When you have your affiliate program in an affiliate network, you have complete transparency over your affiliate partner relationships. You can group affiliates by type, by state or country, by performance, or any other way you feel is viable as far as being able to manage and communicate with your affiliate partners in clustered groups. (You can send emails, newsletters to each group cluster in many of the affiliate networks, you can also offer certain media, coupons, promotions to each group and you can set commissions to each group)
As an agency we vet new affiliates 3 times per day for our clients. When call it a sweep and we group affiliates into categories based on how we want to communicate with them, their marketing type, or expected sales levels when we approve them to an affiliate program. The fantastic thing about big affiliate networks is you can often see an affiliates previous performance based on their network EPC (earnings per click). In some networks affiliates are given scores or feedback notes from other merchants. When an affiliate applies to an affiliate program they have given us a description of their marketing efforts, so we know how they are going to market the merchant. This helps us place them in specific clusters of types of affiliates.
In the affiliate management space, an agency such as HPCManagement.co has accumulated lists of the numerous affiliates we have worked with over the years in many verticals. We know many of these affiliates by name, we have their phone numbers as well as network ID"s and emails, and we consider many of them industry friends. The big networks offer merchants complete visibility into their affiliate relationships, as well as offer ways to manage these affiliate relationships by clustering ARM processes that involve internal network communications.
Below you will see a clustering methodology that I created based on performance tiers. Through my experience over the years I have learned that communicating with the TYPES of affiliate marketing styles gains higher activity in an affiliate program. More on that below the following slide.
ARM - Affiliate Relationship Management: A term I coined in 2004 while managing over 50,000+ Affiliates in one affiliate program that was live in 3 affiliate networks -
Here is one of the slides from my presentation at Affiliate Summit 2009
As an affiliate marketing agency, we use a reporting system that can combine multiple networks into one seamless report. We can see the merchant’s sales based on the marketing TYPES of affiliates and at what sales threshold these types of marketing styles bring in revenue for our clients. I have learned, and I think it is more effective now, to cluster affiliate partners in the networks in groups based on marketing types. So, when we send them promotions, blog content, PPC rules, or new long-tail categories or terms to go after we are sending the right message to the RIGHT affiliate partner each time.
Here is an example of affiliate TYPES based on marketing style that we see in our reports. You will notice the heartbeat pattern of when we inject new offers, promotions, and media into the affiliate program as we recruit which also shows how we scale an affiliate program.
Clustering Affiliates in Network groups based on marketing types for effective communications:
2. Social Media
3. PPC Affiliates
4. Web Portals (Shopping, directories, forums, landing pages)
5. Coupon Affiliates (They use API's and we use injection strategies to get top placement on their sites)
5. Mobile affiliates
6. CPA Sub network (They normally want a higher commission to spread among their Influencers and affiliates)
7. Tool Bar Affiliates - (Like Honey)
8. Video Affiliates (Obviously they want to hear about new videos we load to the networks for them)
9. Loyalty rewards/ Rebate sites
10. Emailer affiliates (They need different media that fits within an email blast)
There are many ways of clustering affiliates by different types in the large affiliate networks. The transparency that the networks provide offer us ways of ensuring that managing and communicating with a client’s affiliate partners, as well as recruiting partners, is effective and increases sales.
If you have any questions about affiliate management and/or affiliate marketing, feel free to post in the comments or contact us directly. ... Contact HPC Management Inc