How To Tell If A Sponsor Is Struggling Financially?

[Lee]

I thought id throw this question out there to see what you folks thought about it, do you think there are 'warning signs' that we should be spotting when it comes to sponsors who may be going through financial difficulties and potential problems with affiliate payouts, etc?

For example, what if a sponsor used to throw lavish parties at the tradeshows then suddenly stopped doing anything or just cut back to regular party sponsorship? I know a lot of sponsors did this a few years back and they all seem to have either vanished or become fragments of what their programs used to be.

Likewise, when sponsors stop offering 'prizes' as part of their promotional periods, do you think this lends itself as a warning that they may not be making as much money as they used to make? Again, going back a few years, several of the large straight sponsor programs used to give stuff away all the time, nowadays that doesnt seem to be the case or, they are teaming up with other companies to offer promos.

I just wondered if these two examples (and any others you can think of) are signs that specific programs may be struggling to pull the numbers they used to?

Your thoughts, are there signs that we should be looking out for when it comes to the sponsors we promote that should throw up warning flags?

Regards,

Lee

[chodadog]

I don't think either would suggest a company is struggling. Those types of promotions are just becoming less and less effective and the affiliate programs are learning that. Just look at GFY. A huge number of the threads on any given day are another goddamn contest thread being won time and time again by the same board whores. Most affiliates and would be affiliates just don't give a shit any more.

My two best sponsors? Perfect Gonzo and Bang Bros. They don't need lavish parties and competitions to tell me they're doing well. I just look at the numbers. Oh and the odd $75 PPS promo doesn't hurt either.