Affiliate Marketing is not Dead

TheVigilante

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Here's an interesting story where Amanda Orson shows how affiliate marketing can be managed as a real, long term and sustainable business. We aren’t talking small time either – this is about 10-figure exits and IPOs.

https://twitter.com/amandaorson/status/1231534641489883136?s=19

The story revolves around Credit Karma, an affiliate marketing business that operates in the fintech industry. The company currently employs around 1k people and has been at the leading edge of a large group of start-ups in the industry.

How do they make the bread? Content + affiliate sales. They offer users a service to get their credit score, meaning people don’t have to buy it somewhere else. Based on this score, the company then proposes some fin services, from which they generate affiliate moneyz.

The big step: The company recently considered going public. Yeah, affiliate biz IPO baby! However, after looking at the likes of Uber and WeWork, they decided on an exit instead. We’re talking about a $7B deal here!

Who’s the buyer? Intuit, a company operating in the same sector.

Why are they doing it? Other than the Credit Karma business itself, Intuit is interested in the mountain of fin data the company has on consumers.

Oh yeah! Data is the catch! Consumer data is definitely an asset that makes a company more appetizing to buyers!

The Crew’s Take: Let’s briefly highlight just what made this affiliate business so valuable: It offers a unique service through content (The score calculation), a brand (The company was born in 2007) and data!

Some good points to think about when planning your next aff biz exit!

Source: https://www.nytimes.com/2020/02/23/business/dealbook/credit-karma-intuit-deal.html
 
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