Re: Estee Lauder sues Excite over keywords

From: Allan Sabo <admin_at_ad-network.com>
Date: Mon, 8 Feb 1999 22:09:21 -0600 (CST)

I need to jump on this one...

KIM BROOKS <KBROOKS_at_BARDO.SEATTLE.WA.US> WROTE:
> I think the bigger issue here is the increasing
> trend of brands and manufacturers suddenly selling
> directly on the web, effectively making themselves
> a competitor to their own (traditional) retail
> partners. Shouldn't brands be able to resolve this
> conflict without destroying - even suing - their
> own channels?
>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I AGREE! I believe there already happens to be a very
effective solution to this problem. It's called an
"AFFILIATE" program.

Traditional manufacturers and distributors do not need to
compete with each other. Instead they should look to embrace
the opportunities inherent on the web. "AFFILIATE" systems
can help manufacturers to forge stronger, more efficient
relationships with both their distributors and their
customers.

I think it's funny that so many manufacturers and
distributors are not even considering utilizing an AFFILIATE
program. Is it because they don't yet understand how to
implement such a system into their present business model?
On the other hand, is AFFILIATE programs "perceived" to be
too "low-class"?

A manufacturer could spend thousands to set up an e-commerce
enabled web site, and have only ONE point of presence. Yet,
for a minimal *additional* investment (between $800 to
several thousand) they could set up an AFFILIATE program
with all their distributors increasing their point of
presence. These AFFILIATE distributorship should have a
proportionate affect upon sales, and thusly drive down the
time needed to achieve their targeted ROI for building the
site.

There are many different AFFILIATE strategies that can
deliver similar results of: a happy distributor, a happy
manufacturer, a happy consumer with the added bonus of
decreased operating costs, and improved margins.

Effective, successful AFFILIATE programs do not need to be
limited to just "virtual" businesses or those that sell
books. Affiliate programs can be customized to suit almost
all retailers, many manufacturers and distributors of retail
products and a fair number of business-to-business
manufacturers, (and even some service businesses).

While I am aware that there are other discussion lists that
deal directly with AFFILIATE programs, I would like to
encourage this list to remember that AFFILIATE programs
*ARE* (in part) advertising.

My employer uses affiliate programs as a "supplement" to ad
revenue. However, much of our involvement in affiliate
programs is subject to similar performance metrics as any of
our other ad campaigns. We are also working on developing an
on-line version of the "Sharper Image" catalog that will be
focused specifically on an exclusive mix of about 30-50
specialty sports products. We will use an Affiliate program
to drive brand awareness increase product sales.

For those interested, I am willing and eager to offer my
insights and assistance on this topic. (so feel free to
contact me).

Allan Sabo
Executive VP of Strategic Marketing e-sports!
E-SPORTS! is located at http://www.e-sports.com
powered by sports fans!

phone: 216-228-0260
e-mail: asabo_at_ad-network.com


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Received on Mon Feb 08 1999 - 23:48:04 CST