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PPC Restrictions, Keyword Bidding in Affiliate Programs
Affiliate Marketing
By: David Tan on 10 April 2008
Most Merchants limit affiliates from competing with them for specific PPC keywords. Some merchants even refuse to let affiliates drive traffic to them through PPC ads. It is understandable that merchants do not want affiliates to grab any portion of the traffic from search engine marketing. Otherwise it becomes counter productive to starting an affiliate program as it may reach a stage where a significant percentage of the sales that they will get from search engines, goes through affiliates, and costing them commissions and network fees.

Some affiliate might also rank higher than merchant's. What then? Consider if there are 9 other affiliate sites that promotes your product ranking in the same top ten listing as the merchant (which maybe rank 2nd). Would that be ok, since 90% of the clicks comes from the top ten sites in serps? We would not expect the merchant to have that much time, energy and money to start other duplicate sites and getting them to rank at the top. Wouldn't it be better if all that work is done by affiliates?

Ofcourse, that is if you have such 'valuable' and dedicated affiliates.

1 Comment(s)

Personally, I would let my affiliates do their job. I can understand that some merchants have very extensive PPC programs, even outsourced to PPC companies and they don't want to pay commissions on orders they can get themselves. However, I believe that open competition would always be result in better performance, so, yes, David, I agree with you.
By Ezer Ratchaga on 10 April 2008

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