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How many affiliates are primarily content sites?

Will my affiliates compete with me on my own keywords?

         

wingslevel

5:36 pm on May 20, 2003 (gmt 0)

10+ Year Member



I run about 10 ecommerce sites and we have a large stocking warehouse. I have decided to take another look at affiliate marketing but I have some concerns.

What percentage of affiliates out there are primarily content sites. For example, let's say I have a baseball bat e-commerce site - my dream affiliate is going to be finding the guy who coached baseball for years and maintains a site for baseball coaches with lots of good content on strategy etc. - then, on one of his pages about equipment, he places a link to my baseball bats page etc.

On the other hand, I see some affiliate sites out there that are strictly about offering product and good seo. Although I have no problem with these (please take no offense, those of you into this), I don't want affiliates of mine competing with me on my own keywords in the serps - unless they are adding valuable content.

Am I making any sense? What do you think the breakdown is?

rcjordan

5:49 pm on May 20, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>don't want affiliates of mine competing with me on my own keywords in the serps - unless they are adding valuable content.

I'd estimate that the majority of sites with affiliate code on them are content sites, however countless numbers of these are non-performers --or sites trying to pick up bandwidth money. If your talking pro affs, the ones that do the selling, they may be less content-oriented as a group. This isn't necessarily a negative, I know several here that have logs to prove that their traffic hits the site then goes directly to the money page, bypassing all the content.

Sanenet

6:33 pm on May 20, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Write a good Terms of Use, and approve affiliates. Check up on them occasionally, and drop them as per the need. (Always remembering to tell them why, and see if they can fix the problem, of course!)

Go60Guy

8:47 pm on May 20, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



In my opinion you couldn't have described an affiliate program more more likely to fail. The reason - you will not find succesful affiliates fitting your profile. To be successful, an affiliate program must be populated by entreprenurial, incentivized, sales & marketing oriented affiliates. I'm talking about the type of individual who could care less about what's being sold so long as its legal and so long as it converts well and drops goodly amounts of cash into the affiliate's coffers.

Your affiliate program, to succeed, has to become an integral and important part of your business plan. Otherwise, its simply an afterthought that's not really worth the effort.

Robber

8:51 pm on May 20, 2003 (gmt 0)

10+ Year Member



I would think its got to be better to have your self and some of your affiliates near the top of the search engines rather than yourself and some of your competitiors. Sure you might lead a bit of commission paid to affiliates here and there - but at least your competitor didnt get it!

You will find the best affiliates are the ones good at SEO.

buckworks

9:02 pm on May 20, 2003 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



What Go60Guy said!

You want affiliates who know how to SELL, and know how to get your products noticed. Sure, some of them may end up competing with you on prime keywords, but wouldn't you rather have your affiliates keeping you company in the top ten search results instead of your competitors?

The only kind of promotions that should be off limits for your affiliates would be bidding on your brand names in pay-per-click search engines, and spyware/parasiteware/thiefware/scumware that uses parasitic link placement.

wingslevel

10:28 pm on May 20, 2003 (gmt 0)

10+ Year Member



scratches head - wow! - good points, that's a lot to think about...

thanks!

rcjordan

10:42 pm on May 20, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>I don't want affiliates of mine competing with me on my own keywords in the serps - unless they are adding valuable content.

Heh, now that our affs have worked you over (but nicely), I'll add that you do have a valid concern *IF* the practices of the affs diminish your brand or tarnish the image of your company --you should manage that aggressively, IMO.

But, as for competing with you, that's another issue. Companies have always worried over paying a commission vs a commission-less house sale, you just can't easily set sales territories on the web.

eljefe3

2:39 am on May 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>>I don't want affiliates of mine competing with me on my own keywords in the serps - unless they are adding valuable content.

Most affiliate programs that are successful don't even try to compete with their affiliates as long as they are selling widgets, and not parent company patents,technology, name brand etc. I know of many affiliates who will not go with an affiliate program where the parent company is competing against them in adwords, overture etc. as the affiliate will look at this and think that they are being used for "branding" pruposes by the parent company and that the parent company doesn't really care about the affiliate.

If you have enough quality affiliates and are selling a product, you don't need to compete with your affiliates, instead concentrate on growing your sales.

Catalyst

9:00 pm on May 22, 2003 (gmt 0)

10+ Year Member



Wingslevel,

While I understand where you are coming from with your concerns, I think you are looking at affiliate backwards.
Everything posted by other is true. Strong affiliates typically are much better at marketing than their merchants are.

Here is my definition of affiliate marketing:
Imagine… having an army - potentially thousands - of independent sales reps promoting and selling your products and you pay only for performance – in other words straight commission! They do all the work. They build their sites, pay for marketing & advertising to promote your products out of their own pocket – not yours! You get all the exposure, traffic branding and only pay commission for bonafide sales. Many successful affiliate programs claim that their affiliate sales account for up to 40% of total revenues.

Think of it this way. Dell computers has a site. They are the manufacturer. If they wanted to be the ONLY ones selling their product and the only ones listed in the search engines selling their products - where would they be? They have thousands of resellers, dealers and distributors selling their products for them. And thousands of affiliates are selling their products as well.

You can and should as Buckworks said - prohibit your affiliates from competing with you for your own brand name. But savvy affiliates will come up with many additional keywords that you may not have thought of and will many times know how to out rank you. As long as the sales come to you, you are just maximizing your exposure.

You have nothing to lose and everything to gain by adding an affiliate program. Just be sure you treat your partners fairly and set your program up as a WIN/WIN and it could be the best decision you have ever made!

Best of Luck!
Linda

[edited by: Marcia at 3:14 am (utc) on May 23, 2003]
[edit reason] Promotional passages clipped. [/edit]

gopi

3:27 am on May 26, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



What Catalyst said is true ... By a well managed Affiliate program you will gain hundreds of active professional people selling for you ...

If you promote yourself you may have 1 or 2 positions in the SERP and also the SE can trash you any time ...But with a Good Affiliate program the entire SERP may be filled by your affiliates , so even if the SE boots some , the others will remain and sell for you.

In other words by a good Aff Program the competition is in between your affiliates ( you win irespective of which ever affiliate wins ) rather than between you and your competitor! .

And catalyst you are wrong about Dell . They are direct sellers and dont have any distributors or resellers as far as i know!

buckworks

4:59 am on May 26, 2003 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Dell runs an affiliate program through LinkShare, offers a 1-day cookie and pays 1% commission on referred sales.

deejay

5:01 am on May 26, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If the concern re affiliates competing with you is that you might pay commission on sales that otherwise would have come to you direct, then it's a simple question of mathematics, eg:

100% of $10,000 sales in a year without affiliates
or
90% of $100,000 sales in a year with affiliates.

Looks pretty damn simple to me.

It is, however, quite common for affiliate agreements to include a clause that stops affiliates actively competing on your trademarked company name... eg, they can compete on 'widgets'... but not on 'Widgetville Widget Shop'.

gopi

5:28 am on May 26, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>> Dell runs an affiliate program through LinkShare, offers a 1-day cookie and pays 1% commission on referred sales

Elizabeth , i didnt meant their Aff program . I meant they dont have distibutors and resellers ( retailers) in the traditional sense as the other computer manufacturers ...

This is a main requisite for their "just-in-time inventory " strategy!

gopi

5:31 am on May 26, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member




100% of $10,000 sales in a year without affiliates
or
90% of $100,000 sales in a year with affiliates.

Looks pretty damn simple to me.

Excellent Explanation!