On Affiliate Programs

So. I just launched an affiliate program on 2nd tier affiliate network. Why 2nd tier? Mostly because a 1st tier network costs a lot of funds to set-up. Of course, the potential advantages are huge tool but dropping $10 – 15,000 on initial set-up is quite, quite expensive for a SME.

Pros of Affiliates

  • The Work is Out-Sourced
  • Initial cost of the marketing is borne by the affiliates
  • Potentially wide network reach
  • Individual affiliates can have multiple, older websites which can provide great link opportunities

Cons of Affiliates

  • No guarantee you’ll get any good affiliates
  • Initial setup cost can be relatively high; with low returns
  • On-going cost of good affiliates can be extremely high as % of sales
  • You lose control of your marketing

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