Affiliate Network

Is a web site collective that cooperate in marketing activities for gain based on profit sharing schemes. Marketing activities used in affiliate networks include lead referral; product placement; banner or link exchange.

While a single marketing entity can create an affiliate program these are now viewd as limited in scope when compared to an affiliate network. These Networks differ from stand alone programs by offering more options to participants both technologicaly and in the marketing sense. Network members operate under the assumption that they will get better marketing results by cooperating with others members who are closer in terms content, services or products offered. This is explained by an ability to offer traffic with a click stream that is minimaly impacted accross the website boundries.

There are three major roles for members of an affiliate network. The first is that of a revenue generator. The second is that of a traffic interceptor .The third is that of an aggregator. These roles allows the network to grow into a more powerful force. Ther also allowing each type of member to focus on thier own needs.

Revenue Generators

Thet have products or services they need to sell and a margin from which to finance thier marketing activities which can be shared with thier affiliates based on merit.

Traffic Generators

These are web site owners or even domain owners that can redirect high quality traffic or leads to thier affiliates.

Aggregators

Are indiduals orientated to marketing whom will sign up revenue makers or traffic generators into the affiliate network for a share of thier profits.

Pros and Cons

Affiliate Networks offer their members advantages by providing unified access to superior marketing platforms as well as greater marketing resources. They place alll these resource into a single service with reduced cost of integration, training and management. They reduce the numbers of contract members need to sign inorder to do bussness wit each other.

The Platforms offer multi-tier affiliation registration; banner management; trackers of marketing and sales events; analytic capabilities; web based management software. They reduce the overhead of locating and making agreements with each site. Also members can opt in on a per product basis to maximise thier revenues from thier activities.

Another advantage for members is the ability to eneter a superior linking lattice for their program and their clients, with all the Search Marketing advantages this offers

The chief disadvantages over a simple affiliate programs are that they place income draining intermediaries between the resource owner and the profit taker.

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