Hydra Networks has announced that with immediate effect it has terminated the accounts of over 15,000 publishers. The news comes as part of a new push by Hydra to attract mainstream brand advertisers and set themselves apart from “ad networks peddling nutraceutical diet remedies, cash grant opportunities, tooth whiteners and other non-branded campaigns of low consumer value.”

Affiliate marketing is a much-coveted career path in the business of online moneymaking. After all, it’s convenient, it looks easy enough and everybody’s doing it. But make no mistake: it’s a virtual jungle out there.

Five million people use Twitter every day. Each month, more Americans visit YouTube than watch the Super Bowl. It's clear that the Internet is fundamentally changing. What does this change in online behavior mean for e-commerce?

ValueClick this week announced the divestiture of their lead-gen business unit, Web Clients. The stated reason is that ValueClick wants to stay focused on their online marketing services and technology businesses. That’s fair enough, but a look at the history of ValueClick and Web Clients raises questions in the minds of the curious.

Networks Go Wild
If there is one recent development that has changed performance marketing it is the explosion in new advertising and affiliate networks. Nobody seems to know for sure how many there are now but a guess of over 500 active networks, and several thousand in total, is probably correct. It is easier than ever for someone – anyone – to set up a network and start brokering offers. It’s almost become a standard career path for successful affiliates to start their own CPA network.

Have you driven down Main Street lately? If your town is anything like mine, you’re seeing a lot of empty storefronts with “For Lease” signs in the window. My favorite bagel shop is gone after more than 20 years in one location. A hot new restaurant closed before I could even try it. Even a thrift store shut down after decades of service to a local charity. How bad is it when people can’t afford second-hand stuff at bargain prices?

Over the last five years, almost all of the topics I’ve written about focus on some aspect of performance-based advertising. My fascination with the subject stems from a desire to understand the role performance-based ads play in the broader ecosystem for advertisers, merchants and affiliates.

On various stages of their involvement with the affiliate marketing channel, merchants look in the direction of launching affiliate programs for the same products on multiple networks. The most common reasoning for this being that by so doing they will expand their affiliate reach, significantly improving chances of recruiting powerful affiliates across different networks.

Protecting Consumer Privacy

Legislators, online marketers and consumer privacy groups still struggle over the creation of mutually acceptable online privacy laws – although all see the need for some level of protection. A coalition of 10 consumer advocates and privacy groups called on Congress to limit companies’ ability to track Web users and serve them targeted ads. Two key proposals under debate are to establish a Do-Not-Track registry similar to the Do-Not-Call registry, and imposing a 24-hour limit to holding consumer data.

Judging by the way our economy has plummeted in the last year, it seems the 2009 holiday season does not bode well for retailers — online or off.

Tens of thousands of people are still getting laid off every week, the job market simply won’t do us the kindness of opening up, and consumers are squeezing pennies so hard that Lincoln feels their pain.

Given this collective reluctance to spend money on anything but essentials, where does that leave online luxury retailers? Better yet, where does that leave their affiliates?