10 Reasons Why Agencies Should Offer Affiliate Management

Most Internet marketing agencies like those found on the SEOmoz.org Directory offer everything from pay-per-click management and SEO to link building services, but there is a gaping hole when it comes to affiliate marketing, possibly the most powerful online traffic source. This is due to the fact that most agencies are clueless when you mention the words "affiliate marketing." It is time for agencies to learn that managing affiliate networks for clients is not only a great way to open the flood gates to client websites, but it is also an exciting new revenue source.

Here are 10 reasons why Agencies should start creating and managing affiliate networks for their clients.

1. Clients choose payment metrics – Instead of strictly relying on the same old model of traffic generation such as CPM (cost per thousand) and CPC (cost per click), clients can choose how they want to pay affiliates. This could be pay per lead, pay per conversion, or even percentage of sale. With affiliate marketing, the payout options are endless.

2. Provide relevant traffic – Because most affiliate campaigns are set up to pay out for actual conversions, affiliates are doing their best to send traffic that is relevant and ready to take action. Affiliates build landing pages, provide resources, and add tremendous value to the sales process.

3. Safer than joining other networks – Some businesses have already been scammed by joining large affiliate networks because they do not have control over which affiliates are promoting their products. When it comes to detecting and preventing fraud, it is completely in the hands of the affiliate network.

4. Most clients have loyal partners – Some businesses are hesitant to start their own affiliate network because they are afraid they will not be able to find trusted affiliates. In reality, most businesses already have partnering websites that would serve as excellent affiliates. These partners can serve as an excellent foundation to a very profitable affiliate network.

5. Easy to manage – With the help of the right software, running an affiliate network can be pretty simple. It is important to use an application that has real-time reporting, fraud detection, and excellent affiliate management tools.

6. Cheaper than Pay Per Click – Because many affiliate campaigns only pay for conversions, little budget is wasted on clicks that do not move through to conversion. Developing bidding strategies and managing PPC campaigns can be an expensive endeavor.

7. Increase overall client visibility – Even when users do not immediately convert, a network of affiliates publishing banners and advertisements all over the web is sure to increase brand recognition. And the best part about banner views is that they are free!

8. Inexpensive to Run – There is little to no overhead in running an affiliate network. Other than compensating an agency to manage it and settling on a software platform, money only goes out when clicks convert.

9. Additional source of revenue – Affiliate marketing is an excellent new source of revenue to add to the agency portfolio. Charge clients per volume, per month, or for a percentage of payouts. The billing and revenue models are completely customizable based on the client, the product, or the offering.

10. Easy to sell – Because there is not a large upfront cost, it is easy to persuade clients to try out affiliate management services. Prove to clients that affiliate marketing will bring them increased revenue and they will be happy to pay for it.

Why not add virtual members to your team and start building affiliate networks for your clients? With targeted traffic and higher conversion rates your clients will be signing your praises.