10-30-2007
One is the loneliest number
On the principle that many of anything (especially maltesers) is better than one, this must apply to networks too right? A conversation in Kieron’s hot new ride on the way to the affiliate expo got us to debating the worth of having multiple networks over just one. Yes, this has been a long-standing debate (in fact I even remember asking the question in my first months as an affiliate manager). But thought I’d wrap up my view, based solely on my experience.
With the dozens of programmes I’ve managed I know that the number of networks a programme can support relates back to how big the programme is. It takes time to manage a slew of networks, getting across branding messages, making sure there are no duplicate sales, making updates, consolidating reports. But in my experience I can say that a programme gets a minimum 10-20% uplift when it launches on a new network. And I don’t mean by existing partners just swapping links.
Need some facts? When we took over Ramada Jarvis on TradeDoubler over two years ago we believed there was room for another network. We decided to launch the programme with Buy.at. After just over a year of launching (admittedly it does take awhile to get going), the programme is generating over 300% more sales month over month than in 2005. Now, TD has also increased it’s sales so the programme has grown naturally but its undeniable the results adding an extra network has produced.
Some question the value of having more than one network, arguing that if its a decent programme affiliates will find you, no matter which network you are on. Again, my response goes back to experience and having come across affiliates out there who will NOT deal with certain networks. There are also affiliates who can significantly add to your campaign that haven’t had the time to sign up to another network (I spoke to a big Ramada Jarvis affiliate about this just last week - he only deals with 4 of the UK networks). You want to cast that net as far as you can to reach as many people. I know this goes a bit against the whole 5-95 rule but you never know who your next big affiliate is going to be and I’m a staunch believer in supporting the guys who bring in a handful of sales a month.
Again, it comes down to value. If your programme is big enough to support multiple networks and the time it takes to manage them all then of course its worth it. Depending on the size of your programme a network might not be as interested in becoming the secondary network and so charges you set up fees and network fees. Although there are some who just want the biz. So you need to shop around for secondary networks that fit into your goals, then calculate the investment and extra time it takes to set up and manage. Is it worth getting that 10-20% more sales?
Two networks should cover you off - more than that and you’re spreading yourself a bit thin. Just make sure you’ve squeezed everything you can out of your first network before making the leap!
Posted by Tara Moar in Uncategorized | RSS 2.0