Wednesday, August 7, 2013

What's The Difference Between In-house Affiliate Program & Affiliate Network?

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 –, and in one time. Really impressive, right?

No comments:

Post a Comment

back to top