In the day and age when everything and anything is being outsourced, you might wonder if you should administrate your affiliate marketing program in-house or if you should sign up with one of the many services that are currently on the Internet and which permit interested vendors to display their programs while then matching them with interested affiliates. While there is no straight answer to this question, by and large it appears that small, home based businesses and other small time entrepreneurs will seek to keep the programs close by to save a bit of money while the midsized outfits will gladly farm out this venture.
By and large, businesses have found that putting a buffer between them and the plethora of affiliates they might attract is a good idea to save time, money, and also headaches. While it would be kind to think that only responsible entrepreneurs and webmasters will seek to affiliate themselves with you, the sad reality dictates that you will also get a fair share of shady characters that might try to take advantage of your program.
Having a third party administrator therefore serves a twofold function: the company will check out the individual affiliate websites and their compliance with the rules set in place by you and them, and the company will handle the compensation tracking and payout generation. Thus, your hardworking accounting personnel does not have to field emails or phone calls from an affiliate who feels she or he was shortchanged $2.25 and instead leave someone else to deal with these situations.
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