If you’re considering starting an affiliate program, you need to understand that there are two primary kinds of affiliate networks out there and each offer two very different approaches.
Let’s take a look at each type of affiliate network and see how they measure up.
1. Affiliate Networks
An affiliate network primarily focuses on product based companies and provides the marketplace and technology to recruit affiliates, load banners and text links, provide tracking, pay affiliates, and more. While some affiliate netoworks offer some lead based programs, it is a very small percentage of their business.
In an affiliate network, companies are referred to as merchants and their sales force is referred to as “affiliates.”
Traditional affiliate networks include Commission Junction, Share A Sale, LinkShare, AvantLink, and more.
How an Affiliate Network Works:
- Every time a sale occurs a commission is paid to the affiliate who generated the sale.
- Commissions are usually a percentage of sale (rev share model).
- Commissions are paid once a month.
- Does not allow all kinds of affiliates (I.E. Email, co-registration and other incentivized traffic).
- More brand and trademark sensitive.
- In-house affiliate managers or outsourced program managers manage the affiliate program.
- Affiliates are screened and approved into each program individually.
- The merchant has access to their affiliates.
Now, let’s look at a lead based affiliate network; which is referred to as a CPA Network.
2. CPA Networks
CPA Networks focus their efforts on lead generation for companies. In CPA networks, companies are called “advertisers” and their lead partners are called “publishers.” They run a clients “offer” in their network (like a free trial) to either generate a lead of traffic or both from their base of publishers. Some CPA networks
Examples of CPA Networks include Hyrda Network, ROI Rocket, and Click Booth. Please note that I am in no way endorsing or recommending them, just giving examples.
How a CPA Network Works:
- Every time a lead is generated, a publisher receives a payout.
- Payouts on offers are usually a fixed dollar amount.
- Generates high volume of leads and traffic.
- Publishers have their choice of generating traffic (PPC, SEO, Email, Co-Reg and other incentivized traffic).
- Payouts to publishers are usually weekly or bi-weekly.
- Less brand and trademark sensitive.
- An advertiser runs their offer in the CPA Network without an affiliate manager.
- Publishers are approved in the network and can run any offer for any company.
- Advertisers do not typically have direct access to their publishers.
If you are a product based company you should consider investigating an affiliate network. If however, you are looking to get leads you might want to consider a CPA Network.
That said, if brand and trademark are an issue and you need high quality leads that convert, you might want to consider partnering with a lead generation company rather than a CPA Network.
To learn more about Net Media Group’s proven high quality lead generation campaigns give us a call at (801) 365-0057 today!
