Affiliates using a merchants/sponsors brand
Updated: 05/31/05 19:75:00
Introduction.When using affiliates, there is a chance they advertise in the same areas as the merchant/sponsor. Often, the affiliate uses the same words, if not the actual brand, to promote the products of merchants/sponsors.What are considerations for the merchant, in this situation? The Bottomline.At the end of the day, allowing affiliates to use a brand needs to be a business decision. What results in more profits, for the business?As a merchant, the goal is to make as much money from an affiliate program as possible. Consider the following questions.
Prospects are more likely to enter a merchant/sponsor site from a page containing what they want. So, total sales are higher. What affiliates want.Most affiliates probably prefer no restrictions. If this policy results in more profits for the merchant, its a win-win scenario. The merchant gets added exposure and sales. Plus, there are likely to be fewer ads, for competitors, showing up.In a win-lose scenario, here is one workable policy for the merchant. In the terms of service (TOS), specify affiliates may not outbid the merchant, for the merchant's branded terms. Affiliates, not using the brand of the merchant, lose some sales. However, they still make some cash. Terms of Service (TOS).It makes sense to add, in the TOS, words preventing affiliates from using things like, "official site", in their ads. Affiliates using "official site", and words like it, almost certainly cause confusion among consumers. How is the consumer to know who are affiliates and who is the merchant?What if the decision is made to prevent affiliates from bidding on brand names? The best bet is to give notice (typically 7 days). It give affiliates time to change their campaigns or adjust their bids. Merchants and PPC.Merchants, running an affiliate program, need to consider PPC campaigns on their own brand name. On the other hand, an affiliate program serves as an outsourced PPC program. This happens for two reasons.
Conclusion.Allowing affiliates to use the brand of merchants/sponsors is a business decision. It depends on what strategy is used to advertise the product and potential branding issues.There are pros and cons to affiliates using brands. It is important to consider how each approach affects sales, before setting guidelines for affiliates. Xanga Myspace LiveJournal | free pics images | free My space Backrounds |