Industry News

Find out why the Internet industry is buzzing with excitement about Affiliate networks. Don't take our word for it; just read what the industry experts have to say:

"The Parting of the Portals", Forrester Research predicts that 57% of all online ad spending will flow to vertical sites and affiliate programs by 2004.

In a study of online advertising, affiliate programs were ranked highest on the scale in terms of effectiveness, while banners came in second to last. Banners were ranked the most popular form of online advertising, while affiliate programs were ranked last on the list of 13.
---Forrester Research

Forrester Research predicts that affiliate programs and affiliate networks will represent 20%, or $53 billion, of e-commerce sales by 2005.

The partnership networks known as "affiliate programs" prove more effective and less expensive than more primitive advertising methods such as banners.
---Forrester Research, September, 2001

Today's burgeoning affiliate marketing programs delight online merchants. Retailers will extend these content partnerships into cooperative eCommerce relationships to share traffic, content, merchandising, and revenue.
---Forrester Research, October 1999

Portals and affiliate programs will drive almost half of online retail sales by 2005 as they become eCommerce brokers -- new intermediaries that support retailer sales efforts and guide consumers through the buying process.
---Forrester Research, March 2001

Cheap, targeted programs like affiliate networks and e-mail are the best ways to drive on-line traffic today. As the Web matures, marketers will adopt synchronized advertising: using multiple media to drive customers through the buying cycle based on their personal traits.
---Forrester Research, April 1999

"By 2002, 25 percent of the expected $37.5 billion in Internet retail sales, not including autos, will have originated on affiliate sites."
---Jupiter Communications

Commerce players must develop a diversified distribution strategy that leans less on portals and more on affinity sites, affiliate programs, and off-line marketing.
---Jupiter Communications, March 1999

Merchants must increase affiliate sales in order to decrease customer acquisition costs. To accomplish this, merchants must focus human resources on maximizing the sales of the top 15 percent of affiliates, which drive 85 percent of sales. Service must be automated to the remaining 85 percent of merchants.
---Jupiter Communications, December 1998

Among all categories of online commerce players, financial service providers have embraced affiliate programs least enthusiastically. Lead-based affiliate programs can avoid regulatory hurdles and offer financial service providers an inexpensive means of customer acquisition.
---Jupiter Communications, January, 1999

Some people think affiliate programs are just about making money. Others understand that a vast network of small businesses, schools, and worthy causes are using affiliate programs to help finance their own efforts. Most affiliate programs can generate significant traffic and revenue from small niche sites.
---Declann Dunn, CEO AdNet International, October 2001

Affiliate marketing is one of the best online marketing programs available for small businesses. Why? There's no risk. You only pay if the customer makes a purchase, signs up for your newsletter, joins your emailing list or whatever product or service it is that you want that person to get. Unlike advertising, where you pay an up front fee with the hope it delivers customers, affiliate marketing programs let you pay only after the results are delivered. As a marketer, you have to like that.

Forrester Research reports that Internet businesses rate affiliate marketing as one of the most effective marketing tools for driving Web site traffic. Big online players like Amazon.com have turned affiliate marketing into a significant source of new customers. You can do the same for your small business.

With a small time commitment and little up-front financial investment, you can start a low-risk marketing program that has proven to be a great customer generator for larger online companies. Amazon has more than 450,000 affiliates sending them new customers. Smaller businesses should take a page from their book and get affiliated.
---Deborah Whitman, "5 Ways to Improve Your Company's Marketing Results", Microsoft bCentral

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