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Originally Posted by Win Big Tough question to answer but when I was at AdultShop I managed about 500 affiliate accounts, then at BankWest I managed about 150 affiliates through DGM. My Win Big account at CM had about 100 affiliates. Comparing all three business models though, I did notice the old 80/20 rule. Out of the, say 1000 odd, affiliates I have managed I only really paid out to 20% of the clients on a regular basis. There seemed to be a real big differentiation between Full Time Affiliates, Part Time Affiliates, and Casual Affiliates.
I would guess that there would only be a couple of hundred full timers, maybe a thousand part timers and then '000+ casuals.
Would any other merchants out there like to comment? |
About fifteen years ago, a statistician, who claimed to be one of only four in Australia who made a full time living as consultants, told me that he could go into any store and 80% of the profits would be made on 20% of the products sold.
He said this applied across the board regardless whether you were talking about a supermarket, clothes store, furniture store, Bob Jane tyres or whatever.
While I could not really comment on whether that applied to everything, my own research into companies that are still in existence after five years showed a 70/30 ratio. Seventy percent still in business and thirty percent out of business. In contrast to this, 30% of all horseraces are won by favorites, which is a 30/70 ratio.
Anyhow, I will be interested to find out what the affiliate statistics will be for those who join me at www.happyrichesclub.com.
From what I have seen of internet marketing, I would tend to side with Tim's 5/95 making money and the rest making none. This is what seems to be the case for most of the population for things like MLM or network marketing. However, whether this is totally true, one cannot say for sure.