How to Establish New Affiliate Network??

luxgengrp · 07-30-2009, 04:50 PM

Hello, Warriors,

I am interested in starting a new affiliate network.

What are the pros and cons of starting a new network?
What I found so far:

Pros:
-You get to control the terms and the niche
-You get to control the backend offers after the leadgen stage

Cons:
-Tracking
-Differentiation from all other networks

Qualifications?
-ability to ensure tracking
-ability to select right affiliates
-ability to get great offers for the affiliates

Any best practices you'd suggest?

Who are leaders in the dental industry?

Any community/trade groups I should join to get more information?

ChrisBa · 07-30-2009, 05:37 PM

It's hard to say - I doubt there are many network owners here..

But you are basically the bridge between affiliates and merchants.. if a merchant screws an affiliate - you need to answer for them, if an affiliate screws a merchant - you need to answer for them..

it's a whole new ball game

hangtimenino · 07-30-2009, 07:40 PM

Quote:

Originally Posted by ChrisBa

It's hard to say - I doubt there are many network owners here..

But you are basically the bridge between affiliates and merchants.. if a merchant screws an affiliate - you need to answer for them, if an affiliate screws a merchant - you need to answer for them..

it's a whole new ball game

a whole new ballgame and a whole lot or wait loads of work!

Dan Grossman · 07-30-2009, 08:09 PM

Plus you take on all the accounting and tax work

- Computing and cutting checks
- Collecting W9s, W10s and other required paperwork
- Keeping books for all these merchants
- Keeping separate books for states with special tax laws affecting affiliates
- Printing and sending 1099s to the IRS and affiliates at the end of the year
- Watching in detail every single day for signs of fraudulent activity

Plus all the technology you'll need to develop, customer support department you'll have to train, etc.

ChrisBa · 07-30-2009, 08:14 PM

I've talked to a few people who have started there own network - all of them said it's not what they expected.. most of the days they seem to be on the phones with merchants in affiliates doing 1 thing or another..

tmedocianis · 07-30-2009, 09:09 PM

There are network owners here, talk to them. Maybe they'll just chime in on their own.

Launder · 07-30-2009, 09:14 PM

I'd think it would be total chaos until you learn all the ropes and such and I have heard from many that it is a boat load of work and not nearly as profitable as they had initially thought. Try a few Google searches on it, you can find some things out that way as well.

luxgengrp · 08-04-2009, 09:45 PM

Thank you all for your replies. Gave me many things to think about. If you know any specific persons who are network owners, please PM me their info.

I'd like to know the typical margin, hours of work, scale, competition, etc.

Thanks all,

Lux

misterdonman · 08-05-2009, 09:35 AM

Establishing you own affiliate network implies one major thing, customer assitance. Hours of work? Just ask yourself this, if I'm an afiliate / merchant, how fast do I expect to receive an answer to the questions I ask the network I'm signed up? As ChrisBa said, this is a comletely different ball game.
Good Luck with that man

07-30-2009, 04:50 PM	#1
luxgengrp Warrior Member Join Date: May 2009 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	How to Establish New Affiliate Network?? Hello, Warriors, I am interested in starting a new affiliate network. What are the pros and cons of starting a new network? What I found so far: Pros: -You get to control the terms and the niche -You get to control the backend offers after the leadgen stage Cons: -Tracking -Differentiation from all other networks Qualifications? -ability to ensure tracking -ability to select right affiliates -ability to get great offers for the affiliates Any best practices you'd suggest? Who are leaders in the dental industry? Any community/trade groups I should join to get more information?

07-30-2009, 05:37 PM	#2
ChrisBa Senior Warrior Member Join Date: Jun 2008 Posts: 4,124 Thanks: 10 Thanked 508 Times in 402 Posts Social Networking	Re: How to Establish New Affiliate Network?? It's hard to say - I doubt there are many network owners here.. But you are basically the bridge between affiliates and merchants.. if a merchant screws an affiliate - you need to answer for them, if an affiliate screws a merchant - you need to answer for them.. it's a whole new ball game
	I'm Living MY DREAM Thanks to AFF PLAYBOOK! You Can Too! Or Jump on the IM GRIND!

07-30-2009, 08:09 PM	#4
Dan Grossman Happily Self-Employed War Room Member Join Date: Jan 2007 Location: Philadelphia, PA Posts: 797 Thanks: 16 Thanked 364 Times in 54 Posts Social Networking	Re: How to Establish New Affiliate Network?? Plus you take on all the accounting and tax work - Computing and cutting checks - Collecting W9s, W10s and other required paperwork - Keeping books for all these merchants - Keeping separate books for states with special tax laws affecting affiliates - Printing and sending 1099s to the IRS and affiliates at the end of the year - Watching in detail every single day for signs of fraudulent activity Plus all the technology you'll need to develop, customer support department you'll have to train, etc.
	I'm Dan Grossman. I run Awio Web Services LLC. >> Know which 20% of your advertising generates 80% of your sales <<

07-30-2009, 08:14 PM	#5
ChrisBa Senior Warrior Member Join Date: Jun 2008 Posts: 4,124 Thanks: 10 Thanked 508 Times in 402 Posts Social Networking	Re: How to Establish New Affiliate Network?? I've talked to a few people who have started there own network - all of them said it's not what they expected.. most of the days they seem to be on the phones with merchants in affiliates doing 1 thing or another..
	I'm Living MY DREAM Thanks to AFF PLAYBOOK! You Can Too! Or Jump on the IM GRIND!

07-30-2009, 09:09 PM	#6
tmedocianis Active Warrior Join Date: Nov 2005 Location: , , . Posts: 73 Thanks: 0 Thanked 4 Times in 4 Posts	Re: How to Establish New Affiliate Network?? There are network owners here, talk to them. Maybe they'll just chime in on their own.

07-30-2009, 09:14 PM	#7
Launder Active Warrior Join Date: Jul 2009 Posts: 77 Thanks: 5 Thanked 9 Times in 8 Posts	Re: How to Establish New Affiliate Network?? I'd think it would be total chaos until you learn all the ropes and such and I have heard from many that it is a boat load of work and not nearly as profitable as they had initially thought. Try a few Google searches on it, you can find some things out that way as well.

08-04-2009, 09:45 PM	#8
luxgengrp Warrior Member Join Date: May 2009 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	Re: How to Establish New Affiliate Network?? Thank you all for your replies. Gave me many things to think about. If you know any specific persons who are network owners, please PM me their info. I'd like to know the typical margin, hours of work, scale, competition, etc. Thanks all, Lux

08-05-2009, 09:35 AM	#9
misterdonman Warrior Member Join Date: Aug 2009 Posts: 21 Thanks: 0 Thanked 3 Times in 3 Posts	Re: How to Establish New Affiliate Network?? Establishing you own affiliate network implies one major thing, customer assitance. Hours of work? Just ask yourself this, if I'm an afiliate / merchant, how fast do I expect to receive an answer to the questions I ask the network I'm signed up? As ChrisBa said, this is a comletely different ball game. Good Luck with that man