(This is a business case study. It will be used to guide discussions during the session: “To Affiliate or Not to Affiliate?” with co-host Steven of Grooby at the Paysite Meetup in London on Thursday, November 30th.)


Affiliate or not

The question was, “To Affiliate or Not to Affiliate?” Steven looked at the industry and saw two extreme positions. “There are a couple of famous companies from Montreal who are all about it…then, on the other side, you have me and other heavily brand driven companies,” Steven explained.

“But most of the industry is somewhere in the middle,” Steven continued. “The real question is how to get those affiliates that you REALLY want!”

What do those affiliates look like?

They bring sales and they don’t bother us for content or use our resources. This is the best affiliate.

“There are many ‘Penny Dreadful’-type affiliates to avoid,” Steven said, referencing the horror / supernatural stories that used to cost a penny in Victorian England. “They cost way more in resources than you ever make from them,” he explained.

Steven limits his tube submitters to one big guy and a small one. He denies every other request he gets. He doesn’t allow affiliates to use his branding or trademarks though he sees other companies in the industry that do.

Questions for the session:

  1. What type of affiliates do you want?
  2. How do maximize ROI?
  3. Do you focus more on building brands or affiliates?