For the hard-of-money-making, what does this mean, how does it work functionally (black box inputs and outputs), and why is it profitable?
I know that for a while, netflix was paying something like $40 or $20 or something really high for their trial membership signups.
So what affiliates will do is buy space advertising for netflix or whoever, hoping that the people that see their ads will sign up for the product.
As long as their cost to get somebody to sign up for netflix is less than what the affiliate is paying out, they make money.
Say my overall cost to get somebody to click my ad and sign up for netflix is..$16. If netflix pays me $20 for that, I make $4 every time.
Repeat that enough times, and you're making enormous amounts of money.
Some affiliate programs (like Amazon) don't allow this. Others are happy to allow it because it sort of outsources the work of figuring out how much to pay for ads. Instead of a company having to decide what to pay for e.g. Google AdWords, they just decide what percentage royalties they want to pay out for leads, and let third parties figure out how to bid on AdWords in a way that doesn't exceed that cost.
Here's an overly basic explanation that could help: You send a user to a web site. The user buys or fills out a form. You get paid a commission.
Normally with affiliate links, or how most people understand it (at least I do), is to place these links on YOUR website.
This seems to go in a slightly different direction where you place and ad for some else on a third party website. However, it's not a real ad, it's a third party affiliate link (your affiliate link). Very clever.
Truthfully, I would be interested in finding out how he sold his WhatRunsWhere product to all of those clients he has listed on his site. Like I said, the story leading up to this point in his life is good, but I would personally be more interested in hearing more about WhatRunsWhere, not so much about making $10K/day being a broker for diet products. That being said, if the ultimate goal is to make as much money as quickly as possible, this is one way to make that happen. However, by his own admission, he is a shining example of becoming disillusioned with making money just for the sake of making money.
When you are playing both sides, your profits are much higher and more stable in the long-run.
I thought it was interesting that he mentioned "wickedfire.com". This is a known black-hat seo hangout and 99% of the things they mention on this forum are unethical and border-line illegal.
I'm the owner/the guy who wrote it. The guy in this interview is Max, the co-owner. I'm also a moderator on wickedfire. While I would disagree with your characterization of the forum, it would be odd if I didn't post there considering my position.
People thought we were nuts until the money started rolling in.
