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Affiliate Site Selling For $7 Billion? 7 Key Takeaways

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Affiliate Site Selling For $7 Billion? 7 Key Takeaways

According to the New York Times, Credit Karma is about to avoid the IPO market, and sell to a financial firm for $7 Billion.

We’re talking about an affiliate site here. An affiliate site is one that earns commissions from promoting OTHER PEOPLES products (by linking to their website through a special link).

Credit Karma was founded by Ken Lin. It is a website that has grown to have a lot of content, and it makes commissions from credit repair sites, and loan sites, and so forth.

Now while it started out as an ordinary site, this is no longer an ordinary affiliate site.

They claim that one third of all Americans who have a credit profile, have used their site.

So that’s a lot of names and email addresses they have acquired over the last several years.

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They have grown to be huge, and I don’t want to make this sound like it’s in any way typical.

But it is inspiring and there are many key takeaways that can be learned here.

7 Key Takeaways

#1 You don’t have to be a product owner, in order to build a big online business

Over a decade ago, I visited the headquarters of Clickbank for the first time.

And I asked them, about which vendors were making the most sales.

They shocked me by mentioning that 8 of the top 10 account owners on Clickbank were pure affiliates, and didn’t even own their own products.

They were people I’d never heard of, guys who were simply buying traffic, sending it to their own website, and earning affiliate commissions promoting other people’s products.

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While I was already a strong affiliate at the time, and was also in that top 10, I was a strong vendor too. So I had assumed the top 10 would be full of vendors.

In the case of Credit Karma, they have taken affiliate marketing to the extreme.

#2 Leads are valuable

Affiliates can make a lot of money without ever collecting a single email address or lead.

However, if you go to sell your website in the future, the money you receive is not only determined by how much you are making on a daily basis…

…How many leads, and how much data that you have on those leads, plays a huge factor.

You can’t legally share that data, but if you sell your business, then it’s legal for the purchaser to acquire the data that way.

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Credit Karma collected names, email addresses, postal addresses, phone numbers, credit scores and more, from MILLIONS of people. That data is now worth BILLIONS as part of this sale.

If you’re an affiliate at a smaller scale, the same principles DO still apply. Make sure to in some cases, collect names and email addresses. And have a newsletter followup sequence that builds a relationship and promotes relevant products to them.

That way, if you ever sell your site, it’s worth more money… AND you’ll make more from your site anyway, even if you never sell it.

#3 Drop Facebook Pixels on every page in your site

Looking at the Credit Karma website, I see they have 2 Facebook Pixels being dropped on every page.

That means they can now retarget to people, with ads on Facebook, Instagram and other web properties that Facebook owns or has agreements with.

You do so much to get people to visit your pages as it is, and if they aren’t on your email mailing list, then another great way to get them to come back is through retargeting ads.

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Warm prospects who have visited you before are a lot more likely to interact with you and possibly make a purchase in the future, than those who are cold (don’t know who you are).

#4 Free Software often results in more shares, than other types of freebies

While it may have been more complex to build what they have today, the Credit Karma site actually started out as a very simple piece of software.

People loved using it and shared it with their friends. So that in turn helped it to grow organically, as well as through any deliberate attempts they made at driving traffic to their site.

I’ve done this in the past also, created free software, and found that the optins tend to keep growing organically from that software giveaway for years, as users share the software with others.

For it to work, it has to be genuinely useful, and be better than the other tools going around that people can obtain for free.

It’s not always easy to do this, but if you do have a great idea for software that you’d like to make freely available in your chosen niche, it can in many cases, prove to be more valuable than other forms of free gifts that get people to opt in.

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#5 Optins aren’t everything

There are plenty of opportunities to get your credit reading, etc, from other sites outside of Credit Karma, without giving your name and email address to Credit Karma.

They have such useful pages and recommendations, that their site profits regardless of optins.

I personally have found that sometimes, as an affiliate, going to an opt in page is not the right way to go.

Sometimes it’s better to run ads, that go to a ‘bridge page’ or a ‘quiz’ or an article, that then leads directly to an offer that I’m promoting.

If that produces more profits, then go with that.

#6 There is a lot of money to be made in Affiliate Marketing

Now while Credit Karma is an extreme case (potentially about to sell for $7 Billion), I see new affiliates starting out every year, and making piles of sales online.

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This does not happen to everyone, I’m not saying it’s push-button easy, I’m not saying it’s ‘typical’ but I regularly see newbies, coming in, and doing extremely well, within a matter of months.

There are a lot of high converting offers in many niches (health, wealth, relationships, alternative beliefs, finance, education, and more).

And it isn’t rocket science.

Here’s a simplified equation of what is in play as an affiliate:

(Leads x Conversion Rates x Avg$ Per Customer) – Ad Spend = Affiliate Profits

For example…

If it costs you $1000 to send 2000 clicks to an offer, and that offer converts at 2%, and you earn on average $40 per sale:

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Leads = 2000 clicks
Conversion Rate = 2% (0.02)
Avg $ Per Customer = $40
Ad Spend = $1000

(2000 x 0.02 x 40) – $1000

= $1600 – $1000

= $600 (Profit For The Affiliate)

If you’re not in profit, then:

  • Either the traffic that is purchased is not the right audience (and conversions will suffer)
  • Or the offer is not a proven one (conversions aren’t good)
  • Or you’re paying too much for the leads
  • Or the average commission $ is just too low.

I know I’ve gone off on a tangent here, but I wanted to mention this because, there IS a lot of money in affiliate marketing, but sometimes people over-complicate things when it comes to figuring out what’s going right and what’s going wrong.

Sometimes words in your ad itself, or on your landing page, are all the difference between a conversion rate of 0.3% and one that is 2% or higher.

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Sometimes it’s a matter of needing to try several audiences to find the winning ads.

And sometimes it’s a matter of capturing leads, and following up with those leads with an autoresponder series of emails, that takes a little time to get the sales, but can lead to more sales of other products long term.

#7 Dream big and take action

It takes just as much energy to dream big as it does to dream small.

You are not protecting yourself or anyone else, by dreaming small.

Small dreams = less motivation to carry on.

I don’t see people who aim for the sky, and reaching the top of a skyscraper, being too disappointed.

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I also don’t see people aiming for the top of a skyscraper, reaching the sky either.

It’s really important to eliminate any invisible glass ceilings, and have a dream that truly excites you.

Make a plan and work towards it.

Ken Lin had a dream and he chased it. His vision became more clear as he went along, but he took action.

I see the biggest difference between those who succeed at Affiliate Marketing and those who don’t, is that those who succeed are the ones who dream big, and take a lot of action.

When they take action and mistakes are made, they embrace the lessons that are learned along the way as part of the journey.

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They are willing to take a lot of swings at bat, and all the mistakes make them self-correct, learn lessons, and eventually hit the ball out of the park.

I hope you enjoyed this article, and that it helps inspire you to take action in your online marketing dreams.

In the coming weeks I’ll be sharing several more affiliate marketing tips and videos with my newsletter subscribers.
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AI Will Transform the Workplace. Here’s How HR Can Prepare for It.

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AI Will Transform the Workplace. Here's How HR Can Prepare for It.

Opinions expressed by Entrepreneur contributors are their own.

Our workplaces are about to undergo an unprecedented level of transformation, and HR will take center stage. Artificial intelligence will dramatically reshape HR in a way that goes beyond recruiting, hiring and talent management. Leadership teams at all levels need to embrace this change to transform and lead their organizations forward.

It’s the people, and not the technology, that makes AI initiatives a success. Intrapreneurs, in particular, are the driving force behind it. As I shared in Fearless Innovation, I noticed this when I was working on the innovation agenda for the Great Places to Work study — the most innovative companies were those that had a leadership team that was embracing intrapreneurship and were open to change.

HR is the beating heart of any organization, and as such, it needs to take center stage in both adopting and leading ethical and innovative AI transformation across the organization.

Related: How Artificial Intelligence Is Reinventing Human Resources

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4 tectonic shifts AI will drive in HR

1. A new wave of massive reskilling

As AI becomes more prominent across business functions, the need for new skills will only grow. Forty percent of enterprise leaders believe that their workforce would need to reskill as a result of AI and machine learning. In fact, research shows almost a third of all hours worked in the U.S. could be automated by 2030.

All of us need to reskill to some extent to be relevant in the AI era. Not only would people need to re-train, but generative AI is introducing a whole host of professions that have been non-existent until recently, from AI ethicists to human-AI interaction designers. Some of these roles might sound futuristic, yet they are becoming increasingly relevant as technology advances.

2. The great restructure

As automation takes center stage across more business functions, there will be the inevitable need for organizations to restructure and rethink how they work. This transition will not only involve the integration of new technologies but also introduce a shift in the workforce dynamics. Intrapreneurs will need to identify gaps both in skills and operational processes and forge brand-new roles for themselves and those they manage. HR must play a key role in enabling a smooth and easy transition in this regard. The transition will not be smooth or easy, and it’s only HR that has the capability to make it impactful.

3. Arrival of “digital humans”

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“Digital human” may sound like an oxymoron, but that’s the term that’s starting to appear in business and operational plans. More roles, regardless of industry, are becoming digitally enhanced where some form of AI assistance is embedded in their everyday work. A real-life example is the introduction of the digital nurse — AI-powered healthcare agents which have already been proven to outperform human nurses in certain tasks.

Imagine the impact these digital roles will have on the workforce the more sophisticated and prevalent they become. Eventually, HR will need to create policies and systems in place that account for this new type of “staff augmentation.”

4. Regulating the robot

The threat of AI bias and misuse is serious. Not only can the technology put many jobs at peril, but potential improper implementation can expose organizations to serious liability and negatively affect the workforce. From avoiding bias to inclusivity, HR teams play a critical role in the ethical deployment and management of AI technologies.

HR professionals will be tasked with navigating the delicate balance between leveraging AI for efficiency and ensuring that its application upholds fairness, privacy and non-discrimination.

Related: How to Successfully Implement AI into Your Business — Overcoming Challenges and Building a Future-Ready Team

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What HR intrapreneurs must do to embrace AI the right way

The future of work is being shaped by AI adoption, and its success hinges on the right approach from the outset. My experience shows that for successful organizations, one universal trait stands out: the presence of change agents. Every organization, regardless of size, benefits from intrapreneurs who are open to change and committed to spearheading transformation efforts. These intrapreneurs are pivotal in driving the future of work, as they help orchestrate the integration of new technologies into their business models.

HR and talent leaders should harness this dynamic, encouraging a symbiotic relationship with intrapreneurs to develop customized solutions for AI adoption, ensuring that they are not just keeping pace with technological advances but are actively shaping their trajectory.

Securing a seat at the table:

HR should take a proactive stance in the adoption of AI, even if it is still in its early stages within your organization. By securing a position at the forefront of the AI initiative, HR can and should facilitate and guide the entire organization in embracing this significant change.

As AI has the potential to impact every facet of the organization, it is imperative for HR to not only understand and advocate for this technology but also lead its integration across all departments. HR should encourage and support intrapreneurs and all employees to leverage AI in their daily tasks, demonstrating its value not just for operational efficiency but for personal and professional growth as well.

Master the technology:

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To effectively navigate and regulate AI, HR must first understand it thoroughly. Grasping the full potential of this technology is crucial for reaping its extensive benefits. HR plays a vital role in identifying the necessary tools and skills that employees must acquire and then integrating these learnings into daily work practices.

Before implementing AI more broadly, HR should initiate comprehensive training programs that not only educate but also reassure employees about AI’s role in the future of the business. By leading these educational initiatives, HR can shape the structure and effectiveness of these programs, ensuring they meet the needs of the organization and its workforce.

Related: 3 Ways to Prepare Your Business For an AI Future

Looking ahead

Generative AI has the transformative potential to redefine the business landscape, but realizing this vast potential hinges on more than just the adoption of technology. It critically depends on the talent within the workforce, driven by HR and bold intrapreneurs. These visionary leaders don’t just implement new tools; they exemplify their use, demonstrating the profound impact of AI across every level of the organization.

HR plays a pivotal role in fostering this environment, enabling intrapreneurs to guide and inspire every individual they touch. Together, they turn each employee into a catalyst for change, igniting a widespread passion for innovation that deeply resonates and sustains long-term success.

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Samsung: 6-Day Workweek For Execs, Company in Emergency Mode

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Samsung: 6-Day Workweek For Execs, Company in Emergency Mode

Four-day workweeks might have all the buzz, but one major tech company is going in the opposite direction.

Samsung is implementing a six-day workweek for all executives after some of the firm’s core businesses delivered lower-than-expected financial results last year.

A Samsung Group executive told a Korean news outlet that “considering that performance of our major units, including Samsung Electronics Co., fell short of expectations in 2023, we are introducing the six-day work week for executives to inject a sense of crisis and make all-out efforts to overcome this crisis.”

Lower performance combined with other economic uncertainties like high borrowing costs have pushed the South Korean company to enter “emergency mode,” per The Korea Economic Daily.

Related: Apple Is No Longer the Top Phonemaker in the World as AI Pressure and Competition Intensifies

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Executives at all Samsung Group divisions will be affected, including those in sales and manufacturing, according to the report.

Samsung had its worst financial year in over a decade in 2023, with the Wall Street Journal reporting that net profit fell 73% in Q4. It also lost its top spot on the global smartphone market to Apple in the same quarter, though it reclaimed it this year.

Though employees below the executive level aren’t yet mandated to clock in on weekends, some might follow the unwritten example of their bosses. After all, The Korea Economic Daily reports that executives across some Samsung divisions have been voluntarily working six days a week since January, before the company decided to implement the six-day workweek policy.

Entrepreneur has reached out to Samsung’s U.S. newsroom to ask if this news includes executives situated globally, including in the U.S., or if it only affects employees in Korea. Samsung did not immediately respond.

Research on the relationship between hours worked and output shows that working more does not necessarily increase productivity.

A Stanford project, for example, found that overwork leads to decreased total output. Average productivity decreases due to stress, sleep deprivation, and other factors “to the extent that the additional hours [worked] provide no benefit (and, in fact, are detrimental),” the study said.

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Related: Samsung’s Newest Galaxy Gadget Aims ‘To See How Productive You Can Be’

Longer hours can also mean long-term health effects. The World Health Organization found that working more than 55 hours a week decreases life expectancy and increases the risk of stroke by 35%.

The same 55-hour workweek leads to a 17% higher risk of heart disease, per the same study.

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John Deere Hiring CTO ‘Chief Tractor Officer,’ TikTok Creator

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John Deere Hiring CTO 'Chief Tractor Officer,' TikTok Creator

This article originally appeared on Business Insider.

Agriculture equipment company John Deere is on the hunt for a different kind of CTO.

The brand on Tuesday announced a two-week search to find a “Chief Tractor Officer” who would create social media content to reach younger consumers.

One winning applicant will receive up to $192,300 to traverse the country over the next several months showcasing the way John Deere products are used by workers, from Yellowstone National Park to Chicago’s Wrigley Field and beyond.

“No matter what you do — whether it’s your coffee, getting dressed in the morning, driving to work, the building you go into — it’s all been touched by a construction worker, a farmer, or a lawn care maintenance group,” Jen Hartmann, John Deere’s global director of strategic public relations, told AdAge.

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To kick off the search, John Deere tapped NFL quarterback Brock Purdy (who will presumably be a bit busy this Fall to take the job himself) to star in a clip in which he attempts to set out on a road trip in an industrial tractor.

Suited up in the obligatory vest, work boots, and John Deere hat, Purdy’s progress is interrupted by teammate Colton McKivitz hopping into the cab while a string of messages floods in from other athletes and influencers expressing interest in the job.

The clip also represents the first time that the 187-year-old company has used celebrities to promote itself, Hartmann told AdAge.

According to the contest rules, entrants have until April 29 at midnight to submit a single 60-second video making their pitch for why they should be the face and voice of the company.

In addition, entrants must live in the 48 contiguous states or DC — sorry Hawaii and Alaska residents. Interestingly, any AI-generated submissions are prohibited, too.

Videos will be judged against four categories — originally, creativity, quality, and brand knowledge — after which five finalists will be chosen and notified after May 17.

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