The senior VP of operations for Commission Junction helps you answer that question and provides tips on getting the most out of sub affiliate networks.
Who doesn't want fast rewards? It's the reason so many companies use the internet to market their products, services and brands. Today, many online publishers are vying to be noticed and trying to make a few dollars promoting your brand. The instant ROI is a reward in itself and is sure to put a smile on a manager's face.
As affiliate marketing managers, you're focused on producing the highest quality results possible. You value your relationships and want to reward your top-performing publishers. That's why it is easy to be attracted to sub affiliate ad networks that promise high traffic and large conversion rates. These networks are made up of a super affiliate -- a large publisher -- who solicits cost-per-action (CPA) offers and promotes them to participating sub affiliates-- smaller publishers with varying business models actively recruited to create a proprietary network.
Although the rewards gained from participating with super affiliates can be high, you should be aware of the risks associated with the way they may represent your brand, especially for programs that do not have resources to monitor the activity of every sub affiliate. So, what can you do?
Leveraging sub affiliate networks
Just drop the "super affiliate." right? Rid yourself of the mess altogether? If you do, you also drop a significant percentage of revenue. Plus, are all super affiliates a problem? Does this only happen within affiliate programs? The easy answer is "no." Unfortunately, your solution to managing the risks is a little more involved. But there is a way to make these relationships work for you.
First of all, why would publishers want to relegate themselves to the role of sub affiliate? Why not just step up and work with you directly? What is their attraction to specialized ad networks that utilize CPA pricing? Or, with working through another publisher? The reasons vary, but the top few are that specialized ad networks/super affiliates:
- Provide a better commission. The specialized ad networks accomplish this by securing higher payouts based on volume delivered.
- Pay sub affiliates more frequently-- typically every five to seven days.
- Are the only remaining alternative for those publishers who previously violated the terms and conditions of the network(s) and/or advertisers' partnership agreements. Having been dropped from the programs and/or networks, they can continue their same behaviors behind the curtain of an intermediary.
Really, only one of these reasons is something to worry about. It's tough to blame a publisher for seeking more money more frequently. The third reason is a different story, and where you can (and should) take an active role in monitoring the sub affiliates. I know-- I can hear you groaning, "I don't have MORE time." Right? Well, one way to save time and effort is to allow your existing affiliate network to do the heavy lifting.
The payoff
While you may roll your eyes at adding one (or two) more bullet points on your affiliate marketing checklist, the payoff is worth it. Ad networks are an entity all their own and their rewards are specific and may not be duplicated in other channels. These benefits include:
- Generating large volume in a short period: The specialized ad networks and super affiliates often work with publishers capable of quickly generating significant traffic. The catch is these same opportunities will test legal and brand considerations to the limit. So, if the potential returns outweigh the associated risks, this might be a viable option.
- The ability to promote niche, free trial and low cost product offerings.
- Extending your reach beyond a traditional network: If your current promotional partners are sub-contracting out your offer to a group of publishers that you're otherwise not affiliated with, statistically, you must be getting at least a few unique impressions.
Making it work for you
In truth, you just need a simple plan of attack when investigating your sub affiliate network. Here are a few steps that will get you going in the right direction.
Step one: Ante up or fold. You need to decide if you're willing to play in this game. Are you willing to up your risk to up your reward? If your brand is ultra-sensitive, perhaps this isn't the territory for you. But, if you're willing to take a few extra steps to keep things on track, you may realize a great payoff.
Step two: Get your facts straight. Demand transparency. You need to know which of your top-tier publishers are using sub affiliates to promote your business. Not only do you want to determine how many of your publishers are operating sub affiliate ad networks, you also need to have a handle on how many sub affiliates are in that network.
Step three: Determine your bandwidth. Figure out what you can handle in terms of managing this aspect of your program. Once you know your sub affiliate base, figure out if it's more than you can effectively manage. The only way you're going to be able to protect your brand and keep communicating with your super affiliates in a way that's effective is to keep it manageable.
Step four: Make the cut. Now it's time to drop publisher programs, if appropriate. The first cut is easy-- anyone working with illegal, offensive publishers or those that you absolutely do not want your brand associated with go first. This decision is made independently of the profit attached. The second cut requires a little more analysis; you want to find a number of super affiliates that is manageable, but if this means cutting some programs, you've got to analyze the revenue loss attached. After the financial analysis, you may decide that you DO have the time to manage ALL of your super affiliates after all.
NOTE: Any publishers that you drop from your program will likely try and contact other sales channels within your business to go direct with the deal. So if you're dropping programs, make sure you keep all channels aware of what you're doing and your preferences for the future.
Step five: Speak up. It's imperative that you communicate with your marketing partners. As long as they are running legitimate programs with publishers that meet your standards, there's no reason for you to treat them as anything less than your top performers. Just as you would with any top publisher, let them know you're available to hear their needs, et cetera. And it probably doesn't hurt that they know you're keeping an eye on them.
Step six: Be inquisitive. Demand that all of your partners are sufficiently transparent so as to keep you informed. Understand how your company and its brands are being promoted and aligned with your policies and expectations.
So if you are interested in sub affiliate ad networks, understand they may be a viable option for use in affiliate marketing. You just need to weigh the risks, and manage your networks accordingly.