One of the most common questions I am asked here, on other forums and on consultation calls is "should I go with a network or get my own affiliate tracking software" So here is a post that lists some pros of network vs. in-house affiliate tracking solutions.
PROS of Affiliate Networks
(I'm talking retail product networks like CJ,
not CPA networks or info product network like Clickbank)
1)
Trust - Affiliates may not know or trust your company, but they hopefully consider the network they are already used to working with, a trusted 3rd party.
2)
Payments -
a) The network pays the affiliate, which overcomes a big trust issue.
b) The fact they issue payments is a time and headache saver for the merchant.
c) Affiliates get consolidated commission checks. So even if they only made $20 from your program and 30 from another they'll still get a check. They like that!
3)
Time Savings, Convenience (FOR AFFILIATES) - Networks are a HUGE advantage for affiliates. Instead of logging into muliple merchant sites each with different logins, different software, different reports - they can login to one network - pull links, banners, run reports - all from one interface they are already familiar with, for ALL the different merchant they are partnered with.
4)
Time Savings, Convenience (FOR MERCHANTS) - Set up is much easier with networks. Commissions are handled for you. Some support issues could possibly be diminished.
5)
RECRUITING - the biggie in my mind. I think it was Brian Tracy that said, "find out what your customers want and GIVE it to them". Well I say the same goes for affiliates. "Find out what affiliates want and GIVE it to them!"
Lots of affiliates are on networks because they want to trust they'll get paid and want the convenience of a network. So it's MUCH easier to do recruiting on a network. (I do affiliate recruiting for a living, so I know.)
Thousands of affiliates are already there. You don't have to go out and find them all, many will find you. You still need to do proactive recruiting, but affiliates are much more likely to join if you are on a network.
Plus most of the top networks have options for you to do affiliate recruiting and/or promotion within the network for an additional fee.
PROS of Indy's (In-house programs)
1)
Transparency and Control - The primary reason some merchants want an in-house program with their own software is to have more transparency and control. So if that's really important to you then in-house may be an option.
2)
Cost - Some in-house programs are fairly inexpensive and there are no ongoing fees like networks charge. (But you get what you pay for. Look at all the benefits you'd be missing above.)
So now you see why I lean toward affiliate networks for most programs in general, although when I do consultations I can take individual merchant needs and requirements into account and sometimes may recommend an in-house solution.
To discover what affiliate network and tracking software I typically recommend and why,
click here.
Anyone else have anything else to add? I'm sure I forgot something.
Affiliate Network VS In-house Affiliate Software - For Merchants
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