Incredible Shrinking Affiliate Networks???

F

fcastle

New member
Sep 3, 2009
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Hey guys -- I'm a damn experienced lurker -- but I've got a question worth asking...

I've got some contacts at the bigger affiliate networks (neverblue, cb, hydra), and the word I'm getting is that their revenue is way down. (One of them made a comment about it, and I peppered the other 2 with questions until they relented)

Now, i'm not sure of the "compared to when" for these, but, any thoughts on this as a macro trend? Is it because of the Visa/MC crackdown months back?
 


It's never trendy to be broke.

Many of these networks were piggybacked by the rebill era, it's only normal that those networks start to go down after the rebills died. No scam lasts forever.
 
Rebills artificially inflated the industry.

What's really interesting is how companies like CJ and Xanox stopped being cool among the majority of aff marketers because of their lack of berries, lack of shady ringtone offers, large amount of percentage offers, low dating payouts and long payout terms.

Now that the fast money has gone the smart money is again looking for the stable offers and datafeeds at networks like CJ.

I think Azoogle saw this coming a couple of years ago when they started pressing for platinum offers that are run by bigger companies.

Anyway it goes, there is a lot restructuring going on in the industry.
 
You think this might be a proving grounds for the industry?? as in.. Are these networks run well enough that the lawyers will sign-off on M&A?

Consolidation is a normal trend when a market shrinks but I'm skeptical... I'm half expecting these networks to go the same way most their big pubs do when they start losing money: they just disappear and their market share is redistributed.
 
A few companies have explored those options. Some very strategic mergers have already been put in motion.

Only companies who have more going on than just rebills are able to do that though. The big companies are worth buying or merging with in most cases. Always have been. Some of them did some really big deals just before the rebill world started going wild.

But remember, a lot of the networks that I see called "Big" here aren't really big at all. I've often wondered why some of them were put on pedestals. It's easy for a few of them to completely disappear due to this industry hiccup.
 
TVensor said:
Read the Hydra report that leaked in March.
Click to expand...

Hat tip, sir.

Btw - #'s I heard were more pessimistic than the 2010 estimates on that report. Significantly so. And these were actuals for the first 6 mos of the year, not estimates.
 
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