Morpho Designs

To Market To Market! Who’s Slaughtering Whom?

Neil Shearing wants to know: Is the ClickBank system prone to abuse? In this post, Shearing talks about the deficiencies of ClickBank from a merchant’s perspective.

[A merchant] sees people buying a product, then asking for a refund, then buying again through their own affiliate link and getting, effectively, a 50% rebate.

My partner, Todd, recently relayed a similar horror story from the perspective of an affiliate. Several of his friends clicked on his affiliate link to order a product. Yet, ClickBank registered zero sales. Worse, when Todd wrote to ClickBank’s customer service, he was brusquely informed that his link must be incorrect! No further help was forthcoming.

Reports like these make me hesitate to endorse large networks like ClickBank. The concept of using a central clearinghouse (or, more correctly, a brokerage) to process merchant offers, affiliate activity, and marketing metrics is a good one. Amazon and Commission Junction are two examples of such networks. However, ClickBank is the premier network for downloadable products. But, in the face of indifference, what is a merchant to do?

I believe that one alternative to using an affiliate program - particularly for downloadable content - is to create or join a reseller’s network. It may be more work to administer, but the merchant cuts out the middle man and deals directly with the reseller. Simply by discounting the price of software licenses (or unlock codes for eBooks), the merchant can shift the marketing burden to the reseller, eliminate hijacked links (there are none!), and maintain complete control over who is authorized to market his products.

While shifting the burden of marketing is a logical consequence of using the reseller channel, that doesn’t mean the merchant can’t support his partners. He can offer them the same promotional materials he had been giving his affiliates.The end of hijacking is the real bonus: think of all of the resellers who allow their partners to “rebrand” the product as their own!

Finally, having control over who is authorized to market their products assures the merchant that his quality standards are maintained. Authorization could be permitted only after the prospective reseller meets certain criteria. For example:

• Reseller shows proficiency in use of the merchant’s product (particularly software)
• Reseller has a track record of providing complementary products and services
• Reseller agrees to periodic training, as when major upgrades are released
• Reseller implements a customer support system that adheres to merchant’s standards

If you have your own infoproduct, it may be worthwhile to set up your own reseller network. What if you’re an affiliate, like Todd? Do some research, using reseller along with your niche keywords. I’ve seen many companies’ reseller programs. Professionalism is one thing that stands out in stark comparison to many affiliate networks. Couple that with the benefits of avoiding affiliate-based hassles and you’re looking at a tempting alternative.