Affiliate Articles

Monday, November 21, 2005

What is affiliate marketing network?

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An affiliate marketing network is an intermediary service that is provided by a third party to facilitate affiliate programs between the affiliate merchants and the affiliates. Generally an affiliate marketing network provides services such as affiliate tracking, reporting, database management, paperwork, legal documentation, payments to affiliates etc.

An affiliate merchant may or may not go for an affiliate marketing network service depending on various factors. Let us look at some advantages and disadvantages of using an affiliate network service in regards to affiliate merchants;

Advantages of affiliate network service

  • Affiliate networks take care of all necessary paperwork and legal documentations so the affiliate merchant can concentrate on the main campaign
  • Affiliate merchants can get access to the wide database of affiliates with ease
  • Affiliate merchants can get more affiliates because of the advertisement campaigns run by these services
  • Generally good affiliate networks have access to latest software tools that can be used to promote the business of affiliate merchants
  • Merchants can get direct access to affiliate tracking software which is provided by every network
  • Tracking, reporting and recording of affiliates is done by the network service
  • Payments to the affiliates based on pre decided terms is done by the affiliate network provider
  • An affiliate network service provider will take care of any dispute or disagreements arising due to the affiliate program

Disadvantages of affiliate network service

  • The affiliate merchant losses control over his affiliate campaign
  • The affiliate merchant has no control over money in the campaign as payments are done by the affiliate network provider
  • In most cases affiliate merchants have to pay hefty setup fees
  • A merchant company will have to pay a small percentage of money on all the commissions paid by the network.
  • Generally a network service provider may need the affiliate merchant to deposit money in an escrow account

If an affiliate merchant decides not to use an affiliate network service, he has to invest huge sums of money in purchasing and running an affiliate tracking software in his server, tracking leads on his own and making payments. But in this case the investment is one time and the merchant has total control over his money.

So it seems that both functions have their pros and cons and it's the affiliate merchant who after analyzing the long term results has to make a decision as to which way to go.

　

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