Should A Network Compete With Their Affiliates?

It’s all becoming a bit of a tangled web. I am pretty sure the Network will claim that it’s run from another division in the same company and they won’t have access to the Affiliate Network stuff. You just have to go on what you think they will or won’t do.

It’s always been the case since pretty much day one of Affiliate Marketing that some members of staff at most of the Networks also have their own Affiliate sites, this I never seen a problem with. Indeed some Affiliates went on to become Networks, aka OMG and Paid On Results both of them started because of such a crap job the main Networks where doing.

Is it a conflict of interest or an investment in the area to keep them stronger? That’s up to the individual to decide. I will judge it on there actions. One thing that is probably making Networks think about buying Affiliate businesses/sites is the way some top Affiliates act with clients, running off trying to steal the business from the Network to work directly or demanding that other Affiliates are removed from programs or they will pull the plug (this happens more than you would believe).

I own the biggest Free Stuff site in the UK, freeukstuff.com so I guess I would be the one most directly affected by this change. Personally I don’t really care as long as they don’t try and screw me out of any deals or hold things back as a way to damage me as “competition” when I should be treated as their Affiliate first and foremost, long as that happens I am happy.

I became aware of this a few weeks ago, just as it happened I think. I was a little shocked at the network involved, however at the moment, I can honestly say that I trust Affiliate Future not to use it to their advantage and hold back any deals from us normal affiliates - I just hope they don’t prove me wrong.

There have been other networks in the past that had affiliate sites running, and we have seen on a few occasions where special deals or campaigns were only issued to themselves.

One question I am inclinded to ask is… if a network did behave in this way, is it really any different to offering a deal or campaign to a closed group of affiliates?

IMHO I don’t think it is. The only major difference I see is that by providing themselves with unique deals / campaigns, they are upsetting the big affiliates. It is exactly the same as networks upsetting small affiliates when they offer the big players the choice of joining closed programs.

It’s an interesting move although I’m surprised NFS didn’t tout the site round to others for offers?

Also you have to remember IPT (MyOffers) recently acquired SmartQuotes - so in affect you also have network owning affiliate sites there. Plus you have Primeq and Afform running networks and their own sites - so it’s nothing new. Also IBG/Affiliatefuture have run Plentypoints and Pickthem already.

The quality of Pickthem and Plentypoints may give a clue to the future of the new NFS though.

I dont think that they should, but its a fact of life these days. I work with a travel aff. They went to B2c some time back. The day they did, my interest in them waned. Why?

Heck why should I work to indirectly promote someone who is looking to compete with what I do? Just saps the motivation a little.

I think it is a great benefit to the advertisers, and an excellent selling point for them when pulling in new clients, as long as everyone can be considered honest.

Networks need to look for further sources of income if they are to continue to grow at the rate they have become accustomed too. However, i do not believe that buying affiliate sites is the way forward. Surely most networks have access to an amazing amount of data which could be used to massive advantage by the Networks if they were affiliates such as the best performing PPC terms for Merchants. As for the argument over the use of Closed groups. If as a small affiliate i tried to cover a large brand i have no doubt that within hours i would start to begin sweating and want to pull my ads as the costs mount up quickly and simply do not have the cash to cover this we are talking tens thousand of pounds in most cases. There is no doubt that the return can be immense but Networks need to trust affiliates and trust means history. Many so called big name affiliate swan around the forums and blogs mouthing off but actually have little impact but to mar there own name and i have no doubt that this affects trust with networks and hence why quite often you see the same ID’s popping up in many closed groups and other affiliates dont get the chance. There is a need for a more professional approach from affiliates, this is what Networks have had to do and it is time affiliates did the same. If they did this they may have chance to play with the big boys and not just mouth off about it.

James Leslie, I’m not sure what your point is? Why can’t networks (BTW IBG isn’t an actual affiliate network but it does own Affiliate Future) buy affiliate sites? NFS is a long-standing well known site that has over 200,000 users. This is surely a valuable resource and probably one of the main reasons why IBG acquired the site. Not to mention that is also a well known brand, which takes years to build up.

Just because networks can get their hands on ppc date doesn’t mean that they should use it, that would be unethical. Also, sites like NFS have grown over the years from word of mouth and other marketing methods, not just PPC.

Hi guys, many thanks for your kind words.

I really don’t think this is going to make any difference to AF as a network - As others have said, NFS isn’t IBG’s first affiliate site, and I’m sure it won’t be their last. AF is run as a seperate entity, and to date, I’ve not seen any hint of bias (can’t spell favouratism lol)

We didn’t offer the site around at all - We were happy with the deal offered, and saw no reason to try and do a deal behind IBG’s back so to speak.

I can see why this is a talking point, and it is something I think we will see more of - Networks (and affiliates) with large reserves of cash will buy up other sites, and you may well see more mergers and acquisitions before the year is too much older.

This is not new in the U.S.- reality for a long time.

Networks here commonly compete with affiliates in search turf and media buys, as most of the major affiliate networks all developed search practices and/or bought by ad networks.

In addition they have known to buy affiliate sites, price comparison sites and even other niche merchants. e.g. inkjets

regards,
Wayne