As we pointed out in the introduction to the ebusiness blog, MYNIPPON.com underwent a business model transformation in August of 2004. The process took approximately three weeks and we shifted the center of gravity from an affiliate-programs based revenue model to pay-per-click advertising model for reasons that we have been discussing through this blog. So we would say that from a 100% affiliate-programs based model we have now shifted to 10-90 model.
We have identified several faults with affiliate programs in their current forms and how they are not based on the principle of mutual success (they are heavily biased towards the merchant). Until the industry comes up with programs that are based on mutual-win, only naive affiliates will base their business models on affiliate programs alone. Others like us are rapidly redesigning (or redesigned it during last 18 months) their business models on PPC advertising.
A business model transformation of this type does not, however, mean that you should abandon these merchants altogether. So let us say that you think that for VOIP based telephone, you will really like to recommend Vonage but you do not want to use the affiliate program route. So what you need to do is to mention the term "Vonage" in the body of the article. Since most companies (or their business partners) typically bid on the name of their company, chances are that they will be one of the advertisers in AdSense contextual ads. If you want to see an example of how this works, take a look at our article on how we use Vonage to save on our phone bill.
We have identified several faults with affiliate programs in their current forms and how they are not based on the principle of mutual success (they are heavily biased towards the merchant). Until the industry comes up with programs that are based on mutual-win, only naive affiliates will base their business models on affiliate programs alone. Others like us are rapidly redesigning (or redesigned it during last 18 months) their business models on PPC advertising.
A business model transformation of this type does not, however, mean that you should abandon these merchants altogether. So let us say that you think that for VOIP based telephone, you will really like to recommend Vonage but you do not want to use the affiliate program route. So what you need to do is to mention the term "Vonage" in the body of the article. Since most companies (or their business partners) typically bid on the name of their company, chances are that they will be one of the advertisers in AdSense contextual ads. If you want to see an example of how this works, take a look at our article on how we use Vonage to save on our phone bill.