How to Choose an Affiliate Network – JEBCommerce

How to Choose an Affiliate Network

Excitement is building, you’ve outlined a solid business case for your brand to start working with affiliates, and the decision has been made to launch an affiliate program. But then the toughest question rears its head: with numerous affiliate networks available, which is best?

The answer to that question is complicated and depends on a variety of factors unique to your business and brand’s needs. It’s also one we answer frequently for our clients which is why we thought it might be helpful to create a primer on the topic.

Getting Started

There are many considerations when selecting an affiliate network. Should the program be launched on multiple networks or just one? Which network has the desired affiliates? What features are crucial? How does pricing compare?

The answers to these questions depend on the brand, strategy, and vertical. Each network will serve your brand’s needs differently, so let’s explore what to consider when choosing an affiliate network.

Understanding the Role of an Affiliate Network

Affiliate networks are technology platforms that connect advertisers/brands (merchants) and affiliates (publishers) through affiliate programs. They provide a unified tracking solution and act as intermediaries to assist both parties in managing their affiliate activities.

Key Considerations for Selecting an Affiliate Network

1. Budget and Cost Model Preferences

Cost is a critical factor when launching a new channel, and the network choice impacts the program’s ROI and profitability as it matures. Different pricing models are available, including:

  • Traditional SaaS Model: A set monthly fee regardless of performance, ranging from $500 to $7,500+ per month, depending on size, features, and expected revenue.
  • Percentage of Revenue (RevShare): Typically between 2% and 4% of total tracked affiliate revenue.
  • Percentage of Affiliate Transactions (Paid Commissions): Similar to revshare, this model bases fees on the commissions paid to affiliates, ranging from 15% to 22% depending on scale.
  • Hybrid: A set monthly technology fee plus a revshare on tracked channel revenue. Some networks offer an either/or option, paying a set minimum monthly fee or a revshare, whichever is greater.

Consider which payment options work best for the brand. Some networks may lower overall fee percentages based on growth, becoming more economical as the program scales. Be cautious of networks that seem overly keen on advertising top features, only to reveal additional fees later. It’s best to identify a set pricing model that includes all necessary features when negotiating the initial contract.

2. Market Reach: US or Global

If the program will operate solely in the US, your options are broader. However, for those looking into global markets, networks with a solid global footprint, like AWIN and Rakuten Advertising, should be highly considered. These networks offer unique affiliate partnerships and local support staff and experience for each market, streamlining reporting, currency conversions, operations, and costs.

3. Essential Features

Networks offer a variety of features, some of which are unique, and some stand out with industry-leading technology. Key features to consider include:

  • Commissioning Rules: Unique commissioning and rewarding of affiliates based on their value, how they target consumers within their journey (buying funnel), and specific SKUs or products you are trying to promote.
  • Benchmarking Tools: Tools that allow benchmarking your affiliate program against competitors within the same vertical. 
  • Tracking Capabilities: Networks should offer robust tracking implementations, such as:
    • Coupon code tracking
    • Server-to-server tracking (new standard)
    • App downloads and in-app purchase tracking
    • One-click affiliate partner activations
    • Customized tracking capabilities and implementations
    • B2B referral tracking (linked to Salesforce or other CRMs); PartnerStack leads the market in B2B tracking capabilities as an affiliate network
    • Consumer journey mapping
    • Multiple event tracking (recurring subscription payments or multiple payout/commissioning triggers)
    • Custom UTM parameter mapping within tracked URLs
  • Reporting Tools: Granular reporting tools to track valued KPIs (Key Performance Indicators) such as:
    • Impressions
    • Clicks
    • Conversion rate
    • EPC/CPC
    • Revenue
    • ROAS
    • Publisher analysis
    • Referring URLs or domains
    • And many others
  • Publisher Recruitment and Communication: Tools for discovering and communicating with affiliates, including AI-driven recruitment and publisher discovery tools. Automation of welcome emails, newsletters, and bulk communication efforts streamline the work and some networks just seem to do this better than others. Focus on the different communication and discovery tools and the type of direct publisher access available in each network you consider to ensure a greater chance of success. 

4. Network Support

Regardless of experience in affiliate marketing, direct support from the network is essential. Whether it’s understanding new features, transaction inquiries, commissioning rules, uploading offers, or fixing tracking errors, reliable support is crucial to long-term success within your program. Ensure the chosen network has dedicated merchant support departments and check referrals to confirm their reliability.

5. Types of Affiliates and Recruitment

While many major affiliate partners will work across multiple networks, some networks are still more vertical-focused, attracting niche affiliates in specific industries. Understand where the brand fits within the affiliate landscape, identify desired affiliate types, and research their presence in different networks. Tools for recruiting specific affiliate types, AI-powered identification, gap analysis, and publishing top affiliates by industry are valuable resources for targeting affiliate partnerships.

By focusing on these five main topics, the program manager will be well-equipped to choose a network partner that suits the brand’s needs.

Key Takeaways

  1. Align the payment model with the budget and brand needs.
  2. Identify important goals and KPIs, and determine how each network can support and report against them.
  3. Understand the market and target geographical audience before choosing a network.
  4. Research and understand the most impactful tools and features available.
  5. Ensure ongoing support for program success.

Contact Us

Ready to transform your affiliate program? Reach out to us at gethelp@jebcommerce.com or schedule a meeting time, and let’s develop a customized plan tailored to your business’s unique needs and objectives.