To partner with 1 network... or 20?

[ChrisPoad]

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Hi everyone,

I'd be interested in affiliate managers' view on partnering with multiple networks. Assuming the programme terms are the same for all networks, what are the drawbacks?

As I see it, there are the following advantages:

* Wider distribution - access to more affiliates.
* Mitigate risk. If you fall out with a network, or have some other problem, it is likely to have less of an effect on your overall programme.
* Access to more "gadgets" that networks insist on building.

And the following disadvantages:

* More admin overhead for the merchant.
* By spreading out your business, you are less able to negotiate favourable commercial terms, and will "matter less" to the affiliate networks.

Any arguments would be really welcome.

For context, I am speaking from the perspective of a large merchant (>£100m sales through the web), and with a large established customer base.

Chris

[StaceyA]

Hi Chris

3 networks would be my maximum I think. Mainly because affiliates usually join a handful of networks and your bound to get some cross-over. Plus the set-up fee's and management fee's would certainly make a huge dent in your bank account if you were getting stung 20 times.
I definitely believe that joining more than one is a good idea though. I think it's a great eyeopener to experience how dramatically different some of them operate. Plus if you join 3 that are completely different by this I mean their attitude towards affiliate marketing and the role they play in the sector you've got more chance of reaching a wider range of affiliates.

Have fun researching though!

Stacey

[Greavsie]

Hi Chris

I agree with Stacey, not more than 3 networks. Although I think 3 is probably too much in my opinion; but maybe I am biased

With OTTO I would consider having 1 for Freemans, 1 for Grattan and cross-pollinate the affiliates whilst still getting both networks working hard for you. The problem with 2-3 networks on the one program; the easiest thing for each network to do is target the affiliates on the other network; rather than actually growing your business and find completely new affiliates who can drive NEW customers and NEW sales.

More networks might get you more affiliates; but I'd personally make people like me at your other networks work harder for your business. I set goals with my merchants on new target areas and actively seek NEW affiliates; obviously they do not always work out but I believe it is the networks responsibility to grow your program.

[nim-b]

Hi

When I started at Firebox we were on 4 networks, which was way too many. I've dropped it down to 2, and I think that that's a good number to have.

- multiple networks increases your affiliate management workload. All the networks have subtley different ways of working, so you have to adapt everything you do for them. Doing this 4 times was ridiculous (for example, uploading banners would take forever).

- extra networks won't get you a lot more affiliates. Its rare that an affiliate will only be on one network, or won't consider joining one to be on your programme.

I think there is definately a case for having 2, possibly 3 networks though, as said previously it mitigates risk and gives you access to more tools. Plus a bit of healthy competition between your networks isn't going to do any harm.

For a launch, programmes should consider starting on one, and then getting a second network. Choose what you think will be your strongest network for your initial launch, the one that will give you the most support. Make sure if you sign up for extra networks that they are tasked with bringing in new affiliates and not just getting current ones to move. Check that this happens.

[LateRooms.com]

we found plenty of cross-over with uk networks, so in essence many affiliates were representing duplication to us when we considered engaging our product across 2+ networks.

we currently work with 2 networks - one uk and one europe - and this works fine, with an efficient return, but then network sales have never been the primary focus of our affiliate programme.

duncan