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My immediate response would be to start promoting MSN and Yahoo to my visitors, or at least make them aware of the alternatives.
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This is fair comment and a reasonable alternative at the moment but slowly and surely Yahoo and MSN are going to do the same as Google and unless you shell out for PPC and compete with the thousands of other affiliates to try and snatch some quality traffic (as all the engines change their algos enough to phase out affiliate sites) it's going to get extremely difficult to establish some kind of foothold and consistent income.
At the moment it seems to be only Google that are sending good quality traffic that converts my way. I'm receiving ten times the amount of traffic from MSN that Google sends and Google still converts at a ratio of around 5:1 against - and thats for the same key phrases.
To shift the paying majority away from Google it's going to take some convincing that using Google isn't cool, isn't always the most accurate and doesn't always have the user's (searchers and affiliates included) best interests at the forefront of it's business model.
It's going to be a mixture of community, brand, offline advertising, word of mouth and offering something that little bit extra to your customers that will give you any chance of starting and surviving in the affiliate game.
I agree completely with Nick, Keith, John (I would add offline interests into your 8 point plan John, just incase of internet meltdown) and Shane. Affiliate marketing is good start into setting you up for the future and can be your only source of income with luck and the right approach but as soon as you get a sniff of success - reinvest and diversify. Just incase.
I'm always looking for joint ventures, profit shares and other things which might be of interest so if anyone has anything of interest please feel free to send a PM my way.