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4.6 Affiliate Networks
LEARNING OBJECTIVE
- Learn what affiliate networks are and how they fit into affiliate marketing.
As well as the affiliate and the merchant, there is a generally a very important third party in the
affiliate marketing mix—the affiliate network.
While some small affiliate programs and some very large affiliate programs (such as Amazon
Associates) are run by the merchant, most merchants opt to use an affiliate network to provide most
of the technical solutions required for an affiliate program.
Affiliate networks provide tracking solutions, reporting on programs to both affiliates and
merchants, hosting of creative banners, commission payment options, and support to both affiliates
and merchants. Affiliate networks have many affiliates, and many merchants, signed up to them, so
they are ideal sources for recruiting affiliates if you are a merchant or for finding merchants to
promote if you are an affiliate. Affiliate networks provide a one-payment solution to merchants, as
the merchants will be invoiced for all the commission collectively owed, which is then dispersed to
the affiliates.
Figure 4.6
Affiliate networks act as a gateway between merchants and affiliates.
