Well, I'd agree with the competition and replication. But that's the nature of business. Once you get good enough, others will use your work as an inspiration to outperform you or delete you out of the equation.
Outside of that, I never reached the volume where I had to worry about the pay outs myself.
But I have worked for companies that HAVE reached a VERY high volume (read: millions in affiliate sales) and they had no problem either, as long as a contract was signed outside of the regular affiliate program to control traffic, cost, etc. I think that's the only reasonable thing you can do: have a direct partnership with another company once the volume reaches a critical mass.
Having an alternative is, of course, a must-have. Or rather, like you said, diversification. Having multiple affiliates, multiple working relationships.
I don't agree with you on direct ad sales. It doesn't mitigate anything. It's the same deal as the rest of the advertising world, nothing special about it.
Thank you for the thoughtful response, I was fully expecting to have my comment skewered. Multiple, direct relationships with advertisers seems to be the key to long term success. Unfortunately for the "small guy" that doesn't come until you're beyond a certain traffic threshold leaving most to swim the troubled waters of AdSense and the like.
Outside of that, I never reached the volume where I had to worry about the pay outs myself.
But I have worked for companies that HAVE reached a VERY high volume (read: millions in affiliate sales) and they had no problem either, as long as a contract was signed outside of the regular affiliate program to control traffic, cost, etc. I think that's the only reasonable thing you can do: have a direct partnership with another company once the volume reaches a critical mass.
Having an alternative is, of course, a must-have. Or rather, like you said, diversification. Having multiple affiliates, multiple working relationships.
I don't agree with you on direct ad sales. It doesn't mitigate anything. It's the same deal as the rest of the advertising world, nothing special about it.