Diversifying your affiliate portfolio
We asked a few gambling affiliates 1 question: Do you have non gambling affiliate websites and do you think it is important for gambling affiliates to diversify their portfolio?
Some affiliates don't like to have their eggs all in one basket.
So the question for most gaming affiliates is should they have sites in other markets or focus their time and energy onto one site or just gambling?
With Black Friday still wreaking havoc in the industry, mainstream affiliates and marketing starts to look better each day.
This is especially true for poker affiliates but casino, bingo and sports betting affiliates are feeling some of the effects of the black friday poker domain seizures.
Graham from bestcasinosonline.org says:
I do have several non-gambling affiliate websites that I have been working on for the past few years.
I think it is very important to diversify as we have seen from many past events such as UIGEA and Black Friday that the gambling industry can be quite unstable at times.
I believe that as gambling affiliates the skills we learn in this industry are invaluable and can be applied to many less competitive industries where there is a lot of money to be made.
I have always been a firm believer that it is not good to "stick all your eggs in one basket" so it is important to have some side projects on the go to fall back on incase we continue to experience even more issues in the gambling affiliate industry.
Judd Muir from juddmuir.com writes in:
I actually started out in the travel vertical, with several hotel affiliate sites.
After Google's 2005 Florida update, which wiped almost all travel affiliates out overnight, I belatedly understood the value in having a diversified portfolio!
Given the recent events in the online gambling world, I think it is essential to have web properties in other markets - and bear in mind that experience gained in the ultra-competitive gambling world should translate to success in other less-competitive markets :-)
Jeremy Enke from PokerAffiliateListings.com writes:
Yes, I have websites in a few different niches outside of gambling.
With the current uncertainty in the online gambling market, it makes sense to be looking into different niches and industries.
Likewise working in the competitive affiliate market of online gambling, it makes it easy to attain success in industries that are much less competitive.
For example, I started promoting precious metals earlier in 2010 and found that ranking for certain keywords and driving traffic in this market was exponentially easier than online gaming.
Do you have a non-gaming affiliate site or are you considering starting a new one?
If so contact us if you want to be quoted for the next article.
A diverse affiliate portfolio is one of the most important aspects of running an affiliate program, and it is something that every affiliate manager should understand.
That is why it is important to look at affiliate diversity and how it can be applied to an affiliate program to help a company establish a successful platform.
Affiliate programs with a well-diversified affiliate portfolio are the most effective and long-lasting.
Such programs are not relying on just one or two affiliates to generate the majority of their earnings.
Instead, they have a well-balanced portfolio of different types that contribute to the program's objectives.
Definition of Diversification
Diversification is a growth strategy based on risk management concepts. The concepts of diversification are just as applicable in affiliate marketing as they are in current investing strategies. Affiliate diversification is, at its core, a technique that allows a brand to access new and varied consumers while also reducing program risk.
When used correctly on an affiliate program, it prevents one or two affiliates from generating a large amount of the program's earnings.
Diversification eliminates any risk to the program if an affiliate leaves the advertiser for whatever reason.
Diversification has a dual purpose in affiliate marketing: it manages risk while also maximizing a program's potential.
How to maximize an affiliate program’s potential using diversification
Diversification allows an affiliate manager to experiment and test different promotional tactics from a wide range of affiliates.
Understanding these approaches and their relevance to a business may help create an affiliate strategy and offer up chances for a brand to reach a broader audience as the affiliate channel continues to grow.
A brand's potential is blocked by a restricted emphasis on the affiliate channel.
Only a few affiliate promotional tactics, such as bloggers and loyalty programs, may be used by a brand or shop. However, it restricts the channel's and brand's possibilities.
Instead of limiting the channel to working with two or three affiliates, companies who are open-minded about exploring alternative promotion techniques can decide if the possibility matches with a brand.
Affiliate marketing has a lot of advantages, one of which is the freedom it provides. It may help shape your affiliate strategy by exposing you to different sorts of affiliates and their advertising tactics.
Working with a few coupon affiliates may bring a lot of value to your affiliate program and help you meet your objectives.
How can an affiliate program start diversifying its portfolio?
The first step for an affiliate program manager is to develop an affiliate strategy and create program goals and objectives in line with it.
This might include leveraging the affiliate channel to find new clients for a business or maximizing income.
It is critical for brands to spend time learning about the various promotional tactics utilized by affiliates on the network.
Following these steps will aid in the development of high-value and long-lasting dialogues and connections between merchants and affiliates.
It is recommended to use more than two affiliate types to maximize the affiliate channel's potential. Instead, look at the possibilities that different affiliates may provide for a company.
Comparison websites may be a powerful tool for attracting new clients to a website.
Specialist coupon affiliates, along with an effective coupon strategy, may also help in the achievement of program objectives, such as increased AOV or new customer acquisition.
The benefit of the affiliate channel is that different types of affiliates will reach out and seek to establish a partnership with a brand.
In essence, because the channel is organically diversified, you may use it to help build an affiliate program. Reach out to a wide range of affiliates to see if they are interested in creating a partnership.
Be aware of the advantages and disadvantages that each of these affiliates offers. As a performance channel, affiliate marketing has the advantage of allowing you to experiment or test different advertising tactics for a program with no risk.