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A Depressing Time of the Year
(Article Contributed By Marie, of Sex Story Text - Posted on January 20th, 2010)
Did you know that the third Monday in January is officially the most depressing day of the year? It's a fact ... most psychologists find that the third Monday in January every year is the most depressing day of the year for their clients.
I guess when you stop and think about it there are some good reasons for that day to be so depressing. By that day in January the new year is well under way, the resolutions have all been broken and most people realize that there's a far better than average chance that the new year is going to be no different to the old year.
There's also the little problem of the credit card bills. By the third Monday in any month they're just about due and all that crazy spending that people did back before Christmas is now coming back to bite them in January.
It can even be a little depressing for webmasters in our industry because, by the third Monday in the month, if our sponsor checks haven't turned up then it's fairly obvious that they're just not coming. Some checks may not be arriving because we didn't make enough (or any) sales the month before but sometimes the checks just aren't arriving because the sponsor's not going to pay.
A little wander around some of the boards this morning is showing that there are a couple of sponsors who seem to be defaulting on payments this month and that's going to hurt some of us. Of course sponsors defaulting on payments is nothing new ... it's been happening for years ... but it's certainly becoming more frequent.
Back when Steve and I started in the industry the problem of sponsors who couldn't pay their affiliates wasn't unheard of but it was certainly quite rare. These days however it's happening more and more ... and that means that more and more affiliates are getting caught.
Some affiliates ... when they're first starting out ... are basically running on a shoestring and just one missed check ... even in good financial times ... can cause real problems for those new affiliates.
And then there are difficult financial times like these. When times get tough sales drop away and even experienced affiliates can find themselves in a fight to survive and losing money because a sponsor fails to meet their obligations can cause lots of problems.
Experienced affiliates will know what to do to overcome those problems and even minimize their risk level but if you're new to the industry you may need a few tips on what to do so your business doesn't crumble when a sponsor stops paying.
Don't rely on small sponsors for all your income
Early on in your career as an affiliate marketer you will hear some ‘experts' suggest to newbies that the best way to make money in this industry is by showing surfers sites that they haven't seen before. If you want to make sales don't promote sites that are over-exposed is what you will hear ... and to some extent that's good advice ... but ...
Yes, there are always buts and here is one of the big ones. Adult sites that aren't over-exposed are usually those that are new ... or run by some of the smaller sponsors. The smaller sponsors are usually the ones that have started out with very little in the way of working capital so they're often relying on income derived from the current month to pay the bills from last month.
And if this month is turning out to be a bad one for them ... one where there are few signups and even fewer re-bills ... then they're not going to be able to afford to meet all their expenses from last month. When that occurs sponsors begin to prioritize the bills they have to pay and small-time affiliates are usually at the bottom of the list and by the time they rise to the top of the list the money is all gone.
Don't be fooled by recommendations from other affiliates
Remember, we're all in this to make money and we make money by selling a product and for many who inhabit webmaster boards one of the products they sell are the sponsors. Many sponsors offer very handsome commissions to affiliates who can get other affiliates to sign up so those who recommend sponsors to other affiliates are going to paint a very rosy picture of those sponsors.
So don't be fooled by the recommendations of others and jump in and start promoting a small sponsor just because someone on a webmaster board said that they converted like a sinner on judgment day. By all means, sign up with small sponsors but test the waters for a few weeks before you go all-out to try and make those nice fat commission checks you were promised.
There's no point in putting in hours and hours of work to get a bunch of signups if the sponsor can't pay his affiliates. Only when you feel that YOU can trust the sponsor should you jump in and focus almost all your efforts on them.
If you really want to promote something that's not over-exposed look for new sites from the bigger sponsors and promote those.
Spread your risk
This is not an industry where your income is guaranteed by the Feds ... there is always an element of risk here because there are no guarantees that you will get paid for the work you do.
So spread your risk ... never concentrate all your efforts on just one sponsor. Instead have a portfolio of sponsors that includes some of the big names that already have plenty of exposure and a small mix of smaller sponsors.
As you gain more experience in this industry then change the mix around a little but never drop the big guys just because everyone else is promoting them. One day you just might find yourself in the situation where a couple of your smaller sponsors go belly up and it's a small check from a big sponsor like Topbucks or Nasty Dollars that gets you through the month.
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