“Joining Multiple Affiliate Networks” Without the Risk of “Multiple Commissions”

Oct 18 08:09 2011 L Hoque Print This Article

With Euraffiliates 2.4, the recent release of the affiliate software, a merchant can do three things: (1) Run a complete in-house affiliate program with Next-G tools; (2) Track non-affiliates sales (SEO, PPC, etc.); (3) Join multiple affiliate programs without the risk of multiple commission generations for a single sale. See how?

Two questions are often being discussed in all affiliate forums: "Go for an in-house affiliate program or join a network?" and "Which network to join?" The affiliate experts reply with "either/or". Go for in-house or join a network. If joining a network,Guest Posting then join 'this or that' network. Some experts openly warn people not to join multiple affiliate platforms because there are 'certain' risks.

Despite the warnings, many merchants join multiple affiliate networks and/or run an in-house affiliate program side by side. Naturally, the question always comes up. "Why are people so crazy about it?" The newly released Euraffiliates 2.4 has the answer to it.

Why join with multiple affiliate networks?
The reason is simple, to increase sales. Running an in-house network is good. In fact, it's very good for the long term, but the initial hurdles to overcome with, specially lining up some active affiliates, are not easy tasks. But on the other side of the coin, a merchant can contact a lot of affiliates immediately when he joins an established affiliate network. Moreover, it is likely that some will enjoy their program. So, joining five different established networks may increase sales at least five times, if not more, The fact is, most people never buy on their first attempt, even if the same buyer is referred by more than one website. Most likely, he will buy from the merchant site, not from a competitor's website.

Then, why are people warned not to run multiple affiliate programs on multiple sites?
Good question. A merchant does all these things to increase profit. Running multiple affiliate programs can chew up profits, and at worst, a merchant may incur loss. See how?
Say a merchant has a product priced at a hundred dollars. He breaks even if he sells the stuff at $60. He has setup five different affiliate programs over five places/networks. (Say with an attractive 30% commission and 60 days of cookie date.)

A visitor normally never buys on his first visit. Before buying, a customer may visit his site from more than one network-affiliate site within the cookie period. Since each affiliate platform manages their own cookie-system independently, all will generate a commission for that sale. But the merchant afford to pay multiple commissions for a single sale. Just imagine, if the customer has come from three different networks then the merchant has to pay 90% commission that means he will incur a loss. Is this acceptable?
What's the solution then? Should a merchant never join multiple networks?

No. Merchants should join multiple affiliate networks. Euraffiliates software has a solution for this. The software can help merchants conglomerate multiple affiliate networks and paid advertisements (such as PPC) campaigns into a single platform and help a merchant and forget about multiple commission nightmares. Will the merchant do any harm by not giving credit to the other affiliate, although the sale was actually made in joint effort?

In narrow perspective it is, but in wider perspective it is not. If only a single sale is considered, then a merchant definitely is doing an injustice to the other referring affiliates. But, he is actually doing a favor to the last affiliate in the line. When considering sales over a period of time, no injustice is being done to anyone because everyone has an equal probability of being the last referrer.

Why run an in-house affiliate program then?
Joining an affiliate network is just like being a shop owner joining a trade fair. Trade shows give owners the opportunity to make contact with a lot of buyers & resellers. In the same way, a merchant can quickly get in touch with a lot of affiliates and so with buyers. But, a merchant only has minor control there. His access to affiliates is limited. A merchant never owns his own affiliate database. He will lose access to them once they leave the network (tradeshow). After some time, he may have to leave a network for recurring cost reasons and/or, to join a better network (another tradeshow).

There are other restrictions as well. A merchant may never offer direct links, a unique promo or special commission deals to an affiliate. He can always pay higher commissions at his in-house affiliate program as there are no network costs. For these reasons, some network affiliates may join his in-house program and it could be a great deal for the merchant.

So, a merchant should have his own in-house affiliate program for the same reason a shop owner always has his own shop, despite running multiple shops at different trade fairs. His own affiliate program.

Why Euraffiliates?
There are 3 solid reasons for buying Euraffiliates.

(1) It allows a merchant to enjoy all the benefits of multiple affiliate networks without the risk of multiple commission payments.

(2) It allows him to run an efficient and effective in-house affiliate program with Next-G tools.

(3) It tracks non-affiliated sales as well. Merchants can know how much is coming from the affiliates; how much from PPCs, and how much from search engines and so on.

Euraffiliates system can be compared with its rivals at: http://www.euraffiliates.com/affiliate-software-comparison.php.

Which Euraffiliates Edition is right for a merchant? He can look at the edition comparison at: http://www.euraffiliates.com/features.php

For more information on Euraffiliates software, anyone can contact the Affiliate Solutions Specialist, Lutfal Hoque, at http://www.euraffiliates.com/contact-us.php.

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About Article Author

L Hoque
L Hoque

Lutfal Hoque is basically an MBA in marketing. He joined his career as sales professional in 1996. After 3 years he started his own web & e-Commerce development business in 1999. He played the affiliate marketing consultant role of a big UK e-commerce site for over 4 years using his own developed affiliate tracking software. This has helped him a lot in getting deeper understanding of affiliate marketing and affiliate marketing software.

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