Starting an Affiliate Network

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James

James

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Jun 25, 2006
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How do you start an affiliate network? It's been on my mind for a while now and having searched for a little more information the results left a lot to be desired.

I have a basic concept, and nothing else at this stage, for a niche affiliate network so I guess my question is are there any users on WickedFire who have gone as far as to open their own network? I would just like to talk over the development and launch process with someone to establish whether it's a feasable option..
 


Don't do it man, I already have one dude I have to troll full time, I don't know how much time I can put into a 2nd!
 
Takes 3 things

1. Tons of capital, I wouldn't start with less then 500,000. Why you ask? Most good aff's want to be paid weekly. Most advertisers want to pay monthly net 15 or net 30.

2. Tons of relationships on the advertiser side. I'd know at least 40-50. The good advertisers are usually very hard to get a hold of.

3. Tons of relationships with affiliates. I'd say you could get by with having close relationships with100-200 affiliates. Even then you still need to have the best offers and payment terms.

You could probably get by with 2 of those super strong of the 3 I mentioned.

Thus doesn't even mention how much work it is. This is just basic guidelines to even consider it.

Hope that helps.
 
know what you are getting into - i keep reading about people who want to start a CPA or Affiliate Network. They make it sound like easy work easy money - its not for sure.

This is a very broad stroke there are 1000's of detailed things about this that i'm not going to get into..

To do it right:

You must have something that really sets you apart from the other 2000 networks.

Have technology or a plan to build something to support your business. or have the money to re-tool a 3rd party software like direct track - but the tech is a sure shot way to be different as many networks still use DT.

You need to have a team of people to manage the ad side, getting ads live trouble shooting pixels.....you need a team of people to manage you tech if you build it, or deal with the customer service if you used DT. You also need sales people and media teams to get ads and get traffic sources.

so you have a team of people to support your business - customer service, sales, affiliate managers, and you are starting to make a little money...Well now you need someone to manage payroll and benefits and all the other crap. That's real fun.

So you find a HR/Accounting person and you are still making money -good. Now you have one month where some prick advertisers sticks you for $150,000 - you have to keep your Affiliates paid so you eat the $150,000 and move on. Now your living tight because of one bad month and you have zero float money - you need to pay affiliates well before you get paid by most advertisers what do you do?

It's a great business and i have been in it since 2000 doing CPA, 1996 doing email and other marketing, and 2003 as a owner of a network. I love being on the network side. I have a good team who works hard, good technology that cost a ton of money and time to build, and years of trench time - and its still a hard low margin business plane and simple - but one that can make good money and one that has made me happy.

So i did not want to discourage you - but know the facts before you dive right in.
 
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motivebrendan said:
know what you are getting into - i keep reading about people who want to start a CPA or Affiliate Network. They make it sound like easy work easy money - its not for sure.

This is a very broad stroke there are 1000's of detailed things about this that i'm not going to get into..

To do it right:

You must have something that really sets you apart from the other 2000 networks.

Have technology or a plan to build something to support your business. or have the money to re-tool a 3rd party software like direct track - but the tech is a sure shot way to be different as many networks still use DT.

You need to have a team of people to manage the ad side, getting ads live trouble shooting pixels.....you need a team of people to manage you tech if you build it, or deal with the customer service if you used DT. You also need sales people and media teams to get ads and get traffic sources.

so you have a team of people to support your business - customer service, sales, affiliate managers, and you are starting to make a little money...Well now you need someone to manage payroll and benefits and all the other crap. That's real fun.

So you find a HR/Accounting person and you are still making money -good. Now you have one month where some prick advertisers sticks you for $150,000 - you have to keep your Affiliates paid so you eat the $150,000 and move on. Now your living tight because of one bad month and you have zero float money - you need to pay affiliates well before you get paid by most advertisers what do you do?

It's a great business and i have been in it since 2000 doing CPA, 1996 doing email and other marketing, and 2003 as a owner of a network. I love being on the network side. I have a good team who works hard, good technology that cost a ton of money and time to build, and years of trench time - and its still a hard low margin business plane and simple - but one that can make good money and one that has made me happy.

So i did not want to discourage you - but know the facts before you dive right in.
Click to expand...

+rep
 
smaxor said:
Takes 3 things

1. Tons of capital, I wouldn't start with less then 500,000. Why you ask? Most good aff's want to be paid weekly. Most advertisers want to pay monthly net 15 or net 30.

2. Tons of relationships on the advertiser side. I'd know at least 40-50. The good advertisers are usually very hard to get a hold of.

3. Tons of relationships with affiliates. I'd say you could get by with having close relationships with100-200 affiliates. Even then you still need to have the best offers and payment terms.

You could probably get by with 2 of those super strong of the 3 I mentioned.

Thus doesn't even mention how much work it is. This is just basic guidelines to even consider it.

Hope that helps.
Click to expand...

Or you can rely on gimmicks like sending free shit to bloggers and having a "cashinator" at your booths. ;)
 
Why should advertisers or affiliates invest their time, energy, and money in you as opposed to the gazillion established networks out there?

Unless you can give a convincing answer that doesn't involve payouts, experience, reliability, good service, friendliness or 'better quality offers', fuhgeddaboudit.
 
amateursurgeon said:
Why should advertisers or affiliates invest their time, energy, and money in you as opposed to the gazillion established networks out there?
Click to expand...

True. I recommend that the OP attend Affiliate Summit East this year, and take a look at the dozens on dozens of other affiliate networks out there competing for affiliates. And very few have an original bone in their body - its pretty stale and competitive. You're better off producing ShamWOWs.
 
Normally I'd like to say that no questions are stupid because people vary in knowledge greatly but in your case, since you're aiming to start one by asking such a question...

You're in no position to start one. Most affiliates who've been around even for a few months know how to go about starting a network. If you must ask such a basic question, you're no where near the position of starting one. Don't get me wrong, you most certainly can but making it succeed at this point is another story.

You will need capital, you will need to know more about the industry, and you will need something that differentiates you from the rest. Lets just say, keep researching for now.
 
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