I could be way off base here (it wouldn't be the first time). However, I see a trend that I just don't understand. Over the past several years (say since 2001) there has been a shift of focus (by vendors) away from affiliate programs toward pay per click action (PPC).As well some click rates are astronomincal. Now this trend may be of great benefit for the affiliates who can earn simply because someone clicks, rather than someone having to actually make a purchase.
Now, for a company selling on the internet, and especially its investors, which is a better deal?
With PPC you can spend an infinite quantity of money (ie, 100% of your investors capital) on just getting clicks. There is no guarantee the clickers will ever engage in a transaction beneficial to your business.
With an affiliate program you can be guaranteed a return on your investment. You can be guaranteed that for every penny you pay out, you have made a sale! Who wouldn't want that?
