They create an affiliate network why? That’s right, to make money. The affiliate program as a business is extremely attractive on a bunch of points, but first we will focus on the negative. Forgive me, life coaches, but in this case, a barrel of shit from a tank of honey cannot be removed …
- For the correct functioning of the affiliate network, a strong technical base is needed. Someone immediately invests in the development of their own engine (20-50 kilobucks), someone uses ready-made solutions (AlterCPA and our competitors, whom we will not mention in vain). Who is doing the right thing? Read this article. We will return to the topic in future posts.
- From the very start, the creator of the affiliate program falls into a vicious circle. To invite the affiliates, you need advertisers. To invite advertisers, you need affiliates. Of course you can get out, and of course I’ll tell you how. But there is a problem. Breaking on three white horses and capturing the market, alas, will not work.
- Money. You can save a lot on launching an affiliate network. And we will also talk about this. But a reserve of money is still needed. Most often, you will make payments to affiliates before the advertiser pays you for their traffic. So get your buffer bag of dollars ready so you don’t hit the box office gap. This is truly a devilish trap that ruined more than one powerful project. Including the one from which AlterCPA grew in the future. So, the advertiser delays the payout and you don’t have money to pay off the affiliates. Do you want to delay paying them until the advertiser pays? Well, then the turnover of the affiliates will fall, and they will fill in less traffic. Or even go to another network and will delight your competitors. In any case, you and your affiliate network will go downhill far and probably forever.
- In some verticals, it is difficult to reach direct advertisers. Many affiliate networks suffer because of this. You won’t. I’ll tell you more than one way how to deal with this problem.
- Rush, stress, gray hair, hemorrhoids and heart attack. In our business there is such goodness in bulk. Just like anywhere else in arbitration. As in any business. Do you want big money? So, get it right.
Well, have I scared you enough? Boo! Arbitration is a tough business, there is no place for pussies here! It is better not to open your affiliate program for the faint of heart. Working as a middle manager or investing in the S&P500 is much calmer. And those who were not scared, but clenched their fists, will continue to have the benefits of their own affiliate network.
So, we figured out who and why should not get into this business. But why is this case so attractive to adult guys and even girls?
- Money. I apologize for being outright predictable, but it is impossible to hide this fact. Affiliate network can bring really VERY big money.
- Clear scaling. In many businesses, the issue of scaling is very acute. Everything is easier here. You connect new offers, invite new affiliates. You repeat until the toad is satisfied. Well, you can still add a new vertical, if you get bored.
- Stability. Some of the affiliates work with Facebook, some with Google, some with Tik-Top, and some with teaser networks or MyTarget. Facebook is stormy today? It doesn’t matter, the drawdown is compensated by traffic from Google.
- Data. Ooooh, what a power of information! You start a pocket internal buying and feed it with all the information you get from the affiliates. As a result, buying gets additional shekels. And if your network works in a product vertical, then you can become your own advertiser. You look at what product is flowing with a good buy-out, and which teams give the best traffic. You buy goods and take away the best traffic for yourself. Here’s an additional profit for you, also white-white, and maybe even in cash.
- It is very easy for the owner of an affiliate program to make useful contacts. Social capital will come in handy in any case. To improve/expand an existing business or to create a new one.
- Big bucks.
- Sacks of gold.
- Yet again money.
I can continue for a long time, you caught the essence!