1. There has been a ‘preciousness’ about brands for many years and without a powerful affiliate manager, the brand marketing people will have control, especially in the larger corporates.

eg. They’ve got colour codes for printed artwork which gets rejected even if its a smidgeon out. As affiliates though, we’ve often got free-reign to generate images and editorial text about their products off our own bat. Enough to give some brand-managers high blood pressure.

2. Merchants are not used to dealing with huge numbers of multiple marketing outlets. They are used to making global decisions, but the affiliate marketplace perhaps requires a more granular approach (sorry couldn’t think of a non-jargon word !)

3. The online marketplace is changing so quickly, that I’m not sure whether some merchants have the time or inclination to think very far ahead ie. considering what effect their current decisions might have on future performance.

4. There’s a skills shortage in merchant affiliate managment ? I presume thats still true. Lots of people still feeling their way around ?

Er, there’s probably another few things…

It would be nice if someone wrote a book on the most successful merchants that have developed as a result of aff. marketing. Except of course there’s one that’s continued growing very well despite switching off the grubby affiliate scheme. However, that might be a function of a unique business with very few competitors - most retailers aren’t that fortunate . But that’s another story…

I most people I’ve spoken to are in agreement that this blanket move wasn’t very well considered, and that the lack of notice period has made the problem worse.

I personally don’t see a problem with merchants cherry-picking affiliates, as long as it is done on merit rather than nepotism. That’s what any network provides for when they give merchants the option to approve / disapprove affiliate applications.

The issue at the moment is that some programmes who came into the channel early on, and have seen some great returns, need to start reining in some parts of the channel which aren’t working, and will face some negative reactions as a result.

These closures and restrictions need to be very carefully considered as it will be much harder to open these channels back up again in the future. Affiliates won’t invest in programmes that they worry will be shut back down at a moment’s notice.

Your last point about flexibility needs to be very carefully put Kevin, I think some merchants will interpret it as the flexibility to turn their programme on and off at will, which we all know is not the case, any more than you can engender loyalty in your own sales staff with a hire-and-fire mentality.

Thanks for the feedback. It’s good to know it’s being taken constructively as I intended.

Having worked with Airmiles and Nectar for some time I can fully understand why brands choose to work with some incentive sites over others.

These two examples are brands in their own right and there is the perception that this brand association enhances the advertiser. These brands can also cherry pick key advertisers to promote over others giving the chosen partners considerable revenue opportunities.

Also don’t lose site of the multi-channel approach both these companies offer both on and offline. Nectar and Airmiles issue both emails and direct mail shots featuring key brand partners.

Where the situation becomes interesting is when ’super’ cashback sites emerge as brands in their own right. Quidco, for example, has become a formidable force in the online world in a very short space of time.

I always tell advertisers affiliate marketing is thoroughly flexible and that flexibility extends not to just the affiliates you choose to work with but the CPAs you can offer. Don’t switch off potential revenue streams without working out the true CPA cost of that type of affiliate. If it costs in, work with them even if it is at a reduced rate.