Many people out in internet marketing land are asking that exact question. And wonder why affiliates are getting their Adwords accounts banned and slapped by Google.

I think Google’s problem with affiliates is that in Search Engine land it’s all a zero sum game.

There’s only 1 organic spot for each keyword available.

And there’s only 1 paid spot for number 1.

If you’re number 1 then someone else isn’t.

In a “normal” business like a grocery store everyone can sell the same stuff, but they’re in different locations.

The proximity to your home creates value.

If you want to pick up a Coke, you don’t want to drive 50 miles, so you go to the nearest place.

It’s not the same on the internet.

If you type in “Coke” and you see 10 sites all offering the same thing, and all of them are affiliates… where’s the value for the customer?

That would be like walking into your Grocery Store, walking to the “Soft Drink Isle” and instead of seeing just one row of Coke, you would see 10 rows of Coke, but if you pick row 1, then person “x” gets paid, row 2 person “y” gets paid, row 3 person “z” gets paid.

It doesn’t make sense.

And seeing as there is only one “Soft Drink Isle” available to the entire *world* with Google’s system, they don’t want a bunch of affiliates selling the same thing with no added value in that isle.

That’s my theory.
-Sean