A Quick Look Back Over the Last 12 Months and Diversification

December 20, 2011 - by admin · Filed Under Affiliate Blog Leave a Comment 
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    Since Christmas and New Year’s is coming up I thought it would be nice to look back at the last 12 months and see what’s changed in my network.

    I think it was in my November Affiliate Recap 2010 where I mentioned that I’d diversified for the first time out of the mainstream gambling industry and into financial spread betting.

    I actually mentioned in that post how I didn’t like the state of the gambling industry and having to rely on promoting a limited number of US-friendly poker rooms such as UB.com and Sportsbook.com was very risky (these guys then closed down completely 5 months later) so I guess I got that right.

    Since last year, I’ve slowly managed to diversify my affiliate network one niche at a time.  I honestly think diversifying is a skill, and every time you manage to diversify successfully it makes it much easier in the future.  It also helps to operate in many markets so that you can compare conversion rates across different industries, CPA deals, what works well for websites, and making different types of contacts.  Overall I think I’ve got better at predicting how much money I can make in new niches without doing as much research as before.

    I’m going to write a post in the future with some tips for new affiliates about how to diversify and find upcoming niches, but I guess I’ll leave that for later.

    In terms of my own network, I’ve gone from 100% income from gambling affiliate (90% poker revenue) to around 70% gambling nowadays.  I’m planning to drop this down to 50% over the next few months as I move more into finance, but the gambling industry is so lucrative that it does make it hard.  I read that the average conversion rate for retail sites is 2%, and you’re probably looking at earning $2-$10 per sale.  This contrasts hugely with the gambling industry, where you can earn $100-$200 CPAs per player, and individual players on revenue share earning you $1k-$10k in a single month!

    In any case, I’ve found it interesting exploring the finance affiliate markets such as Financial Spread Betting, Forex Trading, Gold Prices, Banking and others (I actually just leased a new finance domain which is really exciting – I’ll mention it in my next post).  I think my background in finance (Economics degree) helps a lot and to be honest you have no idea how good it feels to actually be using my degree and it not being a complete waste of time!

    I’ll still be developing a few sites in gambling, but I’m planning on selling most of my network.  I have a ton of 1-2 year-old gambling sites that are earning me nothing and need to be sold.  It’s just difficult when they’re your first sites, you wrote all the content and you’re emotionally attached to them.  It’s much easier selling a site that you just outsourced all the content for.

    I think over the next 6-12 months (if I keep affiliating and nothing fails) I’ll want to start revamping my sites, investing a lot in new themes and coding, and make sites with lots of high quality content that users will actually want to follow.  I’d love to keep a loyal following and email list like Kevin’s site TheSportsGeek.com does, but I just don’t know if it would be as easy to do in the UK sports betting market, or if I’d have the right skills and personality to pull it through.  I really don’t like the idea of being on “Twitter” or sending emails out on a weekly basis, so I’m not sure how successful I’d be at this.  Obviously it would be great to be able build a following on my affiliate blog and monetise it like many others have done.

    Anyway, that’s all from me.  Have a Great Christmas and New Years Everyone!

    P.S. If you’re going to the LAC “fun day” or affiliate conference and want to meet up then let me know!

     

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