Forum Moderators: skibum
However, it would appear, from what I've read on here, that the company are paying as much as 30% on top of what they pay me to the affiliate network.
So, my logic says that if I approach them directly and cut out the network, we both win. I can charge slightly more, and they can pay slightly less.
However, I'm sure that I'm not the first person to have thought of this :)
So my question is twofold:-
a) What's to stop me and others doing this?
b) If I do proceed, am I likely to get burnt?
You might want to check the contract you have with the affiliate network, there may well be something in there about this kind of situation.
Just my two cents,
George
Well if the network is not willing to help you negotiate a better deal from the advertiser then they deserve to lose you.
the advertisers like this as it means that they only have to pay one account per month (to the network). if you are with a one of the big networks (charging 30%) there is probably a good chance the advertisers / network are not even aware of who you are.
for $10,000 p/m there are plenty of networks who will take your case to the advertiser and cut a better deal for you.
i use an affiliate network that doesnt take any commission from the advertiser so it usually means you get that extra 30%.
sticky me if you want more details
This is why the ASP model in house tracking solutions are starting to be more popular than ever over the networks. Because they DON'T charge a per transaction or commission fee and so the merchant can and will often pay affiliates more once they bring their tracking in house. OR, many companies are adding another tracking solution specifically for high revenue partners like you. If they don't, they're risking losing a partner like you. Linkshare is the only network I know of that would institute legal action against the merchant for operating a side partner tracking solution.
Some companies are using CJ/BF to "farm" good affiliates and then move them to an inhouse tracking solution with a higher payout.
If your merchant doesn't have such an option or never even thought about it - you might want to bring it to their attention.
You are a good partner - don't be afraid to push your weight around a bit. :)
Good luck
[edited by: Drastic at 6:19 pm (utc) on Sep. 16, 2003]
[edit reason] no sig files/self promo please [/edit]
Thanks about my biz name. I got reprimanded for using it in my posts though.
Will have to just be Linda Woods now. :)
Thanks,
Linda
I think you already know where I stand on the networks. I used to swear by them but over time my expectations of them pretty much turned out to be an illusion, but I'm not quite ready to throw the whole bunch of them into the same hopper and press the flush lever. I do reach for the handle often, though.
I think the major ones began with a business model where they would play recruiter, matchmaker and administrator. I, as an affiliate marketer on the other hand, always expected them to manage the relationships to some extent. Little of that seemed to happen and merchants had to get their own professional program managers to really make a program hum.
Take the issue of scumware and see how the networks responded to that in behalf of the affiliates, then you'll see an example of why a lot of affiliates reach for the network flush button.
Too often, the networks create a barrier to the development of true partnerships between the affilates and merchants. They place themselves in the middle of the relationship, but then stay aloof of the problems they should be addressing as the middleman.
I recently had one merchant string me out for three months in late commissions. The network in the middle never mentioned this merchant was having financial problems and I had to hear on the street that that company was about to go belly-up. I got ripped off for $1400 in unpaid commissions and the network would have nothing to do with helping me collect it. They couldn't even give me a person to contact.
I've got lots more stories but I won't bore the members here with them. I'm sure they have plenty of their own, and I imagine you have a few too.
When a merchant has to pay the cost of having a professional affiliate manager aboard, then pay a third of the transaction fee (or thereabouts) to a network, there's little left for the affiliate. In fact, I think there are very few programs that are successful enough to be burdened with all those charges and exist for the long run.
I personally think that in the long run companies will have to develop and manage their affiliate marketing programs in-house unless the networks act to successfully manage the programs to the benefit of both merchant and affiliate.
And Michael_Anthony, talk to your merchant about your interest. You need to protect that nice source of revenue and I would suggest building a real partnership with that merchant and have the long term interest of both parties in mind.
