If you’re going to be relying on networks and advertisers to pay you, you want to ensure that you spread the risk of not getting paid as evenly as possible. Very few business owners have the guts to manage 10+ networks in order to mitigate risk. Why? Because it’s hard work. It’s the same stumbling block that comes up when entrepreneurs are faced with the challenge of translating their banners/creatives into all the different languages they run offers in: It’s a no brainer to translate everything, but very few do it. People stick to AU and UK, thinking they are staying safe with their “native tongue” countries… they’re both English.
Rather than sticking to a single network and risking a large chargeback, there is a better way.
The question to be asking here is: How can I spread my risk so evenly that if a network doesn’t pay me for one payment cycle I can pause all their campaigns, continue making as much money and afford to lose that last payment?
Now keep in mind that the answer to this question is defined by the elements of the question. The longer the question the better. We could have also added to the question “and how can I achieve this automatically without investing more than 1-2 extra minutes per week?” – but let’s not make answering the first question harder than it already is.
Let’s break down the question.
To really answer this question we are going to need to create a number of systems that will work automatically for us. We don’t want to just run all over the place, applying to any networks… we want to be organized about it and make sure we collect all the money owed to us.
First, you need to spread your risk. Best way? Run offers from multiple networks. You don’t have to stick to just 2-3 networks. Let’s say you’re running casino or gambling offers. You want to have 1-2 networks where they will bring on an offer for you. You can also run offers a Aragon Advertising, Mundo Media and Adsimilis. These will likely be your A+ networks, but there is nothing stopping you from doing $100-300/day at a bunch of smaller networks that have less offers or less direct ones.
There is no doubt that spreading risk can require additional work. This can be countered by keeping things organized and up to date. I like spreadsheets. You may prefer Google Docs or text files. Whatever it is, you want to keep all network information in an organized fashion. Then, every week, you check the spreadsheet and ensure that everything is in order.
The next part of the question is: “so I can pause all campaigns”. If you’re not using your own post back tracking platform you have a serious problem. With your own tracking you can easily redirect traffic from one offer to another at the click of 1-2 buttons. It’s very simple. A client of mine once setup their backend so that all they had to do was click the “pause” button and traffic automatically redirected to the next offer in the queue.
However you choose to do it, you want pausing campaigns to be effortless and painless and to have as minimal of an impact on your bottom line as possible. There’s no fun in pausing a campaign when the pause requires 10 minutes of switching links. In fact, if that was my setup I wouldn’t run with 10-15 affiliate networks + 5 direct advertisers because there would be too much work involved in pausing offers. So in a way, the spreading risk part and the pausing offers system go together.
The last part of this issue that is important to consider is the “afford to lose that last payment”. If your idea of spreading risk is to send 75% of your traffic to one network/advertiser and 25% to 8 other networks… then you’re not really doing yourself a service here. Now, if your margins are really high then this is an option that could work. Remember to factor your margins into your calculation of risk spreading.Share