You want more predictions? You got more predictions.
To recap, Prediction #1: The end of the BS. Prediction #2: The year of Systems. Prediction #3: Digital marketplaces.
So here it is, my fourth prediction for 2012 in the world for information marketing…
THE DEATH OF AFFILIATE MARKETING
Ok, maybe the word “death” is too strong, but by the end of 2012, the “affiliate” landscape will look much different.
Here are the reasons behind my prediction…
REASON #1: Too Much Competition
It’s becoming too competitive to earn a decent income as a pure affiliate. Too much competition. And there are only a handful of really smart “stealth” affiliates who get it. They dominate PPC and banner buys.
Plus, the affiliates who make A LOT of money, in general, do things you might not feel comfortable doing. Shady, “black hat” stuff.
I met one affiliate who promotes scams on Google using Adwords. Once google catches on, they shut him down. Then, he literally throws away his computers, buys new ones and gets new credit cards to run the ads again. Rinse and repeat.
Seriously – that is his business model. He told me right to my face.
THESE are the people you are competing against – and it’s a game that’s hard to win.
REASON #2: Merchants Are More Selective
Since the FTC changed it’s rules and literally holds the merchant responsible for their affiliate’s actions, many reputable merchants are becoming more and more selective of who they let into their affiliate program.
Even on Clickbank, you’ll see more publishers “whitelisting” their affiliate programs to only let qualified affiliates promote their programs.
So, unless you have a good reputation online, it will become more difficult in the near future to promote good products with high conversions and low refunds.
BUT.. YOU CAN STILL PROFIT
This is why building your own personal brand is so important in 2012 and beyond.
If you have a relationship with your list. And a blog that is getting traction… then you will continue to have more and more opportunities to profit.
Merchants will seek YOU out. Not only for affiliate commissions, but for advertising and sponsorships too!
And don’t forget, you can also create your OWN products as well (yes, I love creating products!).
The days of just “promoting” other affiliate programs and doing some black-hat SEO stuff are slowly coming to an end. The door is still open, but it won’t be for long.
The SMART entrepreneurs who will not only survive the shakeout – but also THRIVE will be the one’s doing it the right way.
Again, it comes down to building relationships, building trust and putting out compelling content.
Then, you can pack a webinar with 100 or even 1,000 people to promote a product you believe in.
If you want to look at people who are doing it on a BIG scale. People like Gary Vaynerchuk and Tim Ferriss – they are not slumming it by constantly hawking affiliate products and living launch to launch. They are building rock-solid relationships with passionate content.
Believe me, this year is going to change a lot of what we know about “internet marketing”.
QUESTIONS? AGREE? DISAGREE?
AM I FULL OF SH*T? POST YOUR COMMENTS BELOW!
P.S. Yes! If you want to really make it big in 2012, this will be the ONLY resource you need.
Passionate content is the key sir! Well played, thanks for these posts! Keep spitting them out, its my gospel!
Thank you Ryan.
And yes, I will continue to spit these out on a regular basis :)
Ryan
Just learning the ropes…I am sincerely grateful to have someone like Ryan Lee on the other end guiding me!!!
Hey Ryan those guys never seem to go away.
In fact I LOVE that they haven’t because I have build a 6 figure business differentiating from “them” and the funny part?? I don’t even call my self a “Affiliate marketer” but I do make a sizable income from it.
they just buying from “Good Ole Darren”
Or as my code name is from your Las Vegas event… “Sexual Chocolate” LOL
You are right Darren – they will always be around.
You’ve been crushing it, build your brand and doing it the right way.
I can’t wait to see what “Sexual Chocolate” has cooking in 2012…
Ryan
sexual chocolate
sounds like a very successful business name/model!
luscious.
Thanks Ryan I am working HARD up in here up in here… goin NANO soon!
Yeah, but you also pump out lots of products yourself Darren-good sir! haha
I’m glad I got to meet you at Ryan’s event… and that you only promote products you believe in.
The only question for anyone is how many promotions are too many. I find myself opening fewer and fewer emails, sticking with content over promotion…
Ryan,
This is VERY helpful info since I am getting closer to working out some relationships with my affiliates. I appreciate you saying we should be careful as to whom we allow to be our affiliates. It’s sort of like deciding who you want for a client. No trouble makers allowed. You don’t want someone with low integrity or shady practices promoting your stuff. It will make you look bad in the long run.
Glad you saw the “Tree.” When your kids are older we want to see pictures of them skating!
All the very best to you and your family for Hanukkah.
Hey James,
You have to be VERY careful.
A few of my friends have received letters from attorneys because of what their AFFILIATE did. And it didn’t matter – they still had to pay!
Ryan
Hi Ryan,
Based on your ryan lee method I am choosing my niche to be ‘social skills for IT professionals on how to be more powerful around people’
going to do some market testing and see what happens.
What say you sir?
Hey Atiff,
I’m not sure they are looking for “social skills” and “how to be more powerful”.
Go deeper than that.
What do better social skills lead to?
More money? Better job? Girlfriend?
Ryan
Couldn’t have said this better!
Franck
Thank you Franck!
Ryan
The other problem is many people simply have rubbish products or ones way past their sell by date. They are opportunists looking for their next money fix! Strategists and long term quality givers will get the most in return and stay for long haul.
Lastly, Happy Christmas ;-)
Very true Ian.
They are desperate to make a buck – and they don’t care who they sell it to.
Ryan
Personal Branding! Keeps you ethical,(hopefully) keeps you honest with your list/people and puts you in a position to build long term relationships with your people. It’s a win/win!
We should never forget there is a person on the other end of that digital connection. Someone like each of us who want to build an honest, reputable business online.
Helping people help themselves!
Hey Bret,
I’m with you 100%.
I’m a HUGE fan of personal branding – and it’s the future of marketing.
Ryan
Right on Ryan. It’s all about transperancy and being a trusted personality in your business. Look at Lifelock. The owner literally gives out his social security number to prove his stuff works.
I’m not saying that we should overly publish our personal life but consumers are looking for connection and transperancy.
Alex
Hey Alex,
When you follow the steps, it does take more time, but the results are undeniable.
Ryan
Personally am just fed up with all the S#it out there! Especially in the IM Space!
At least guys like Ryan teach it how it is, rather than flash some fake clickbank screen shots and promise the world before delivering nonsense.
2012 is going to be an interesting one for sure!
Thanks Stuart.
There is certainly enough sh*t in the IM space to last a lifetime. But I do believe it will get better. They have no choice – because people are already not buying as much.
Ryan
Thanks for the post Ryan, I’m glad to know things are going this way – this will be much better all in all!
BB
You are welcome Beverly – and it’s definitely going this route!
Ryan
Ryan,
Well said: “Again, it comes down to building relationships, building trust and putting out compelling content”. It’s about relationships and creating your own material as well. I believe that creating your own products as well as promoting it with Adwords WILL ALSO REALLY be key in 2012 and beyond. Whilel I am here, I’d like to see a post or a link if already done in the past regarding newsletters. I had hammered through my head that EVERYONE needs an offline newsletter to survive. As a matter of fact it was one of your earlier posts that spoke of the starting price to be $4.95. I started mine in September and it’s holding up as far as membership goes. I have some few ideas to help the membership grow over the next year. Maybe that can be your prediction #5? Starting a newsletter….. Thanks for all the info on your blog Ryan. It is tremendously helpful.
Hey Edwin,
It’s funny you mention PRINT newsletter.
I’m going to cover that topic shortly…
Ryan
I can see the desperation in many of the IM ‘newsletters’ I get. I also know from a few that they are losing people from their list faster than before.
As you said Ryan, people are becoming more aware of IM practices, and noobies are learning more quickly.
The good news is that there will always be opportunities if you have a brand and care about your customers.
Hey Quentin,
Yes, they are getting very desperate. Grasping at straws.
And believe me, they are really pissed at me too. Especially when I review their product and tell them I simply can’t promote it to my list.
The shift is happening…
Ryan
This post is right on target. It’s not about who we aren’t (affiliate programs) but who we are (personal branding and products with *real* and original content). Excellent.
Thank Sean!
Personal branding will continue to set the stage…
Ryan
Great stuff here Ryan and I agree completely. One item to add to your affiliate prediction is that serious affiliates are going to need to begin running themselves more like a “business” than promotion which will require them to have, dare I say, CUSTOMER SUPPORT via phone and email — even for the products they promote from other marketers.
Hey Brian,
I was blown away with what you shared with me in Vegas.
I can’t wait to reconnect and dig in more to your model!
Ryan
very nice. post.
Affiliate marketing should die..(my opinion) but..will see
I wouldn’t say it should “die” – it’s just changing with the times.
The idea of affiliate marketing is brilliant, but something went wrong along the way…
Ryan
Really enjoying these predictions Ryan! It is sad to think that in 2012 a lot of newbies are going to come into the online world to be affiliates and be mis-led by purchasing lots of “wso’s” with the same outdated “promote promote promote!” practices that are going south.
On another subject that you mentioned, I love creating products too! I love the sound my computer makes when new sales come in, because it feels good to know that I am providing something that people feel is valuable and helpful enough to invest their hard earned money.
I know that I put my best effort into providing them with something truly valuable and helpful. I don’t know how some of those guys sleep at night knowing that they “persuaded” someone to spend their hard earned money on crappy products…
I tell ya, after 6-7 years of selling my own products online, that great feeling of serving someone and getting testimonials seems to never get old!
Completely agree
This year will be all about getting real and building your tribe
a lot more regulation will be out and i love it, it will force a majority to be ethical and play the game the way its supposed to be, and make it harder for scammers or peps trying to make a quick buck
Great predictions Ryan!
Very famous predictions! Thanks for all of your value and support.
Ryan,
Honesty, integrity and leadership.
These words come to mind with this post.
Honesty /transparency in who you are.
Integrity with over delivering in products.
Leading or blazing the trail that takes guts and courage!
Awesome!
Thaks again for your daily reminder.
So Ryan, do you think that recorded webinars have any future in affiliate marketing?
Death to [in this case] “Affiliate Marketing”. Long live affiliate marketing.
Evolution is a constant. The smart will survive. Those gaming the system only do so for so long. Long term success depends on much more. The gem here, IMO, is the emphasis on relationships. This is much more scalable than replacing equipment and other subversive tactics.
Thanks for the good points and reminder.
Ryan – New here from your interview over at Wishlist Member. I wasn’t sure if I was going to be comfortable with your marketing tactics, but I’m delighted to see your stance on affiliate marketing. I have a disclosure statement on my website that I don’t accept advertising, affiliates, sponsorships, or free products for review. I own an online social media training site for small business owners, and my relationship with my customers is paramount. They need to know THEY ARE #1 and can trust my advice and recommendations.
Amen brother! I think you’re pretty spot on with this prediction. Given that affiliate marketing is so “easy”, many affiliates tend to focus on the short-dollar while whoring out their lists instead of realizing that an affiliate offer is an implied endorsement. So, for the many affiliates shamelessly promoting shoddy offers … well, their reputation will follow.