Affiliate Arbitrage

What is affiliate arbitrage?

It could mean many things but I'm going to look at it from the lens of M&A but this could also extend to partnerships, JVs and of course affiliate networks.

Speaking of affiliate networks, we are looking for sponsors that want to be featured on this affiliate networks list.

When I search for 'affiliate arbitrage' I did find this one person from The Rebooting who wrote an article 'The end of affiliate arb'.

I straight up don't think there is an end to anything but rather we now live in a time of great opportunity. If anything, I think there is the best time to get into the M&A space or maybe you can call it an equity space.

Let me share how I see arbitrage happening in the affiliation world.

Affiliate networks - A network can negotiate deals and offer advanced tools and tracking to affiliates. Networks can make a lot of money and I suspect there will be revenue growth in this segment but also ordinary networks won't survive if they only focus on just deals.

M&A - There are so many angles to scouting affiliate sites to buy and I think data is the core of this. If you have affiliates that use tools like StatsDrone then a buyer can get everything they need to make a decision. I'm told by many M&A experts that getting the data is one of the worst parts of the process.

As subsets of M&A I have a few points of understanding for finding affiliates you want to buy or partner with:

• Find affiliates with expired offers

• Find affiliates promoting poorly converting/retaining brands

• Find affiliates not working with high performing partners

• Finding affiliates not using any affiliate networks

• Finding affiliates with under-optimized sites

• Finding affiliates that need a serious redesign

With the points above, AI tools can help understand some of this especially for finding affiliates with poorly converting designs. We now have the ability to build stuff at breakneck speed and affiliates that don't gain these skills will likely be hearing from buyers.

What required designers and programmers in the past, can now be done with less work.

Keep in mind the people I think will gain the most will use these AI tools but will put in a quality effort. People that don't put in this extra effort will be the losers in this game.

Conversion Rate Optimization - CRO is one of the things any website buyer is looking for. A solid site that makes good money that could double revenue in a shorter period of time because of under-optimization.

All we need are tools to find every affiliate and to use data to understand how optimized they truly are.

Affiliate Data

We are soon launching Affiliate Track which is going to help us find all affiliates we can get our hands on. On top of this, we'll be analyzing the advertising on these affiliate sites and produce our own scoring to understand how good these sites are.

What I believe we will discover is an even bigger arbitrage opportunity. One that wouldn't exist without more data and research.

If you want to learn more about this, visit https://affiliatetrack.io/.

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