Archive for social media

27 Dec 2008

Confessions of an Affiliate Marketer

15 Comments affiliate marketing, outdoor activities, promoting yourself, social media, Stand Up for the Little Guy

I have to admit– the restaurants, hotel suites, and first class flights are nice.  It’s even nicer to be able to tell folks about it, since you’re getting twice the benefit (enjoying plus telling).  Is there anything wrong with wanting to enjoy the good life?  Does that make me evil or greedy?  Hey, you only live once.

pimp1 And as for showing off, isn’t that part of the game?  Just look at the food pictures that JohnChow.com takes or the lifestyles that other affiliates openly broadcast to the world.  In fact, I think it’s a legitimate business expense. My business as an affiliate marketer and ability to broker deals is largely based on my reputation.  Thus, when folks gossip about my lifestyle, I consider it to be free PR.  And it’s better than paid advertising– it’s more believable.   And why not take friends out to nice places?   You’re building relationships, plus they’ll return the favor to you.

But now that I’ve created a “baller” reputation, I’ve had to strive hard to maintain it, even when I’m broke.  The reason I fly first class now is that I’m afraid of someone seeing me fly coach.  Yeah, the seat is bigger and the food is much better.  But really, if someone who knows me happens to see me in coach, my reputation will be ruined.  They will go and tell everyone.  Plus, I’ll have less to talk about when I’m hanging around other affiliates that I’m trying to impress.  I might even be made fun of or folks might not think that I’m a serious player in business.  They’ll think that I’m just fronting.

The nice thing about affiliate marketing is that I can avoid discussion of what I actually do.  Obviously, because of my lifestyle, I “must” be successful.  But what offers am I running, how do I get that traffic, what’s my payout, do I actually have any true expertise– those questions will remain unanswered.  Of course, I’m not going to tell you– that’s how I make money and I’m not about to broadcast my secrets to the world, you understand?  If I was doing agency-level work, such as had clients, then you could look at the clients I have and evaluate my work and that of my “team”.

But I am a one-man promotional vehicle.  My “team” consists of loose relationships with other affiliate marketers and some contract Indians I once hired on a job board.  I actually have no operating or project management expertise.  In fact, I don’t understand the basic differences between personal and corporate finance– I run them all under my personal bank account, which gets me into trouble with the IRS.  But if you ask me, I will deny any problems.  My ego and image is priority #1.  Everyone else is boasting about their earnings that don’t exist, so this is just part of the game. And was with any game, you do whatever it takes to win.  All is fair in love and war and affiliate marketing.

Maintaining my front is getting increasingly difficult. Bernard Madoff was able to keep it going for 4 years before being found out a couple weeks ago.  Reed Slatkin, one of the other larger Ponzi frauds in history, was able to keep it going for 15 years.  But what you don’t know won’t hurt you.  Like they say– if you got it, flaunt it.  Or as Mark Twain would say, “The secret to success is to be genuine– fake that, and you’ve got it made.”

People, this is the American dream.  We know that Hollywood actors are just pretending and nobody has a problem with that. And nobody thinks twice about how most marketing is just thinly veiled lies about whether that attractive young lady will actually have sex with you holding that particular brand of beer, or whether a certain diet supplement will really make you attractive or increase/decrease a particular body part’s size. Hey– want to lose weight quickly, by the way?

There’s a sucker born every minute, so if it isn’t me selling you those items, it will be someone else. Caveat emptor (or “buyer beware” for those of you who don’t know Latin).  If you’re dumb enough to fall for these marketing tricks, then you deserve to have your money taken from you.  I don’t have time to discuss the difference between ethical and legal.  I follow the Golden Rule– whoever has the gold, makes the rules. Did I mention–there’s money to be made!  I’ll steal from you, too, if you’re dumb enough to be taken.  And what do you call a dumb criminal?  One that gets caught.

Do you know me? Is this you?

26 Dec 2008

Facebook’s monetization strategy

7 Comments social media

dd If Facebook were to charge their 50 million uniques just $2 a month for membership, they would instantly become a billion dollar business.  While you as a user might not like the idea of having to pay, given that you’ve invested so much time on the site and that your friends are there, would you really want to have to re-enter all your information somewhere else?

So the hypothetical question is– what percentage of Facebook users would just leave versus having to pay.  And what share of high school and college kids don’t have credit cards, which would then require a mobile payment gateway (stick it on your phone bill, just like ringtones).  We know that mobile payment is a highly viable option, given that I personally know affiliate marketers who have made tens of millions selling products euphemistically called “premium SMS” on Facebook and even MySpace.

Adult Friend Finder, who was recently bought by Playboy for $500MM, has just over 20 million monthly uniques, which is about half of Facebook’s traffic.  Thus, apples-to-apples, Facebook should be worth about a billion dollars, instead of the crazy $15BN figure that they try to get people to believe. However, it’s not an apples-to-apples comparison.  AFF is a pay site– they make money via recurring credit card transactions for memberships.  Their demographic is older and is willing to pay for services.  Facebook, on the other hand, is still primarly teenagers.  Thus, if you were to compare AFF (an adult dating site) and Facebook, then you might say that they’re similar in value.

Now consider that Adult Friend Finder filed for an IPO for $460MM two days ago.  They did this to avoid having to sell assets to make an upcoming debt payment. This is an act of desperation, from a company that has #1 market share, by far.  If the dominant player in a market cannot succeed, what does that say for Facebook or all the other guys who are spending money exuberantly, only to find that the destination they’re racing towards is not a pot of gold, but a graveyard.

23 Dec 2008

Google has 56% of the ad-serving market

Comments Off social media

dd A recent study of top ad serving platforms shows that Google holds the first two spots, via their acquisition of DoubleClick and their own AdSense platform.  Note that this study pools both display and text ads, plus that DoubleClick and AdSense are both significantly down year-over-year.  Blitzlocal has it’s own social ad server technology, which is specifically designed for serving dynamic social ads.  While we’ll never be the #1 player in the mainstream market, we can at least be the best in the social space.  And it’s good to have choices, wouldn’t you agree?

22 Dec 2008

I am a sucker for FREE shipping

5 Comments local advertising, social media

freestuffjpg The joke we had when I worked at American Airlines is that it’s amazing how much money someone will pay for a free ticket.  They’ll even fly unnecessary segments at the end of the year just to keep their premium status or buy a significantly more expensive item for the miles.

Enter Amazon.com’s Prime program.  For $90 a year, I’ve been able to ship almost anything 2 day shipping for free and next day for $4.  I’ve probably spent $50k over the last year on books, electronics, toiletries, and food.  Today, I ordered dental floss and a pair of swim goggles. Yes- on Amazon.com.  And, yes– because of free shipping and the convenience of having it delivered to my door.  Of course, I did have to buy a 12 pack of dental floss, which will last me for the next 3 years,  but I DID get a good deal on it.  And certainly the FedEx and UPS delivery guys are probably not the happiest for having to cart stuff to me each day.

On a flight from London to Denver a week ago, I got into a conversation with the fellow who runs Amazon’s call centers in Ireland.  On a 10 hour flight, interesting things can happen.  Besides that fact that they have an insane staffing issue during the week of December, we discussed how free shipping had boosted Amazon’s sales in recent years.  I remarked how much Amazon had probably lost on me, because I would use Prime shipping to ship 24 packs of soda next day air for just $4– or order a $7 book, just because.  Not only have I ordered hundreds of items, but I’ve invited 4 other users to share my free shipping account (you just have to exchange birthdays to be able to verify). I estimated that Amazon lost thousands on me.

This fellow disgreed.  “How many friends have you told about Amazon.com and how much had that positive marketing been worth, using me as an evangelist (kind of like what I’m doing right now, in fact)?”  My counter to that was, “What if I had a program where I sold $10 bills for only $8– how popular would that be?”  His view was that free shipping can really be thought of as an advertising expense.  Instead of spending millions on TV commercials, why not just give that money back to consumers in the form of free shipping?  I have to admit that he got me there.

We have a couple clients that have shopping carts, selling things like equine nutritional supplements online.  We’re going to shamelessly copy some of the things that Amazon does– free shipping, product reviews, loyalty programs, address book, and so forth.  In fact, does anyone know of a shopping cart that approximates Amazon?  We are using magento.

18 Aug 2008

When people take Facebook too seriously….

10 Comments facebook marketing and advertising, promoting yourself, social media, Stand Up for the Little Guy

Today I received two “urgent” messages from a Facebook user named Brian Zisk. They are both similar in content and tone, so I’ll just post one of them below.   There is a game on Facebook called “Friends For Sale“.  You buy and sell friends, and in the process are able to give them nicknames, send them virtual gifts, and write on their walls.

For fun, I bought a number of folks and promoted the company that I work at.  I even promoted the affiliate marketing blog of a friend, who was promoted on TechCrunch.  Turns out, this Brian Zisk fellow carried out his threat.  My current status message in this game is now ”I’m the ShitzLocal.com Spammer. Boycott my company!“

For a proponent of the arts and self-expression, it’s surprising to see someone get his panties in a wad over a silly Facebook game.

  

Facebook

to Dennis

show details 11:19 PM (48 minutes ago)
 
Reply
 

Brian sent you a message.

——————–
Subject: Please… Time sensitive…

Dear Dennis Yu,

Please change the message under my name on friends for sale  to something like it was before, or anything non-offensive, but please remove the reference to your company from my listing the next time you log in so I do not have to see the association, or I will buy you on friends for sale and you will most likely not be happy with the text I associate with your name and company.

I am sure this is but a misunderstanding, but do not find it amusing, and would appreciate you removing this irritation ASAP.

Thank you for your attention to this matter.

Brian Zisk