Where do you see affiliate marketing heading?

Damian · 2011-11-04, 08:36 AM

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...

Toby · 2011-11-04, 12:31 PM

Quote:

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.

Damian · 2011-11-04, 01:15 PM

Quote:

Originally Posted by Toby

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.

20% off your bottom line is quite a difference!

Quote:

Originally Posted by Toby

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.

A little but not much.

Quote:

Originally Posted by Toby

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.

Ain't that the truth.

tofu · 2011-11-12, 04:09 AM

Quote:

Originally Posted by Toby

As a site owner, if you aren't your own best affiliate you're likely having trouble making ends meet.

BOOM.

2011-11-04, 08:36 AM	#1
Damian Rock stars ... is there anything they don't know? Join Date: Aug 2009 Posts: 17	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...