In the second interview of my “where are they now” series, affiliate marketing’s very own Ray Theakston has graciously agreed to answer all my probing questions once more!  You can read his previous interview here.

So without further ado…. over to you Ray!

* How has ShopCodes fared since we last spoke? You mentioned in the 12 months up to the last interview that you’d generated £1.25 million in sales for your merchants. Have you grown on that at all?

Sales in 2008 from the main networks exceeded £1.1m. I’m really proud that I’ve managed to maintain those levels, for the past 2 years, in light of all the extra competition. I read the recent census and I was shocked to see that so many affiliates bring in so little sales.

There were some rare days when I’d get just 200 uniques or made only £30 commission but I’ve now got over 1,300 email subscribers and Google has treated me consistently well for a long time now.

My traffic is mainly SEO and so 90% of my turnover is profit. I could trim that excess 10% further if I could be bothered cancelling some ISP and broadband accounts. So I’m doing my bit for the economy

* Do you think your earning power has been affected by the new IAB rules and the general controversy that currently surrounds voucher code sites? Have you a strategy to deal with any lost revenue?

The IAB guidelines/rules have made no impact to anyone’s bottom line, so now merchants are introducing new rules why they shouldn’t pay you.

My site doesn’t use click-to-reveal as a method to get visitors to view the merchant site and therefore have their cookie. However, some merchants recently have started making dramatic restrictions based on domain names and SEO and not reflective as me as a person, or the page that is built for them.

I can no longer promote Urban Outfitters or Sainsbury’s Kitchen and a dozen other merchants because I’ll either get 0% commission or pittance.

My survival strategy kicked in two months ago and I am now feeling quite bullish that I’m making an extra £100 daily than this time last year, with the same traffic. It’s all about improving conversion rates. So check where those sales are coming from daily and build on and focus around those converting results.

Each time one of the merchants upset me, I refresh their competitor pages. I will also publically blog, twitter and facebook about my annoyances. This has been a masterstroke for getting new converting business and interestingly some of those merchants back onside.

It’s a very very big market out there and as I always say, ‘ShopCodes is not even touching the sides’. So it’s a case of ‘whinge and win’.

* Everyone wants to know how much money an affiliate has. You very generously volunteered the fact that you are “very very close to having over £100k in my bank accounts” when I contacted you to ask for this interview. So the obvious questions arising from this fact:
- Why do you still work 9 to 5 in the face of what is very clearly an incredibly lucrative part time hobby?

Yes, I thought I’d highlight the £100k as it’s a very significant milestone. It does paint a picture of my journey. I’ve already recorded how I was recently £22,000 in debt with credit cards – and I want to show that you can change your life for the better, if you’re determined enough to work hard and make those lifestyle changes.

So here I am with that in the bank, have a good career with a good company, that offers a nice salary, perks and 7 weeks paid leave a year – and a website that earns a few thousand each month.

I’m currently living the lifestyle that having effectively two nice salaries brings. I’ve got no debt, am single and so I’m really just enjoying the moment whilst I can.

Affiliate marketing has infiltrated my day job. Agencies have the audacity to ring me about absolutely nothing of interest and people on MSN spam me with links to posts that I’ve already spotted or chose to ignore. Then there’s the forum, gmail, and twitter. I can’t appear to switch off from affiliate marketing, with so many ways to communicate available but I can just about squeeze in both to my life for now.

* You also said that “I can currently spend £35k as I please, tax free”. What is it that stops you from spending it and the other money you currently have available to you?

Hmm, maybe I do struggle for time because I pay for taxis to get to work. I don’t want for much except for maybe a big HDTV. I seem to get abroad at least 4 times a year and even when I win those trips, I make up for it in the spending department. Maybe it’s because I’m single that I still have it at all lol.

Typically, I spend my monthly take home pay from my day job and the money that my business makes just stays in the business.

Having £35k for my own personal use is a significant amount and seems worthy of using for a house deposit. House or playboy apartment? Lol. Just spotted your next question.

* As one of the most eligible batchelors in affiliate marketing, and as someone with a great and outgoing personality – why on earth are you still single?!?!

I can’t drive. That’s why my rare one night stands don’t turn into two night stands

I’d happily settle down with a pretty woman and if she also works in either marketing, development or design, then we can both become millionaires. I’d even learn to drive.

* In your initial mail to me, you said “If I told my mum and dad, brother and sister I had £100k in the bank, it’d be like for them like I’d won the lottery.” – Is there any reason you’ve not told them about your wodge of cash?

My parents are well aware of what I’m up to with my sites. Every time I see them my dad asks, “How is Google treating you?”

My dad, a ship builder by trade, is now retired and both my pensioner parents live in a Middlesbrough council house. We’ve mooted the idea of me buying it.

It’s not quite right talking about £100k in the bank when you’re hearing stories about the electricity meter about to run out. So it’s getting the balance right. Got no qualms bragging to mates though in the pub.

* Do you think your earning power would increase if you did go full time and really give affiliate marketing a go?

If I had an extra 50 hours a week to work on my site, I’d make more money but I’ve a fear that I’d spend that time in my pants and going blind! Joking aside, I don’t think I could handle working from home alone indefinitely.

* Does the recession have any bearing on your reluctance to go full time?

I’m making more money in February 2009 than previous months and we’re in a recession. So there’s no issues with people spending money online. There just may not be anybody around for me to promote.

If my company made me the offer of redundancy, I’d accept it, as I have no intention of working for another company once I leave this one. That payoff would be a very significant amount and would be a good cushion.

* In our last chat you said you wanted to launch Shop Codes into multiple countries. Is this still a key aspect of your future business plan?

I’ve invested a lot of money in buying the .com domain but I have shelved plans for the development of it since the IAB guidelines announcement. The current set up is not future-proof or indeed 2009 proof.

If I’m going to invest a further few £k on design and development and a lot of hours, then I need to make sure I’m going to receive commissions at the other end. So the plan to be honest is concentrate on what is working now because the goal posts seem to be changing every fortnight.

* What do you plan to do in the next 12 months?

I don’t even know what I’m doing this weekend.

The only things I know for certain is that I’m going to Amsterdam and London to do some networking. See you there.

• What Super Affiliates, And ALL Affiliates REALLY Want
• Meet The REAL Affiliates – Ray Theakston – #1 of 3
• Meet The Real Affiliates – Where Are They Now? Chris Frost