Affiliate Networks

As well as the affiliate and the merchant, there is generally a very important

third-party in the affiliate marketing mix – the affiliate network.

While some small affiliate programmes and some very large affiliate

programmes (such as Amazon Associates) are run by the merchant, most

merchants opt to use an affiliate network to provide most of the technical

solutions required for an affiliate programme.

Affiliate networks provide tracking solutions, reporting on programmes to both

affiliates and merchants, hosting of creative banners, commission payment

options and support to both affiliates and merchants. Affiliate networks have

many affiliates, and many merchants, signed up to them, so they are an ideal

source for recruiting affiliates if you are a merchant, or for finding merchants

to promote if you are an affiliate. To the merchants, they provide a one-payment

solution, as the merchant will be invoiced for all the commission collectively

owed, which is then dispersed to the affiliates.

Affiliate networks usually charge the affiliates nothing to join. They can charge

a merchant a set-up fee, which will cover the cost making sure that the tracking

solution is successfully integrated, and can charge a monthly management fee,

depending on the level of support offered to the merchant. Affiliate networks

usually charge the merchant a percentage of the commission earned by the

affiliate (called a commission override), so that there are incentives for the

networks if they perform well. As a rough guide, this is typically 30% of the

commission rewarded to the affiliate.

Some leading affiliate networks are:

• Commission Junction – www.cj.com

• LinkShare - www.linkshare.com

• Affiliate Window – www.affiliatewindow.com

• TradeDoubler - www.tradedoubler.com