Affiliate Merchant

How Do I Choose a Merchant?

Stand-Alone Affiliate Program(independent):
An affiliate program runs "in house" by a particular merchant. This merchant handles the contracting, sale, record keeping, and payment process.
Solution Provider:
A company, such as Commission Junction or BeFree, that assists merchants in the affiliate marketing process. Usually, the solution provider acts as an intermediary between the merchant and affiliate, and handles most business matters such as regulating contracts and cutting checks.
Stand-alone affiliate programs
A stand-alone, or independent, affiliate program, is one run "in house" by a particular merchant. This merchant handles the contracting, sale, record keeping, and the payment process. You may refer to the following affiliate program directories for details on independent programs:

2-Tier Affiliate Program Directory

TOADS: The Online Affiliates Directory Service

Associate-it

AssociatePrograms.com

CashPile

Webmaster-Programs

Reasons to use a stand-alone affiliate program

There are several good reasons to consider using a stand-alone affiliate program. Here we will focus on the most important considerations:
1. Access to unique items. Artists and craftspeople frequently cannot generate the volume of product to support a large affiliate program. However, these merchants can benefit from highly targeted affiliate sales made by a select group of affiliates. If you have a site dedicated to Shaker craftsmanship, for example, and want to sell hand-made Shaker-style chairs, then you should consider finding a quality artisan with a highly selective group of affiliates.
2. Access to non-traditional items. Some items, while mass-produced, do not always appeal to the majority of Web surfers. However, if your highly targeted niche site focuses on a sub-culture, such as role-playing games, then you should work with a merchant who caters to this community.
3. Ability to work more closely with a merchant. Independent merchants, especially those with highly selective affiliate programs, work with fewer affiliates and are therefore often more accessible than the large solution providers.

Reasons to avoid independent merchants

1. Time management. As an affiliate, your time is valuable. Working with a number of independent merchants takes longer than working with many merchants combined under a solution provider.
2. Reliability. Independent merchants vary in their experience level and reliability. Be certain to read and understand the contract when signing on with an independent merchant. Independent merchants work without the guidelines put forth by solution providers and, therefore, may have holes and inconsistencies in their program even they don’t recognize.
3. Grievance and Mediation. When working with an independent merchant, be certain to understand the process of grievance and mediation. Often, the merchant acts as his own mediator in these situations, which may be unfair to the affiliate.

Solution providers

If you don’t use a stand-alone program, then you will want to consider solution providers. Companies such as Commission Junction (http://www.cj.com), and Linkshare (http://www.linkshare.com) assist you in the affiliate marketing process. Usually, the solution provider acts as the intermediary between the merchant and affiliate, and handles most business matters such as regulating contracts and cutting checks. If you’re interested in this approach, you should also refer to the following companies:

Be Free, Inc.

Cyberbounty

Reasons to choose a solution provider

1. Variety Solution providers offer access to a wide range of programs and an extensive array of products.
2. Time management Solution providers consolidate the tracking and payment of a number of merchants, making tracking a one-stop experience for the affiliate.
3. Reliability Reputable solution providers have the experience and funding to reliably serve their affiliates.
4. Grievance and mediation Solution providers sometimes act as mediators between merchants and affiliates, providing a more impartial way to settle grievances.

Reasons to avoid solution providers

1. All of your eggs are in one basket. In the unlikely event that your solution provider would shut down, your entire affiliate marketing framework will crumble.
2. Merchants are less accessible. In a large solution provider organization, the individual merchants and affiliates can remain at a distance.