Contrudy
Regular Member
- Dec 15, 2022
- 249
- 54
It's so true.$5k daily profit is very hard in affiliate marketing.
The more you earn, the bigger your team usually, so the less profit.
The problem is there's no moat in affiliate marketing.
Your unique edge is :-
1) The ability to act fast.(Generally a team)
2) Faster and higher payouts. This means you have a track record and make connections, but this isn't hard to do. It takes 6 months max to build up.
3) Budget to maximize an offer.
That's it.. There's no other moat.
You're constantly tweaking, testing and trying to find new angles, new offers, new creatives.. It's awful. It's so hard to scale. $5k/day is only $150k/mo. Even that is low for a proper business.
Scale for a real business, which is your own product, whether it's a SaaS, info business or a physical product, is $1m-$2m/mo.
Net profit though becomes irrelevant.
You can't sell an affiliate marketing business. It's just a hustle. It has no value. This is why net profit is the only metric that matters.
If you have a $500k/mo SaaS that's making 0 profit because it's reinvesting it all into growth, that's a totally different story.
That $500k/mo reinvesting 100% will become a $2m/mo with 60% to 75% net profit margins, or it'll keep scaling, hit $5mil/mo and sell for $100mil.
Affiliate marketing is so, yucky. You spend so much time on something that does nothing but generate you cash. You literally have ZERO at the end of it. You could do 10 years of it and all you have is cash(which most will have spent) and some connections at networks. That's it. Nothing else.
10 years with your own product, digital, physical, SaaS, ecom, consulting, agency, whatever..
And you have a reputation with a customer/client base. You could launch another business and leverage your clients/customers. You could stop advertising completely and a good company will still grow based on the referrals from existing clients.
And you probably have a business you can sell for 2-4x EBITDA depending on what you're doing.
Affiliate marketing is just a waste of time beyond building up some startup capital for a real business.
Even Alex Becker knew this. He used to hate affiliate marketing and would say if he was doing affiliate marketing, rather than be making $300k/mo, he would be doing like $30k/mo.
Also, with Aff marketing, 99% of the clients are not going to be satisfied in a product and it's usually a one time comission. Doing business in this way in smaller countries is very difficult, because you will run out of potential clients(fools) for a certain offer and you have to find a new one. With a business with repetative happy clients, you can work for years even in small countries and this will only work in your favour because of the refferals.