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.