Do's and don'ts in Affiliate marketing

Over the last decade, affiliate marketing 

has become the number one channel for 

acquiring customers via online marketing. 

Prior to this, brokers and brands in general 

used to have massive media buying, PPC 

and SEO departments investing unlimited 

funds on CPM or PPC campaigns, 

with the aim to convert leads into 

paying customers.

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This led to excessive 

overspending in many companies - the 

successful few still manage these efforts 

inhouse. But then something changed: 

Affiliates started to enter the market. 

So, who are those magical angels we 

call affiliates? Essentially, they are media 

buyers, SEO or content experts that are 

sourced to carry out marketing efforts 

and later get compensated retroactively 

for every customer they send to a broker 

(leads, new paying clients and at times - 

revshare).

Finding a few affiliates and getting them 

to send you unlimited traffic may sound 

easy. However, before we get to the dos 

and don’ts, let’s try to get familiar with 

the pros and cons of having an in-house 

affiliate program as opposed to the 

option of working with affiliate networks.

Among the pros of running your very 

own in-house affiliate program is the 

ability to control and assess the quality 

of your affiliate marketing efforts. Many 

networks will not be fully transparent

because they simply wish to breast their 

cards; if they reveal who their affiliates 

are and their performances, both you and 

the affiliate will prefer to cut the network 

out. Moreover, it is in the network’s interest 

to let affiliates send as much traffic 

and sales to you as it means that while 

they are getting paid according to the 

agreement, your interest is to control the 

volumes and value as you will still need 

to deal with the ROI later. Therefore, they 

will not reveal their affiliates to you but 

will rather use encrypted subid`s for their 

own analytics purposes.

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No transparency means that you have 

no idea where you are being promoted, 

which ads are being used etc.; this poses 

many regulatory risks that could later be 

very costly to you. When working with 

affiliates, it is crucial they represent your 

brand appropriately beyond just driving 

clicks, registration and sales. Therefore, 

managing your own affiliate program 

would allow you to control who is 

promoting you making sure that they are 

driving high quality traffic to you.