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Disadvantages of affiliate network service |
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The affiliate merchant
losses control over his
affiliate campaign
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The affiliate merchant
has no control over money in
the campaign as payments are
done by the affiliate
network provider
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In most cases affiliate
merchants have to pay hefty
setup fees
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A merchant company will
have to pay a small
percentage of money on all
the commissions paid by the
network.
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Generally a network
service provider may need
the affiliate merchant to
deposit money in an escrow
account
If an affiliate merchant decides
not to use an affiliate network
service, he has to invest huge
sums of money in purchasing and
running an affiliate tracking
software in his server, tracking
leads on his own and making
payments. But in this case the
investment is one time and the
merchant has total control over
his money.
So it seems that both functions
have their pros and cons and
it's the affiliate merchant who
after analyzing the long term
results has to make a decision
as to which way to go.
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