Thanks, dude. Howdy Affiliate World. So I’m closing out the show. I only have 15-20 minutes to talk to you guys today. If you guys don’t know, I’m one of the co-founders of AGS as Heath mentioned, and that about as much as I’m going to talk about myself. So it kind of posed the question to me, when I said I’m going to talk about performance marketing is about to explode. Are we going to blow up into a million pieces or are we about to blast off to the next level? Who thinks that we’re gonna blow up? Nobody? Blast off? A few, okay. I don’t even have the crowd yet. So let’s go through the scenario number one. Are we about to blow up?
Affiliates of the world. Robots are coming to take you out and there’s nothing you can do to stop them. Who feels like this? Nobody? Somebody. Let’s talk through this real quick. The first scenario is the smartest and best-funded technology companies in the world are currently fighting against you every day. If you’re not providing value to their consumers, then they’re looking for ways to get you to stop doing what you’ redoing right. That’s actually happening. It’s happening at a high rate and both Facebook and Google are investing hundreds of millions of dollars building artificial intelligence to stop you from doing things that hurt their consumers.
CPA networks are going out of business at an ever-increasing rate. We also have this scenario where the number of marketers is growing. These shows are growing. The number of people in the performance marketing space is growing, but the number of opportunities to make money isn’t growing at the same rate. So if we want to go this scenario and make the argument that performance marketing is about to blow up into a million pieces, these would be some of the things that I would use to make that argument. Now I don’t think that.
I’m gonna go through the other scenario. So are we about to blast off? I think the answer is pretty obvious. We’re the best salespeople on the internet. Of course, we’re about to blast off right. Let’s go through this. By “the best salespeople on the internet”, I mean that we’re the people that are the best in the world at connecting internet users with the things that they want and need. So I’m not talking about the best person that just likes to sell stuff for the sake of making money, it’s about the ultimate goal of being able to That’s the value that we provide to the world and if we embrace that, I think it’s easy to see that we’re gonna blow up. We’re gonna take this thing to the next level and I think is self-evident. Let’s think about this. Being the best is in our nature.
Why do Isay that? First thing.That’s like a really big value. Most people don’t understand the level of this value, but if you work with business owners, like people that run really big businesses, corporations. Running the business, operations, finance, these things are not very hard. They’re well thought out, but how to profitably scale customer acquisition, probably one of the most difficult things in business, and yet it’s the thing that we do every day and we’re great at. The second thing is we spend our own capital to promote other people’s products.
What? It might seem normal to us, but to everyone else, that’s crazy. it’s like legitimately, people are like, so what’s the catch? Every time we mention this. The losses we incur, they’re what teach us how to perform. There is no university in performance marketing. The tuition you pay is the money you lose figuring out things that didn’t work.This is actually one of our biggest values and why other people who do advertising and do it well, have a hard time doing it as well as we do. Its because they don’t feel those losses in the same way and they don’t learn those lessons in the same way that we do. The next is that we’re part of a feedback loop, a very valuable feedback loop to people that make things. We know what consumers want, and after they buy it, we know what consumers like. Does anyone resonate with this stuff?
Does anyone feel like they’re the best salesperson in the world? A little? Okay. So this is why I believe that we’re about to blow up, but I’m gonna go through this a little bit more.This is a really interesting slide.
Affiliate marketing right now is said to be about $12 billion. Before I go through the numbers, I’ll give you this little note. This data is compiled from a mix of reports. They were like three reports I grabbed from World Bank Forrester and Rankin, and I also approximated them for ease of consumption. So if you want to argue with the numbers, just go look on the internet. Look them up yourself, but we’re at $12 billion, global advertising is around $600 billion, e-commerce is $3 trillion. This is 2019.
Does that help anyone see the scope of this $12 billion sounds like a lot, but you are there? We are alright there, and if you take this a step further, advertising, ecom, and then global GDP, you’ll see that even eCommerce is just a small drop in the bucket of all the ways people make money today in the world.Making money on the internet is very sexy and awesome and we all want to do it, that’s why we’re all here but it’s a small part of this bigger ecosystem that’s playing and I just want to show this to you to help you see the size of the opportunity. The next piece, I hope I don’t get too nerdy for you guys, but this is actually I think a really critical piece to understand the whole future.
So on the bottom, you’ll see that we have global GDP, global advertising, global affiliate marketing, and global eCommerce. That’s on that slide. So this is year over year, five years, and the things that stand out to me most are this. Number one, everyone in this room that is an affiliate marketer legitimately participates in eCommerce.I know people like to think about AGS, oh we’re doing a new vertical, we’re doing com. If you sell something on the internet for a living, you do eCommerce. That’s the definition of it. So when we say we grew 12%, that’s commissions paid. When we say eCommerce, that’s stuff we sold. We’re participating in both of these markets and they’re growing at 12 to 20% and look at this, which means that affiliate marketing is growing three times faster then global advertising is as an entire industry. That includes Facebook and Google, like global advertising, and e-commerce is growing five times faster than all of the other industries in the world. That’s global GDP. Does that make sense? We’re literally on a rocket ship that is growing three to five times faster than any other industry, all the industries combined. That’s how much faster we’re growing right now. When I got into it, it was $7 billion, five or five and a half years ago, we started AGS. Now it’s at 12.We’re projected to double again and be at 25 in another five to seven years.I think we can do it faster.
That’s what the past data tells us and then this one is really even more interesting. $5.8 trillion by the end of 2021. So in two years from now, they think eCommerce is going to go from $3 trillion to $5.8 trillion. So it doubled over five years. We just saw a 100% growth. Five years doubled. They think it’s gonna double again in two years. Anyways, I want to make some of that money. Don’t you guys? The other thing that you might not see when you note this, is like if affiliate marketing is going to grow 12% next year and this year it was over $12 billion How much new money is gonna be in affiliate marketing next year? The new money will be $1.5 billion. So our industry is going to make $1.5 billion extra that we didn’t make this year, next year. Who in here is gonna make a piece of that? Just my team? Cool. I think we’re gonna blast off together.
This is my conclusion in my hypothesis.I’m gonna go through a little bit of time talking to you guys through how we’re gonna do this because that’s the most important thing, but I wanted to set the stage so you guys know. I don’t know how many of you read the letter, my open letter that we wrote with the founders, but this was really the whole opportunity. To help you guys see that really, the scope of the opportunity that performance marketing provides to the world and the value that we provide and how we’re going to achieve it together. So yeah. Glad you asked. So I think the first thing we need to do is to know ourselves. That the value that we provide to the world. We are the best at, in my opinion, number one, figuring out and monetizing traffic sources. How many people here agree with that?
I know most people here were the people that figured out Facebook, figured out Google, figured out Taboola. We’re the people that did that years ago. There’s a lot of people now jumping onto it, but we’re the people that cracked new platforms. The next thing that we do is we connect products with audiences and buyers and we’re very, very good at finding who should we sell that to and making it work right. The next thing that we’re really good at obviously is generating massive amounts of revenue and massive amounts of awareness for brands. I think that’s like something that people – obviously, we know how much revenue we drive for brands, but I think we’ve often forgotten how much awareness we drive because for every 100sales we do, how many thousands of people did we serve an ad to right?
Then you have the next piece. We’re the best at scaling customer acquisition. We’re great scaling it across traffic sources, across geos, demos. This is what we’re really good at. I don’t know if anyone will argue it with me in this, but I think this is like our prime value, and the next is we’re really, really good at optimizing ad creatives and sales funnels to lower the customer acquisition cost.
Because that’s the only way we make money, but if you ever talk to a legitimate business owner the things they care about are what’s your customer acquisition cost and what’s your lifetime value of your customer?
So this is a really key part of every business in the world and especially ones that want to work online. So the next thing is you need to develop your robot-friendly skills. Remember how I said that robots are coming to take you out? It’s only if you don’t provide value to space. There are skills that you have and I have and we all possess as performance marketers that if we refine, there’s no robot that’s gonna take us away.
In fact, they help us do a better job at these things, and so I want to walk you through these things because I think knowing yourself like what the value you provide is, and what you should focus on, what skills you should refine, this is what’s going to determine who is the most successful this year, next year, and years to come. So the first thing I think you can be focused on is developing creative ad development and angle testing.
Making great ads that work and testing all the different angles you can. I know a lot of people here, they test images and they test headlines and test all sorts of things but testing the angle is really often where you find the biggest wins, especially really early on when you’re doing this thing. Getting new products and new categories working. This is the way that we expand and go from $12 billion, take a bigger piece of that $3 trillion, as we get out of the things we’ve been doing and we expand to new things that people aren’t doing right now. Sales funnel optimization. It’s kind of obvious, but once you have something working, why not make it work a little better. Developing strong partnerships. I imagine that’s why most people are here, but I think that this is another thing. Performance marketing isn’t done in a vacuum.
The value of being able to make money on the internet is not having to do all the work yourself. You don’t that make the product. You have to invent the product. You don’t the source of the product. You don’t have to do logistics. You don’t have to do for global fulfillment. You don’t have to do customer support. You have to do this stuff. This is your stuff. This is the stuff that you should be good at. The next thing is cracking ad platforms and units. Affiliate marketers and performance marketers are really good at saying, hey there’s new eyeballs?
Let’s make some money! Next thing? Scaling campaigns across and demographics. I’ve already told you that but the real thing is, I’ve also never met anyone when you get something working in one geographic or one target person, marketers are really good at spreading that out and saying, hey if US buyers are buying this, who else would want to buy this, and bringing it to those places. Managing profitable ad campaigns for multiple brands. Again this is really hard, like some people that work inside of a company or work inside of an agency, they’re able to have success with one or two things and then they point back to that success to tell everyone why they should work with them. Performance marketers are really good at making things work across lots of things and having stories where they’re selling things across verticals, across brands, across all sorts of things.
Diversifying revenue to support scaling your organization. This is something I’ve seen some people be good at and some people not be so good at, but being able to manage your money and diversify how you make money in such a way that you can stably grow your organization so that you can accomplish more and add more value back because frankly, this is a lot of stuff to do by yourself. If you’re trying to do that. And then finally, building, engaging, and monetizing your audiences of buyers. There are so many people that do so much work to get clickers and to get buyers and that’s the end of it. Their ROAS is all the money they make. They’re not making money from these audiences.
So over the next year, next two years, three years. Rather than going too far because I’m a future guy, I like to think about the future. These are the things that I think that if you’re developing if you’re doing, I think you can call yourself a performance marketer legitimately and I think that the world is very, very bright for all of us that band together and do these things. So I’m gonna close pretty quickly cause I’m closing the show and I don want to take up too much time. I would love, by the way, to go through this whole list with you guys in detail, and maybe in the future, I’ll have the opportunity to do that but what’s this hippie talking about? Right? You guys seem walking out with long hair and no shoes on and I bet you, everyone’s here is like, this guy’s just full of sh*t and he’s trying to sell something.
You’re right, I’m trying to sell you on being bigger and being better and becoming the full thing that we can become, and if you don’t align with that, that school, but I believe that the performance marketers that are gonna have the most success, as I said, are gonna be the people that do these things. I’m boiling it down and down if you guys haven’t noticed. Number one, you need to see and believe in the opportunity. I showed you guys a couple of things to show the scale of the opportunity, why I believe we’re gonna take advantage of it, but you got to see it yourself. I can’t make you see it and you have to believe it, because if you don’t believe it then it’s not gonna happen Sharpen the right set of skills. If you’re really, really good at hiding things from Google and Facebook, that might make you money today, but that’s the kind of stuff that robots are coming to take out. Not people that are really good at finding angles, that sell products, that actually helps Facebook and Google make money.
Surround yourself with the proper people. Lastly, you wish to try and do the foremost important work a day and you would like to define what that employment seems like. I’m gonna break these down into five words so you guys can even boil it down further. Vision. you wish to own a vision. I’ve got a vision. I would like to get billions of dollars from performance marketing like that is what I need to try and do, and that is what I’m on a mission with my team to try and do regularly, to try and do that for performance marketers that see this chance and need to require a part of it. Mindset turns into purpose, like why are you here and what value does one provide to the tribe? If the globe was a tribe, what does the performance marketer augment that tribe because i feel they add plenty and I have already shared that with you? Sharpen the correct set of skills. Value. you recognize this is often what you are doing that the robots don’t do, and why you are going to still exist, and why we’re not visiting have our jobs automated out by robots within the future while plenty of other industries are within the next 20 years.
Partners. I do know you guys probably do not know that we call it performance marketing instead of affiliate marketing, a minimum of for ourselves. There are those who get links and make money, so there are people who do all these items I talked about.
We’re a smaller sub-set of a bigger group, but the partnership could be a key thing both in affiliate marketing because the affiliate may be a relational word. It means you’re affiliated with somebody else then this concept of partnership, finding the correct people to try and do business with, both in terms of your personal life, your career, the brands you sell, everything you are doing is supercritical to having success, then yeah, doing the foremost important work each day. that is the focus right. that specialize in what actually matters and is what visiting drive success for you then this is often a high-level talk. It’s really designed to inspire you guys.
I hope to require advantage of the opportunities that are presenting themselves in 2019 and 2020. Thanks for listening. Hope you guys have an excellent Q3, Q4. See you guys around. a giant round of applause. thanks such a lot, Topher that was exactly what we were searching for to shut off this show.