Affiliate Revenue Information

Watch Out For Traffic Leaks


When promoting any affiliate program one thing that you, as an affiliate, has to watch out for is what is called traffic leaks. What is a traffic leak? A traffic leak is something on the merchants site that will cause the visitor, that you referred to their site, to get distracted and leave the merchant site, leaving you with no possibility of receiving any kind of commission.

Having traffic leaks does not mean the affiliate program is a scam or trying to cheat you. It is most likely that the merchant just doesn't realize what they are doing. If you are promoting an affiliate program that is not getting any sales for you, you may want to check for traffic leaks. If you find some then contact the merchant (in a professional manner) and ask if they would consider removing the traffic leaks from their site to increase conversion.

Here are a few examples of a traffic leak:

Advertisement Banners & Links
This is usually the most common traffic link. The merchant will put up a banner ad or two and some text links to "offset" their expenses. You do not want to promote an affiliate program that has this on their site. When you send a visitor to the site and they click the banner or text ad and go to the other site the merchant gets paid while you get zippo. Not to fair is it?

Order Phone Number
Another traffic leak is the toll free (or regular) phone number they put on their site to let customers call in their orders. But when customers do call in their orders you get stiffed on the commission. It is very easy to set up phone commission tracking. You should ask the merchant if they have any plans on setting up phone sale tracking. If they don't know how you can send them to me to show them how to do it.

Basically, you do not want anything on the merchants site that will drive your referred customer away to another site that you will not get a commission from.

Chet Brzezinski has been in the affiliate marketing and affiliate management industry since 1997. He owns two affiliate marketing related sites. One that offers affiliate program management & consulting services and the other affiliate program reviews, tips and resources.


MORE RESOURCES:

TechCrunch

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Wall Street Journal

AMC Networks Earnings Call Insights: Affiliate Revenue Growth, Ratings
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Two questions first on the affiliate revenue growth, 8% in the first quarter, two things there. Number one, it is an acceleration from your full year rate from last year. Does that acceleration represent some – or is that primarily due to some of the ...
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Advertising, affiliate revs lift Scripps: Revenue rose 11% to $535 million
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Scripps Networks Interactive, parent of Food Network, HGTV and The Travel Channel, said strong advertising and affiliate revenue boosted profit last quarter despite hefty programming costs. Net profit rose to $115 million from $101 million.

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News Corporation Reports Third Quarter Earnings Per Share of $0.38; Growth of ...
MarketWatch (press release)
Affiliate revenue growth of 15% at the domestic cable channels for the third quarter primarily reflects higher rates at all domestic networks, led by growth at the RSNs and FOX News. International cable channels' affiliate revenues increased 31% over ...

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Forbes

Disney Tops Estimates, Studio Swings To Quartely Loss On John Carter Flop
Forbes
Much of the increase came from greater affiliate revenue and advertising spending. In all, operating profit from Disney's media networks rose 11% to $1.7 million; the division, which includes ESPN, ABC Family and The Disney Chanel, is the company's ...

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Wikipedia Warns Users About Malware Injecting Ads Into Its Pages
PCWorld
In addition to injecting ads into Web pages, such rogue extensions are also known to hijack search queries in order to earn their creators affiliate revenue, said Graham Cluley, a senior technology consultant at Sophos, in a blog post Tuesday.

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TIME

The Walt Disney Company Reports Second Quarter Earnings
MarketWatch (press release)
The increase in affiliate revenue was due to contractual rate increases and a reduction in revenue deferrals related to annual program commitments. During the quarter, ESPN deferred $190 million of revenue compared to $262 million in the prior year ...
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Variety

Viacom net income spikes for quarter
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Affiliate revenue increased 15% domestically and 17% worldwide from a digital distribution deal with Amazon Prime for library content as well as rate increases. Execs anticipated affiliate revenue would be up 10% for fiscal 2012.
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Chicago Tribune
Affiliate revenue was up by 15%. Broadcast television profits fell $21 million to $171 million reflecting the absence of advertising revenues and operating profit generated from the broadcast of Super Bowl XLV in the prior year quarter.
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Viacom's CEO Discusses Q2 2012 Results - Earnings Call Transcript
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Our affiliate revenue is strong and growing, thanks to brands that remain must carry content for existing and emerging distributors alike. We are seeing encouraging signs of a strengthening ad market as we enter the upfront season.

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