If you have read any of my blog by now you know I always compare the online world to the brick and mortar world. There are very fundamental, established, and sustainable concepts/commerce in brick and mortar. When trying to understand what is real and what is a trend in the online sector- I often go back to the basics.
Warren Buffet says he will not invest in technology. I think in his entire portfolio he has two stocks in technology… and this comes from a man who is best friends with Bill Gates. The example he often uses is the emergence of commercial airlines in 1953. He knew that commercial airlines were the wave of the future and not going away any time soon. He wouldn’t invest in them because it was a new business and he couldn’t decipher between the 200+ airlines that quickly arose which one to invest in. As it turns out- he played the odds right. Only two of the original commercial airline companies exist today. He had less than a 1 percent chance of picking the correct one.
Now, take all the technology/innovation that has transpired since he started investing- and he has not invested in a single tech stock until he felt the industry had stabilized… and- as a result he was the wealthiest man in the world. Sure, there were a few people who invested in the correct airline stock and got lucky- but none of them were the richest man in the world.
Now- let’s tie this back to us. A version of affiliate marketing is very prevalent in brick and mortar commerce. Almost every single product (Nike, Kimberly Clark, Pfizer) has a distribution channel that includes using middlemen to get their goods in the hands of the consumer. Despite Google Slaps, Email regulations, CPM disappearance- online affiliate marketing is not going away because it is an established commerce and one that is very needed. The online world is currently working counter intuitively against affiliates- and it is up to you, the affiliate, to right the ship. The time to complain about the market changes is over- and now you need to adapt- so that you can be the one who sustains time.
While all of your competitors are giving up, crying in their soup, moving on to different pastures- this is your opportunity to kick ass. Warren Buffet won’t bet on new technology because he anticipates market changes, external occurrences are going to eliminate most companies… and his predictions are usually right and he has made a fortune that way. However, just like airplanes- affiliate marketing is here to stay and there will be companies who sustain and dominate. I challenge you to be that affiliate and not give up and take the easier path.
Affiliates- this is nothing new to you. You are pioneers. You adjust to the market dynamics. You are your own boss. This online commerce didn’t even exist prominently more than 10 years ago- you can’t be too stuck in your ways. Despite everything that is happening in the market- it is your time to rise to the top.
If you create value- the consumers will find you. There will be a way to market the goods you represent. You work in technology- you have to expect that you are going to need to make changes on a regular basis. Friends- the day is today.
Take care. Good luck, Paul Moss