Should we offer an affiliate program?

[paulof]

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We are an online travel agency and we are thinking about offering an affiliate program. Instinctively though, I have some reservations about what this might open us up to. Are there any down sides to starting an affiliate program?

[3wdl]

Hi Paul,

What company are you from?

Thanks

[Paul Wright]

Hi Paul,

In theory there is absolutely no reason why you should have doubts about setting up an affiliate program.

What’s is crucial is that:

• You are fully committed and have the dedicated resources to mange the program.
• You have clear affiliate terms and conditions and can actively police them.
• The program is sustainable and scalable.
• The program is motivational and appealing to affiliates.

Depending on your budget you could outsource the program management to specialist agencies such as the one I work for (Blue Barracuda) or in some instances pay management/consultancy fees with the affiliate networks who will provide a dedicated number of hours per month.

Give us a call if you would like to find out more.

Cheers
Paul.

[D-Mac]

I believe it is wise to have reservations. What specific reservations do you have?

[paulof]

Thanks for replying.

I suppose my concern stems from this vague sense of an internet under world that I don't really understand.

I have also unearthed some pretty alarming views about commision theft:
www.benedelman.org

Would we really be paying for new sales or just financing a load of crap sites which would start bidding up the prices on all our search terms !?!?!

Right now I am not sure if an affiliate program would power up our sales or just open us up to attack from a shower of borderline criminals!

[pistol101]

Affiliate Marketing is part of a balanced sales force and there will always be some cross over with previous customers coming through.

To give you an idea most merchants see about 20-30% of all their online sales coming via affiliate marketing. Thats an amount of business merchants can't afford to ignore.

Yes PPC can cause issues, however it's dying with the number of affiliates doing this. It's fairly easy to create your policies so it doesn't affect your current ROI and take advantage of the skills of the PPC affiliates.

The market is very different in the US to the UK. We're not riddled with spyware and brandname bidders as much as the US is.

Affiliate Marketing was created for content based sites and we're seeing better quality affiliates appearing all the time.

[3wdl]

Thanks for replying.

I suppose my concern stems from this vague sense of an internet under world that I don't really understand.

I have also unearthed some pretty alarming views about commision theft:
www.benedelman.org

Would we really be paying for new sales or just financing a load of crap sites which would start bidding up the prices on all our search terms !?!?!

Right now I am not sure if an affiliate program would power up our sales or just open us up to attack from a shower of borderline criminals!

Affiliate Marketing is the best form of online marketing – it gives you your own virtual sales force working only on commission; where would you get that in the offline world?

There are people out there that may try and bid on your brand name, but there are easy ways to monitor and stop this, especially if you own the trademark.

Spyware is rife in the US, but luckily the UK networks have acted against it over the past number of years and we certainly don’t have anywhere near the problems that are mentioned on the link that you posted.

There are a number of things to be aware of before launching your affiliate campaign and if you sign up with a decent network you will be given a lot of advice, some even offer free training courses when you sign up as a merchant to help you build up your knowledge and succeed in the industry.

If you are a travel firm then I would definitely give Affiliate Future a call as they are certainly the leading network in that sector.

Other than that feel free to drop me a line if you need any advice.

[paulof]

Kane here from TravelRepublic.

Our main website is www.travelrepublic.co.uk

I think I have gone off the network idea - paying more and not exactly a selective approach!?

If we offer our own scheme direct ?what terms? should we provide:
- 28 day cookie
- 5% accomodation
- 1% flights
Seems to be normal but maybe normal is not good enough!

I would expect conversion rates to be sound.

[LateRooms.com]

My guess is it depends on resource, like a lot in life, it's very much like a sausage machine, you get out of it what you put in.

Dealing with networks requires a different approach to dealing direct, it can be six of one and half a dozen of the other. One thing with networks is to make sure you are very clear about your keyword policy from the outset - it's fairest and best for all that way.

Go for it and you'll wonder why you spent so long without affiliates.

[scifind]

Kane here from TravelRepublic.

Our main website is www.travelrepublic.co.uk

I think I have gone off the network idea - paying more and not exactly a selective approach!?

The network idea is the best for forwarding your business online. This is for several reasons.

• They have proved tracking. Affiliates can be dubious about reporting of independent affiliate programmes, and are more likely to stick with what they know
• Affiliates would already be signed up to a network so would be more likely to 'give you a go'.
• 1000s of affiliates log onto their network accounts daily, most of which will feature new programs on their default page.
• You don't have to worry about software, either custom or bought in. Good affiliate software does cost £1000s.
• New work fees are LOW for the service they supply.
• There are many smaller affiliates who won't sign up to a non-network programme as they improve their chances of getting paid each month.
• There is a 'not another password to remember' attitude.
• The affiliate will not have to spend time logging into your affiliate reporting software, they can get (most) reports through small number of networks.
• (managing dozens of independent accounts is a nightmare, I should know)

This said independents do work but those with a network a programme can really fly.

To discuss this further drop me a line

[scifind]

If we offer our own scheme direct ?what terms? should we provide:
- 28 day cookie
- 5% accomodation
- 1% flights
Seems to be normal but maybe normal is not good enough!

Again these rates are typical BUT if you are running an independent programme you will be expected to bay better than normal as most affiliates would be aware thay you have no network fees / override commission to pay.