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How To Choose the Affiliate Software That is Right For You

by: Peter Koning

With online advertising forecast to grow by 30% this year, the affiliate marketing segment is expected to grow in line with this estimate. Merchants are expected to either add affiliate marketing to their existing online sales channels or upgrade their platforms to expand their existing programmes even further.

A key part of running a successful affiliate program is being able to manage your affiliates efficiently and cost-effectively. Thankfully, there are software products to help you do this. The trouble is, with dozens of different affiliate software suppliers offering a wide range of features, functionality and pricing, how do you choose the right one?

There are six main types of affiliate software, each with its strengths and weaknesses. Once you choose and implement a particular solution, it can be complicated and expensive to switch. Be sure to do your research beforehand and choose a program that meets your needs both now and for the future.

1. Stand-alone Software
You pay a one-time fee to own the software. You install it on your web server where it integrates with your other systems, such as your e-commerce and CRM components.

Pros: Typically has extensive features and functionality. Ongoing fees are minimal and do not change with the size of your affiliate program. Affiliate links show your domain address because the software is hosted on your server. As more affiliates create more inbound links to your site, it can have a positive effect on your search engine rankings.

Cons: Requires installation, which you will need to pay for if you cannot do it yourself. Having the software on your server may require a bigger web hosting package, resulting in higher hosting charges.

2. Hosted (ASP) Software
The software is provided as a service by a third party. They host it on their server and you pay to access it.

Pros: Upgrades are typically included and are rolled out as soon as they are available. Requires no technical skill as installation and hosting is handled by the vendor. Upfront costs are lower.

Cons: Ongoing monthly fees are usually based on volume of transactions. As your affiliate program grows, your costs may grow as well. Some vendors may not allow links that go first to your domain � reducing the added benefit of inbound affiliate links and search engine positioning.

3. Affiliate Networks
Again, the software is hosted and provided by a third party. You also gain access to an established community of people who are actively looking for affiliate opportunities.

Pros: No technical skill or maintenance required. Instant access to a large pool of potential affiliates, which can help build your program quickly. Usually the network handles the administration of the entire program, including affiliate payouts and reporting. You do nothing but upload your affiliate offers to the network site.

Cons: The network takes a relatively high transaction fee on each affiliate sale. Minimal options for customizing the program to your specific needs.

4. MLM Software
Multi-level marketing (MLM) is often considered the �black sheep� of the affiliate marketing concept. However, there is significant overlap between MLM and affiliate marketing. MLM talks about a �downline� whereas affiliate marketers refer to their sub-affiliates. Same concept, different name. Since there are software packages to manage an MLM business, you should not overlook this possibility for running your affiliate program.

Pros: Excellent for managing an affiliate program with multiple tiers.

Cons: There�s a certain stigma attached to MLM. Potential affiliates may be scared away if they discover you are using MLM software.

5. Shopping Carts
Shopping cart software allows customers on an e- commerce site to select items they wish to purchase and store them in their virtual shopping basket, before paying for their purchase in one electronic transaction. Many e-commerce shopping carts include affiliate management features as either a standard or add-on module.

Pros: E-commerce and affiliate management functions are integrated into one program, making maintenance easier and less expensive. The affiliate module is not typically based on volume so fees remain the same as your program grows.

Cons: Affiliate management is not the vendor�s primary focus so the software may have less functionality than other software options.

6. Web Site Builder Systems
These all-in-one packages usually bundle web site building tools, web hosting, e-commerce and affiliate functionality.

Pros: Can help you launch a complete e-commerce site from scratch very quickly. Little technical expertise required.

Cons: Paying for many different services as one lump sum means you may be overpaying if you only want one or two pieces. Again, affiliate management is not the vendor�s primary focus so functionality may be limited.

Whether it is the effectiveness of cookie tracking, the booming popularity off RSS and datafeeds, or companies using the latest tools in fraud and parasite detection, it�s critical when choosing an affiliate provider to work with a company that is going to adjust to the market. The affiliate software solution that works best for you will depend on your affiliate strategy and requirements. Think about your needs, do your research, and choose wisely.

About the author:
Peter Koning is the founder of He has been active in the international IT, telecom, and Internet industries for over 20 years.

Want to compare affiliate software? Merchants can compare affiliate software side-by-side and make affiliate software comparison charts for free at

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Tracking and Measuring RSS Feeds
by: S. Housley

Measuring and tracking RSS while a fairly simple concept, is really anything but. Unlike websites, RSS have the added caveat of potential syndication, making accurate tracking a challenge to anyone but the extremely tech savvy.

It is not unrealistic for marketers to want to know how many subscribers they have, which items in their feeds attract the most interest, or how many click-throughs are generated as a result of an RSS feed.

There are a number of 3rd party providers who focus on tracking the consumption of RSS feeds. Some solutions are rudimentary but likely sufficient for a small business testing the waters with RSS. Other RSS tracking solutions are more complex and while they can come close to being accurate, with syndication there is no solution that tracks with 100% accuracy.

Techniques Used to track RSS Consumption

Small businesses can view web logs to provide information on how many times a specific file (RSS feed) is requested. The logs and information is rudimentary but will give a basic sense of a feeds success. Many 3rd party tracking options have additional tracking information available.

Hosting

The most common method to track the number of feed accesses or individuals accessing a feed is to use a 3rd party feed host. Companies like FeedBurner essentially track feeds based on accesses. The downside to using a 3rd party like Feedburner, is that the url is a FeedBurner url and any PageRank or popularity associated with the url will benefit the feed host rather than the feed creator. Additionally, no distinction is made between unique views or syndicate feeds.

FeedBurner provides a free no frills service to host RSS feeds and they have been proactive in circumventing user concerns. Recently implementing a service that eases users concerns about migrating from FeedBurner. There is a 3 step process for users interested in migrating from FeedBurner's free service, implementing a permanent redirect, and url forwarding.

Details can be found at: http://www.burningdoorc.om/feedburner/archives/001251.html

Some publishers, who were concerned about lock-in or wanted to retain control of the domain and feed urls often resist a hosting service. The new program FeedBurner Partner Pro is not free, but allows for users to point to their own domain, retaining complete control of their feeds without sacrificing statistical tracking.

The downside to using a service like FeedBurner is that some filtering applications used on corporate proxy servers block feeds residing on FeedBurner or other free hosts.

Redirects

Companies like SyndicateIQ have more complex tracking solutions that generate unique urls for each subscriber. The tracking benefits to such a customized solution is obvious. Individual user habits can be monitored and any users abusing their access and inappropriately syndicating a feeds content can have their feed turned off. The downside of course is that the success of RSS is in a large part due to the anonymity. Users don't want their personal habits tracked.

Considering the venture capital interest in these 3rd party hosting services. It is important to note that their value is in the data that they collect. As with any 3rd party service, it goes without saying that publishers should read the privacy policy carefully, be aware of who owns the rights to the collected information, and how that information might be used. It goes without saying that the value in many of the free services currently available lies in their aggregate data.

Uniquely Named Transparent Images

Uniquely named transparent 1x1 graphics can be added to the description field of an RSS feed. Users can use standard web logs to see the number of times the image is viewed and determine the number of times the feed was accessed.

Companies Specializing in Tracking and RSS Metrics

Pheedo - Pheedo creates tools that enable individuals, organizations and corporations to promote, analyze, and optimize their weblogs and content.

http://www.pheedo.com

SyndicateIQ - SyndicateIQ's position in the content distribution chain provides clients a set of analytics.

http://www.syndicateiq.com/

FeedBurner - FeedBurner offers a full range of services to help you build awareness, track circulation, and implement revenue-generating programs in your feed(s).

http://www.feedburner.com

Each individual using RSS needs to make a decision of the extent and importance of the analytics they require. Realizing that any system they employ is not going to be perfect.

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