The Affiliate Marketing World - It’s All a Blur To Me!

Once upon a time in affiliate marketing everyone had a distinct role. The merchant had an affiliate program from which affiliates could earn money by picking up links and creative from a network. The roles of the affiliate, merchant and network were clear and no one had to worry about multiple hat wearing issues.

Roll forward several years to Nadeem’s so called The Fifth Age of Affiliate and Online Marketing and it’s very difficult to know who’s doing what. Affiliates have become merchants and networks, merchants have become affiliates and networks have become merchants and affiliates!

Much of the rights and wrongs of these ever changing roles have been discussed elsewhere, but the latter point (networks becoming affiliates) has raised it’s head again with the launch of the facebook application Wishlist from Affiliate Window.

Essentially Facebook users can install the application, tell their friends what they’d like - and if it’s bought via the links within the application both buyer and wishlister share the commission. A kind of ’share the cashback’ system run by the network with the consumer taking the ‘affiliate’ role.

Stephen Pratley has done a good review of the application from merchant, consumer, network and affiliate perspectives. He concludes, quite rightly, that the traditional affiliate is the big loser in the game - as they’re just not involved.

For those in the content game already concerned about the impact of 100% cashback sites on their businesses, this application in theory at least doesn’t create “do do do c’mon and do the conga” type feelings as it’s potentially another competitor!

That sounds kind of bleak, so let’s see if we can pull out some rays of sunshine from the murky depths!

1. The application demonstrates what affiliates could do - and there’s nothing stopping anyone doing something better, but with all network feeds!

2. There’s no guarantee of success, just because it’s from a network! Monetising social applications is a bit of a holy grail, but have Awin picked wisely Indiana Jones stylee? If they haven’t then you know that pumping money into a wishlist application for Facebook might be better spent elsewhere!

3. If it does work, it will mean tracking has to be working. Joe Consumer is less forgiving than Joe Affiliate! It could also mean more merchants stepping up to join the network. Plus you’ll know that facebook applications can generate revenue - so there’s opportunity for you to compete.

4. It makes consumers more aware of “how affiliate marketing works” - meaning they then understand how their favourite sites are financed. From our point of view, few users still understand that if they click and buy that they’re earning someone a commission. If you can educate them, the whilst some will still want their kickback, others will realise that they’re paying for the service and are happy to oblige!

5. It may create new affiliates! That will mean more competition, yes, but new blood can bring new ideas and inspirations - and ultimately that’s a good thing for an industry intent on leaving the bedroom affiliates in the wake of the suited and booted.

Reaction to the application from other affiliates has so far been limited.

So what if the network had announced they were launching a 100% cashback site instead of an application offering 100% cashback split between the buyer and wishlister? Would that have created a lot more reaction amongst the affiliate community?

Perhaps the lack of reaction is because the distinct lines of the affiliate - merchant - network are now well and truly blurred, and as we stride onwards to a “Sixth Age of affiliate and online marketing” they will only become more blurred.

What does intrigue me though is this - if networks can potentially “compete”, for want of a word, with social applications - what will follow? Will it be ok for networks to create their own websites? Perhaps they might launch their own 100% cashback sites? What is then to stop them from eventually deciding they can compete with affiliates in the taboo PPC arena as well?

Would that all be a blur too far?