affiliate marketing blog  

How many networks are there now?  At least a few thousand.  And a continuing trend we’ve been following is the propensity of networks built out of network affiliations.  What?  You got it.  There are Affiliate Networks that are nothing but a network who’s entire portfolio of offers are in reality nothing but that network being a member of many other networks.

So what’s the point?  We think it’s consolidation.  Now think about this for a little bit.  The longest chain you probobly have right now is yourself, being an affiliate of a number of networks and enrolled in multiple programs across multiple networks.  Each with either in-house or OPM management.  It’s very easily feasible that your dealing with 10 managers for 20 programs on 12 networks and you have 20 or more sites running.

What’s the path of least resistance all around?  Shedding unprofitable relationships and consolidating your offers and management.  Which is why (we think) that so many of the newer “network of networks” are owned/operated by OPM’s.

By being enrolled in a hybrid model like this the network (of networks) is consolidating offers, management, etc. and your dealing with fewer people to be able to either reduce your workload or increase the number of offers/sites your creating.  Not a bad concept.  There is also a “dual edged sword” effect where in the long run costs will be driven out of the system (leaving more money for the merchant, the network, and you) or that this is the harbinger of an industry wide consolidation.  Where your options will be reduced.

If I had nearly unlimited funds, I’d build a network of networks myself, buy a coupld strong OPM firms, buy a couple regional ISP/Hosting companies for infrastructure, toss in a couple agencies (Advertising and Social Media) and wring all the shared costs out of the system.  Then use the cost savings to increase affiliate payouts and build the company itself.  It wouldn’t take long for someone with big pockets to literally drive the entire marketplace into a model like this.  And I do believe it’s already underway.

The big questions are if the merchants will go for it, if affiliates will see the consolidation as a profit opportunity, and if the existing “network of networks” companies continue to increase in number / scale or not.