The page cannot be found

Own Your Own Network
Reap the rewards of owning your own Affiliate Program. When you're in control of your program, you're in control of your profits.

With the variety of Affiliate Program Solutions on the market, choosing the solution that best fits your needs can be a difficult task. You want to be sure your solution offers the type of linking methods, commission structures, additional features and price range you are looking for.

But - there is one critical aspect you may overlook until it's too late - Affiliate Ownership.

Don't wait until you are knee deep in an Affiliate Network before you realize that control over your Affiliates belongs to the Network and not to you! Giving up ownership of your Affiliates to a Network or a Solution Provider can mean a loss of Affiliates, added costs and little to no overall control over your program and your Affiliates.

The Downside of Affiliate Networks
One of the biggest fears that new Affiliate Managers have is in finding new Affiliates. Affiliate Networks seem to have the answer to this fear - they already have Affiliates "waiting for you". Large networks boast thousands of Affiliates that you'll "have access to" once you join.

What they fail to tell you is that each of these thousands already belongs to at least one other Affiliate Program. Plus - out of the thousands of Affiliates, only a certain percentage will share your interests and target market. So, out of the few hundred Affiliates that may be interested in joining your program - you'll have to find those that are willing to leave the program that they currently belong to, or at least consider adding your product/services to their offerings.

Obviously, farming the existing network Affiliate base isn't going to get you thousands of affiliates. You still need to go looking for Affiliates to make your program a true success.

"Don't worry," you say, "I'll just place my program in a few Affiliate Program Directories, run a couple of ads in e-zines announcing my program and contact site owners that I feel may be good Affiliates. I can get people to sign up for my program that way."

Well, you can definitely get people to sign up that way -- but don't be fooled into thinking that they are signing up for your program. Each person that you recruit is actually signing up for the Network and may not even end up promoting you at all. As members of the Network, these new Affiliates can be recruited by any of the other merchants in the network. As a matter of fact, a person from CJ.com Affiliate Network (who asked to have their name removed from this site) says, "The majority of our Affiliates belong to at least 10 programs."

In a Network, you are constantly in competition with other merchants for the attention of the available Affiliates. And you can imagine how frustrating it would be to sign up affiliates, only to have them taken away by other Merchants in your Affiliate Network. With each new program that your Affiliates join, their loyalty and commitment to you fades.

Remember that in an Affiliate Network, the relationship is not between the merchant (you) and the Affiliate. It is between the Network and the Affiliate. Through this relationship, the Network is able to refer it's Affiliates to you and other merchants.

The Hidden Costs of Affiliate Networks
No matter which Affiliate solution you choose, there are going to be costs involved with setting it up and running it. Most solution providers charge a setup fee ranging anywhere from hundreds to thousands of dollars. Most providers also charge a monthly fee or an annual fee for support, maintenance and data hosting.

You'll find that Networks also charge a "commission" fee on top of the setup and monthly or annual fees. This fee is a set percentage of the commission amount you pay Affiliates. For example: If the network charges a 20% commission fee and you pay $500 in commissions in one month - you'll owe the Network $100. The next month, when your Affiliates earn $1,000 in commissions - you'll owe the Network $200, and so on and so on as your program builds.

Networks justify the commission by offering "access to thousands of Affiliates" which we discussed above and check writing. Now, check writing may seem like a nice, convenient service. You don't have to write the checks out, put a stamp on them and drop them in the mailbox. But is that really worth a few hundred extra dollars a month? You could pay your Administrative Assistant, Secretary, or Intern to stay a few extra hours to assist in writing and sending the checks out and save yourself hundreds of dollars.

You also need to consider that since the network is writing the checks, you may be required to keep a minimum balance or reserve in an account with them that they can use to pay the Affiliates and themselves. This usually starts around $200 and can grow depending on the volume of commissions you pay out each month.

Check out the new KB EasyChecks! Affiliate Check Writing System.

How Affiliate Networks control you and your Affiliates
The biggest cost in not owning your Affiliates is having little to no control over the affiliate program that you supposedly own. When a network owns your Affiliates they choose what your Affiliates see, what offers are sent to them, which programs are marketed to them, when they are paid, their minimum commission amount and more. Giving the network control over all of these things can cost you more than just profits.

What your Affiliates see: The network controls what banners, links, logos and other advertising media your Affiliates see on their Affiliate Administration page. This means that you lose a large amount of your marketing tools to the affiliate network, and are in constant danger of losing the affiliates you do have to other Merchants or to the network itself.

What offers are sent to Affiliates: The network can send your Affiliates any offers for products, services and other Affiliate Programs - another advertising venue you'll be giving up to the network.

Which programs are marketed to Affiliates: The network can and will offer other programs to your Affiliates. The network is in business to make money -- right? So what programs do you think they are going to push -- those that earn them $100 per month, or those that pay them $10,000 each month? Plus - if it is the network promoting additional programs to the Affiliates instead of you - you're losing out on second tier commissions!

How you communicate with them: Many networks require that you communicate with your Affiliates through their online email systems. Instead of receiving your messages in their regular inboxes, your Affiliates have to log in to their admin screens to check their mail.

When they are paid - If the network pays Affiliates and themselves each month - you pay your Affiliate commissions each month - even if you want to pay every four months, every quarter, etc.

Their minimum commission amount - Most networks are set up with a minimum commission amount that the Affiliates must accumulate before getting paid. The minimum amount can be reached by combining commissions from every program the Affiliate belongs to in the network.

Each month, you could be paying hundreds of dollars in commissions to Affiliates that earn only a few cents. In a program where you set your own minimum commission amount, you don't have to pay your Affiliates until they reach a dollar amount that is worth your time and dollar to pay.

Ownership is Your Right
If you are planning on starting an Affiliate Program, seriously consider the implications of "who" owns your Affiliates. If you do - you can be sure that you are in complete control of what they see, how they are contacted and how they are rewarded. If not - you can't be sure of anything.

Copyright. Original Copy. KowaBunga! Technologies, 2000-2003.