Where do you see affiliate marketing heading?

[Toby]

Originally Posted by Damian

In the UK you have to pay 20% VAT on those sales. So it looks like this:

50% Aff
20% VAT
15% Processessing
5% Hosting/Wages/Costs
5% Content

So out of a 20 buck sale, site owner gets a buck.

Or you get traffic and sales in-house...

Yes, but that hasn't really changed much over the last 10 years, other than the VAT ruling for UK sites a few years ago.

15 of my top 20 income producing sponsors year to date are UK based. All these UK sites aren't running affiliate programs to earn just $1 per sale, so I think perhaps your cost percentages may be rounded up to help your point.

That said, in-house sales are an area that lots of site owners let slide when the money was easy. Many started out with their only marketing plan being affiliate sales. As a site owner, if you aren't your own best affiliate you're likely having trouble making ends meet.