When should you consider using an affiliate network
I'm going to be honest, when I ran my own affiliate sites, I avoided almost all affiliate networks when looking back, I should have considered them. I didn't want to work with networks because I felt I could get my own deals in place like manage my own revenue share accounts.
My sad reality is that as a small affiliate only making about $10k to $35k/month, when I asked for higher revenue share deals with CPA, most networks wanted to see more FTDs and sales from us first. So this is the chicken versus the egg argument all over again. I could get higher rev share deals no problem but they wouldn't last forever and I got rejected for any CPA deals. CPA of course being cost per acquisition or as others call it, Cost Per Action.
Now the other reason why I didn't want to use any network was I didn't want them to own my players and traffic. When you have recurring revenue share affiliate programs, your signups are a digital asset. I've seen people sell their affilite accounts as an asset.
My recommendation this time around for new affiliates is to consider using them but to pay close attention to the data. You want to ensure that you're getting a good ROI for your traffic. You are blindly trusting an affiliate network to be honest with their data. That is on top of the fact they too are hoping the affiliate programs they work with are also not shaving any data. You want to focus on the revenue generated by traffic. The 2 KPIs you should pay the most attention to are EPC and ERS. EPC is Earnings Per Click and is easy to calculate, take your total revenue divided by the traffic amount in a given period of time and you got your EPC values. ERS stands for Effective Revenue Share and this is for programs offering recurring commission deals. To calculate this, you take the revenue share commission and divide by the net revenue to get your ERS values.
When you analyze these 2 KPIs, you get a really good understanding of your player value (traffic value) and you can use this to know if these numbers ever start to decrease.
What are the benefits of using an affiliate network?
Affiliate networks make it easier being an affiliate. You can promote 20 products or services within 1 affiliate network and that means you get paid from 1 place and perhaps have only one affiliate manager. This means you don't have to sign up to those 20 individual affiliate programs. Here are some of the other benefits you get with an affiliate network.
- 1 affiliate manager
- 1 payment source
- Save time in not having to track multiple payments
- 1 login for many tracking links
- Better deals and offers
- Better link tracking tools
What niches can you find for affiliate networks?
You'll find all types really.
- SEO
- SaaS
- Casino
- Sportsbetting
- iGaming
- Finance