In order to become a successful Affiliate Network, you must become attractive to merchants with valuable offers. For years, online merchants only had a few choices of networks, but today there are abundant alternatives, which is why it is extremely important for Networks to set themselves apart.
Unfortunately, a large part of acquiring distinction as a valuable affiliate network with successful affiliates is securing merchant relationships in the first place. For this reason, getting started can be a tricky “chicken or the egg” process of trying to bring on valuable merchants in order to attract successful affiliates, therefore attracting more valuable merchants. All affiliate networks operate under the same basic model of connecting merchants to affiliates, but the way they go about it is incredibly variable. If you are starting an affiliate network and already have a solid merchant relationship, you certainly have one foot in the door, but developing that into a successful network is still dependent on several factors. If you don’t have a strong merchant relationship, then it is very important to consider why merchants choose the networks that they do in order to bring someone on board.
Affiliate Networks differ greatly in pricing structures, services, support, current merchants, types of affiliates, and sales tactics. Merchants consider all of these factors when scouting out a new affiliate program.
Pricing
This is often the most important thing to new merchants. All networks charge a percentage of sales or affiliate commissions, and some require setup fees or deposits just to open an account. Networks with known, successful affiliates can often charge more on setup and sales percentages because they will likely bring in a larger volume of sales. Newer networks often have to negotiate their pricing in order to secure some merchants.
Service and Support
A merchant that is new to affiliate marketing will put a high level of value on service and support. How their offers are presented to affiliates and what recommendations they receive on Creatives and conversion strategy can make a huge difference in their decision. Hesitation can be dissuaded if merchants feel confident that their offers will be visible and enticing to successful affiliates and if they have all the help they need to maximize conversions.
Current Merchants and Affiliates
The current participants in an affiliate network play a huge role in what network merchants choose. They do not want to compete with a large number of competitors, whose offers are listed next to theirs, but acting as an alternative to a small number of competitors is sometimes desirable. The caliber of Affiliates involved in a network obviously translates to the overall sales and volume, giving networks with well known affiliates or large numbers a clear advantage.
Sales Tactics
Many merchants are very leery of brash sales tactics, creating emotional hype or pushing dollar signs. This is true of most advertisers or even consumers. Everyone has become extremely sensitive to sales. That is why a large part of proving your worth to a new merchant is by providing them with education, tools, and statistics. A smart and successful network will often be the one doing the interview with a potential merchant, rather than the other way around. It is important for smart affiliate networks to provide valuable offers to their affiliates in order to perpetuate their success, and they are not about to take on a merchant that might jeopardize other merchant relationships or affiliate success.
Affiliate networks have important choices to make in deciding what types of merchants they want to attract and how to attract them. These very basic ideas are the building blocks of defining a network and offering a unique and profitable experience.
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