Anyone operating own affiliate network?

31 replies
Hi guys,

I'm new in this community, so I don't really know "who is who" here. I would love to meet some guys here who operate their own affiliate networks.

Background: I switched from financial industries "sinking ship" to online marketing one year ago and I'm really happy about it. Now I found a good niche for own affiliate network and planning to build it. I like to hear about your experiences and I also have a lot of questions. Hope you can provide me some help

Cheers!

David
#affiliate #network #operating
  • Profile picture of the author rockong
    You mean like create your own Clickbank/JV Zoo?

    Or create a product and then implement your own affiliate program?

    If the latter, then that I have done. It is usually easy to implement, it is all about attracting the right eyeballs and affiliate attention to get people to promote for you
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    Are you a SEO company? Make extra money by becoming a white label backlink audits and removals service reseller.

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  • Profile picture of the author DavidArambol
    No, I mean really network, not just affiliate program for a merchant. It would be much too easy to open a thread here I really searched whole internet to find some “insider” information about how it works. Result is zero…
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  • Profile picture of the author DavidArambol
    Similar to Clickbank/JV Zoo, but smaller scale...
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  • Profile picture of the author mcmcmcmc5
    Good luck!

    Whatever you do in this industry, you're buying and selling traffic.

    As as affiliate working with a network, you're buying traffic CPM/CPC and selling CPA.

    As a network, you're buying traffic CPA (from affiliates), and selling CPA to advertisers.

    Simply put, you can think of affiliates as simply another media buy source to add to your existing media buy portfolio.

    Message me if you need more information.
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    • Profile picture of the author DavidArambol
      Hey, thanks just for some clarification - I didn't heard about affiliate marketing today or yesterday, as I told I'm in online marketing business since one year, but mostly doing SEO/SEM, and just by the way some affiliate marketing on my blogs (gambling, travel...).

      But anyway - thanks, I'll send you pm.
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  • Profile picture of the author Steven Sauve
    Originally Posted by DavidArambol View Post

    Hi guys,

    I'm new in this community, so I don't really know "who is who" here. I would love to meet some guys here who operate their own affiliate networks.

    Background: I switched from financial industries "sinking ship" to online marketing one year ago and I'm really happy about it. Now I found a good niche for own affiliate network and planning to build it. I like to hear about your experiences and I also have a lot of questions. Hope you can provide me some help

    Cheers!

    David
    No offense to you David, but if you have lots of questions about opening/running a network, you really should not be starting one. There have been many people just like you who thought it would be easy to open a network and when they did, they were faced with nothing more than grief. They wound up having to close and left affiliates unpaid.

    Anyone who wants to start a network should have enough experience in the business that they have NO questions because they've figured out everything they need through working with existing networks.
    Signature

    Steven Sauve
    steve at maxbounty.com / IM = maxbountysteve
    http://www.maxbounty.com
    MaxBounty ranked #1 CPA Network in the world: http://mthink.com/top-cpa-networks-2014/

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    • Profile picture of the author speedylikesKJ
      I`d agree with Sauve i have seen many people who when fail miserably in Affiliate Marketing their first wish is to launch a CPA Network because they think there is too much money in owning a network and to see how others are promoting offers .To be honest that isnt the case in reality creating a network is not a big deal but running a network is a really big deal
      Originally Posted by Steven Sauve View Post

      No offense to you David, but if you have lots of questions about opening/running a network, you really should not be starting one. There have been many people just like you who thought it would be easy to open a network and when they did, they were faced with nothing more than grief. They wound up having to close and left affiliates unpaid.

      Anyone who wants to start a network should have enough experience in the business that they have NO questions because they've figured out everything they need through working with existing networks.
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      • Profile picture of the author DavidArambol
        Originally Posted by speedylikesKJ View Post

        I`d agree with Sauve i have seen many people who when fail miserably in Affiliate Marketing their first wish is to launch a CPA Network because they think there is too much money in owning a network and to see how others are promoting offers .To be honest that isnt the case in reality creating a network is not a big deal but running a network is a really big deal
        Let say so, you can fail in any business and any industry, and even regardless your experience, IQ or financial backbone. "When genius failed" is a good example of it...

        I'm quite sure, running a network isn't easy thing, that's why I'm trying to find people who operate affiliate networks already (and not only here, visiting couple of affiliate conferences next weeks in my city) and are ready to share some of their experience. But sadly it is damn easy to find people who tell you what not to do, than people who provide any valuable advice or information...
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    • Profile picture of the author bqpennell
      Originally Posted by Steven Sauve View Post

      No offense to you David, but if you have lots of questions about opening/running a network, you really should not be starting one. There have been many people just like you who thought it would be easy to open a network and when they did, they were faced with nothing more than grief. They wound up having to close and left affiliates unpaid.

      Anyone who wants to start a network should have enough experience in the business that they have NO questions because they've figured out everything they need through working with existing networks.
      I agree with Steve. I did this over 2 years ago and today i know what i am doing as far as running the network. However let me warn you that this is worse then Smoking it sheds a lot more years then smoking could ever do.

      Now that i pretty much know what i am doing I am trying to push more towards in-house traffic and fade out because unless you just absolutely love babysitting and stress 24/7 i would suggest you went the other route. Promoting is much more profitable as well if you get a successful campaign.

      I have to get 50 to 60 leads a day to reach $100 profit and this involves:

      1 - Constant monitoring of traffic.
      2 - Round the clock baby sitting.
      3 - Constantly defending your name when a fraudster gets caught and tries to blame you.
      4 - Bags under your eyes
      5 - Chest pains
      6 - Increase of grey hair
      7 - Constantly trying to get good offers, Lets face it only people gonna run a offer from you that pays $1 when others pay $1.5 is 99 out of 100 times shit traffic
      8 - I could go on but i do not want to add going to hospital for carpel tunnel to the list

      When with the right offer you can make $90 with 3 leads and occasionally check in on it after doing all the research and getting it going.


      Pick your poison
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      1st Class is in search for long term partners
      Check out our offers -> Here <-
      Paying Affiliates Since 2010 & Climbing
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  • Profile picture of the author DavidArambol
    @Steven Sauve

    fair enough I got your point, even though it won't change my mind, and there are several reasons why:

    "working with existing networks" is different "from working FOR networks" - I did some working with networks but not for networks, that's why I have quite good understanding from affiliate point of view, but need more information from network operator point of view

    Second - as I told, I jumped from financial industry to internet marketing and web/mobile development with zero knowledge of any programming language or internet marketing. After one year I can proudly show my portfolio full of complex online platforms and some apps and successful SEO projects…

    But I have to concede, affiliate network is different ball game and you shouldn’t start if you have many questions. That’s why I’m looking for answers, and after I answered all or most of my questions I’ll start… After all any business may end with grief, but I’m young enough to make mistakes.

    Cheers mate
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  • Profile picture of the author PPC-Coach
    Opening one is easy, getting affiliates to actually run traffic with you is not.

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  • Profile picture of the author DavidArambol
    @PPC-Coach

    I know Any other suggestions?
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    • Profile picture of the author Vlad AdsMain
      I think 90% of what is most important was told above)

      Technical side is very simple - choose platform, create paypal account(or other), create website, combine everything and YAHOO!!! You are affiliate network owner!
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      • Profile picture of the author DavidArambol
        Originally Posted by Greedy View Post

        Do you have any experience as an affiliate marketer?
        yes I have experience
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        • Profile picture of the author CreativesLinda
          All of the previous posters have given you great advice, the best piece being not to open a network. They know what they're talking about. There are so many reasons why somebody shouldn't open an affiliate network and very, very few reasons to do it, unless you're doing it for fun and you don't need the money to live on. From your posts it seems that you're not going to change your mind, so being aware of the problems and pitfalls is very important which the other posters were trying to convey to you. It's very, very easy to open a network, as one poster stated. Getting affiliates is completely the opposite. And getting paid from advertisers and other networks can oftentimes be a battle and there are ones you won't win. My advice to you is to ask specific questions which can be answered by many, many people here, but you need to believe what you're told. Then, after all your questions are answered, you need to make a list of pros and cons for opening a network. If the 'pros' column is longer than the 'cons' then go for it.
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  • Profile picture of the author DavidArambol
    @CreativesLinda

    Thanks for your suggestions. Just trying to figure out what is exactly so horrible in that business

    @bqpennell

    Question: why are you doing it? If it is really so hard and low income, why not start something else? Don’t tell me, that you fell in love with your business, I think actually you hate it

    OK, can you tell me, what exactly makes your hair grey?
    • Fraud?
    • Advertisers don’t pay at time?
    • Or don’t pay at all?
    • Problems with technical infrastructure?
    • What else?
    • Why do you have to monitor your traffic all the time?
    • Do you have any stuff doing it for you?

    I’m really interested; otherwise I just wouldn’t spend time on this thread!
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    • Profile picture of the author bqpennell
      Originally Posted by DavidArambol View Post

      @CreativesLinda

      Thanks for your suggestions. Just trying to figure out what is exactly so horrible in that business

      @bqpennell

      Question: why are you doing it? If it is really so hard and low income, why not start something else? Don’t tell me, that you fell in love with your business, I think actually you hate it

      OK, can you tell me, what exactly makes your hair grey?
      • Fraud?
      • Advertisers don’t pay at time?
      • Or don’t pay at all?
      • Problems with technical infrastructure?
      • What else?
      • Why do you have to monitor your traffic all the time?
      • Do you have any stuff doing it for you?

      I’m really interested; otherwise I just wouldn’t spend time on this thread!
      I didn't say it was low income, can be very good income actually. However with the amount of work required to achieve this divided by the hours you put in it then its not really worth all the stress. Not hard as much as time consuming and frustrating once you know what to look for and watch out for.

      I do hate it, Hence why we advertise not accpeting no more affiliates. The only reason I am still going is i won't send people i have worked with for years else where. Now of course if someone made crap worth my while i would take them in. With that said realistically a majority of your affiliates will be fraud, not active or not really very productive. every now and then you get a high performing one. My point is i would rather self promote and make in 3 leads what it takes 12 hours of baby sitting and 50 leads to accomplish.

      The thing that drives my hair grey, hmm mostly the fraud. If you start one and make the mistake of advertising on popular review sites before you learn and know how to detect fraud or just bogus applications trust me you will learn why real fast.

      Best advice i can give you ... If you do journey down that road Scrubkit is a must, Call every publisher. Don't be like me when i first started and give people who fraud a second chance to prove them self. Instead live by the motto once a cheat always a cheat and be done with them. I made many mistakes my first year that has made me a small private network today instead of a Big sucessful network like maxbounty and Neverblue.
      Signature
      1st Class is in search for long term partners
      Check out our offers -> Here <-
      Paying Affiliates Since 2010 & Climbing
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  • Profile picture of the author Greedy
    One things I would assume that is very annoy is 100s of affiliate hounding you.

    Ever if you hire affiliate managers and stay away as far as possible it may happen.

    But I believe if you can hire the right people, it should be a lot less stressful.
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    • Profile picture of the author DavidArambol
      Originally Posted by Greedy View Post

      One things I would assume that is very annoy is 100s of affiliate hounding you.

      Ever if you hire affiliate managers and stay away as far as possible it may happen.

      But I believe if you can hire the right people, it should be a lot less stressful.

      If I really start that thing, I think I'll directly hire two people, one for technical tasks and one for customer care..
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  • Profile picture of the author DavidArambol
    @bqpennell
    It starts to get interesting…

    “amount of work required to achieve this divided by the hours” – What about stuff? Hiring couple of guys monitoring traffic, fixing technical problems, answering customer mails?

    you learn and know how to detect fraud – what kind of fraud is mostly you have to deal with? I know that it is one of major problems with CPA. How do you battle it? Does Pay per Sale model reduce fraud risk?

    How was/is the payment morale of your advertisers? Did you experienced problems with it?
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    • Profile picture of the author Steven Sauve
      Originally Posted by DavidArambol View Post

      @bqpennell
      what kind of fraud is mostly you have to deal with?
      *sigh*

      Just what this industry needs... another person with no experience and no clue opening a network that will surely become a fraud haven.

      Why do I care? Because this has a negative impact on our entire industry.
      Signature

      Steven Sauve
      steve at maxbounty.com / IM = maxbountysteve
      http://www.maxbounty.com
      MaxBounty ranked #1 CPA Network in the world: http://mthink.com/top-cpa-networks-2014/

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      • Profile picture of the author DavidArambol
        Originally Posted by Steven Sauve View Post

        *sigh*

        Just what this industry needs... another person with no experience and no clue opening a network that will surely become a fraud haven.

        Why do I care? Because this has a negative impact on our entire industry.
        just relax, find another thread.
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        • Profile picture of the author bqpennell
          Originally Posted by DavidArambol View Post

          just relax, find another thread.
          You are gonna tell the one man that probably has the most experience on this forum about running a network to find another thread.

          Sorry I agree with him wish I had him to give me the same advice two years ago.

          As stated I am a Small private network. However I can tell you this if ran properly you can make a nice income money wise. However when I take in to account how much time i spend at the computer, Analyzing traffic logs, Talking to people and whatever else i do for the business and then you divide all that time against your profit to get your hourly wage it is not that good. Yes i make a lot more then i would working, but i put in a heck of a lot more hours too.

          You mention hiring people yes you can. However starting out it will be tough to get profits.

          I think i would listen to Steven and research. No offense but just by you making this thread you already scared off many potential affiliates due to your lack of knowledge.

          Research invest in tools that will aid you to monitor traffic better. Then just run with it if you have your heart set that badly. I wish you luck i really do, However look at EWA now they were really big and just a few wrong moves can have you broke and hated by hundreds that have one goal thats to ruin your life.

          Example

          Anyways do what you want. However i would stop asking questions as this will hurt your long term goals. I know i would not join a network who started out by asking how to run a network.
          Signature
          1st Class is in search for long term partners
          Check out our offers -> Here <-
          Paying Affiliates Since 2010 & Climbing
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          • Profile picture of the author DavidArambol
            Originally Posted by bqpennell View Post

            You are gonna tell the one man that probably has the most experience on this forum about running a network to find another thread.
            Yeah, forum is big enough. I googled his name and he seems to be a big kahuna of affiliate business. Respect... But for me now there are two kind of people out there: those giving ANY useful information - like you, and those giving "wise advises" without any useful info in it...

            You mention hiring people yes you can. However starting out it will be tough to get profits.
            Sure, either you have financial backbone to do it from the beginning, or you find investors, angels, whatever, or you are making it alone, but in that case scalability is not high. But it's same in every business

            I think i would listen to Steven and research.
            I would love to listen to Steven, but so far didn't get any valuable information. Research? Yeah, spending almost the half of my working day on it (and working day is up to 16 hours...)

            No offense but just by you making this thread you already scared off many potential affiliates due to your lack of knowledge.
            No offense taken but first of all, how "potential" affiliates from this forum will find out which network I created? It doesn't make any sense. And second: most of guys here will never hear of my future network and even if they find it, they won't be able to read anything there It is very niche network in small country...

            stop asking questions as this will hurt your long term goals. I know i would not join a network who started out by asking how to run a network.
            Believe me, there is absolutely no connection between this forum and what I'll (maybe) do in the future... On the other side, many big things start with simple questions (think of Chris Gardners two questions).
            Thanks for your time and good luck!
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    • Profile picture of the author speedylikesKJ
      Sad to say but no , do Google about fake credit card information fraud
      Originally Posted by DavidArambol View Post

      Does Pay per Sale model reduce fraud risk?
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  • Profile picture of the author Martyfl
    I have a family friend that runs a network. There are certain economies of scale to deal with. He has other businesses that are quite large and employs about 50 people or so. But, he painted me a picture of not getting money from advertisers and going to court all the time. He pays his Publishers regardless of whether he is paid or not, and does so every 15 days. You need a great cash flow and plenty of money to start.

    What I am starting to realize is that these networks either trade offers with one another or all drink from the same well.

    But, of all the businesses I can think of going into, owning a network would not even be on the list.
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    • Profile picture of the author DavidArambol
      Originally Posted by Martyfl View Post

      he painted me a picture of not getting money from advertisers and going to court all the time.
      yes, that is what can cause a lot of problems, specially in the developing countries, where the peyment morale isn't very good


      But, of all the businesses I can think of going into, owning a network would not even be on the list.
      I also wouldn't think about it, if the country I'm from would have at least one network, or at least 5% of publishers would use own affiliate programms. But that's not the case, so that potential is huge, but so are the risks...
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  • Right now, the question of "Should you open a network or not" is completely invalid.

    I say this, as you obviously do not understand what running a network entails.

    Go speak with Mike Carney or Arikka Greene and get a non-paid internship at an established network. Then once you've worked there for 6 months to a year, make a decision.

    Also - be humble, your lack of knowledge is shining through here.

    You need people on your side - not against you.

    Otherwise, you will get eaten live. It's not as easy as you think.
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    • Profile picture of the author DavidArambol
      another smartass comment. Wasting of both - your and my time


      Originally Posted by PerformanceMarketing View Post

      Right now, the question of "Should you open a network or not" is completely invalid.

      I say this, as you obviously do not understand what running a network entails.

      Go speak with Mike Carney or Arikka Greene and get a non-paid internship at an established network. Then once you've worked there for 6 months to a year, make a decision.

      Also - be humble, your lack of knowledge is shining through here.

      You need people on your side - not against you.

      Otherwise, you will get eaten live. It's not as easy as you think.
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  • Profile picture of the author Martyfl
    I have to assume that if you are thinking of starting a network you have substantial financial resources or else you would not even think about this. If I could afford it, I would rather take up the Advertiser's role and have Publishers working for me as opposed to the middle man. I am always on the lookout for the product or service that would let me do this.
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