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Planning to launch an affiliate marketing program? Then as you must be aware, the most important decision that a merchant company has to make before starting an affiliate program is to figure out what kind of tracking solutions to go for? Whether to go for an in-house tracking solution or rely on the services of an external affiliate network? Let us analyze these decisions below;
Options available to affiliate merchants
Using third party affiliate network services
Using third party software solution
Building your own system
Analysis of affiliate program options
Using affiliate network
Affiliate networks are third party service providers who act as intermediaries between the affiliate merchant and his affiliates. They take care of all the process involved in an affiliate program right from recruiting affiliates to tracking sales leads, dispute settlement, paperwork, documentation and payments to affiliates. In addition using these services will give you instant access to hundreds of already existing affiliates in the databases on the network service provider.
A great option except for the fact that an affiliate merchant has no control over his money (except for linkshare.com that gives you control over your money) and has to pay a heavy joining fees and thereafter keep paying on transaction basis.
Using Third Party Software
Third party software solutions are a good option and don't need you to pay transaction charges as in case of networks. Going for a third party software solution will also remove the set up cost and give you access to a wide variety of latest softwares. Overall a good alternative for any one who wants to carry out an in-house affiliate program.
Building your own system
If investing huge amounts of money as a set up cost is not a problem you may go in for building and running your own system. This option involves purchasing and installing an affiliate tracking software in your server. Of course that's not all; you need to run and manage the software yourself, recruit affiliates on you own, take care of all the payments to affiliates, deal with disputes if any arises between you and you affiliates, manage databases and records. A good option in case you have the right resources and are bent upon having an in-house project.
No matter which option you plan to choose, it's always better to do a bit of homework by the virtue of finding out affiliate business goals, type of affiliates needed, resources available, spending capacity etc.
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