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How to Establish New Affiliate Network??

by luxgengrp
8 replies
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?
#affiliate #cpa #cpa network #establish #leadgen #network
  • Profile picture of the author 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
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    • Profile picture of the author hangtimenino
      Originally Posted by ChrisBa View Post

      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!
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  • Profile picture of the author Dan Grossman
    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.
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    Improvely: Built to track, test and optimize your marketing.

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  • Profile picture of the author ChrisBa
    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..
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    • Profile picture of the author tmedocianis
      There are network owners here, talk to them. Maybe they'll just chime in on their own.
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  • Profile picture of the author Launder
    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.
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    • Profile picture of the author luxgengrp
      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
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  • Profile picture of the author misterdonman
    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
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