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What do you think of the future of affliate programs like Commission Junction?

So I just got this e-mail a few minutes ago:

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Hi Andrew,

I want to see what plans, if any, you have for an affiliate program in 2009?

We’re finding that marketers are increasingly turning to affiliate marketing in a bid to extend their online reach.  We have helped the best companies on the internet extend their online reach and increase profits. Many of our customers yield more than 20% of their online revenue through their affiliate marketing program.

Here is a link to a list of many of the top online retailers that have chosen Commission Junction for their affiliate marketing: http://www.cj.com/internetretailertop500/

Low Cost per Acquisition:

low

If you feel there is an opportunity for us to work together, I’d be glad to go over our services with you.

Regards,

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What do you think of affliliate programs like CJ. Are banner ads a dying form of advertisement that should be phased out? Or is it going to be something even as inbound markerters we should consider still important?

2 Comments

Affiliate programs could be very important ways for businesses to drive sales. Between ppc costs rising and conversions erratic due to parked domain and untargeted so-called “search” traffic and Google’s stranglehold on the search market businesses need to get really serious about diversifying the sources of their traffic and sales.

Affiliates need to provide value beyond creating coupons and displaying banners. The key to success for both affiliates and merchants is pre-selling related products from targeted niche sites containing quality content. See the blog for NoBogies.com for an example.

Affiliate performance marketing will be around for quite some time to come – it’s been around for a lot longer than the internet or even the computer – it offers a great customer acquisition cost, and let’s companies connection with consumers who are looking for them, not the other way around. Networks like CJ and Motive Interactive that connect these advertisers to the consumer though affiliate publishers will also be around for as long as affiliate marketing is.

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