Yes, the party is over for affiliates due to Google Panda dropping lots of spam blogs to the neither regions of search.
The model a lot of affiliates were using, producing lots of 10 to 15 post spam blogs just wont work anymore, so many have given up I believe, and new affiliates are less than before because porn is no longer the cash cow it once was. They are just not getting the sales they once did.
Plus Google is rewarding higher positions to tubes, illegal or otherwise. Then there is all the free porn content available, affiliates just can't compete anymore with all the free stuff, it's not worth it. Only those who have an established traffic base and/or have adapted to the changes have survived, so far.
This is what I've seen happening, and/or discussed elsewhere both on adult WM forums, SEO articles or affiliate marketing WM forums.
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