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  1. #1
    Full Member ADesertRose's Avatar
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    Multiple Networks
    What are the reasons why a merchant would be with multiple networks, but offer different compensations with the different networks? Do they pay more for a certain network or something?

  2. #2
    AM Navigator Geno Prussakov's Avatar
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    Yes, the networks' service fees may differ, allowing the merchant to pay more on some networks, and less on others.

    However, I honestly cannot think of one good reason why a merchant would want to be on multiple networks. It kills the transparency.

    Geno

  3. #3
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    Coverage.

    People actually join and participate in networks that offer less commission...They can score more affiliates promoting their products and services....Id think that there is not much more reasoning beyond that.

  4. #4
    Affiliate Manager jai @ Expedia(SEO)'s Avatar
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    Hi,

    I do not know about other merchants, but for Expedia, it allows us to reach different types of affiliate that we would not normally be able to approach. by that, the networks have different methods to market, sponsor and support their affiliates.

    Depending on how long the contract is for or for how deep the relationship reaches we will negotiate for a variety of contractual variables. Like reporting, emails, affiliate ownership, shares promotion. These factors affect our cost and we will either increase or decrease the networks cut accordantly. Sometimes it is better to just go straight to the merchant, but for others they want the one stop shop for a pool of merchants to work with.

    It is very similar to a site/affiliate using different ad serving technologies or hosting services. After a few months or years contracts are renegotiated as network competitors approach us to switch or ask for exclusive deals.

    That answer your question for ya?

    Jai

  5. #5
    CPA Network Rep Jon@Fluxads's Avatar
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    A lot also has to do with the valume and quality of traffic each network can provide for that merchant. The greater the traffic volume and higher the quality, the higher the payout they will offer the network and in turn the network will offer its affiliates.
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  6. #6
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Quote Originally Posted by Geno Prussakov
    It kills the transparency.
    Which is also another impetus because "they" can mask their parasitic ad buys.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  7. #7
    The "other" left wing davidh's Avatar
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    Sometimes they "want" to be on the big network, but also have enough sense left to run a parallel program on another smaller network because they also want to recruit affiliates who do not trust the big network.
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  8. #8
    Affiliate Manager jai @ Expedia(SEO)'s Avatar
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    too true

    Like we own 2 of our own networks called Ian and WWTE, but we also use CJ as a kind of a merchant mall. To get at affiliates that are hard to reach or just to allow them to better manage their accounts.

    It is hard for Merchants like us to find or bring on affiliates due to the nature of the business. It is not like a merchant can advertise on the internet or TV to get at all the affiliate managers, so sometimes a CJ like company is a good way to start. However, it is fine line when a merchant who has their own network and are also participating in network, since they have to share the revenue with both the network and the affiliate. It is a bit of a double edge sword.

  9. #9
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Quote Originally Posted by NoWires
    Sometimes they "want" to be on the big network, but also have enough sense left to run a parallel program on another smaller network because they also want to recruit affiliates who do not trust the big network.
    And some of us are smart enough to know that when there's more than one hand in the cookie jar (parallel programs), the untrusted networks can still steal from us.

    My best converting merchants are ShareASale Exclusive merchants - this moniker ensures there's ONLY one honest hand in the cookie jar and no others.

    Behind that are my MyAp indie merchants where there's just one hand in the cookie jar.

  10. #10
    Affiliate Manager Curtis Fullmer's Avatar
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    Putting your program on more than one network or system will generally give you broader, quicker access to the affiliate community as a whole. Not all affiliates will use all networks or systems.

  11. #11
    Affiliate Manager jai @ Expedia(SEO)'s Avatar
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    Donut has it spot on. We have to find what affiliates are seeing at the end of the line and see if we are in bed with the right players as it is the affiliate managers who see just how well a network is doing for them as a revenue generator as well as a provider of services from a merchant.

    Here is a question: What are the networks that are around which provide a venue like CJ, TD, LS? I hear new networks are popping up like Doubleclick who are providing maybe a more completive arena for merchants like us at Expedia.

    I am looking at rates, support, technology, product and how they are rated for Affiliate Managers for them to get at a merchants be that travel or whatever.

    Thanks

    Jai

  12. #12
    Merchant & ABW Ambassador
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    There is extended coverage but at the same time, Transparancy is a critical issue.

    It is a double edge sword. Many people brought up valid points but i guess it boils down to - Do your homework and do what you think will bring in the most $$.

    I have seen some with network + inhouse and they have been very successful.

  13. #13
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    The moment any merchant expands to multiple networks the sales reporting TRUST ISSUE goes right out the window. Cookie washing and dropping of legit sales occur for any merchants doing multiple network campaigns. The merchant's cart, or signup forms handling program chokes on parsing multiple network tracking scripts. Then comes the manual removing of sales with house cookies from non-affiliate network campaigns and PPCSE plays.

    Travel merchants are the worse offenders as are any who do TV Ads and run private deals with BHO's to hawk travelers/shoppers from competitor sites.
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

  14. #14
    Affiliate Manager jai @ Expedia(SEO)'s Avatar
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    I agree, once a merchant gets into bed with more than one network there are not only double counting (or no counting) issues, but I am also seeing there is a cost to production issue. This stems from the fact that as a merchant needs to have account managers, development, and accounting for their own in-house program. However, with each external network relationship, the merchant will have to incur additional cost with regard to the necessity to employ similar teams as well as cost splitting for each subsequent network they join. Therefore a smaller piece of the pie for the only 2 people who need it, the merchant and the affiliate.

    Here is an idea, do some affiliates just approach a merchant that have been working with successfully through a network directly? Or do affiliates feel the network ‘mall’ proves the need to remain a second party? As an example, cutting out the middle men and the commission that would normally go to the network and the affiliate would entirely go to the affiliate. Is this something other merchants have done in the past or are affiliate keen on such a scenario?

  15. #15
    Member Jigsaw2order's Avatar
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    As a merchant, is there not a case to sign up with both a UK network and a US network? It seems to me that UK or European affiliates would prefer a network specializing in these territories while US or US orientated affiliates would feel "more comfortable" with a US based network. I guess one way is to set up separate .com and .co.uk websites and register these separately with the respective networks. I would love some other view and opinion on this.

    At this stage, we have decided to go exclusively with SAS because of the trust issues outlines in other posts and because we do not want to split our focus. It will be interesting to see how many non-US affiliates sign up.

    Colin
    Jigsaw2order.com

  16. #16
    CPA Network Rep JP Sauve's Avatar
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    Here's a dirty little secret about merchants. When a merchant tries to broker their campaign with various networks, in particular with various CPA networks, it's EXTREMELY common for them to try and low-ball some of these networks with unequal rates. Merchants have their reasons for paying various rates to different networks (claiming high volume, better leads, longer relationships, etc) but often enough it's because the merchant is simply trying to keep as much profit as possible. They might pay $10 per lead at one network, but if they can get you to run their offer at $8 (without telling you they pay $10 elsewhere), they put $2 more profit in their pocket with each transaction.

    I applaud those rare merchants who have the attitude that they will pay every network the same matching rate, but they are the exception. It's actually my biggest pet peeve in running a network. Thankfully loyal affiliates usually notice these discrepancies, report them to us, and we bark at the merchant to pony up the difference.
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  17. #17
    Merchant & ABW Ambassador
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    Quote Originally Posted by JP Sauve
    They might pay $10 per lead at one network, but if they can get you to run their offer at $8 (without telling you they pay $10 elsewhere), they put $2 more profit in their pocket with each transaction.
    JP,

    Unfortunately, I have to disagree with you on this. In E-commerce, it comes down to $$ and cents. It;s not about putting more money in my pocket or anything - to me anyway.

    If I pay you $8 and other network $10 and their quality of the leads is better, wouldn't that be fair. Cos at the end of the day, it's about the ROI. If you get $10 and you send us good leads, and the other network is complaining that he is getting $8 but junk leads, what do you think is fair?

    To me, be transparent with the affiliates and the network + run your numbers. If you deserve it, you will be paid accordingly?

  18. #18
    CPA Network Rep JP Sauve's Avatar
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    Quote Originally Posted by FairFieldGetaway-EricEwe
    If I pay you $8 and other network $10 and their quality of the leads is better, wouldn't that be fair.
    I agree Eric, in that case it is fair. Keep in mind though that a network has thousands of affiliates. So less valuable traffic from a subset of publishers today might not mean the same quality traffic next month from newer pubs... and if the merchant drops the rate now, those new publishers next month might not try the campaign. Anyway, that's not my real complaint. I try to get a matching top rate regardless, but if traffic from one source is indeed less valuable, so be it...

    ...my peeve is that most of the time when a merchant offers a campaign, they swear the rate we're being offered is their 'top' rate, when in fact it is not. This is before any traffic is sent, and before any verification can be made on quality.

    Real example - We turned down a merchant today, a brand name dot com that most of you would recognize. They offered $20 per sale.... their top rate. We passed on the campaign feeling it wasn't a good fit for MaxBounty... and just now another network offered to broker it to us at $27 per sale. The exact same campaign! This kind of two-timing is sadly very common and extremely frustrating. Makes our affiliates angry, hurts the brand of the network, just bad all around.

    Anyway, not trying to elicit tears from anyone... just trying to explain that when you see an indentical campaign on multiple networks at different rates, those rates often have more to do with the merchant than the margin that the network keeps. In most cases, your can notify your favorite network about the discrepancy, they'll resolve it with the merchant, and probably offer you an exceptionally high rate to return the favor.

    .
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