to break even whereas the person who is just getting
started is maybe not the best at media buying not the best at copywriting not
the best of influence not the best at the data and analytics they have to the
for every hundred I’m sorry for every fifty dollars they spend they have to
make a sale and in order to break even and that’s gonna be a lot harder to do
in my experience so let’s go ahead and wrap up right is affiliate marketing
relevant in 2020 I say absolutely yes will it be relevant going forth fruit
from here I don’t see any reason why it wouldn’t now with that said just like
any marketplace that’s new a few new years ago as this was newer the the the
bar was set a bit lower as that marketplace continues to evolve and
become more and more advanced the mark the competition that marketplace is
going to increase which means that the the need for beginners or people who are
entering the marketplace are gonna have to have an increased emphasis on
becoming a master of their craft which should go without saying right everybody
wants to make master level money it’s just that most people don’t want to
become a master of anything so there’s gonna be an emphasis on becoming a
master of your craft which again should go without saying and with big brands
and everybody and and big budgets moving into the space and also relying on
affiliate marketing I see that that’s going I believe that’s gonna continue to
be valid so beginners though if they want to have an edge in the marketplace
they should probably focus on maybe getting started by selling higher ticket
items that offer a higher high ticket Commission because those sorts of items
will help them liquidate their ad spend even sooner we at full stack marketer we
have a high ticket affiliate offer as well we’re not normally taking
affiliates from outside of our ecosystem we don’t normally have an open
enrollment but if that is available that there may be a link somewhere around
this video in the description somewhere that you’ll be able to click on and go
/ and learn more about our affiliate program again we don’t tend to to leave
that open very often but if you’d like to inquire you can do so if there is a
link somewhere around this video so I hope you got value out of this video go
ahead and click the subscribe button drop a comment let us know what you
think and I look forward to seeing you in another video
take care you

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