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  1. #1
    Newbie
    Join Date
    June 8th, 2007
    Posts
    2
    Internal and 3rd Party Programs
    Hi,

    Just wondering if anyone had thoughts on using an internal affiliate program (i.e. Post Affiliate Pro), as well as one or two 3rd party affiliate programs (i.e. CJ and Clixgalore).

    My idea was to get more marketing punch using both my own advertising as well as the advertising power of a 3rd party - to get as many affiliates as possible.

    Is it too confusing for the affiliates to have the choice? As a 3rd party takes a percentage of the commission, the affiliates would get less going through a 3rd party then signing up on my site (i.e. 20% from me and 17.5% from 3rd party). Or do I need to give up more then 20% commission if they come through 3rd party, so that the affiliate would get same commission either way?

    Any insight would be appreciated.

    Thanks.

  2. #2
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    There is a lot of discussion about those issues if you take a look around.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  3. #3
    .
    Join Date
    January 18th, 2005
    Posts
    2,973
    There have been many discussions on this topic on ABW over the past few years; do some searching. I used to be strongly in the "in-house is better" camp, and more recently I advocated a "dual program" strategy as you suggest, but I think I'm headed toward a "network as the primary affiliate channel" philosophy.

    Don't over-estimate the cost savings from an in-house affiliate program. You'll almost certainly have more support issues for in-house versus network, and you will probably not have the same quality of reporting nor range of functionality. You will probably find that a network like SAS will provide you with more support than the software vendors. And don't forget to include the cost of software licenses and support contracts in your budget -- you may also need to budget more money or time for your programming staff to deal with issues if the software is unsupported.

    All networks do some amount of "screening" of bogus affiliates, though some do a much better job than others. With a direct program, you might need to spend more time screening applicants.

    With an in-house program, you also must take on the task of arranging payment to affiliates, and following up on any payment problems; if you pay by check, you'll inevitably have to deal with lost and uncashed checks also.

    One strategy to consider is using your "in-house solution" only for your own advertising campaigns and for "select affiliates" who want a higher commission and who are unlikely to generate huge support headaches.

    Finally, if you opt for two separate solutions, recognize that you will need to find some way to consolidate any reports, which may mean dealing with differences in how each solution "measures" or "counts" activity.

  4. #4
    Newbie
    Join Date
    June 8th, 2007
    Posts
    2
    Thanks Mark
    Hi Mark,

    So you think its ok to have an in-house and 3rd party with different commission structures? Would an affiliate who uses a 3rd party and gets only 17.5% comm., be upset if he found out later that if he had of signed up directly to the in-house program would have got 20%?

    Thanks for the help. Much appreciated.

  5. #5
    Newbie CodeRed's Avatar
    Join Date
    May 30th, 2007
    Posts
    28
    Hi Alfie
    Have you read Clixgalore -My dairy as a CORPORATE PLATINUM member. Good / Bad??. I am the author. A point or 2 you should be aware of regarding commissions by Clixgalore. They charge 25% commission on your payout rate. For example if you paid your affiliates 40%, Clixgalore collects 25% of that 40%. In money terms lets say you payout $0.40 cents in the dollar. 25% of $0.40 cents is 10 cents, meaning your actual payout rate is now 50%. Keep in mind that these are just figures based on a 40% payout rate example. If your payout rate was only 10% then the figure would be much lower. Clixgalore does have the ability to reset your commission rate from 1% - 100%
    But keep in mind that they get 25% regardless.

    Re: Using a third party, I agree 100% that you should go in multiply directions. Cost of service by a third party is HIGH. I paid close to $2.5k - $3K (part of that money is kept in trust for payments to your affiliates. Clixgalore strongly push to get your Credit Card details to top up your account should they need to, because of sales and automatically use your card to top up your account) which covers USA, Australia, UK, Europe, New Zealand and Canada. Also with clixgalore they only cover countries that they are able to use PayPal. So there are a great many countries left of that list. Mind you whats left I would try and stay away from anyhow.

    If I had to do it all again, I would act as a independent and then sign up with other third party providers. But at this point in time I have found Clixgalore to be miss-leading and their customer service woe-full. Can not comment on how good they are as I have only been a member for 3-4 weeks. lots of hype, but I am really peed of with them at the moment to be honest. Suggest you do a Google search ie Clixgalore forum or CJ forums and read up as much as possible. Some thing I did not do

    And get in touch with their other merchants that they signed up already. Some thing that I failed to do. Thats where I feel you will find the answers and the truth about each of the many Third Party Providers.

    Also one of the most important points you need to know. Once you leave the Clix & CJ Providers you also lose all the affiliates that signed up when you where with them.

    If you get time check out my post on my first few weeks with Clixgalore, but remember its only my opinion and you need to check around to find out I was right LOL

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