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How many affiliate networks does one merchant need?

March 24, 2011 By Chloë Thomas 1 Comment

The world of affiliates is having somewhat of a resurgence. Consumers are straying away from the brands they know and trust and browsing around to see what other options are out there. Affiliate sites are making the most of this and, as a result, there are some strong affiliates appearing in all sectors.

So, as a merchant, how many affiliate networks do you need to work with? Is it a case of the more networks you’re on the more money you’ll make?

It could be easy to assume that working on more than one network has economies of scale from a workload point of view and at the same time, doubles your sales. In almost every instance, this won’t be the case.

There can be some advantages to working with more than one network:

  • In some cases big affiliates will work more closely with one network and therefore you may get better opportunities. However, big affiliates understand the need to work closely with many networks to ensure they have access to the best merchants for their site.
  • Some affiliates may not know/work with the network you are on. However, as long as you research your market, you should be able to reach out to those affiliates and encourage them onto your programme without the need to run with more than one network. Most affiliates will work with most networks.
  • If you’re a lesser known brand, it may be harder to encourage an affiliate onto a new network just for you. In this instance, being on multiple networks widens your scope.

OK, so what the drawbacks of running with more than one network?

Although there are some time savings that are made when working across multiple networks, our experience has been that 2 networks increases the investment at almost every level by around 80%.

The drawbacks include:

  • Frustrating affiliates
    Unless the programmes are run in complete parallel with the same promotions, commissions and communications run at exactly the same time, affiliates will either have to spend time flicking between networks to get the best commission or will miss out – either way, it will be much more difficult to build a strong relationship with them.
  • Duplicated commissions
    You will have to work with one/both networks to ensure you don’t end up paying duplicate commissions on both networks.
  • Network Costs
    Depending on the deal you work out, you may have to pay more in monthly fees. However, it is often the case that you can get a commission override deal only on second and subsequent networks.
  • Technology Costs
    There will certainly be additional coding/tracking that needs implementing when running more than one network which, depending on your website management, may incur additional costs.

SO how does it affect your ROI?

In many case, having more than one network can siginificantly lower your ROI.

  • 2 affiliate interfaces have to be managed – double the investment for less than double the reward
  • Every promotion and communication has to be done twice – again double the investment for less than double the reward
  • More than double the reporting – some affiliates will drive activity via both so you need processes in place to combat this
  • Any technical changes have to be made twice

In summary…

There are people that are strongly for using more than one network and those that are strongly against. I believe it depends on many factors – your brand, the affiliates you’re trying to reach, your reporting capabilities, your website development process and more.

One of the most important factors to take into account is the time you have available to manage your affiliate programme as without a doubt, the more programmes, the more time resource you will need.

Filed Under: eCommerce Updates Tagged With: affiliate marketing tips, Affiliate Networks, multiple affiliate networks

How Much Commission Should You Pay Affiliates?

October 12, 2010 By Chloë Thomas 2 Comments

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Deciding how much commission to pay your affiliates is one of the most important decisions you can make as a merchant. Unfortunately there is no simple answer to the question but there are numerous factors to be considered during your decision process. [Read more…]

Filed Under: eCommerce Updates Tagged With: affiliate basics, affiliate marketing basics, affiliate marketing explained, affiliate marketing how to, affiliate marketing strategy, affiliate marketing tips, affiliate network, Affiliate Networks, Basics of Affiliate Marketing, commission

An Introduction to Affiliate Marketing

June 17, 2010 By Chloë Thomas Leave a Comment

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What is it?

For merchants affiliate marketing is a low risk, cost effective way to generate business online. It’s also a great way to build brand awareness for a product or service.

How does it work?

Merchants wishing to participate in affiliate marketing typically sign up to what’s known as an affiliate network. This network serves as a liaison point between merchants and affiliates and gives merchants the opportunity to promote their products or services across a multitude of websites.

Affiliates sign up to affiliate networks so that they can promote the products and services of merchants. Merchants reward the marketing efforts of their affiliates by paying them a commission for each sale or lead that they generate. Commissions are usually a percentage of the lead/sale that’s been generated; however some merchants prefer to offer a fixed amount per lead/sale. [Read more…]

Filed Under: eCommerce Updates Tagged With: affiliate network, Affiliate Networks, arbitage affiliates, cashback websites, Content Affiliates, loyalty websites, PPC Affiliates, review websites, shopping directories, voucher code, voucher codes

Is an affiliate programme right for you?

June 10, 2010 By Chloë Thomas Leave a Comment

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There are both advantages and disadvantages to running an affiliate programme, here are the key points you should consider before deciding if joining an affiliate network is right for you.

Advantages of joining an affiliate network: [Read more…]

Filed Under: eCommerce Updates Tagged With: Affiliate Networks, ecommerce

Basics of affiliates – How affiliate marketing works

August 6, 2009 By Chloë Thomas Leave a Comment

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Affiliate marketing can act as an additional sales channel with the potential to open up your website to a whole new audience and customer base.

Affiliates essentially forward targeted traffic to your site and if one of these leads makes a purchase, the affiliate is rewarded – usually with predetermined commission on purchases or on a per-lead reward basis. Consider affiliates as your modern day sales force generating leads for you.
[Read more…]

Filed Under: eCommerce Updates Tagged With: affiliate marketing explained, Affiliate Networks, Basics of Affiliate Marketing

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