Channel Conflict in Affiliate Marketing, Take 2.

by Scott Jangro on 01 February 2005

Back in December, I wrote about the problem of channel conflict in affiliate marketing and the problems that have come of both acquisition and retention affiliates being tracked in the same space.

I propose a technology solution that empowers merchants to track and compensate both parties in a manner that’s fair to all parties.

This week, there has been a good amount of discussion on this point. Carolyn Tang, in a style that ony she can pull off, likens the retention affliates to a “Skanky woman in stilettos”, swooping in as she’s about to bag a hottie, only to take him away at the last second. (Carolyn, you’re better off, trust me.). Is it right that someone can jump in at the last minute and take credit for a sale? I don’t think so. Carolyn also asks, “where do you draw the line in ethical Marketing?”

Shawn Collins also writes about discussions going on behind closed doors between Affiliate Managers and offers one solution, to take the retention affiliates out of the main program and track them separately in an in-house solution. Doing so acknowledges that these partners do add value, like “personal shoppers”, but also adds complexity in operating more than one tracking solution.

I hope that soon the networks will truly wake up to the issue and apply the resources that it deserves. They should start by implementing a tracking solution, even if internal only, that helps identify what real channel conflict exists. And if there is a significant problem, set up some more advanced program terms that allow merchants to pay more than one party for a sale.

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