Should programs be allowed to be on more than one network?

[hpops]

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I agree with Hero that single network status is far more precarious than joint. Particularly if one network is secondary (in terms of launch) there is precious little reason to push the program to a base that already uses it!

I'm an advocate of multi-network programs in some instances, and not in others. It is very very rare that I've seen a multi-network program not bring in some new publishers. I'm aware that most people work across platforms, but some don't. If that some includes your potentially largest publisher it would be churlish not to use a second network.

Of course, this is a cost question - time costs included. There are programs which are on networks which have a less than perfect feed system, or ones which do not offer content unit builders, or ones which affiliates may fall out with certain account managers. etc etc etc. But if adding a new network results in the costs becoming excessive for the rewards, it shouldn't be done.

I would like to see merchants (and, in fairness, people like us) talk more to networks about what we want to see from them (technologies, promotions etc) rather than launching elsewhere. Always see the colour of your won grass before even thinking about the other side.

What an oddly contradictory post. (mine, that is)

[pistol101]

a) Affiliate reach - while it is true that many affiliates are signed up to all of the major affiliate networks there are still a substantial number who aren't and so there is generally some incremental affiliate reach to be had.

I agree, and it's a trend that's getting bigger. This can be particularly seen with the content based affiliates. Merchants need to do their due dilligence and work with the affiliates to see who they want to work with, affiliates maybe on a network, but will they actually deliver the potential?

the risk of a network financially collapsing is small

There are lots of networks who aren't making any money, but i'm sure someone will scope them up rather than them collapsing. Again merchants should be doing their due dilligence, rather than accepting the advice of their agency whose getting a big kickback!

is there a reason for a merchant to work simultaneously with more than one consultancy/outsourced affiliate management company?

I've seen this happen already, hopefully never again!

There is a huge shift of merchants looking to consolidate back to one network. Which isn't suprising as the number of developments that are custom built are increasing and the need for the reduction in spend.

[sgpratley]

Again merchants should be doing their due dilligence, rather than accepting the advice of their agency whose getting a big kickback!

Two major reasons that merchants take on agencies are either lack of resource or lack of understanding and knowledge of the affiliate market. It's as hard for them to spot duff agencies as it is to spot duff networks until they're actually active on the programme.

As for the kickbacks, I've not seen one yet that would make up for the trouble of a merchant under-performing on a network. I must be talking to the wrong people

[jess1]

As for the kickbacks, I've not seen one yet that would make up for the trouble of a merchant under-performing on a network. I must be talking to the wrong people

Tickled me

[pistol101]

As for the kickbacks, I've not seen one yet that would make up for the trouble of a merchant under-performing on a network. I must be talking to the wrong people

A little affiliate brand advertising always helps that one out!

[Zanox]

Hello everyone...

Advertisers should use as many networks as they think are beneficial for their company from a business sense. If they can manage the different channels effectively, are getting good service levels from their suppliers (expecially if they are paying up front fees) and are being delivered incremental sales then its not even an issue.

However, this is the central issue. It has to make business sense. Personally, I think networks should be apppointed with clear goals in mind. I would only advocate more than one network if the second network is delivering something specifc and unique (this could be anything from specific affiliates and traffic sources to technology and consultancy services).

I think if the affiliate commission is competitve enough, end user takeup of the product is high and it is a brand that you can trust then many affiliates specific to a country will flock to the program no matter who the network is. However, with the growth of online and the increasing competitveness of networks within the affiliate space many networks are beginning to specialise in certain areas (travel, finance, retail, telecoms etc...). Therefore, depending on the product it maybe worthwhile to appoint one of these more specialised networks to produce genuine incremental value.

Another example of this is the growing international reach of networks and foreign based account management of overseas affiliates. It would make sense to appoint a UK specific network for the core affiliate base and an international network to harness international affiliates with the ability to drive UK IP address traffic. They do exist and can bring much valued added value - even if their network account manager is based in the US, Germany or Australia!

Adam
Sales Director
zanox UK

[mdrussell]

Some very interesting comments:-

As far as I am concerned for any programme, the decision on which network and how many has to be taken on merit - if you have a programme which is performing well on one network but you find significant affiliates (or numbers of affiliates) that say we would like this programme on xxx network, then you have to take this into account.

I always recommend a new merchant to launch with one network and review this after a short period to make sure that the costs of affiliate marketing do not become a barrier. After this review we will then decide on whether a second network is a good idea. Sometimes we get existing merchants who already have more than one network, or new merchants that very definitely want more than one network from launch, which has to then be taken into account as well.

I personally believe that 2 networks for any programme can be beneficial for a merchant as they have potential access to more affiliates, as affiliates have their favourite networks for various reasons, therefore by choosing only one network can sometimes have a negative effect on a programme,

Also the functions that some networks offer are not good enough for some merchants, if you have a retail merchant you need to make sure the network they have or choose are able to provide all the functions that are needed.

I have to say that comments about kick backs is very poor reason and any management agency that chooses a network on these grounds is doing a bad job for the industry, we are all aware that kick backs are available from networks, but if you want to be a good successful management agency why would you put a programme with a certain network that either cant or wont support the programme just for a very short-term gain. From what I have seen the amounts for kick backs is not something that should affect a decision. Not only do you want to have a good reputation for growing good clean programmes - the benefit of choosing the correct network(s) that can maximise affiliate revenues is of great benefit by any financial criteria, client / network or agency.

I am in total agreement with other comments if you have more than one network you should always make sure that the each network offers a level playing field in terms of commission, tools and communication on each network.

[PythonPhil]

But the merchant should have the same terms,commission, cookies etc on each network.

But that is not always the case. Our company has been in the industry since 1997 and in that time we have worked with almost every affiliate network out there... and there's alot lol. We offer different payouts on different networks depending on the networks fees and quality / volume of traffic.

Joe blow network that only sends us 3 sales a month to site XYZ isn't going to get the same payout as Jane Doe Network that sends us 200 sales a day. You want to be able to reward performance.

As far as working with only 1 network I don't see any good reason to do so. Variety is always good in every market. Different networks excel in different things, some are better that others with financial offers, some for led-gen, some are better for sales, email submits etc etc. In my years in the biz I have yet to find 1 network that is the end all-be all for everything. Not to mention you will find different quality affiliates on different networks.

Every affiliate has the ability to sign up for multiple networks. In fact if they aren't they are limiting the amount of revenue they could potentially be making. So they can easily compare the same offer between a few networks and choose the best payout.