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  1. #1
    lurk
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    Affiliate Networks...
    Seeing as how there is litterally a new affiliate network coming out daily (especially with sites like directtrack that make it very very easy, given you have a little money of course) is it profitable for all the new up and commers?

    In other words, with a huge surplus of affiliate networks, are the new networks making good money? This has a lot to do with how they market them selves of course, but when will it stop. There can't be a new network coming out everyday forever and it still be viable.

    Affilate Networks, care to comment on this?

  2. #2
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    I look at it the way advertising agencies exist. Sure, you've got your Ogilvys and Omnicoms, but there are thousands and thousands of smaller ad agencies serving businesses who don't have a billion dollars and who want the service that comes with smaller agencies. Likewise, if you don't want to get lost in the Linkshare/CJ/ShareASale numbers game, and you want personal service and consultations, you'll go with a smaller affiliate network.

    I believe this is the future - many networks with a few dozen merchants each represented - and represented well. There may end up being some form of consolidation over time where affiliates can find these programs all in one place, but since affiliate marketing is still in its infancy, we'll have to see how it plays out.

  3. #3
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    Are you talking about smaller networks like fineclicks, websponsors, affiliatefuel type networks?

    I don't think the big networks are too worried. Usually what i see show up in all these little networks are the same offers every other little network has. I never see any mall type or big brands in the mix. I think they would either stay with a big network or maybe handle it themselves.

  4. #4
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    Oh, I certainly agree. Just as Ogilvy & Mathers is not threatened by the little agencies. And I think it's the smaller sites that will go with the smaller networks, not necessarily huge brands.

    I see some interesting offers at some of these networks - partnercentric.com, kolimbo.com... but is Dell going to go with partnercentric? Probably not.

  5. #5
    ABW Ambassador danay's Avatar
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    As the affiliate manager of a smaller network, I can tell you that our business model is very different from say a CJ or Linkshare. In our case, we are extremely selective with merchants and test offers internally before placing them on our network. It gives us the advantage of offering our affiliates good converters. This in turn assures us high caliber affiliates since they know we won't promote just any old offer. Not to mention the focus on personalized service.

    I think each type of network has its place.

    Sometimes we go to McDonald's because it's fast and convenient and sometimes we go to our favorite Italian mom & pop shop because we know the food will be great and we'll be treated like familly.
    Danay @ LunaSolMedia.com
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  6. #6
    lurk
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    Quote Originally Posted by TrustNo1
    Are you talking about smaller networks like fineclicks, websponsors, affiliatefuel type networks?
    Yeah those networks are what I mean... just curious how if so many new ones come out weekly, how profitable are they (on their end, not ours)? Especially with what Trust said "Usually what i see show up in all these little networks are the same offers every other little network has."

  7. #7
    Newbie NavySeals's Avatar
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    I would actually prefer many smaller networks as opposed to one large one. The reason for this is that smaller networks can be more selective of the advertisers and campaigns they bring on. They can for instance, dedicate themself solely to Financial type advertisers, thus being able to bring affiliates the highest payouts for their volume conversions which they would never find anywhere else. Another reason I prefer many small networks is so that I don't feel like I'm putting all of my eggs in one basket. Some smaller networks have weekly wires or bi-weekly payments because they are flexible and close with their advertisers, while most of the big boys have the lame Net30 with way more restrictions and worse support.

    I really do hope that smaller niche networks keep popping up. Is there a directory or list of the categories they can service? Up until now I've been depending on the really large networks, and frankly, I'd much prefer to give my business to the smaller ones who will give me the service and payouts I deserve, so that we can work alongside one another with the advertisers and come to some custom payout agreements.


  8. #8
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    Unfortunately, I haven't seen any really good computer hardware merchants on the smaller networks.

    Best,
    RadarCat
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  9. #9
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Quote Originally Posted by jrod805
    Yeah those networks are what I mean... just curious how if so many new ones come out weekly, how profitable are they (on their end, not ours)? Especially with what Trust said "Usually what i see show up in all these little networks are the same offers every other little network has."
    Some newbee networks are just fronts for someone who buys a PPCSE script and recruits sleazebag 2nd tier affiliates (often banned from real networks), syndicate mixed results with BHO friendly wanks like Knoodle -Findwhat and even Overture. Basically pooling all the crappy pesudo merchants together with the shanky affiliate tricksters. They just give it a CPA network name and off they go to dupe shopper clicks,rape PPCSE budgets and push affiliates posing as merchants with lead or click fees.

    If you want to go small and personal ...go indy!
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  10. #10
    Member Azam's Avatar
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    Can't see many advantages of smaller networks. The one possible plus is they can devote more resources to helping individual affiliates. But apart from that, the big boys can do everything. CJ etc. don't discourage small affiliates and they have all the merchants of the smaller networks plus hundreds more.

    Also, with the likes of CJ it's far less likely they'll go bust or screw you over. As has been mentioned above, not sure how profitable these smaller networks are (I challenge any of them to post here how much pure profit they made in Quarter 2, 2005). And, just like 90% of the banner exchanges we've used over the last 7 years have gone bust or stopped managing their sites, I'm sure many of the smaller affiliate networks will become dot.gones in a couple of years. Not talking about the likes of Filinet.com which seems well run, but people think it's far easier to set up an online business than it is.

    We'd rather stick with big networks so that we don't have to log into dozens of sites to track sales, study metrics and chase up payments.

  11. #11
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Basically pooling all the crappy pesudo merchants together with the shanky affiliate tricksters.
    Sounds like Kelly Services only for affiliate marketing
    There is no knowledge that is not power. ~Hemingway

  12. #12
    Full Member asr_guy's Avatar
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    Net # networks?
    I think it's healthy to have lots of choice. As for are they profitable you can't just look at the number of new ones coming on every week. What about the ones that quietly die out or go down in flames? Can anyone comment on the growth and profitability?

    My guess is that e-commerce is on a big growth spurt now after the dot bomb we had a few years back. So if online sales are increasing so will affiliate sales and thus there's growth in new affiliate programmes looking for networks plus other platforms (hosted, standalone, etc.) as alternative options for merchants. The smarter networks are probably investing in getting a good placehold now and expect profits in the medium term. Just a guess.

    Cheers,
    Peter

  13. #13
    ABW Ambassador danay's Avatar
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    The affiliate marketing industry, just like internet marketing itself, is still pretty new. It's only 10-12 years old. That means that there is a ton of opportunity for growth.

    This leads to new networks coming to the forefront with different goals to achieve. So many things have not yet been done or saturated.

    Will there be a ton of businesses that tank? Absolutely. That happens daily in every market and every industry. It's the ones that have a clearly defined set of goals and action plans to meet those goals that differentiate the successes from the failures.

    Who you do business with is always your choice. That's the great thing about living in a commerce driven economy (was that redundant?).

    The point is, each network whether big or small has its own set of advantages & disadvantages.
    Danay @ LunaSolMedia.com
    Global Perfomance Marketing. Global Niche Markets = Opportunity!
    HispanicYa!|MallFreebies

    I dwell in possibility. ~Emily Dickinson

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