Buying A Network

Here’s a quick starter for discussion. I keep hearing a lot of talk about consolidation in the industry and networks getting bought out but for the most part this hasn’t happened yet. Instead we see the opposite and even more networks are created and launched.

If you were running a business that wanted to get involved in the UK affiliate marketing industry which network would you look to buy and why?

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Rob Berrisford
Nov 26th, 2007 at 5:57 pm | #

Good Question,

You would probably look at the independents, public companies are much more difficult to buy.

Then you would look at the number of clients they have, and profitability.

Then technology, if it is any good? is it popular? trusted?

Which is probably why the sale of Affiliate window is a popular rumour at the moment.

Another question, who is going to do the buying?

Fraser
Nov 27th, 2007 at 2:37 pm | #

Thanks for the comment Rob. I very much agree with your analysis.

So that would rule out TD, AF, DGM as they are public companies. (Although is DGM likely to be a target with the shares so low? )

Webgains and Affili.net are part of much larger European companies so they would be unlikely to be sold too.

As for who would do the buying. Perhaps any of the networks that aren’t selling ;-)

I’m sure there are companies who want to get more involved in affiliate marketing in the future even if they don’t do anything at all now.

Jens
Nov 27th, 2007 at 2:45 pm | #

I think affiliate marketing will develop to the next quality level. it simply can“t be based on tracking only clicks forever. to many products and service require more consulting and offline elements. most big networks (cj, zanox, etc,) are busy to expand into other regional markets - which means that smaller and innovative companies are still able to create added value for publishers and advertisers alike - look at http://www.callaffiliates.com - they do phone leads i was told. in germany zanox.com was bought by a big publishing house and they focus on asia and consolidate their european business. reason is probably that they want to bring together the reach of their print operations, with the performance based clients they have in zanox.

payday loan
Dec 7th, 2007 at 10:32 am | #

Nice question, I am agree with rob.

Tony
Jan 16th, 2008 at 10:47 am | #

Only found this blog today but it seems filled with quality content. I just wondered what you think about promoting poker / gambling products in the UK and what you think the prospects are for the next few years.

Fraser
Jan 17th, 2008 at 12:29 pm | #

Sorry Tony but it’s not a field I’m too active in. Maybe as over at the affiliates4u forum?

Jens
Jan 17th, 2008 at 1:25 pm | #

Tony,it is certainly an interesting point and we were talking to some players in this market already. For two reasons they are more than willing listening to innovative solutions - first is legal issues in the US/some parts of Europe particular, second is that a lots of educated and informed user are flying below their marketing radar - the still use the internet as a source of information, but are reluctant to use it for transactions, especially in the field of poker/gambling, since there are trillions of black sheep.

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Fraser Edwards has been involved in affiliate marketing for more than 5 years after starting out in business as a website developer.

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