This is a great post and I am glad to hear it.
Great response from Hell Puppy too.
As to the first question:
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1. Why do sponsors fuck you and what is the methodology they use to cheat you out of money and/or traffic.
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The answer partly lies in question number 2.
The sponsors know that most of the affiliates are easy to screw over becasue they are ...
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hobbyists that behave like flock of sheep to earn beer money
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and finally ...
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3. Why do your conversions suck / how do you fix it / when do you FIRE a sponsor?
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My answer to all three is to follow what Hell Puppy said, and then when you find out which programs work best and you have some earned dollars under your belt, contact the higher-ups at the sponsor personally and directly.
Tell them you want to find ways to work more closely together and increase sales for both of you.
There are always things we can use as webmaster affiliates to improve our content, traffic and conversions.
But first, you must address Gonzo's question number 2 and DIFFERENTIATE yourself by actually earning commissions that go beyond "beer money".
You know the old saying "money talks and bullshit walks".
Prove to a sponsor that you are worth working with and that they shouldn't treat you like the rest of the flock.