Why focusing your business on affiliates programs is sometimes a dumb idea

Having your business based on money received from affiliates programs is not a very smart idea. Because is not sustainable in time and the benefits are hundreds times less a real business. So, the opportunity costs that you miss by focusing on affiliates are very high. Let me demonstrate: Affiliate program: You deliver a sell, you get a commission.  Next time, the buyer goes directly to the seller, not to you (he interacted with him, he paid to him, he received the product with his name on it, he has the client service programs, he entered in his newsletter database, etc, etc). There is no Life Time Value for you, the affiliate (most of the times), only for the seller. And if there are repeated purchases, let’s say, 100 times, you only get comission for the first one (most of the times) Extra, a happy client will become a brand ambassador for the seller, (maybe less for inflatables women and other “shame products”). And, let’s say if the seller’s client brings another 5 clients of the same value as his, that means, you’ll get commission for one sale, while you’ll generate 100 + 500 = 600 sales for the seller. So, you’ll get 1 of 600 sales! Indeed, there are domains where you’ll get affiliate commission for lifetime (like gambling industry). But there are few and most of them unreliable. Not to mention that you’ll get no brand ambassador benefits. Players will recommend the seller service to the other players, not the affiliate business. Also, there are a lot of dropship options. Unfortunately, most of them are crooks. And...

Ferseta’s Law on e-Marketing Projects

After working on tons of e-marketing projects, more simple or more complicated, this morning I generated a theory, a law, very much likes Murphy’s ones 🙂 Ferseta’s Law on e-Marketing Projects For every degree of complexiness for 100% increase, following things usually happens: – Duration of an e-marketing project is increasing with 200% times (more discussions, more approvals, more people involved from the client side, less efficiency, more bureaucracy, more “ass-covering” activities); – The client’s cost expectations increases with 90%  (more work means you should give a discount, isn’t it right?), – The development costs increases 150% (especially if things are not very clearly defined at the beginning) – The developer frustration increase with 400% (especially if the client is not planning perfectly and changes his mind – as George Pogorelschi says: PPPPP. Perfect Planning Prevents Pathetic Performance. More “ping-pong” gets a lot of frustration, even the extra work is paid. Conclusions for Ferseta Law on e-Marketing Projects: Planning is very good! Standardization is very...

What do you do on May 1st? Quick poll

Our friends, the Enescu Family from CaseFaraIntermediari.ro (“Homes without middle men” in free translation) are running a quick poll of 5 questions, regarding your going out habits this years’ May 1st. It would be nice to find out the results. 🙂 My guess: middle men are going away into history. So, here it is: poll...

Excellent business growth idea. Anyone interested?

In the past months, I received some very interesting cooperation proposals, from Romania and USA, that I must say they really works. Join some “360 degrees offering groups”. What are those? An association between complementary businesses that goes to a client with a complete offer. So, Ferseta e-Consulting Cabinet (offering e-marketing services) + a PR company + a print company + a BTL company +… = LOVE. Benefits: 0. Not loose potential business Usually clients asks: “Do you know somebody that does X?” If you say NO, and your competitor say YES, it’s a big chance that your client will choose an integrated offer. This is a fact. 1. more clients for everybody When I go a to client helping him with my e-marketing services, I represent also sales force for the rest of the guys. We know that we work better together, we have synergies, we have a more competitive price package. 2. more exposure Yes, your brand is on more peoples lips. So, if you are 5 companies in this group, that makes you 400% more efficient and more prone to get businesses. 3. more value transfer between brands If I recommend something, people knows that is reliable. My brand is too important to mess it up, so my recommendation provides added value to the brands of my partners. Same from their part. 4. better fighting chances with big media groups! Actually, this is a major trigger for most of print companies. Several years ago they had huge sales. Now, a big client (a multinational, let’s say), when it goes to a client, it goes with full...
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