The affiliate industry has many shades. There are a number of uncertain things in this area. Although these variations make this industry a unique kind, there are other things that make it a less desirable one. Sometimes the company is unaware of them and ultimately puts the brand name into danger.
It is therefore important for the companies to keep themselves aware in order to take full advantage of opportunities for the affiliate programs. Here are three such aspects that an organization needs to needs to keep an eye on.
Affiliates Sometimes Do Not Create Value
Affiliates are marketing partners. These may include review sites, content bloggers, schools, or organizations. These are the elements that may prove themselves as incredibly effective at promoting a brand’s products and services. There is a good majority of affiliates that drive in increased sales for brands. However, there are also, who do not.
In this marketing, the concept of “incrementality” which refers to the increase in sales that the advertiser obtains through the affiliates. Or in other words, the affiliates drive new customers to the company. But sometimes, a company assumes that all the affiliates in their program are pulling in more customer sales. While, in reality, they are the ones that get the primary benefits.
The Unethical Ones
Although some of the affiliates may be ethical, that drive significant value to the companies. On the other hand, there are also unscrupulous partners. These affiliates which do not necessarily add incremental value. Such affiliates purposefully engage in deceptive marketing activities to deliberately collect commissions.
Some companies are in fact, aware of such bad affiliates but prefer to stay inactive against them. The reason is, their marketing techniques, sometimes generate revenue for the company. On the other hand, some companies are unaware that there are affiliates that are associated with their marketing program and are generating revenues in wrong ways.
The affiliates industry and the merchants are together charged for the “performance fees.” Although their structure is not completely illegal, such incentives leave no rooms for checks and balances, and hence, such incentives are ultimately misaligned. Such unclear incentives can also lead to some serious issues such as fraud, cookie stuffing, and trademark bidding.
In some case, affiliates add to competitive advantage, in other, they can cause a blow to one’s brand. Although this can be done wisely by choosing the partners carefully, demanding business transparency from them, and ensuring the clarity in the results that you are getting and the amount of money that you pay for them. This way, you will be able to reap proper rewards from these affiliated programs.