Affiliate marketing networks’ costs and conditions vary. If you’re new to affiliate marketing, you might be unsure of where to begin. If you currently run an affiliate program in-house or through a network, you may wonder if there is a better fit for you.
Working with a lot of retail clients, the affiliate marketing team at Lever Interactive has come up with a few things to look for when choosing an affiliate network and the pros and cons of two of the best networks.
Consider the following:
The cost of establishing a network
Most affiliate networks demand a one-time setup fee ranging from $500 to more than $2,000. This covers technical account setup as well as educating new advertisers about the network.
Some of the smaller affiliate networks, do not require a startup fee. However, keep in mind that the number and quality of affiliates in the network will most likely be lower than in the more expensive networks.
The minimum monthly payment
Every affiliate network charges a transaction fee, which is a small portion of the compensation paid to each affiliate for each sale. You should look for the monthly minimum, which is the number of transaction fees required by an affiliate network each month. So, if your monthly minimum is $100 and you only pay the network $75 in transaction fees, you’ll owe an extra $25 at the end of the billing cycle.
This varies a lot from network to network, so choose one that has a reasonable monthly minimum based on how many sales and how much money you plan to make from affiliates.
The size of the affiliate network
If you have specific affiliates in mind, make sure they are part of the network you intend to join. You can either search for them within each network or contact them directly to find out. If you’re new to affiliate marketing, you’ll need a network with a broad affiliate base from which to choose. As previously said, this may result in greater setup costs and monthly minimums, but it may be worth it in the long run.
Competition
A common blunder is avoiding affiliate networks utilized by competitors to limit competition. This is incorrect. Instead, you should actively seek out networks where the majority of your competitors are present. You are more likely to find the most relevant publishers where there are rivals. Join the same network and offer a good affiliate program to get their existing publishers to sign up.
Communication
Ongoing communication with affiliates is critical to the success of the relationship. To stay top-of-mind within the affiliate network, you’ll need to send out regular newsletters with enticing rewards. Before you go, learn about each network’s messaging capabilities to know what to expect. Make certain that there are no hidden expenses and that the procedure of preparing and delivering the emails is straightforward and quick.
Capabilities for tracking and reporting
The benefit of employing a network to run your affiliate program is that they provide tracking and reporting for you. Aside from standard transaction reports, each network offers its own set of reporting capabilities, such as performance by link type and / or affiliate first sale reports. Select a network that will offer you the most appropriate reporting for your company’s needs.
Customer service
This may not be as necessary if you’re used to running things on your own, but if you’re absolutely new to affiliate marketing, you may have a lot of questions at first. Read reviews and ask people in your sector about the customer service they’ve experienced from affiliate networks.
A number of networks
If you have the time and money, you can join various networks, increasing your pool of possible affiliates. However, many of the larger “super affiliates” are also members of many networks, so you may find them on nearly any network you want. As a result, you may encounter duplicate (and often triple) transactions when administering affiliate programs across various networks. So, at the end of the month, there is an additional process of choosing which network and affiliate should receive commissions and voiding sales on the other networks (s).
Transparency
Certain affiliate networks are referred to as “black box networks.” These networks do not specify which websites generate traffic for your application or which publications are associated with it. In such instances, you will be forced to pay an undisclosed invoice at the end of each month. An effective affiliate program fosters positive relationships with its publishers. To operate properly with affiliate marketing, it is necessary to understand where traffic originates in order to determine which affiliates earn income and which should not be associated with the program. You should always be able to communicate directly with your publishers. You have complete control over the affiliate network of your choice:
- It specifies which media and websites are responsible for your traffic.
- It allows you to specify which publications should be linked to your program.
- Specifies the orders they have provided and for which you have been charged.
Two of the best affiliate networks are examined:
Commission Junction
Pros:
- There are a large number of affiliates within the network.
- Reporting in depth
- There is no additional charge for sending newsletters to existing affiliates.
- Within the UI, you can search for new affiliates.
- Ability to automatically approve or disapprove affiliates based on specific criteria.
- The new PayPerCall tool provides an extra option to boost revenue.
- Customer service representatives who are responsive
Cons:
- Expensive network installation fee
- The monthly minimum is high ($500 in transaction costs).
- Transaction cost that is greater than the average (30% commission)
- Historical reports are only available for a year.
- Product installation costs
ShareASale is one of Commission Junction competitors and if you are looking for CJ alternatives this is probably the ultimate choice.
Pros:
- A reasonable setup charge of $550
- Low monthly minimum (transaction fees of $25)
- Transaction fees are low (20% of commission).
- Reporting in depth
- There is no additional charge for setting up a product feed.
- Customer service representatives who are responsive
Cons:
- There are fewer affiliates in the network.
- There is no easy way to look for new affiliates inside the interface.
- Exporting reports as pipe-delimited files are required.
Conclusion
Affiliate marketing is a sort of performance marketing. Affiliates refer visitors to advertisers and are compensated when the visitor completes an agreed-upon action on the advertiser’s website, such as making a purchase.
The business relies on an affiliate network, which is a third party that manages technical and administrative issues like tracking, support, and payment flows. The affiliate network you choose can often make or break your company’s success in affiliate marketing. We’ve developed a list of nine points to help you, as an advertiser, make a more informed decision about which affiliate network to use.
Looking to launch your own affiliate network? Give Scaleo a try, 14 days free – no credit card required.
Last Updated on November 28, 2023
