Network, White label or Agency?
I am looking into setting up an affiliate network for a small niche of independent merchants , like escalatenetwork but focusing on my niche. I want to provide an affordable solution for small stores to reward their agents with commissions. Free to sign up for both affliates and merchants but I get a cut on every commission paid.
Why do this? With my industry knowledge and connections I could be the ONLY fish in the (albeit) small pond.
So far I can see 3 ways of doing this:
1) Buy a clone script like Alstrasoft or Post Affilate Network and install it on my servers.
On the upside I will be in full control and own the network.
The downsides is that I am not convinced that either of the scritps are reliable, so need to allow time for fixing bugs, provide customer support etc...
Has anyone used these scrips? I did a quick search and was not impressed with the customers feedback. But then again, i am looking for a small scale business, so don't want to use a hammer to crack a nut.
2) Buy a white label solution from an existing network like tradedoubler or monetise.
Upside is that the technology is stable and reliable.
Downside is that it costs more and there is a min traffic requirement, so i may not even qualify.
3) Become an agency and pass on my merchants to the existing network.
Downsides: again, most big boys need a lot of traffic to make it worth their while and my merchants are small independent businesses, so may not even qualify to sign up.
Some of the merchants will run a mile when they see the sign up costs.
Some of the merchants will also runs a mile from anything that smells corporate (where as I can offer the "security" of small independent business).
The upside is that it seems to require less headache from me if I concentrate on the merchants with higher traffic.
What would you do?