The inefficiency of direct marketing (through off line mediums) has lead to a surge in Internet marketing, bringing forward many new advertisers, publishers, and affiliate networks. With the rapid expansion of this medium, there is a constant need to maximize the revenue of a person’s space and traffic. Publishers need more offers to maximize their traffic and advertisers want more traffic to generate more revenue.
Affiliate networks, on the other hand, are the center piece of the online marketing world; a place where advertisers show their offers and publishers come to find them. Historically, this was the main way that advertisers and publishers communicated. However, with the constant demand to make more money, occasionally advertisers and publishers will try and work together direct, creating guaranteed traffic on the advertisers offer and possibly a higher payout for the publisher. In some cases, this creates short term advantages for both sides, but when the relationship is tested for the long term, working with an affiliate network proves to be the most beneficial for both parties.
How can running through an affiliate network benefit publishers?
Well, when an affiliate works directly with an advertiser, they have to wear many hats. They need to be concerned with not only accounting and negotiating legal terms, but compliance and asking for new creatives or higher payouts too. Working with a network allows the publisher to focus on what they do best – fine tuning their lists and deliverability.
What other benefits are there?
- Networks have multiple offers to select from to maximize anyone’s traffic and give publishers an all in one place to see stats and test offers.
- Networks normally get paid net 15 or 30 from the advertiser and many publishers benefit from better payment terms (weekly, bi-weekly) using a network. Not only will networks front the money, but they also cover it if the advertisers fold, thus protecting the publisher and allowing them to reinvest their money into their business quicker.
- Publishers receive a devoted affiliate manager, who is available around the clock. They help find the best banners, html templates, and subjects/forms that have already been tested and proven, so that time and money is not wasted. In addition, affiliate managers will help pick top offers to test, as well as monitor the publishers current traffic for them.
- Most top networks have a compliance team that reviews each advertisers’ material to make sure that the product is what it claims it is.
- Networks provide huge volume to advertisers and are able to leverage this volume to receive higher payouts than any one publisher could get directly.
- No need to deal with multiple terms and agreements
How can using an affiliate network benefit advertisers?
Once again, when an advertiser works with an affiliate network, they do not need to worry about managing publisher relationships . They can focus on optimizing their landing pages, securing the best merchant accounts, and enhancing their offers.
What other benefits are there?
- Affiliate networks have thousands of publishers that can provide top quality traffic through multiple channels. In most cases, more traffic than they can handle.
- Networks will allow advertisers to pay on a net 15 or 30 schedule and still payout the affiliates on their expedited schedules. This alleviates cash flow for the advertiser while supporting more traffic to the offer.
- Networks have an extensive approval process to guarantee quality publishers. In addition, each campaign can be launched at the appropriate lead level, run by specific publishers, and ensure the highest back end ROI for the advertiser.
- Advertisers save time and money by not dealing with multiple terms, tracking, and contacts.
As the industry continues to grow, and so does the need to continually out pace each month’s past revenue, direct relationships will be tested and tried. However, for the majority of publishers and advertisers, the advantages of affiliate networks have proven to be a solid foundation and should continue to out-pace the direct relationship. In addition, affiliate networks are continually expanding the advertisers that they work with by branching away from the normal online advertisers and bringing in traditionally offline campaigns to their publishers. Their ability to continually change and stay on the forefront of Internet marketing will sustain them as the central hub for years to come.
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