Re: Affiliate Sites

From: Joel Gehman <joel_at_irant.com>
Date: Wed 22 Dec 1999 07:29:06 -0800

HAVAH HOPE WROTE:
> I was looking into affiliate marketing programs and
> wondering if they really work.

> BeFree wants a $5000 set up fee plus 2% commission
> subject to monthly minimums. Am I really going to
> generate the kind of sales I need to justify such an
> expense?

Yes affiliate programs really work.

Forrester recently stated they account for 13% of
online retail sales, growing to 21% by 2003. At my
current employer affiliate programs are significantly
ahead of this pace. In order to figure out your
break-even, assume you're able to grow your programs to
between 13% and 21% of your current revenue. Add up
all the costs to the affiliates and the affiliate
network provider (eg, BeFree). Now you can figure out
if it makes sense for you compared to your other
customer acquisition activities.

As to BeFree themselves, they tend to be pretty
arrogant -- especially post IPO. Other options include
LinkExchange (aka, RevenueAvenue/ClickTrade),
CommissionJunction, DynamicTrade/ConnectCommerce and
Linkshare.

I currently run programs with LE and CJ. In a past
life I worked with DynamicTrade with good success. BF
and LS are the most expensive, although everything is
negotiable. Please never pay rate card for their
services! CJ and LE are the least expensive -- at least
from a start-up and on-going fee standpoint. CJ
provides good support, reporting, etc. LE seems to be
asleep at the wheel. Just my humble opinions.

If you just need the technology to run the program, and
not access to eyeballs try the free/low-cost stuff at:
http://cgi.resourceindex.com/Programs_and_Scripts/Perl/
Website_Promotion/Aff iliate_Programs/

Forrester Report: New Affiliate Marketing Models,
October 1999 (must be Forrester client)
http://www.forrester.com/ER/Research/Report/Excerpt/0,1
338,8527,FF.html

Joel Gehman
Affiliate Manager, Infonautics.com
=========================================
Internet marketing & ecommerce consulting
http://irant.com






Received on Wed Dec 22 1999 - 09:29:06 CST