How to Grow Business Through an Affiliate Network
Posted: Wed Jan 22, 2025 10:01 am
Vice President for Children's and Jewelry Products at Inventive Retail Group, which manages the Mir Kubkov chain of stores
Developing a business through a partner network is an effective way to scale with relatively low costs and the ability to share the risks of developing new regions with a partner. If the partner is actively involved in the business, the brand will receive decent promotion in the territory and through its channels.
Maria Golenkova, Vice President of the Inventive namibia telegram database Retail Group, which is developing the Spanish jewelry brand Unode50 in Russia and the CIS countries, spoke about how to make partnership cooperation effective and comfortable for all parties and what mistakes companies make when developing a partner network.
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What is the difference between an affiliate network and a franchise?
A franchise implies that franchisees enter into a license agreement with the parent company and act strictly according to its instructions. The parent company dictates everything - from the design to the choice of location for the store and provides a clear algorithm of action. It strictly monitors how the franchisee fulfills the requirements. The franchisee has no autonomy, he is subordinate to the company.
A partner network implies the conclusion of a sales contract for the shipment of goods and more independent relations. The parent company develops a new point together with the partner, but does not control or strictly regulate its actions, but gives recommendations.
Brand partners may have certain requirements and guidelines that they are required to follow. There may be many recommendations, and the degree of their mandatory implementation varies. For example, compliance with a single brand style: design, packaging, content on social networks is often a strict necessity, but marketing activities are not.
Developing a business through a partner network is an effective way to scale with relatively low costs and the ability to share the risks of developing new regions with a partner. If the partner is actively involved in the business, the brand will receive decent promotion in the territory and through its channels.
Maria Golenkova, Vice President of the Inventive namibia telegram database Retail Group, which is developing the Spanish jewelry brand Unode50 in Russia and the CIS countries, spoke about how to make partnership cooperation effective and comfortable for all parties and what mistakes companies make when developing a partner network.
Subscribe to RB.RU in Telegram
What is the difference between an affiliate network and a franchise?
A franchise implies that franchisees enter into a license agreement with the parent company and act strictly according to its instructions. The parent company dictates everything - from the design to the choice of location for the store and provides a clear algorithm of action. It strictly monitors how the franchisee fulfills the requirements. The franchisee has no autonomy, he is subordinate to the company.
A partner network implies the conclusion of a sales contract for the shipment of goods and more independent relations. The parent company develops a new point together with the partner, but does not control or strictly regulate its actions, but gives recommendations.
Brand partners may have certain requirements and guidelines that they are required to follow. There may be many recommendations, and the degree of their mandatory implementation varies. For example, compliance with a single brand style: design, packaging, content on social networks is often a strict necessity, but marketing activities are not.