Best network for merchant?

[danieljean]

Hi folks,

Background:
I manage an e-commerce site for a client, and get to make all technical and marketing decisions. As my business grows, I hope to have many more such clients (re-using the same codebase because I'm lazy). For reference, the main keywords for this client are "snipped".

Question:
I researched various affiliate networks, and it's hard to tell which are good opportunities. CJ charges $2250 just for their "Network Access Fee", $500 a month minimum in commissions with an added 30% for them. Is it worth it? Why not go with shareasale, where the startup costs are only $150, and they take 20% (also a smaller deposit).

So... What criteria would you use to judge an affiliate network? Can the merchants here recommend anyone you have experience with?

[edited by: DaveAtIFG at 8:39 pm (utc) on Dec. 2, 2003]
[edit reason] Removed specifics [/edit]

[firstmark]

I agree with you to a point about other networks like Shareasale that offer lower setups and low or no monthly fees.
CJ has a larger base of affiliates though many of higher quality. Thats the appeal.
Outside of that CJ offers payment in multiple currencies which is helpful if you plan to have affiliates in countires where US dollars are a pain to convert.
An affiliate provider that offers payment via paypal like clickxchange is useful for these sorts of affiliates.

I have seen a movement in the last year of a few CJ merchants coming to Clickxchange for extra exposure. Ones like gunbroker run programs at both Clickxchange and CJ for this reason.

I would suggest starting out with a network with a lower monthly minimum or setup fees to test things. You can always move to CJ later as they do not have an exclusivity clause in most instances.

There are advantages to using a network vs going in house too. I personally will not hesitate to test a program run via a network I use like CJ. The reason being I know I will get paid whatever I earn with them rather than seeing a $100 minimum payout with an inhouse program and see myself earn $50 before I find it uneconomical to earn the rest to be paid. While you may not be after the small time affiliate that might earn $5 a month with you. In large numbers they are contributers to the program. And some through experimentation will become very succesful.

[mfishy]

Is your main goal in joining a network to a) cost effectively track sales or b) attract affiliates?

If it is simply for use of their software, you may want to try directtrack.

For recruting affiliates (if you aren't going to do it yourself), Linkshare, cj, and befree are the only real choices.

[danieljean]

Hi firstmark and mfishy,

Thanks for the advice. The more I think about it, the more it's clear I need to outsource this.

Since recruiting many affiliates is a priority and I don't imagine having the time to do so myself, I've contacted Linkshare and befree to learn what their rates are. Hopefully they're not nearly as high as CJ's.

Thanks!

[Fruit and Veg]

Don't let the promise of 'loads' of affiliates distract you from the real point which is to gain 'quality' affiliates.

You can run a successful program with only 5 or 10 good affiliates. Access to 10,000 affiliates could also mean 9,900 will be pure pants, and of the remaining 100 maybe 5 will be relevant to your product/service.

Just a heads up.

[mfishy]

<<Hopefully they're not nearly as high as CJ's. >>

higher, actually

[fidibidabah]

CJ, also, is mostly (or at least a nice chunk of it) from individual affiliate marketers using PPCs and inclusion engines to link to your site, something you might want to consider doing yourself (or get me to do it ;) . Other networks like shareashale and clickxchange are more leaned towards actual website affiliate links. Just my pennies.