4 months by
Have you ever wondered: what does it take to start an affiliate network or affiliate program? What challenges must you face if you want to develop into a trustworthy and fruitful partner?
We’ve talked with 2 market experts who have extensive experience in this field – Anastasia Titova from Yellana, and Stefan Muehlbauer from Masters in Cash and here are the key points they shared with us!
Affiliate network (or CPA network) is a website where advertisers and webmasters agree to work together. The former wants new visitors to their product to take a certain action, such as submit a form, leave an application, or make a purchase. The second aids in attracting these visitors.
On the website, there are 3 parties interacting:
In contrast to affiliate programs, which have their own internal offers, affiliate networks primarily focus on offers from third parties. Additionally, they choose which webmaster to cooperate with and offer affiliates higher rates.
As previously noted, affiliate networks work with outside offers. Affiliate programs, on the other hand, are solely focused on in-house offers. The question is, which one should you pick?
The primary distinction is that the affiliate program demands a significantly larger setup, so it is critical to encourage big investments. Additionally, you require personnel to build and maintain your program, which is challenging, but doable.
Anastasia Titova pointed out that there is a remedy that, when used, will put you in the king’s shoes:
Numerous networks have already discovered that combining internal and external offers within your CPA network is the ideal strategy. You will achieve great success with this combo, propelling you to the top of the affiliate marketing industry.
You might initially believe that creating an affiliate network is not worth the money given the number of competitors already in place. Is everything in this case really so clear-cut? Let’s go over several characteristics that will set you apart from other market players.
As an extra advice for owners of the offer, Stefan Muehlbauer has pointed out:
Fortunately, building a tech infrastructure is the first and most straightforward step on your path to developing a network. It is not as challenging as it was years ago, you don’t even need a CTO!
These are the top 4 things you need:
1. Affiliate software solution
Your affiliate network must be using top-notch tools in order to operate as intended. Utilizing the most advanced and user-friendly technologies for managing affiliate networks is required for this. You’ll have a lot of restrictions to follow and a lot of data to properly and accurately track among all of your clients and affiliates.
Using affiliate tracking software can enable you to accomplish more in less time. As a result, you and your team can focus on expanding other areas of your business. You do not want software that only tracks clicks. Choose a software instead that will help you manage your money, automate time-consuming tasks, and improve affiliate and ad success.
2. CRM system
A customer relationship management (CRM) system gives organizations the ability to control their interactions with both current clients and potential new clients. The most crucial feature within the affiliate network is the ability to track payouts and the number of leads a webmaster generates. Thus, CRM software employs a data-driven methodology to assist staff in keeping track of leads and important client data, such as phone numbers, email addresses, and past contacts, in one single area.
You have two options: select a third-party CRM system or create your own. If you decide to use a third-party solution, Pipedrive is now one of the most-preferred CRMs for affiliate marketers globally.
3. Anti-fraud system
When conducting business online, fraud is impossible to avoid. Therefore, in order to flourish in this industry, you must take precautions to safeguard both your company and your advertisers against fraud.
But before choosing a tech solution, it is crucial to pay attention to human factors. Here’s what Anastasia Titova thinks about it:
Experienced market players act as the network’s gatekeepers, selecting who gets access. A video conversation with an affiliate who wants to work for your network is an example of pre-moderation in action. By adopting this, future issues like fraudulent traffic, poor-quality traffic, etc. will be greatly reduced.
As for the tech side of things, you have 2 options too: choose a third-party provider like 24metrics, or create your own anti-fraud solution. The best course of action, though, is to build up your own system.
4. Payment solutions
Last but not least, you must provide affiliates a range of payment choices. It also relies on GEOs; for example, many affiliates in the CIS countries view Capitalist as the greatest option. In general, crypto payments are becoming more and more popular, particularly if you work with GEOs that have weak banking infrastructure and volatile currencies.
Let’s say we managed to gather all of the aforementioned tools, but the most crucial problem remained unresolved: finding a trustworthy advertiser.
You have three options to choose from:
Here are Anastasia Titova’s thoughts on it:
If we’re talking about broad patterns, Eastern Europe, Asia, and Latin America are some GEOs to keep an eye on for traffic monetization. Although Latin America gets more competitive and its traffic costs rise, these are areas where competition is not as intense. The US and Western Europe are currently the hardest markets to enter as a new CPA network.
There are a number of additional considerations, though, that may influence your decision. For instance, you should work with a specific market if you have a relationship with a certain advertiser or have a unique billing solution for this region.
When it comes to deciding on a niche you want to work with, you can focus on the following things:
You may find out what they want and need, then base your strategy on their responses.
Some recently popular verticals might now be heavily controlled by the government. It follows that you don’t need to think of them as your preferred course of action.
That is a pretty simple justification for picking a vertical based on the offers an advertiser can provide.
Important note! Notwithstanding the above, your network should be attracting affiliates with offers that are always in high demand in niches like Dating, Gambling, Betting, Lead Generation etc.
If you want to know more about building an affiliate network, check out the full interview with Anastasia Titova and Stefan Muehlbauer:
This video is posted on our channel that was created to provide the affiliates the most useful information possible. You will find there webinars, interviews with industry leaders and many more. Subscribe in order not to miss anything sweet, new content releases almost every week!
It takes the necessary expertise, experience, and resolve to launch an affiliate network. Despite the appearance of an oversaturated market, being a great player and earning a consistent income can be achieved by providing the best service, managers, and offers. It is advantageous to your business as well as to all of your brand affiliates and partners.
We at Yellana made every effort to provide our affiliates with the best solutions possible. Go see for yourself why Yellana is your best choice on the way to success!