Why aren't there more traditoinal affiliate networks?

[erdini]

CPA you have literally thousands of networks.

But for traditional networks, you'll have a hard time coming up with more than a dozen. I get that it's a bit more involved, since each network needs to be tied into the checkout system, and they need to do the extra effort de-duplicating sales...but still, you'd think in such a lucrative market...you'd have more competition.

So why aren't there more traditional networks?

 

[kingofsp]

Cause affiliate marketing is dead.

 

[dreamscape]

 

[Zouper]

I love how you use the word "traditional".

But seriously, what is the point of your question? The networks that are out there are usually huge and hold all the offers you would need so there is not really a need for competition.

 

[smaxor]

It's a marketplace....

If it was great to be a CPS network there would be more.

 

[shawnhag]

Traditional like you call ahead to make a reservation and go in to sit down?

 

[MaxSteve]

CPA you have literally thousands of networks.

But for traditional networks, you'll have a hard time coming up with more than a dozen. I get that it's a bit more involved, since each network needs to be tied into the checkout system, and they need to do the extra effort de-duplicating sales...but still, you'd think in such a lucrative market...you'd have more competition.

So why aren't there more traditional networks?

A few reasons:

In a traditional affiliate network, merchants manage all aspects of their programs - recruiting affiliates, approving them on their campaigns, negotiating rates, pulling pubs, etc. This is a lot of work and most merchants don't want to duplicate their efforts by placing their campaigns on multiple networks. Because they typically stick with one network, there is overall less demand for traditional networks.

Additionally, almost all traditional affiliate networks charge a not insignificant setup fee. Even if a merchant wants to overlap their program across multiple networks, they might not want to double pay setup fees.

The rise of third party tracking systems such as Cake has given merchants better options to host their own programs instead of going to traditional networks. This reduces the demand for traditional networks.

Most programs on traditional affiliate networks have campaigns that don't really lend themselves to rebrokering. No rebrokering = less campaigns to fill up an affiliate network. Without campaigns, an affiliate network would not survive (obviously).

An aside on that last point: if all merchants prevented their campaigns from being rebrokered, you'd see a significant reduction in the number of CPA networks that exist right now.

 

[CPAPIMP]

Networks have moved to CPA/CPL purely for demand. Exactly as Jason said. If people were flocking to networks that only ran CPS/RevShare, others would follow, but it's just not the case.

 

[galacon]

An aside on that last point: if more merchants prevented their campaigns from being rebrokered, you'd see a Glorious reduction in the number of Bogus CPA networks that exist right now.

FTFY Bro. Rock On MB and other real business models.

 

[Shawn Collins]

It's a marketplace....

If it was great to be a CPS network there would be more.

How so? Most CPS programs run with one network, and the networks are big. There is simply no desire on the merchant or affiliate side to have the same stores across many networks.

I am very content to focus on a few networks for the CPS programs I promote: not many logins, payments aggregated in just a few places, etc. It's easy to manage that way.

 

[accord96]

If logins are really preventing you from expanding to other networks that might be an issue. There are password managers now that can store everything or you can encrypt a text file with passwords on your desktop, or online somewhere etc.

The reality is that true physical products require a lot more work to track, fulfill, and monitor refunds for large stores. CPA type of deals with berries, teeth whitening etc are run by people who understand online sales in a whole different area.

Many big name stores don't want the hassle of setting up programs, monitoring fraud, refunds, shipping information etc. Many times customer service is a burden that they might not want to deal with, as opposed to going to CJ setting it up and paying them or one of the other massive networks a fixed rate to just take care of this thing they call affiliate marketing.

Which bring up the next point as to why there aren't more, and that is probably based on the huge veteran networks, CJ, ShareASale, LinkShare etc are there. They have names that other stores know, have done business with, and are just too lazy to leave.

 

[Shawn Collins]

If logins are really preventing you from expanding to other networks that might be an issue.

It's not an issue, it's a benefit - I like having stats, payments, etc. in just a few trusted places. When I make money on the "traditional" CPS networks, I get paid.

What would you see as the upside of having 20 or 50 CPS networks?

 

[qwatqwat]

Affiliate marketing died last year when SEO died, it's been said time and time again.

 

[impresario]

its purely a supply and demand thing here, is there something in particular you are looking for that you cant find? If you feel like you arent earning enough based on a CPA basis why not contact advertisers directly to broker your own deals with them? If your volume and quality is high enough, there shouldnt be a reason they wouldnt cut a deal with you.