Starting an Affilaite Network

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joepan

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Sep 18, 2006
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Hello everyone. This is my first post but a great site. I have been doing email campaign aff. for the past 8 months now looking over all the netoworks such as maxbounty, revloop, hydra, xy7, fluxads, incentaclick, aderactive, etc. I have taken in over 200k in the past 6 months in aff. campaigns and want to be able to cut out the middle man and start my own company direct and start bringing good people in to work with.

My question is how would one start an affialite company of their own. I am very interested in buying an exsisting network or starting my own. Any input or feedback on the steps I would need to take to do this would be appreciated from people here who may have experience with this.

Thanks.
 


What is your motivation? To get stronger deals for yourself? Would you be focused on specific niches? How much time and energy are you willing to devote to running such an enterprise?

Also, not to be nit-picky, but you mis-spelled affiliate like 3 different ways in your post. Just a note, since I tend to make all kinds of mis-spellings when typing too fast.
 
aeiouy - thanks for your post. I am terrible when comes to typing to fast and mis-spellings. I will try hard to slow down.

What is your motivation? My motivation is my love for this type of business model. I find it just great. I am an MBA student (Graduating In Spring) with Minor in Marketing specifically Internet Marketing and find that I love this. There are many factors. There is a lot of money to be made, you get to make great connections while in the industry publishers and advertisers, and so on.

To get stronger deals for yourself? Of course I would love to grow my own income on deals but is not my only want behind doing this. I really want to build a great network that takes care of its publishers unlike many of the negatives I have witnessed with the networks I belong to. I want to take all the positives from the ones I like and the negatives from the ones I do not and incorporate them into my own network.

Would you be focused on specific niches? I think every network starts somewhere. So as far as niche I might want to start out with email publishers and advertisers who want this type of traffic and data such as one fielders etc. This is what I do and has made me a ton of money. Then slowley grow from there as I make new contacts direclty.

How much time and energy are you willing to devote to running such an enterprise? I am willling to put as much time and energy into this as needed. My main business is a great site but does not take much of my time PM me if your interested in what it is I dont want to publish it. But I am very determined person that is willing to work very hard, ake the contacts, connect with my aff and publishers daily and run an honest operation.

Being 25 I am trying to set myself up for something long term that I will be happy doing and I really love and have a passion for aff network industry. I mean it has made me a lot of money and is a great business model that seems to do very well.

If you have any input or ideas or suggestions please do let me know. Thanks for your interest in my want to do this.
 
joepan, if you want to cut out the middle man just be a salesman and go directly to the merchant. If you are selling as much as you claim they might be willing to work directly with you. It never hurts to ask but I would be surprised if the merchants want the headache of dealing with individuals.
 
chrislingle - Thanks for your reply. I do not sell anything. What I make my money off of is zip submits, email submits, surveys, giveaways etc. So It is hard for me to figure who to go direct with. Does that make sense?

Thats why I use all the other networks and so many of them because not one of them can keep good new offers comming to me on a daily basis for the type of offers I use and need for my email drops.
 
ok, I understand what you are doing, the same as everyother aff person here. It should not be hard to figure out what is converting, a simple script should track it, but you want to find out what companies you should go to to get the deals? if so then you just need to hire yourself someone who can program and get a comish only sales person who can get you the deals. otherwise you are looking for us to give you the business model of an azooglenetwork and if we had that we would be doing that ourselves!
 
Let me be the first person to tell you that you will lose all of your money if you even dare try. Even if you saved all $200k or so, you still wouldn't have the capital to start your own network. Well, you can probably start your own network, but it wouldn't be very successful, unless of course you are planning on being your own affiliate, then it's a different story.

Option 1:
If you are trying to become a new network and you want to be the new middleman on the block (because that's what they are), then you need a lot more capital, employees to handle accounting. The accounting is both accounts payable and recievables, because advertisers need to pay you so that you can pay the affiliates. So figure you'll need at least 1 full time employee to handle all of that financial crap, the bookkeeping, taxes, W-9 forms, etc. Figure another person to handle sales, which is getting new accounts from advertisers so you can populate your network with new and exclusive offers. You'll also need someone to handle the affiliates. So total, it would be at least 3 other people, aside for yourself. Not to mention you'd need some cash for advertising/marketing of your program.

Option 2:
You want to make your own network, and also be the only affiliate, so that you can get access to some good offers without having a middleman involved. Understandable. A lot less work than option 1, but still, you'll need to get those offers from a salesman point of view. I guess you can sorta do the whole thing on your own, but it's A LOT of work and headaches involved that you don't even know about yet. You'll still need to get some affiliate software for this. Most networks use DirectTrack, which blows a fat one, and you'd have to handle all of the tech stuff on your own, and in exchange you'll maybe make $1 more per lead or sale, nothing major.

Option 3:
Stop complaining and accept that those networks are there for a reason. Do they make a lot of money? Most of them do. Wanna know why? Because they have pretty large teams where it matters. They are also well connected with eachother and advertisers. They have the capital to invest in new areas, they also have a somewhat established network of affiliates. Enough so that even though they make maybe $1 or so on every lead generated, their game is all about volume. If you can pull in $20k or more a month with any of the networks you mentioned above, they will give you super affiliate status, and bump up your payout. This way, you can continue doing what you know makes money, and you get a little incentive of making $0.25-$1 more per lead or sale. Big woop. Plus on top of that, all you have to do is fill out your W-9 form, send it to them, and collect the checks.. that's it! No headaches, no worries, no sales, no accounting reps, no employees!

You should definitely rethink what you are about to do. These networks exist and need to exist because they take the bad rap for so many shitty affiliates too. They give the whole affiliate marketing world a balance, without them, it would be pretty chaotic. So when I know that whatever offer I'm pushing, they may make a few bucks and I could be making $1 or $2 more, I'm fine with it, because they need their slice of the overall pie too.

They can say the same shit about us affiliates. Do they really need us? I think yes, but really, they can replace us and do all of the marketing on their own and reap the most benefits and whatnot, but for the most part, they don't. Why? Because the name of the game is volume, and they know they can make a hell of a lot more in the long run by giving the affiliates more money, better service, better creatives, and just really catering to our needs by keeping us happy, and in turn, that will make them and us more money.
 
I'd also like to add, that we are the same age, and I've been in this industry for almost 11 years already. Trust me, I've thought about it thousands of times, of just "cutting the middleman out", but when it comes down to the real issue, it's just not worth my time, money, or effort. I'm happy being just another affiliate in the big picture of things.

I am starting my own affiliate network though, but it's more of a private network being that I will own all of the sites being advertised, and I'm not going to be extra greedy and try to go up against Azoogleads or Copeac, or even Hydra, because I would be shooting myself in the foot. I am choosing my own niche path, and I know my network just compliments all of theirs, which is great in the long run. Will I eventually have rivals? You bet. But when that time comes, I know I will be big enough to crush them and dominate for the market I helped create. I think a lot of that also has to do with experience. I've been on every end, the affiliate, the advertiser, the network owner, etc. I know almost everything there is to know about it, and I still have a good chance at failing. You should create your own site, make an affiliate program, and start small that way, this way if you fail, you don't lose your shirt or your savings, and you learn a hell of a lot along the way.
 
Wow is all I have to say lol. Jon you made great points. I am not jumping into anything. I was simply asking on this forum how one would go about getting started. I do understand the need for them and do see what their place is in the game. And your right at this pitn as you layout the options I rather keep my income monthly and not have to have headaches etc. If I can keep my income where I am at I will just keep using them. I just find it facinating to create this type of business.

I apreciate your input. I think it is great. It may just be something I want to do that may not be feasable at this point.

BUT I am up for the challange if the right time comes. If anyone here is serrious, has experience, some money and wants to talk about maybe taking a risk about creating another network contact me. If not Shit I will just keep sending out my emails and check my bank account every 15th and 30th lol which sounds easier.

Thanks Jon for being the wisdom I needed to hear.
 
damn jon, i was just playing with him. the question just seamed odd for a forum, not something someone serious about something like that would do, I must say you follow all the steps to give you the best chance at success don't you!
 
joepan said:
Thanks Jon for being the wisdom I needed to hear.


No problem, I just wish I had a voice of reason some of those times that I went ahead, invested $30k-$60k in large ventures I thought I knew a lot about, and then failed pretty quickly at. But it's all part of learning.. the costlier the investment, the quicker you learn and truly hold on to what you should and shouldn't be doing next time around.
 
You said "zip submits, email submits, surveys, giveaways etc." I would be suprised if you could even make much more by starting your own network. Rather, you may want to set up sites that earn money the way these offers really do (incentivised leads.)
 
Jon as you said we all learn from mistakes. My first business was a car stereo shop B&M and I had some great clients like Dennis Rodman and others no need to name drop but point is that overall Best Buy, CC, Al and Ed's eventually blew me out of the water no matter what I did becasue they just had the money to advertise big time and to do things I could not. I made my money back and then some had a tv commercial with a UFC fighter in it with me and then over 2 years lost it all. But over all it was a great learning experience for me and took it into my next business. Now I run gethomeworkhelp dot com and I love it. I am just an a visionary I am sure like you Jon always wanting to do more and better. And I just have found a passion for this industry like a fire that I can not stop thinking of - Maybe becasue It made me over 200k in 6 months :) working from my home office a few hours a day lol. But seriously I am a hard worker and love to take risks I guess I need to fight off my urge here and keep working learning talking to people and see what happens.

But again thanks for the Wisdom much needed at points for all of us!
 
Andrew never thought about that maybe you can enlighten me more on this or where I can find out more about this. I think your with Jon in baby steps is a good idea at this pint and keeping the money comming in is always better then leaving.

Andrew if you can elaboratea little more please do so I am interested in your idea for me. My list is basically a list of over 1.2 million college students over 90% .edu extentions. They all come for my scholrship offers. So I just mail out offers about 3 times a week and have done well but never thought of setting up websites etc.
 
Andrew, why the fuck talk privately? this is started in a public forum, either continue or shut the fuck up, this pisses me off and should piss everyone else off! this is either a public forum were a public question is answered for everyone or not at all, if he had emailed you the question then no prob but this is bullshit!
 
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