Question: “What is the future of affiliate marketing?”

This question seems to be going around quite a bit lately so I thought I’d give it a try myself.

I think it’s no question that I am a big believer in the future of affiliate marketing or else I would NEVER spend the time/energy with Affiliate Classroom that I do.

We are coming out with some very detailed predictions for 2006 in our up-coming magazine, but here is a small sample of what you will read about:

1. More Investment Into Affiliate Marketing

2005 saw nearly a 35% increase in online ad revenue versus a very small (in the single digits) ad revenue increase offline. This means there is a huge focus on online advertising right now.

Furthermore, this means that companies are finally sniffing around the internet seriously for advertising channels. Well, affiliate marketing just happens to be the highest ROI form of online advertising.

Expect to see affiliate marketing attract bigger budgets and more attention in 2006.

2. More Focus on Affiliates

One of the things that I am tired of is companies wanting the biggest and best affiliates, yet never really treating them right. Some companies straight out STEAL from their affiliates.

Well, this is going to start coming to an end in 2006. Also, the HUGE focus on treating your top 1 or 2 affiliates like god is going to die down. There will be more focus on a larger population of affiliates.

3. Major Dent in the 95/5 Rule

If Affiliate Classroom has anything to say about things, there will be a major dent in the 95/5 rule that has plagued affiliate programs since the beginning.

This means that more programs find that only 5% (or much less) of their affiliates actually do anything.

Well, as affiliate marketing (as an industry) matures, we are finding out what the reasons are – what the major obstacles are. 2006 will see far more active affiliates, yes, even the complete beginners.

4. Big Fight on Spyware

There have been some major battles against spyware in 2005 and I think this is just the beginning. Recently an entire committee FINALLY agreed on a single definition of spyware (This is just the first step).

There will be a greater focus in 2006 on getting rid of spyware and other unethical techniues that are getting in the way of the honest affiliate.

For more detail on my predictions, get ready for the December magazine issue.

If you’re an affiliate right now, you’re in for a true ride this year!