Affiliate Marketing Network Service

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An Affiliate Marketing Network Service is an advertising network service (intermediary) that provides affiliate ads from affiliate advertisers to affiliate publishers.



References

2013

  • (Wikipedia, 2013) ⇒ http://en.wikipedia.org/wiki/Affiliate_network Retrieved:2013-12-3.
    • An affiliate network acts as an intermediary between publishers (affiliates) and merchant affiliate programs. It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website (and thus generate income from those programs), and allows websites offering affiliate programs (typically online merchants) to reach a larger audience by promoting their affiliate programs to all of the publishers participating in the affiliate network.[1]

      Traditional affiliate networks enable merchants to offer publishers a share of any revenue that is generated by the merchant from visitors to the publisher's site, or a fee for each visitor on the publisher's site that completes a specific action (making a purchase, registering for a newsletter, etc.). The majority of merchant programs have a revenue share model, as opposed to a fee-per-action model.

      For merchants, affiliate network services and benefits may include tracking technology, reporting tools, payment processing, and access to a large base of publishers. For affiliates, services and benefits can include simplifying the process of registering for one or more merchant affiliate programs, reporting tools, and payment aggregation.

      Affiliates are generally able to join affiliate networks for free, whereas there is generally a fee for merchants to participate. Traditional affiliate networks might charge an initial setup fee and/or a recurring membership fee. It is also common for affiliate networks to charge merchants a percentage of the commissions paid to affiliates.

  1. Affiliate Networks Definition from MarketingTerms.com


  • (Cohen, 2013-12-04) ⇒ Mark Cohen. (2013). “Surviving the Dark Side of Affiliate Marketing." New York Times, Business Day - Small Business
    • QUOTE: … Next, retailers have to decide which affiliate network to use. The networks provide the back-end technology needed to operate an affiliate program: software that tracks which sales should be attributed to which affiliates; an easy way for affiliates to upload advertising banners and logos; accounting systems that debit a merchant’s account and issue payments to affiliates for their commissions. The networks typically charge merchants a flat fee of $500 a month or 20 to 30 percent of affiliate payments (whichever is higher).

      Networks are the best source for determining the going commission rate among competitors. Before joining a network, most merchants or program managers sign up with a couple of the larger ones as an affiliate. This gives them access to the network’s database, and they can do a search for the starting commissions being paid out by other businesses in their industry to get a feel for how much they can charge.

      Among the networks, Commission Junction and Rakuten LinkShare are the largest, with deep rosters of affiliates. ShareASale is smaller, but is considered stricter when it comes to policing members, according to several program managers interviewed. It has also been vigorous about encouraging affiliates to abide by new Federal Trade Commission regulations that require bloggers to disclose when they are receiving compensation in return for products they endorse. …

2012