Friday, June 5, 2020

What CPA Networks Are Shutting Down Next

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Pesach Lattin
Pesach Lattinhttp://pacevegas.com
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

After speaking with dozens of people who attended affiliate summit this year, they had the same thing to say: the market is changing fast and the affiliate and performance marketing industry is over as we know it. Changes are happening fast, and it’s likely most CPA networks wont survive.

With Peerfly, AboveAllOffers and Mundo Media all shutting down within months of each other, it would lead many to believe the entire performance marketing industry is about to shut down. Part of the reason is simple: the advantage of a CPA network with nothing to offer but the same offers isn’t anything anymore than a middleman. While there are some companies that are producing their own products and promoting them, there isn’t a lot of reason to go to a CPA or affiliate network.

Peerfly admitted such: technology now is so cheap, anyone can create their own network overnight, and start working with the advertisers and product owners with only a several hundred dollar investment.

MundoMedia didn’t give us an autopsy, but court records show that they were in a lot of trouble for years, and kept taking loans of as much as $25 million to attempt to keep the company afloat. They blamed all sort of things, including Facebook deleting consumer accounts, to bad employees –but it’s clear they took out way too many loans and couldn’t pay them back.

AboveAllOffers disappeared for one reason: it was a CPA network that depended on the “lifestyle” of the super-affiliate owner to push it. Without their own products and a team of experts, there is only so much they could do without going out of business. One the owner got older, and wasn’t showing off lambos and the such, the company couldn’t survive. Weirdly, it still ranked #7 on the 2019 BlueBook at MThink, despite shutting down — raising a lot of questions about that ranking. Also, CPATrend which shut down in 2018 for similar reasons is still listed on the list, making no sense.

While many people expressed concerns about the quality of people attending Affiliate Summit this year (more and more make money, mlm, lifestyle scam companies) they did not that the industry isn’t going anywhere but this is perhaps .

I’ve removed the list, because people felt that it was unfair to focus on a few companies in an industry having so many issues. 

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5 Comments

  1. Done business with most of these guys. Sounds like you are full of it dude. Did you check your facts prior to posting this? I think you are gonna get heat for posting baseless and non-factual data. Best way to lose credibility in the industry. Congratz.

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