Affilinet

Read an interesting news story in NMA today regarding the launch of Affilinet in the UK. For anyone who doesn't know, Affilinet is a German affiliate network. They have approx. a 32% share of the German market and are looking to become a top 3 UK affiliate network by the end of 2006. So what is their USP? And is there room for them in the UK market where there are already around between 10 to 20 major (depending on your definition of major) affiliate networks? Well apparently they are going to differentiate themselves by working with a smaller number of advertisers, 60. And also their pricing model will be based solely on performance. So no monthly management fees, setup fees or anything else, just a standard 30% overrider. So will it work? Well, they won't be the first network that operates on purely a commission basis. Nor will they be the only network that focuses on a small advertiser base. So what will make them different? Well, two things, in my opinion. The first is the talent that they are recruiting. Nicky Iapino is the MD and comes from a strong affiliate network background, namely Commission Junction and DGM. Its worth pointing out that Nicky left DGM well before their recent troubles. As well as Nicky there are a few other names being brought into the Affilinet fold that I respect and trust and who have been around for a while. This has to be a major plus for any affiliate when working with networks. As working with people you have a history with can go a long way in influencing your decision of whose links to promote. Especially if some merchants are on multiple networks. The second reason is that since they are in effect launching a new network they can identify and plug the gaps that other networks currently have and learn from their competitors mistakes. Be that in terms of reporting, serving of banners and links, payment issues, tracking etc etc. Conversely they can build and improve on what works well. So would I be worried if I was a UK affiliate network? Maybe. Not so much if I was one of the handful of networks who are doing things right and keeping merchants and affiliates happy. But if I was one of the mediocre networks then yes, I most definitely would be. In my humble opinion I think Affilinet will have a big impact when they launch in the next few weeks. Certainly cause for concern for some networks that have dropped the ball of late. What I'm listening to right now: Daft Punk - "Discovery"