Forum Moderators: skibum
Our main competitor has been in CJ for quite a while now so I think it is working for them. We have a nicer site and larger selection so we could possibly win some of their clients if we go with CJ.
Thanks everyone!
just to clarify: paying the commissions would not be a problem but if we did not make the sales then paying the minimum spend over and over would eat us up!
I assume the way it works is that they will take a cut in sales. So, can you still make a profit and offer an attractive programme for affiliates?
If the answer is yes, then is your product fairly mass market (ie not limited by geographic region and a fairly high demand product)?
If the answer to this is yes, then go for it.
At the end of the day with decent banners and graphics and good text links (possibly go the route of automatically updating product links - they´re what i tend to go for anyway - its good to have some changing content in your ads) and an attractive programme, you will attract the affiliates.
From there its a matter of converting the sales as they come to your site, and if already have been doing that effectively, then by all means go for it.
Affiliate programmes are like link popularity - gradually increases over time.
Just my uninformed opinion though! :)
JOAT
Remember 95%(or more) of affiliate sales are driven by 5%(or less) of the affiliates. You want to be able to get the top 5%. The question is where will you find them? Are they likely to be in CJ? Or are you more likely to find them on your own?
Something that can help is if you find out the EPCs and $$$ rating of your competition already in CJ. Join as an affiliate if you need to. These figures will give you a general idea of how well their program is performing.
>Remember 95%(or more) of affiliate sales are driven by 5%(or less) of the affiliates. You want to be able to get the top 5%.
Now, where do you think they may be found? ;)
At least the way I am understanding it if if my affiliates don't generate a certain amount of sales CJ will charge me anyway the difference. That is scary to me.
Since our site is full dynamic PHP I don't think it would be too hard to create our own program to do it. CJ would only be worth it I guess if there were a lot of people ready to sell our widgets. Then we wouldn't have to find them.
...Maybe the affiliate marketers I really need to find frequent Webmaster World:)
Like Mackin said, why not build your own, make it available on your site, and work on finding high quality affiliates? That way you don't run the CJ risk.
But those are also CJ's weaknesses, because many of those affiliates will try your program on a whim and either drop out or become inactive if they're unsuccessful.
As an affiliate, I'll confess that I've "been there, done that." When I was new to affiliate programs a year ago, I tried some programs that I shouldn't have tried, just because it was so easy to experiment with programs that had high EPCs. Within a few months, I learned to choose much more carefully, and I also learned that things like SmartZones, banners, and skyscrapers weren't nearly as effective as targeted text links. But while I was learning those things, I must have belonged to several dozen CJ affiliate programs--and I didn't make a dime from most of them, which meant they weren't making a dime from me, either.
Independent affiliate programs, on the other hand, are likely to appeal to prospective affiliates who:
1) Have researched affiliate programs carefully or obtained referrals from knowledgeable Webmasters.
2) Are at least halfway serious about the program, since they've made the effort to go through a completely new signup process.
3) Are less likely to bail or become inactive after a week or two.
One more thought: If you do go the CJ route, it might be wise to require approval of new applicants instead of just letting anyone join and download links right away. That will ensure a higher-quality affiliate pool and make it easier to identify affiliate sites (or content sites with affiliate links) that can deliver the audience you need.
so with about 160.000 visits a month, I would better take a lead,click,impression banner.
just some words from a affiliate if it helps.
zeus
Yes, there probably are a lot of good affiliate marketers on WebmasterWorld lol:).
If you think you can go over to CJ, sign up and set up, and then sit back and watch the money flow, the only flow will probably be out of your coffers and into theirs.
If, as an affiliate merchant, you're ready to devote serious managerial time to an affiliate program and develop good one-on-one relationships with affiliate marketers you can probably do fine with a direct program. The networks like BeFree, Linkshare and Commission Junction have just been too far out of touch with their affiliate marketers too long. Sure, they provide a matchmaking service and they provide reports but IMO they give little more than occasional lip service to the management role someone needs to play ... they administer but they don't manage and a program that isn't managed these days is a strong candidate for one of those black hole money pits and opportunities lost.
It would help if I knew what your product/service was, but without knowing - let me say this about CJ:
1) Is nice as affiliates can make sales and combine income with other programs to make a check. Many affiliates have more than one site. I have often picked out CJ programs to help round out my advertising.
Not everyone can make a minimum check - or wants to risk it - with one program. I know you might be thinking about the 5% of affiliates, but a few years ago - I made almost nothing.
I signed up for a few programs, because they had small minimums. I have made enough to go from not getting a check - to #15 out of over 10,000 affiliates for a profitable public company. I deal with almost every program still that I started out with.
People that are small today, may not be tomorrow - if it doesn't cost you anything extra - get as many affiliates as you can.
2) Running your own program is hard work. Having Cj do it would be much easier.
3) People are more likely to think they will get paid - and trust the figures with Cj - than a private program.
4) Some people do both. It is advertising for you down the road if you decide to do so.
5) I have never really gotten the "getting approved" idea. Take whoever you can get. Amazon does (pretty much) as well as plenty of other companies. When I want to make a page - I sometimes want to make it now. I don't want to have to wait. I can almost guarantee you I would go with someone else - unless I had a specific reason to go with someone who required approval.
Sometimes approval on CJ took days. I remember when I was starting out getting declined by several companies - or never hearing back - or taking a long time. I have never reapplied - and I guarantee you their competitors are very happy with my performance.
Just my 2 cents.
I think the above posts sum up a lot of what I was thinking, but too lazy too type it.
Anyway having been a merchant at CJ in 2000, I can say that its very good, but as has been mentioned:
Take your affiliates very seriously, and offer them all the support that they need.
Sitting back hoping for CJ to do this will NOT happen.
A ggod affiliate is worth his/her weight in Gold, dont 4get to give them the credit they deserve.
Also a lot of affiliates are members of communities like this, and if your program is good, then it will be recommended to other super affiliates.
(most of the above I learnt at PubConference, before that I took affiliates with a pinch of salt, my loss)
Shak
It's amazing how many affiliate managers can't even be bothered to ammend the default template created by CJ to describe their affiliate program... shows how much attention they bother to pay to their affiliate partners. Aren't we sick of the same description for so many affiliate programs at CJ? :)
