After speaking with dozens of people who attended affiliate summit this year, they had the same thing to say: the market is changing fast and the affiliate and performance marketing industry is over as we know it. Changes are happening fast, and it’s likely most CPA networks wont survive.
With Peerfly, AboveAllOffers and Mundo Media all shutting down within months of each other, it would lead many to believe the entire performance marketing industry is about to shut down. Part of the reason is simple: the advantage of a CPA network with nothing to offer but the same offers isn’t anything anymore than a middleman. While there are some companies that are producing their own products and promoting them, there isn’t a lot of reason to go to a CPA or affiliate network.
Peerfly admitted such: technology now is so cheap, anyone can create their own network overnight, and start working with the advertisers and product owners with only a several hundred dollar investment.
MundoMedia didn’t give us an autopsy, but court records show that they were in a lot of trouble for years, and kept taking loans of as much as $25 million to attempt to keep the company afloat. They blamed all sort of things, including Facebook deleting consumer accounts, to bad employees –but it’s clear they took out way too many loans and couldn’t pay them back.
AboveAllOffers disappeared for one reason: it was a CPA network that depended on the “lifestyle” of the super-affiliate owner to push it. Without their own products and a team of experts, there is only so much they could do without going out of business. One the owner got older, and wasn’t showing off lambos and the such, the company couldn’t survive. Weirdly, it still ranked #7 on the 2019 BlueBook at MThink, despite shutting down — raising a lot of questions about that ranking. Also, CPATrend which shut down in 2018 for similar reasons is still listed on the list, making no sense.
While many people expressed concerns about the quality of people attending Affiliate Summit this year (more and more make money, mlm, lifestyle scam companies) they did not that the industry isn’t going anywhere but this is perhaps .
What companies are people talking about that we should pay attention to?
I’m concerned about the following companies for obvious reasons:
1) Ads4Dough aka A4D. This company has had legal problems from the FTC to lawsuits over the years and relies similarly on their owner’s “reputation” of being a super affiliate. While they recovered from their FTC issues years ago, its still a huge mark of shame. Many of the same advertisers who worked with Peerfly, MundoMedia and AboveAllOffers landed on their plate, I am told. It’s very possible they will take the leftovers and succeed, but I see them trying to leave the space soon. The owner probably has made enough money to leave the Country, if he wants on his private plane and never have to worry about the market again.
2) The Affiliati Network: From the drama of their affiliate manager blackmailing people and committing suicide after caught by the FBI, to the fact their entire model is failing, I wouldn’t believe this company will survive the next year. They literarly have nothing to offer affiliates besides taking a cut of the pay from advertisers they can go directly to.
3) MonsterAds. This company based in Puerto Rico seems to be pushing everything from make money scams to coaching programs by scammers – this is not a good model in 2019, and the FTC has signaled that they are planning to go after companies like this. I would be concerned with any company focusing on this market.