Can a million dollar business model be based primarily on affiliate activity?
I wouldn’t personally stake a whole business on the performance of the affiliate program for the company.
The affiliate program can add some great incremental value and growth to your business plan, but to put all of your eggs in one basket is a bit risky.
It’s common with e-books, but you’ll generally never see a retailer do that sort of thing. You really should diversity and explore a lot of different marketing channels.
So I wouldn’t recommend it, and wouldn’t do it myself. It’s probably doable, but risky.
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For a new entrant, probably not do-able, but there are plenty of companies out there whose monthly revenues exceed $1MM and are 100% affiliate, particularly in the financial services space.
However, market crowded, and unlikely that an upstart could shift share this late in the game, particularly given that arb is so heavily subsidized by SEO.
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