An affiliate network is a combination of various affiliate programs grouped together around a common theme or interest and promoted to potential affiliates who are already providing websites that serve those interests.
For a merchant, joining an existing affiliate network can be an easy way to ramp up a new affiliate program. However, care must be taken in choosing the correct affiliate network to meet your needs.
The leading affiliate networks are:
- Commission Junction (www.cj.com)
- LinkShare (www.linkshare.com)
- ClickBank (www.clickbank.com)
- Performics (www.performics.com )
Different networks have different pricing models, some will demand a set-up fee from a new merchant, while others will ask for a lump sum up front as a deposit against the first payments. Nearly all will take some sort of percentage of the commission paid, so new merchants should always factor that into any margin calculations.
Some networks concentrate on simply building large numbers of affiliates, regardless of their track record for attracting new business. When looking at potential networks it is worth considering the quality of the business per affiliate, rather than just the raw number of affiliates already signed to a network.
Different networks also have different approaches to help you market your services. Some are very much “hands off” and do little more than list your program in their directories. Others are more full service and will assist with creative decisions as well as proactively promote your program. As a merchant you should decide which suits your needs the best.
Another consideration is: do you want to be in the same network as your competitors? Maybe being listed along side one or two could be positive as it fosters competition, but being listed among a large number of people in the same market can just dilute the message and lead to a crowded marketplace.
From an affiliate’s perspective, the networks offer a number of advantages.
Several affiliate networks give affiliates the ability to manage and track all of their relationships from a single place. Some networks offer a service to consolidate checks from multiple merchants into a single monthly check.
Affiliate networks are generally open to anyone wishing to join them. In fact, some are totally open with no checking of site relevancy or the amount of visitors to a site.
one network versus many networks. This is a common issue in performance marketing because the more you spread out your offer or your advertiser account onto several networks, the more management has to come behind it and then you have to make sure the same orders aren’ being credited to more than one network source. So it can actually have problems when you branch it out a little bit wider with more networks. So I usually recommend maximizing one network and then maybe trying a couple others when you want to add more volume if there are additional partners you can pick up there.