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    PPC and Affiliates - Compete with our own Affiliates?


    We are now creating a more aggressive PPC program, now that our sites are optimized and our conversion rates have improved. However, we have affiliates who bid on several keywords and traditionally we have found that simply paying commission for sales from their kw bidding was more profitable than our own PPC program.

    Now that we have a better handle on PPC and have an actual PPC plan, should we disallow our affiliates from advertising for us on PPC, or should we go ahead and compete with our own affiliates?

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    EGOL
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    What kind of relationship do you have with your affiliates now? If you have a good relationship with them then letting them handle the PPC might be a good idea. I have close association with a few programs and the ones where I work the hardest (and have stuck with when recruited by competitors) are those who work really hard to fill their end of the job and allow me to work really hard on mine. They feed me product info, content, data, images, and I use that to deliver customers. I give them lots of good ideas in return. They don't want to compete with me because we are a team.

    Now, if you affiliates are simply hired guns with no loyalty then compete with them. You sound like you think that you can whip them... maybe you are overestimating yourself.

    Bottom line for you is... do you think that the effort needed to compete with these people will bring you an incremental return that justifies the time. Competition can increase expenses... will the bottom line for them change?

    Maybe you will compete with them but they will be delivering their sales to the other guy.
    * "It's not the size of the dog in the fight that matters, it's the size of the fight in the dog." Mark Twain
    * "Free advice isn't worth much. Cheap advice is worth even less." EGOL
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    It is important to note that you are not competing with your affiliates in the same way that you might compete with your competitors. Because the destination URL is the same, only one of your ads will display for any given search. So, you are competing with your affiliates in terms of which one of you gets to show up on the page, but this competition will not drive up your CPC in the way that competing with another site would.
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    Originally Posted by EReilly
    It is important to note that you are not competing with your affiliates in the same way that you might compete with your competitors. Because the destination URL is the same, only one of your ads will display for any given search. So, you are competing with your affiliates in terms of which one of you gets to show up on the page, but this competition will not drive up your CPC in the way that competing with another site would.
    Thank you ER I see what you mean. I supposed 'compete' is the wrong word.
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    Originally Posted by EGOL
    What kind of relationship do you have with your affiliates now? If you have a good relationship with them then letting them handle the PPC might be a good idea. I have close association with a few programs and the ones where I work the hardest (and have stuck with when recruited by competitors) are those who work really hard to fill their end of the job and allow me to work really hard on mine. They feed me product info, content, data, images, and I use that to deliver customers. I give them lots of good ideas in return. They don't want to compete with me because we are a team.

    Now, if you affiliates are simply hired guns with no loyalty then compete with them. You sound like you think that you can whip them... maybe you are overestimating yourself.

    Bottom line for you is... do you think that the effort needed to compete with these people will bring you an incremental return that justifies the time. Competition can increase expenses... will the bottom line for them change?

    Maybe you will compete with them but they will be delivering their sales to the other guy.
    Thank you for the reply EGOL. It's not so much that I think I can beat them, I don't see it as a competition. As far as I am concerned they are doing us a favor by bidding on our KW's and we are more than happy to pay the commission they earn.

    My question was one of direction. As our online marketing program comes of age and we expand our AdWords campaigns, what will happen when we run into items we'd like to advertise, but which our affiliates are already bidding on for us? Off the cuff, it's seems wisest to simply let them continue to handle this, which is why we've done exactly that. Of course, it doesn't hurt to explore alternatives.

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