I have been curious about this for a long time.
there are hundreds of thousands of affiliate marketers out there. why doesn't 1% of those marketers completely drain all the profits from small time marketers ? Saturating the market with their ads and completely leaving no profits for small marketers ?
for instance, while bidding for keywords and such, couldn't someone or some company with a large pocket simply buy the entire ad inventory by bidding very high price and keep all the CPA conversions/sales to themselves ?
I used to be a daytrader so it worries me that I don't have a clear picture of the AM market and it's players. If there are large enough affiliates they theoretically should leave no room for small marketers but it seems like lot of people here make at least $100 a day, some even millions.
With pay per sale payout scheme, the affiliate takes all the risk in marketing the product. With cost per acquisition scheme, both the producer and marketer shares risk, is this correct ? Why don't the producer simply market their own product ? Can anyone create an educational package or guide and list their product on networks like Neverblue and hope the affiliate marketers can do a better job of marketing it ? Why rely on affiliates to market your product ?
Maybe I am thinking too academically....if someone can help me out with this logic, I could sleep more easily.