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Everything you ever wanted to know about link building: The Good, the Bad & the Ugly Register now
The UK Affiliate Census Report, published this week by E-consultancy in association with Affiliate Program Advice, contains all sorts of information which we hope will be of great interest to the affiliate community.
As well as affiliates, we are keen for the report to be widely read by others involved in this thriving sector, including merchants and affiliate networks.
In the first of several planned blog posts about the census results, it is worth setting out here some key takeaways from the report from the perspective of merchants.
The first lesson for merchants is around the importance of good links which Fraser Edwards has also picked up on in his blog post about the report.
Insufficient quality and quantity of links is the principal reason that affiliates don't promote merchants after taking the effort to sign up for a program. As a merchant, if you don't invest the time and resources in getting this right, then you are unlikely to be successful.
A third of affiliates said lack of link quality was the biggest reason (32%), followed by 'never got round to it' (20%) and 'didn't have time' (14%).
Of course, the more attractive the program in terms of incentives and quality of links, then the more likely affiliates are to "get around to it".
Another important finding for merchants to digest is the evidence that affiliates are typically signed up with multiple networks. Only 15% of affiliates are signed up with just one network.
Almost two thirds (63%) are signed up with three networks or more and 38% are signed up with five or more.
This should make it clear to merchants that there is little point themselves signing up with multiple networks as they will simply be duplicating a lot of effort.
Better to sign up with just a couple of networks and really commit to making those partnerships work rather than spreading yourselves too thinly without any additional gain. We go into more detail about this in our 2006 Affiliate Marketing Networks Buyer's Guide.
Merchants also need to look beyond any false assumptions that the majority of affiliate publishers are relying exclusively on Paid Search to make their money. Organic search is used by 74% of affiliates compared to 38% who use Paid Search.
PPC affiliate activity can help to complement what merchants are doing with their own paid search listings but this is by no means the b-all and end-all of affiliate marketing.
SEO affiliates - and those using other methods of getting converting traffic such as email opt-in - are also thriving and should be harnessed by more merchants to increase their sales.
Registered E-consultancy users can access the full UK Affiliate Census Report for free at: http://www.e-consultancy.com/publications/affiliate-census
Add to that, the fact that many Merchants don't seem to know what they are selling and haven't a clue how to address their market!
Perhaps I am being a cynic, but providing they use the word "Discount" they feel there is little else they have to do!
I am relatively new to Affliate Marketing and like all newcomers signed up to a six well known merchants in my specialist (consumer good) area. I felt I had to put some effort into designing a page that would display each merchant's products to best advantage. The quality of the feeds were unbelievable poor.
One had a size problem - I tried every trick in the book to keep his illiustrations the size I wanted - to no avail. The other didn't understand that I didn't want his complete product range fed into my specialised topic page even though he allowed me to select what I wanted (or so I thought!)
The three others I signed up for have generated so little money (obviously they are not the market leaders they pretend to be!) and the commission rates are so poor, I have abandoned them.
I have one success story - I am earning a few hundred pounds each month from a retail chain - presumably because every one knows the name. It can't be the discount offers! I have to explain in great detail to my visitors what is offered and why certain discounts only apply to certain goods. It's got to the stage where I have to say "if you want an X, select this one, but if you want a Y as well, use this one! What nonsense!
"Confuse a customer, they'll buy more" seems to be this retailers motto!
Perhaps I should set up an offshore Casino comparison web site - the commissions look good!
Paul