Someone's blowing smoke! I can tell you that I helped one of the most successful companies in the business TRY to launch an affiliate network and they could not do it! They have TONS of years in the affiliate marketing industry and a HUGE team of some of the top affiliate managers in the industry - with experience in managing huge, successful affiliate programs like Overstock, Circuit City, National Geographic and, well some of the biggest and best out there. There are many unique challenges to launching an affiliate network, but I'll tell you one of the biggest problems of all. It's a HUGE Catch 22! You can't get good merchant til you have lots of affiliates. You can't get ANY affiliates without good merchants and LOT of them, in a variety of categories that those affiliates would want to promote. So you need merchants 1st But you can't get merchants until you have affiliates. Why as an affiliate would you want to join a new unproven affiliate network, when there are already so many tried and proven ones with hundreds, even thousands of top merchants??? Why as a merchant would you want to join a new unproven affiliate network, when there are already many tried and proven ones with hundreds, even thousands of affiliates??? All that said - I think the thread starter just was interested in starting his own program not network - but just had to jump in and give my 2 cents. (Which I charge $300 per hour to give on a consulting basis.)
I'd hardly say it's easy...getting merchants/affiliates is tough enough, but once you actually get all that, you have to front a ton of money to pay the affiliates. Unless you have terrible payment terms which is a huge turnoff to joining a network...
Hi thefreebielife, meant to mention that I was trying to back you up! Tough job, but somebody's gotta do it!
Still, your making it sound hard and your throwing a curve in there by saying that affiliates won't join without good merchants and a merchant won't join without affiliates. The thing is that all problems have to have some form of solution. In this case, you need to find merchants who are willing to take risks first off. Offering your affiliate network to companies instead of WAITING for companies to find you is the best solution. For example: Yaro Starak, a well-known blogger has an affiliate program. Sending an email to him offering your affiliate network services can fix this. Not to mention there are countless other ways for one to find merchants easily. Using your imagination should fix this problem. Plus, what does a merchant have to lose? Nothing if you think about it, they can only gain customers. You'll need merchants first before getting affiliates. What is the use of having affiliates if there is no merchants for the affiliate to use. Once you get atleast 10 merchants (my own preference) - then you can start advertising for the opening of affiliates. Offering a high payout rate (or atleast the best payout rate you can) and offering things that other affiliate network sites don't offer can give you a boost. For instance, promotional tools. And for those who are designated as running an incentive website, offer them some tools or things that'll benefit them using your network for their incentive website. For instance, creating an API that'll automate things for them. Its all about finding solutions and taking it one step at a time. In either manner, its NOT hard to run a affiliate network. Its just like every other business as I keep saying. Its only hard if you MAKE it hard...
For all those who have questions whether I am talking about affiliate network or affiliate program, let me make myself clear.. I want to start a affiliate network and beat big networks
^^ *Whistles spiraling down* Don't get me wrong, I understand I said its not hard... and I believe you could possibly be on the same level as CJ and Azoogle... but take it one step at a time. Its always good to dream but going in with a goal like that, you may fail. Either way... if I were to give you a tip... ask the merchants and affiliate what THEY want... after all, its them that'll make you more successful then the others. Good luck "trade"...
Thanks Baby Boy, really thanks that you did not discourage me. I have some predictions in how the affiliate industry would change in 10-20 years. And like most people if big networks have a difficulty in adapting to that change, at that time I can strike and get a lion's share of the affiliate industry.
Trade... best of luck man and keep us informed. Who knows, maybe I'll be one of them affiliates to join... keep in mind to target and contact merchants/advertisers who run affiliate programs but would like to join a network. For example: Remember the Yaro Starak example I gave earlier, if you are to get him to join your network... you'll be exclusive in a way (cause I have not seen him yet show up once in any other network.) Good luck.
that's not true. I run a big webhosting business in my country (10.000+ clients), and believe me, it's A LOT BUT REALLY A LOT of work! I also tried in the past to run an affiliate network, and the first problem with getting merchants is "who the hell are you? what are you different from the others? What do you offer more?"