Selecting an Affiliate Network
In a previous article we have looked at the value of an affiliate network, so assuming that you have taken the decision to proceed with your thinking it is time to look at the factors that you need to consider in choosing an affiliate network.
Some of the factors we are about to outline are quite subjective as it is impossible to make direct comparisons without knowing each network from an insider prospective. Instead it comes down to 3 factors – asking the right questions, budget and first impressions.
When approaching a network it helps to know what common points you have to compare them by.
Cost
All networks will have a set up charge, monthly fee and a variable fee called an override based on a %’age of sale value. The standard quoted override will be 30%, the variation will be in the set up and monthly fee. These will vary widely and are not necessarily a clear indication of service level or quality. There is generally room for negotiation, however the absolute costs that these impose on the budget will have a bearing on your choice. The effect of the differences in charging is a spectrum of networks that spans those who specialise in larger brands and in-house account management to those that attract smaller merchants and offer less account management.
Infrastructure
You need to be able to showcase your products and brand in a way that enables affiliates to promote you effectively. Also, successful affiliates are extremely technically adept and will constantly seek new ways of maintain their advantage and revenues through innovation. This means networks must be able to support most of the following, and by implication you will be expected to provide what is reasonable to satisfy the needs of the network and affiliate. It is worth asking the following.
• Support of HTML, Flash and Search Banners
• Support of CSV and XML product feeds
• Ability to send text and HTML e-mails on a self-serve basis (including the ability to deeplink)
• Ability for affiliates to generate deeplinks
• Ability for affiliates to use and create content units and tools
• Ability to view affiliate details and contact individual affiliates
• Means of communication in event of technical / account problems
• Turnaround times for submitted queries
• Sales validation period in days
• Account payment options – pre-pay or invoiced
• Level of account management – Most networks provide a basic service, but additional services can be added for an additional cost.
• Tracking for leads / sales / sales by product
• Ability to facilitate bespoke commissions for specific affiliates
• Support for and reporting of Voucher code usage
• Number of merchants
• Any key market specialities (Travel / Finance / Retail)
• Number of active affiliates (active as in delivering sales)
Merchant Base and Reputation
There are no hard and fast truths about networks and what is an advantage to one affiliate, merchant or market sector may well be seen as a disadvantage to another. Unlike other areas of advertising and perhaps reflective of the facilitative nature of a network over the pro-active you will often see similar merchants on the same network. This is an indication of potential expertise and the existence of a group of affiliates that deliver results with the network in question.
The best way to find out information about networks and other merchants is to join and look at the industry forum www.a4uforum.com which has sections relating to all the UK affiliate networks, key market verticals and topics of interest. By using this and looking at threads with a high volume of viewers and comments you will be able to build up a picture of the network landscape.
Affiliate Base
Affiliates will work with more than one network and the vast majority will work with almost all networks as they are interested in promoting the relevant merchants more than loyalty. If you are a big brand launching a programme you will attract affiliates irrespective, however for smaller and less well known brands it is worth considering a network with a large merchant base as they will have a larger affiliate base to be exposed to.
First Impressions
Lastly, take your time. Contact networks over a period of time sufficient to gauge how you are responded to in isolation. If you have a positive response from a network and you feel that they are positive to your brand then follow it up. There are no absolutes as has already been said, however positive or negative feelings that you get during the sales process are important as you will be contractually bound for a period of time to work with the network you choose and it is important therefore to have some chemistry and understanding.
In conclusion, your choice of network is a combination of research, knowing your budget and how you are handled by your shortlist. Do go into the process with a basic understanding of the terminology and practicalities of an affiliate programme (link to other article) which will enable you to ask questions that make a comparison possible, take the time to read forum articles on networks and their merchants that will often have useful insights that you will not hear from sales people. In this way you can make an informed decision that will see your programme launched with the best possible chance of success.
The value of a network
One of the most common questions that we are asked is “Why do I need an affiliate network? Can’t we do this ourselves”, which is a fair question and almost always receives the same answer.
In a word “Yes” - Affiliate Networks answer the most fundamental requirements to a successful campaign – an infrastructure that cost-effectively allows a merchant to have multiple relationships with a simple single point of contact for technical, financial and communication. For the vast majority of merchants providing this in-house would be virtually impossible. There are also a few less tangible factors that Networks provide that are crucial to the success of affiliate programmes.
First and foremost , networks are trusted by affiliates. Affiliates become familiar with a networks reporting and infrastructure, and in the same way as a merchant is seeking the most expedient way of dealing with multiple partnerships via the least number of contact points, the affiliate sees the value of having many of their merchant relationships via networks as this minimises their administrative burdens. Commercial considerations aside, affiliates are far more likely to join and promote programmes that are hosted by a major network.
While it is not in the scope of this article to discuss the level of fixed and variable charges some level of charging is justified for the credibility as well as the infrastructural benefits outlined below.
Tracking - The network provide the means of recording sales that take place via affiliates. They provide the required code and guidance as well as testing prior to launch.
Hosting / Creative – The network will host all the required information, creative, CSV or XML feeds as well as providing tools for affiliates to make use of them.
Reporting – The network will provide summary and detailed reports for both merchant and affiliates against defined parameters that enable detailed analysis of results and data.
Payments – The network will summarise all affiliate payments and charges into one invoice, enabling easy accounting for affiliate sales.
Communication – The network will communicate with affiliates about new programmes and initiatives as well as providing the means for merchants to communicate with affiliates via various tools including email.
Account Management – The network will provide a level of support (which varies in accordance with fees or the service level of the network) which at a minimum will help with technical issues and approval of communication and campaign changes.
Training – Some networks will organise merchant training, whereby new merchants will be given an overview in technical and practical aspects of affiliate marketing as well as having the opportunity to meet other merchants and network staff.
In summary, we regard the affiliate network as central to the mainstream of affiliate marketing. We urge our clients to carefully consider the costs of affiliate marketing in the context of their own business. However, we would urge anyone considering an affiliate programme to use a network in preference.