Adam Viener’s Thoughts on Affiliate Acquisitions

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Jun

Adam Viener’s Thoughts on Affiliate Acquisitions

June 6th, 2007 by James Omdahl

Where is this all going? Yesterday my boss Mike asked if I had heard about LinkShare acquiring Traffic Strategies.com, a PPC affiliate. I hadn’t, and to tell you the truth, I didn’t think much of it. That is, until I read Adam Viener’s post on the topic.

Adam points out that this transaction could be a harbinger of things to come in the affiliate space. As many people close to the affiliate business would attest, major networks are facing some serious threats to their long term survival (CPA networks like Azoogle, in-house affiliate programs like the one eBay just started up, etc.). By acquiring affiliate companies the networks can “lock in” the skills, talent, and profits that come from a successful affiliate venture.

It will be interesting to see if there will be more super-affiliates getting purchased by networks…or maybe even by merchants themselves. Also, I’d be curious to see if a company like Traffic Strategies.com will be able to operate and flourish under the wing of an affiliate network or if the corporate interference will lead to the defection of key employees. Affiliates don’t seem to be the type who like to work for “the man” - and every impression I’ve gotten of LinkShare is that they are very “the manish” (yes I just made that word up).

What are your thoughts? Do you think LinkShare made a smart move here? Do you see this being the start of an emerging trend or just a one-off that will fizzle down the road? I’m interested in what you’re thinking, so leave a comment.