Should You Use an Affiliate Network?

If you are generating leads, probably not, if you areOne day they called and said they wanted to kill one
running a Cost-Per-Action campaign, where you onlysource, oh, too bad, so we just changed the source
pay out if there is a transaction, than you probablycode, they came from the same place anyway.
do want to use a network. For CPA campaigns, theDid we actually know how to generate a lead for the
two major networks are Link share and Commissionhair guys? No. No idea. Why try and generate a lead
Junction. If you have the capacity to pay out a nicewhen you can just buy them? So much easier. That
premium per sale, it is probably a good idea to workis the reality of the affiliate marketing networks. For
with one of these networks. Your risk is limited andmaking a few phone calls, they will tack on a nice
their margins and fees are reasonable.40% margin. But imagine they did actually generate
On the other hand, if you want to generate leads,the leads, why would you want to outsource the
either co-reg leads or full leads, using an affiliatemarketing of your product, better do it yourself.
network is a much trickier business. First of all, whatBetter to know where your customers are and how
is an affiliate network? I had worked in onlineto reach them.
marketing for over 8 years, and I really didn't knowIf you do feel compelled to enter the world of
exactly what an affiliate network did.affiliate marketing, demand transparency. I would
That was, until I went to work for one. An affiliatedemand a list of sites where my campaign is running,
network is basically a fancy term for a lead broker.and only allow them to I-frame my page. That
The network either has direct offers, or it is pickingmeans that the affiliates send traffic to your page,
up offers from other networks. They hire youngwhich is shown on their website. This way you can
folks with little or no experience to call around andmeasure traffic and conversions and see if anything
see if they can find someone to fulfill on the leads.strange is going on. Do not allow anyone to ever
Sometimes they will call other networks, orpost leads do you. You are guaranteed to get at
sometimes they will call site owners, or list owners,least 50% garbage. What is garbage?
who are the "affiliates".In the affiliate world garbage means incentivized
I have done many things in my life, surveyed, soldleads, promotional leads, opt-out leads, you name it.
cars, taught English, and of course spent ten years inScary stuff, sign up for this offer to enter into a
this racket. But the slimiest people I have ever metraffle to go on a date with Beyonce. And your leads
were definitely in the affiliate marketing business.are for trading software.
They beat out cars salesman, and barely overtake aAffiliate people love to talk about the soup, that is
crowd I worked with in college who bought bad debtsome garbage and some good leads to keep those
from small businesses, paying out only when theymarketing managers happy. Affiliate networks do not
collected. But that is another story.earn their margins. Better to find sites that fit your
The margins in affiliate marketing are usually overtarget and discuss with them ways they can
40%, and there is little or no transparency. Igenerate leads for you. I remember one client, big
remember working on a very large campaign for afranchiser, spent well over 1 million dollars, and used
well know hair replacement company. They said theymaybe 40 sources. At the end of the year, we find
wanted all leads sourced, but we only had oneout that almost all the sales came from one source,
source, one guy produced all the leads, but we didn'tthe most obvious one, the one that best fit the
say that, so we put different sources on his leads.target.