• John Bolivar

How will COVID-19 affect the Affiliate Marketing Industry?

Updated: Aug 20, 2020


I hope you and your loved ones are doing well.

I’ve barely done any work this week. It’s hard to focus when there’s so much craziness happening. So if you're feeling guilty about not being productive...you're not alone. It's ok.

But I'm feeling pain now knowing so many other people are suffering out there. The physical toll is horrible, but the economic impact is...unprecedented. Marriott had to let go of tens of thousands of employees. Las Vegas Casino laid off thousands. AIRBNB's are empty. I can’t even imagine begin to think about the restaurant industry.

This is as if Thanos snapped his finger and killed half the economy. I'm spending time reading different subreddits on Reddit. It lets me see how the virus is affecting different industries.

Black Swans and Being Defensive

Black swans are low probability events that you don't see. But their impact is devastating.

Even though they are low probability, It feels like a black swan happens every decade. 2001 - 9/11 attacks 2008 - Subprime Mortgage Crisis 2020 - Coronavirus epidemic It’s too late now to say everyone should’ve saved six months of expenses in an emergency fund. We will get through this. There will be more black swans in the future, and I hope we're all more prepared for the next one.

The Impact on Affiliate Marketing?

I've been getting some emails from people asking how I think this will impact the affiliate space. Some quick thoughts: The Virus is going to be killing offers and their caps. If it's a physical product then there are going to be supply and fulfillment issues.

Lead generation offers might do better. The issue is in how lead generation offers are monetized. Most of them makes sale using call centers. Those same call centers are going to be shut down during this. And some niches are not buying leads right now. Dental offices aren't buying leads if they can't clean teeth right now. Traffic costs are going down across the broad, but conversion rates are lowering as well. If people are losing their jobs or they are fearful of losing their jobs, then they're going to hoard their funds.

The good news is that we're already used to working from home. And we're much leaner in operational costs compared to most businesses. There's always opportunity in crisis. For example:

1. This is going to be a spark for working from home.

2. People will want supplements to boost their immune system.

3. Everyone realizes how important life insurance is.

All of these are opportunities for affiliate marketers. Think about the domino effects. This pandemic reveals a lot of inefficiencies and problems with our systems. Anyways, that's my opinion.

Other Cool Stuff

1. Coronavirus: Fact vs Fiction - A podcast series about the Corona Virus from CNN’s Dr. Sanjay Gupta. Each episode is short and gets to the point. 2. Medicine for the Economy - a 25-minute podcast episode from NPR Planet Money. What should the government do to help the economy? Payroll tax cut? $1,000 checks to everyone? You can Hear the opinion of 3 different economists. 3. Stay fit with Yoga - It sucks that all the gyms are closed but do your best to stay in shape. I’m running outside and doing some yoga. Here's a link to a 30 day Yoga routine that I'm going through. In the mean time, Stay home. Use this as an opportunity to learn. Stay strong.

Talk soon, John

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