Do you prefer networks or direct merchants?

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Feb 2, 2007
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When looking for appropriate affiliate products to market - do you prefer networks or direct merchants (independent affiliate programs)?

What are pros and cons of both?

Networks - pro's:
- You're sure you get actually paid

Networks - cons:
- Are there any? not enough merchants maybe?

Independent programs cons:
- Not sure you get paid

Independent programs pros:
- Less competition

Anything else?
 


The biggest issue of all is breakage. All else being equal you will always experience higher breakage when running a network offer vs. direct. It gets worse the more middlemen there are. It's not uncommon for an offer you're running to be routed through several different networks (I've seen as many as 7 or 8) to get from you to the actual merchant. This increases your breakage exponentially. Most affiliates just have no way to measure breakage and so they don't really know what's going on - but it can be as high as 25% or more.
 
I personally prefer in-house affiliate programs. Things I have learned from the past is that make sure they are reputable and have been established for a while.

Network con - Since the merchant is paying to be listed, you could make more $$ if they weren't paying to be listed.

Independent pro - I have found that these programs offer better customer service and better options to promote their products.
 
Yes networks take a cut but more often than not you will actually get a higher payout from the network. They get higher payouts (sometimes MUCH higher) than you'll get by going direct, and so even after they take their cut your payout will almost always be the same or higher than if you went to the merchant directly. This is a non-issue.
 
I disagree with dsiomtw. I prefer in-house programs myself. Usually, if you are a valued affiliate of an in-house program, you are able to get better commissions since there is no middleman taking their cut.

This happen alot especially in the lead industry. You send your leads to a lead company who then resells those leads to the direct merchant for alot more than what they paid you for that lead. Example, in the debt industry, you will probably earn between $8-14/lead from the lead company . These companies then sell those leads for upwards of $30 each. Why wouldn't a merchant pay you more than the lead company if they find your leads very valuable? Again, it all depends on the quality of lead you produce. If you can show value to the merchant directly, they will be willing to go higher than the lead company will. You have to remember that the lead company is reselling those leads for a profit. What ever they offer you, they are getting more in return.

The hardest part is finding the in-house merchant to work with. Any one else have the same experiences?
 
Networks take up to 30% of the payout. Then they keep the money for a month or two before releasing it to the affiliate.

If you can generate volume, direct deals and pre-paid direct deals are the cats ass.
 
a lot of it is about relationship... both with networks or direct!

A lot of time if you have clout at a network you can get things others can't. Well the same is true with direct deals.

Another things networks are nice for is creating a buffer between the advertiser and the affiliate because lets face it when it comes to shady traffic no advertiser wants to fess up to knowing about it. Being part of a network allows them to do this.

I work with both networks and direct, they both have their place and benefits. Just have to have the right peice of the puzzle.
 
Oh and on the note of payment you can get paid just as fast from either. Although the networks do take a cut. But as I mentioned something it's worth paying it :D
 
Sure with relatively small programs in different niches, etc. you can sometimes work out direct deals with the merchant - but try going direct on any of the Top 250 offers on the Net and I guarantee that 1) 98% won't work with you, and 2) of the 2% that do, they won't pay you as much as I'm getting from a "middleman."

And yes - networks and other middleman do generally take a 5-25% cut, but their job is a major pain in the ass and you would never want to do it yourself.
 
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As mentioned below - direct publishers can usually get higher pricing from a Network as opposed to going directly to the client since networks demand a certain tier of pricing to get an offer run while being able to make money as well. Not all networks take 30% margins.... try more like 10. We all know there are even some networks out there that take no margin. Another positive - when leads get invalidated 2 months down the line, a network wont take money away from a publisher, they will just eat it usually. If you dont want something super brokered down - dont go to a network that takes brokered down items. Go to your networks that you know will only take on campaigns unless they are exclusive or direct.
 
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AmbzPaul said:
As mentioned below - direct publishers can usually get higher pricing from a Network as opposed to going directly to the client since networks demand a certain tier of pricing to get an offer run while being able to make money as well. Not all networks take 30% margins.... try more like 10. We all know there are even some networks out there that take no margin. Another positive - when leads get invalidated 2 months down the line, a network wont take money away from a publisher, they will just eat it usually. If you dont want something super brokered down - dont go to a network that takes brokered down items. Go to your networks that you know will only take on campaigns unless they are exclusive or direct.
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Good first post Amber! Glad to see you aren't like some of the other AM's who would do a quick link drop to their network. Right on.
 
dsiomtw said:
Sure with relatively small programs in different niches, etc. you can sometimes work out direct deals with the merchant - but try going direct on any of the Top 250 offers on the Net and I guarantee that 1) 98% won't work with you, and 2) of the 2% that do, they won't pay you as much as I'm getting from a "middleman."

And yes - networks and other middleman do generally take a 5-25% cut, but their job is a major pain in the ass and you would never want to do it yourself.
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This is backwards in every way. Direct deals pay more, you are elminating the middleman, (the network).
 
beejeebers said:
This is backwards in every way. Direct deals pay more, you are elminating the middleman, (the network).
Click to expand...

i agree & second off, most people will only be able to go direct if they are already big and know what they're doing...

hmmm.... you know the network is taking XX%, that can be 100% eliminated direct if you have the volume.
 
I think it depends on the type of deal/offer. If it's something really complicated, like lead gen, and you can be paid a set fee/payout instead of going through the hassle of selling the lead yourself, then I'd choose a marketplace.

If it's for something like software/b2b or something where a customer may need to speak with someone on the sales or support side to make the sale or lead active, then definitely direct.

If it's just your average campaign for a dating site, or something that all the networks carry, I would look and see who has the REAL exclusivity on it (they all claim to, but don't) find that network, see if we can work out a higher volume dollar payout instead of just the usual street prices, and go with the network.

9 times out of 10 I would choose to go through a network, because there are less headaches usually, and less to deal with. You just ask them for something, they give it to ya, you get your traffic, and poof, you get your wires/checks. Simple as that. But it will always depend on the type of product, service, or offer it is to make that decision. I can assure you, as greedy as some people are, sometimes it's worth it to take a small % cut lower than what you'd get by going direct so you can let someone else do all of the worrying and deals. Keeping life and things simple is the best way to go for me.
 
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