I have seen much confusion in some
marketing forums that what the difference is between in-house affiliate program
and affiliate network. In this post, I will show my viewpoints.
First, let me explain what they are if you
don’t know. In-house affiliate program is supported by the merchant itself and
you can only promote the products of the merchant’s store. Affiliate network is
a third party platform where there are many merchants and affiliates can choose
what they want to promote.
Let’s see it from two sides—the affiliates
side and the merchant side.
For affiliates, what’s the difference
between the in-house and affiliate network?
Risk.
Generally speaking, affiliate would choose affiliate network because it
looks much more secure. Before merchants start their campaign on affiliate
network, they must deposit a minimum fund to their merchant account to ensure
they will give commissions to affiliates. The affiliate network will keep the
money temporarily. When affiliates refer valid orders, affiliate network will
give the commissions to affiliates’ account after payment confirmed by merchants.
In in-house affiliate program, there are
some differences. Affiliates are connecting with merchants directly. There is
no contract between the cooperation, affiliates will find nowhere to accuse if
merchants don’t give them commissions. But in fact, most merchants are trusted.
They need more affiliates to promote their products and refer more orders, so
they must keep their fame in affiliate marketing if they want to develop and
make a progress in their business. In my opinion, in-house affiliate program
and affiliate network are both risky. Commissions’ bugs happen in affiliate
network also. The point is that you must find trusted merchants and networks.
Commissions. Because merchants should pay
platform fee and transfer fee to affiliate networks, so the commissions for
affiliates in affiliate network will be lower than in-house affiliate program.
Affiliate should judge the two factors when
choosing one from them.
For merchants, what’s the difference?
Affiliates. It’s much easier to find
affiliates if merchants join affiliate networks. Affiliates will find them in
the platform. And merchants can also recruit affiliates through EDM in the
platform. If merchants build in-house affiliate programs, they must recruit
affiliates through other channels, and affiliates can barely find them.
Fund. For in-house affiliate program,
merchants don’t need to pay platform fee and transaction fee to affiliate
networks. Transaction fee is a big deal, you know. If they give the platform
fee and transaction fee to affiliates, it will be a big incentive for their
affiliates.
Do you agree with me? Comment below to
share your ideas.
By the way, just want to tell you that
Jolly Affiliate Program is an in-house affiliate program; however you can
promote three stores –jollychic.com, jollyhome.com and jollyoutdoor.com in one
time. Really impressive, right?
So, join us and make money online now!
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