Affiliate Marketing Isn’t Recession Proof After All

So, it seems like I was wrong all those months ago when I suggested affiliate marketing might be set to benefit from the recession.  Today DGM announced to the world it was entering into administration proving that despite its “risk proof” benefits for merchants, it was still susceptible to the struggling economy.

Whilst on the same day Affiliate Window formally merged with Zanox, a deal which originated last year but seems set to become something more formal from a public facing perspective.  With Zanox already owning Buy.at they now represent a large portion of the UK affiliate marketing space.  It could be suggested however that the merging of 3 companies in the same space indicates that one, or all, of them was also not in the healthiest of shapes.

Its a shame for DGM who were always the most supportive network for smaller merchants and for me, the most helpful towards agencies.  No doubt somebody is going to start blaming the management of the company, which is natural, but we mustn’t forget the current situation is hitting everyone pretty hard.  In fact, I was surprised how few companies fell during 2009, although what we may be seeing is a delayed impact.  With I-level going under recently and now DGM, two well established companies in their chosen field, could we now be seeing the true impact of the recession as companies can no longer hold on?  Many others may be experiencing similar difficulties and desperately hoping for the market to pick up.

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