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but that once they are there they purchase fewer memberships than do his referred visitors.
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I'd be interested how you know that for sure. Most organizations with affiliates will never give out that type of information.
But lets suppose for a moment that it is true. The only possible explanation is that your competitors site does a better job of prequalifying the people who click through. In other words when they click through from his site they know what to expect and they click through because they want to "buy", sign up or whatever.
Whereas people who click through from your site don't understand where they are going to or what is expected of them and hence they don't "buy". It goes back to my first comment. I think your site is vague. Rather than thinking your competitors site is junk, I think he has done a better job than you in letting his visitors know what it is all about.
Just because you know what your site is supposed be about doesn't mean that the average visitor will. You need to do some surveys or focus groups. Get 20 strangers to go to your site and tell you what they think about it. Then keep an open mind. Don't call them stupid because they don't understand. Change the site so that no matter how stupid someone might be they have a chance of figuring it out.
If someone is kicking your ass it is rare that they are doing it with junk. Usually they know something you don't.