“The first generation of this capability looks like the popular “affiliate” programs – a must for expanding reach in online marketing. But the next generation will consist of electronic trading hubs that offer a range of outsourced ebusiness services, still possible to assemble in hours or days.” – Walid Mougayar, Business 2.0, regarding networks and their affiliates
Next Generation E-Conomics
Walid Mougayar hit the nail smack on the head with that one. Affiliate marketing is in significant transition, and the gap between the two phases is where the crux of the matter lays. Collective revenues are growing, but the industry itself is plagued by a lack of broader, intellectual leadership. There is limited energy being invested in new theoretical visions that will provide long term direction.
Part of the problem comes from the inherently myopic, “fast money” mentality espoused by many affiliate programs, but it certainly isn’t the only cause. There are a lot of straight legitimate networks trying to do the right thing by their customers, and giving their utmost to keep the industry clean.
The real problem is that people in the industry seem to be locked in a kind of intellectual brain freeze, too busy with the minutiae to see a bigger picture. The dialogue is set to auto-repeat. “Make money now”. “We’re better than those guys”. “Do it with these fantastic tools”, etc. etc. Basically there’s a battle going on between the quickness and the quality of the business, and for the most part the speed seems to be winning out.
Time for a change…
And The Demon Is? Speed
Back in the day in 1920’s Italy, a group of crazy philosophers, poets, artists, and political revolutionaries called The Futurists prophesied that the direction of the modern world was about one thing and one thing only: Speed. And so far, when it comes to technology at least, they’ve been spot on. Entire affiliate networks pop up (and disappear) in a single day. New features, products, offers, services and e-functions are lighting up our collective consciousness like millions of fireflies, every day and night.
And frankly, who’s to argue that this technological speed isn’t great? It means things are happening, things are getting done, people are innovating. New and exciting things keep arising in the amazing world of cyberspace. Fresh developments and innovations getting implemented at laser velocity. The only thing is, speed can also kill. Networks can move so fast that it ends up being detrimental to their structural integrity. They lose sight of building solid infrastructure and fail because they aren’t around long enough to play the part.
When it comes right down to it, the whole world of online business is like walking a razor’s edge. E-marketers want their business up and running ASAP, making profits right away, but if they spring too fast their strategy is often unsound and their career shelf-life gets cut as short as a basket of hot strawberries.
Q. What is the anti-dote to this almighty fascination with speed?
A. The next generation in affiliate marketing.
Pumping The Breaks On Compulsive Speed
While there’s no doubt technological speed is and should be the means to reach the most desirable end-game (online marketing is tech-based after all, and its purpose is to generate revenue faster than traditional means), there still needs to be more well thought-out, academic, intellectual, and long-term strategy type thought-leaders that are actively looking beyond just the bare mechanics of e-commerce, and uncovering a broader view on issues of online business. A kind of watchdog group keeping their eye on the voracious nature of the archetypal business mind.
Right now readers can find a wealth of insight on the micro-mechanics of affiliate marketing. How to construct and run PPC campaigns, AdWords accounts, content network campaigns and so on; yet very little of it explains how these mechanics fit into the larger economic macrocosm.
For anyone new to affiliate marketing, they probably find all the minutiae a little bit confusing and boring. They probably want to stick their heads above the clouds and see what affiliate marketing is all about in the grander scheme of things. They want vision and conceptual analysis and a broader frame of reference.
Whether pundits and cyber-warriors in the field are talking about black hat or white hat tactics, there’s no doubt affiliate marketing can’t keep going on with this speed obsessed, micro-sighted way. We need a sea change. It’s inevitable. The current model is too one dimensional. The industry has matured and is now hankering for a new set of rules.
So who will bring this change to fruition?
While affiliate marketing will no doubt continue to see the rise and fall of quick fix networks, the people that are in it for the long haul, who want to build solid business relationships and revenue streams with awesome longevity, will ultimately be the ones who have to lead the way in defining what is truly possible in the brave new world of affiliated online commerce.
To Bring Change, First Know The Ley Of The Land
The current landscape of affiliate marketing is basically made up of networks, affiliates, merchants/publishers, and online consumers. Government and the courts have started to take a more active role of late, but the vast majority of daily goings on involve these four groups exclusively.
Networks themselves are neo-corporate organisms. They’re comprised of highly-skilled business and tech development professionals who find themselves in the challenging position of “middle man.” De facto, they’re at the beck and call of high-powered affiliates, who are the star athletes of the affiliate world. Publishers exert considerable power as well, especially when it comes to the ways affiliates promote their products and offers.
Affiliate networks as they are today originally arose of out necessity, that proverbial mother of invention. As Mougayar puts it, they were “a must for expanding reach in online marketing.” If you were a scientist studying the online business world as if it were growing in a petrie dish, you would probably call affiliate networks “enzymes” (a.k.a. catalysts) for the growth and extension of e-commerce’s neural pathways.
So if affiliate networks are so important, why have they historically sat in the backseat? This question bring us to the type of change the industry needs. There’s a simple answer to that. Affiliate networks have not historically taken the lead. What the industry needs now is networks to act like they’re the kings.
A Radical New Notion That Isn’t As Radical As It Seems
If affiliate marketing is going to fully realize all its immense potential, it’s the affiliate networks themselves that will have to take the reins. Affiliate networks can no longer simply sit back and react to the needs of their affiliate and merchant members. They have to act. They have to anticipate.
While it may have been necessary for networks to take a more passive approach during the early phase of affiliate marketing in order to provide the organizational base for future market expansion, now is time for the next phase. Now is the time for affiliate networks to wake up and turn up their game. They simple have to be more proactive, anticipate needs and provide solutions, while looking deep into the future of the industry.
Be The Change You Want To Make
So what exactly does the future of affiliate marketing look like? Let’s revisit our quote.
“But the next generation will consist of electronic trading hubs that offer a range of outsourced ebusiness services, still possible to assemble in hours or days.”
Shazam. That’s the simplest answer, deftly rendered. It states that affiliate marketing is coming in the from the perimeter and merging with the rest of the mainstream e-commerce world. Until now, it’s been the Internet’s naughty little stepchild. However, networks that begin to see themselves as more than just networks, as hubs for a variety of essential e-commerce services, will begin to change that nasty stereotype and become the future ambassadors of the affiliate and online marketing world.
Providing added services is the key to this strategic change. Secure and conversion-optimized payment processing systems, independent marketing services that supply strategy and ad creative, plus staple affiliate network services such as analytics and incentives. All of this is where it’s at in terms of strategic leadership in affiliate marketing today. The recognition that e-commerce is far larger than just AdWords, CPA, and PPC.
By diversifying the services they offer, and building themselves up as e-commerce hubs rather than simply obedient messengers caught between affiliates and merchants and consumer needs, networks will be able to take the lead. They will be able give the industry some much needed deeper theoretical vision, while opening up their doors to a whole new consumer base of affiliate marketers and traditional online markets a like.
