Acquiring Affiliate Businesses - a debate

[itay]

We are recently debating an issue that we would appreciate to have your opinion. The idea of acquiring existing affiliates' businesses (who drive 100-500 non US Players a month) using various SEO techniques. The value proposition for us is the idea of accelerating our growth. The value proposition for the affiliate is the fact that it can cash out and be a part of a larger, more stable, group.

I am fully aware to the fact that we are living in a very dynamic world and activities that can be very useful today can be less productive tomorrow. I am fully aware that we are in people business and maintaining the team and keeping a productive, winning spirit is crucial for the continuation of its success.

I would love getting your feedback about the below:

1. Are independent affiliates (who are so used to their freedom) can be integrated into a larger corporation, which has a clear company policy, and still be productive. Can they well utilize corporate resources to increase their business and be more productive?

2. Would the affiliates be productive and charged for the long run or would they see the acquisition as a quick way to cash out to leave?

3. Is prior cooperation i a mandatory requirement or can we approach affiliates who we do not have any prior relationship in the past and submit an offer ( after a serious due- diligence )
I am pretty sure that being a VERY large affiliate can be leveraged and shift some of the operators' power into the affiliate's side.

I would appreciate some feedback, either publicly here or privately at info ( at ) b4playing.com

[matted]

If I sell, I am moving on. I certainly don't want a situation where I am working for someone. I think most folks in the affiliate biz (at the ownership level) are either looking to reinvest the sales price or use it to retire/move on to other things.

This is especially true since I try to establish trust with my visitors... If I no longer have 100% control over the SEO tactics, content, and spam (cough, cough) originating from the domain... I'd want out.

[pgaming]

Lets face some facts Itay your reputation was damaged from the start. Came out of the gates like a ragging bull gorging everything in your path. Therefore I would have some serious questions regarding “various SEO techniques”. As in what form of SEO, White, Gray, Red, Black, negative, which one?

Personally, the trust level for you to handle anything morally, ethically, and with integrity is blown off the planet. Believe or not some affiliates believe the means justifies the end. Guessing they sleep better knowing they come by things honestly. There is more to life than bank accounts. Maybe I am exception to rule but for every dime I earn one nickel is donated to a worthy cause. I try very hard to be Human and Kind get it human kind.

I highly doubt you subscribe to any of these high ideals as the record shows.

You bet we live in dynamic world.

Just gibbering but people like you just rub me the wrong way.

Besides I have huge hunch you are hipped joined with Cpays the most hated program in cyberland.

greek39

[Ziggy]

I had an urge to reply with something foul, but Greek summed it up quite nicely.

[pgaming]

I had an urge to reply with something foul, but Greek summed it up quite nicely.

Couldn't help it after i read what matted posted. I felt compelled to anti up. greek39

[matted]

What can I say... I try to stay politically correct when a question is asked in a general and hypothetical sense.

But regardless if it is Itay or anyone else who I am being bought out and not partnering with - I dont care to be working for someone else every evening on a mid/long term arrangement.

[mojo]

One of the reasons I do this is so I can work for myself. I would never work for someone elses corporation in this biz. For all I know they would SPAM and garnish my hard earned reputation.

[pgaming]

Come on members give Itay some feedback. Be honest and tell what you really think. Please don't let my post sway your feedback.

Don't be shy!

greek39

[TheGooner]

I have ZERO interest in selling my sites and/or readers to ANY mega-corporation that wants to leech upon previous goodwill that we've built up with websurfers.


I wish to retain complete control over exactly which programs I promote, how I promote them, and how I work on a day to day basis.

[jarvi]

Most of us probably got into this type of venture to avoid having to put up with office politics and being answerable to some-one other than ourselves. We are generally risk-takes happy with the highs and lows of good and bad months. So to answer the question, I doubt there would be too many people interested in working for a large corporation regardless of the perceived benefits. To be honest, if we wish to leverage our time we'd probably look for other independents for specified time periods and options to continue.

Now off topic slightly. Sending me four emails in a week all to the same email address doesn't really endear me to your organisation, let alone wish to work for it.

[LiveCasinoPartners]

When I first read the thread, the first thing that popped into mind was "control". Many webmasters do this to escape the control of a normal 9 to 5 job. Freedom!! is one of the main benefits of all the hard work it takes to make something of this business. I can't imagine any webmasters who would want to sell, and then hang around and work for the guy (or gal) who's making more money on your original site. That's the best case scenario. The worse case scenario is someone getting the "control" of your site and tear every ounce of the confidence that you gained into shreds in front of you.

Face it, this is a personal business. The best webmasters gain a sense of responsibility towards their reader base.

Not going to happen.

[villa10]

If we are talking strictly about SELLING ONLINE It's exactly the opposite.

The only reason because we are here in the affiliate business, is that it's very hard for a corporation to deal every day in the SEO battle, and all the others marketing techniques.
This is the reason because some of the largest corporations in the US are running Aff Programs at Comission Junction.

I cannot see a skilled affiliate in SEO, articles, content etc, sharing his business with a corporation.

[casinoranking]

It's not a bad idea if you can offer the affiliate several years income, depending on what the affiliate has planned but this is obviously not for all affiliates. But if someone came and offered me a figure that looked attractive to me I would seriously consider it. But the figure would have to equal 3 years income, otherwise it's not logical for me to sell.

On the other hand, if you offered more of a partnership deal where the affiliate shared his knowledge and he could leverage your workforce for SEO and content generation then it might work even better. Obviously the terms would have to differ than strictly normal affiliate/affiliate program arrangement otherwise one of the parties would lose out. In this case I would say the affiliate should be paid less, since more of a burden is applied to the affiliate program.

Again, this is entirely up to individual affiliates and thier personalities and it's way too difficult to generalize on what would and would not work.

I for one would be happy selling websites for 3 years income and letting the money sit in a bank account and accrue interest so that I could focus on different ventures.