Affiliate Revenue Information

Pros and Cons of Third Party Online Affiliate Networks


Online affiliate marketing has taken the internet by storm and has proven to be a highly effective way of maximizing website revenue. Why limit yourself to selling your own products when you can profit by selling somebody else's too?

There are thousands of individual affiliate programs offered on the internet, many being through third party affiliate program networks such as OffersQuest, Commission Junction and Linkshare. These companies connect a large number of advertisers and publishers together via their own network. Advertisers sign up through their network to have publishers promote their products and publishers sign up to access a large network of advertisers all at one location. In the process, the affiliate network makes a profit via advertiser set-up fees, monthly account maintenance fees, commissions, etc.

The question is, as a publisher, is it worth using these large affiliate networks or is it better to form direct partnerships with advertisers?

The Good
The primary selling point of third party affiliate networks is convenience. As a publisher, one registration gives you access to tens, even hundreds of advertisers simultaneously. Tracking partner performance is easy, there is only one technical support contact, things are easier and simpler to manage, and best yet, payment is received as one convenient monthly lump sum.

The Bad
Because as a publisher you're utilizing a service, advertisers who also offer a direct affiliate partnership will typically offer a lower commission for publishers who choose to partner with them through a third party network. This is because it costs advertisers money to use the services of a third party. Also, without naming names, some affiliate networks have been known for not tracking sales and leads properly as honestly as they could be (which means money from your pocket). Payment thresholds can often be fairly high - a $50 US minimum is common for international publishers. Finally, a payment delay of two months or more from the date of a sale/lead generation can occur, as the third-party affiliate network waits until the advertiser pays them, before they pay you (the publisher).

Conclusion
In many (if not most cases), having both options of partnering directly with an advertiser or through an affiliate network is not a choice - it's usually one or the other. If an advertiser you like only offers their affiliate program through a third party, you're limited to the advertiser network they've partnered with, or not partnering at all. Affiliate networks are not bad programs to use, just keep in mind the issues outlined above, and you'll be making money in no time!

Veronica Dubak is the owner of the successful SurveyBounty.com, http://www.surveybounty.com free online paid surveys directory. With a comprehensive listing of market research companies classified by region, and background information on the online survey industry, SurveyBounty.com is the legitimate source for online survey information.


MORE RESOURCES:

Ottawa Citizen

The Walt Disney Company Reports Earnings for Fiscal Year 2008
MarketWatch - Nov 6, 2008
The increase in affiliate revenue was due to contractual rate increases and subscriber growth. Increased advertising revenues reflected improved rates and ...
Walt Disney F4Q08 (Qtr End 9/27/08) Earnings Call Transcript Seeking Alpha
all 295 news articles


Travel Trends

Following The Money At Innovation Summit
Travel Trends, Australia - 14 hours ago
Well, if that’s the case many believe the big business opportunity in the online travel space right now lies in pay per click and affiliate revenue models ...


Hollywood Reporter

Moonves: US economy close to recession
Hollywood Reporter, United States - Oct 30, 2008
In the core TV division, revenue rose 2% to $2.08 billion because of higher license fees, home entertainment and affiliate revenue partially offset by ad ...


Sports Business Journal (subscription)

Is cable the new home of champions?
Sports Business Journal (subscription), NC - Nov 17, 2008
The fourth quarter ad market has been soft across all sports, putting greater importance on the affiliate revenue that cable networks collect. ...


Cablevision Systems Corporation Q3 2008 Earnings Call Transcript
Seeking Alpha, NY - Nov 6, 2008
The third quarter results were principally driven by higher revenue at the networks of $10 million which was principally increased affiliate revenue and ...
Cablevision Systems Corporation Reports Third Quarter 2008 Results StreetInsider.com (subscription)
all 3 news articles


Cleco Corp. Posts 2008 Third-Quarter Net Income of $37.1 Million
CNNMoney.com - Nov 5, 2008
30, 2008 2007 ----------- ----------- Operating revenue Electric operations $ 333936 $ 300862 Other operations 7004 9238 Affiliate revenue 2735 1591 ...


TechCrunch

Cookstr Helps You Find Recipes From People Who Know Their Onions
TechCrunch, CA - Nov 18, 2008
... NY Times article on the startup points out, they’ll also be collecting affiliate revenue when books are sold on e-commerce sites via their website. ...


Spong

Viacom’s Profit Fell 37% on Slower Ad Sales
New York Times, United States - Nov 3, 2008
Cable and satellite affiliate revenue grew 12 percent, to $660 million. Ancillary revenue surged 36 percent, to $313 million, driven by sales of its video ...
Viacom earnings drop 37 percent; ad slump hurts guardian.co.uk
all 205 news articles


Ottawa Citizen

Turner Nets Defy Soft Market
Adweek, NY - Nov 6, 2008
Along with the advertising gains, network revenue was goosed by 10 percent year-to-year growth in subscription/affiliate revenue. The Turner nets now appear ...
Time Warner Q3 2008 earnings transcript BloggingStocks
all 507 news articles


Cablevision Systems Corporation Reports Third Quarter 2008 Results
MarketWatch - Nov 6, 2008
... all compared to September 2007 -- A 9.3% increase in affiliate revenue compared to the prior year period -- A 19.3% increase in operating costs compared ...

Affiliate-Revenue - Google News

home | site map
© 2006