Types of Partner Programs

Partner programs are “the next best thing” in the realm of the business-oriented Internet – such programs allow you to sell products of companies and manufacturers in exchange for commissions for selling them. This field is gaining massive momentum due to the fact that anyone can start selling online, the profits are high and the level of control is substantial.
In fact, the flexibility in defining the amount of work allows partners to regard the partnership itself as an additional source of income, or even make it the primary source of income for the partner.
At the core of it, the idea revolves around the concept of a company, that is offering a product, is able to save marketing expenses by allowing people and companies to sell and recommend the product (as a part of “word of mouth” marketing, or any other kind), the partners earn the commissions and the client is presented with a recommendation for a quality product that he has already been looking for, allowing him to purchase it, sometimes at a discount.
The market itself was divided into several types of partner programs that are publicly available, with two of them taking the lead: an internal partner program, being maintained by the company itself, and an external partner program, maintained by a mediator company.
This short article will examine the differences between the two leading models of partnership, while exhibiting their pros and cons, and recommending each to whom it may suit best. Enjoy your read!

Types of Partner Programs – Internal Partner Program

An internal partner program, or a program that is being run by the company itself, is characterized by the simple fact that the partner is engaged in direct communication with the manufacturer of the product. Whether it's a single person, who looks for agents to sell his products, or a major corporation that targets businesses for offering products down the line – there are only two sides to an internal partner program.
In such cases, it is advised to be acquainted with the company in advance, or better yet – with the product itself.

Types of Partner Programs – Mediator Companies

A partner program that is run by a mediator company puts a middleman inside the process. Both sides – the advertiser and the partner – contact the same company, that takes over the responsibility to match the two – charges the advertiser and pays the partner.
The business model of such companies is based on advertisers who contact them, paying them for the right to be exposed to partners. The partners, in turn, are exposed to a directory of companies they can choose to expose further. The monetary processes are conducted with the company taking over them.

Types of Partner Programs – Pros And Cons

The main advantage of an internal partner program is that it is conducted directly through the advertiser. No commissions are paid to any third party, and it is often possible to ask for assistance from the advertising company. Many companies offer marketing material and actual assistance to partners, as they are considered field agents of those companies. When speaking of Internet-based companies, you can often find marketing material such as banners and ads, for the benefit of Internet marketing. The commissions tend to be higher, as there is no need to pay any middleman.
The main disadvantage is that the activity is directed towards a single company – it is often impossible to run several partnerships using the same interface and sell products the company does not offer.

A partner program conducted through a partner company gives a solution for selling various products of many companies, providing the flexibility to choose the company you'd like to advertise. Additionally, dealing with finances with only one mediator is sometimes safer.
On the other hand, the fact that this model is available to the general public and it offers much choice, the commissions tend to be lower – and keep in mind that the mediator company makes its profits out of these commissions. The partner actually shares his profits with the company that exposed him to the partnership.

Types Of Partner Programs – Summary

So, what should you choose?
It is difficult to give one simple answer, as both models fit different perspectives and personal skills.
A partners program that is conducted by a mediator company often pays less, but allows you to choose several programs within the same interface and the same account. We feel safe to advise it to more experienced partners, as it takes skill to recognize the profitable partnerships and selectively pick the companies to advertise. It is sometimes a gamble, and sometimes the partner may find himself marketing products he is not familiar with. Novice partners will fail to choose the lucrative partnerships and lose time.
A partnership offered by a company is more advised to beginners, as often enough, such companies offer help and assistance directly to the partner. Additionally, a partner may find a stock of marketing material and tips for launching. As the commissions are often higher, the chances of creating a source of income in a prompt manner are significantly higher too.
Getting to know one major product and diverting all efforts on selling it will yield more profits than scattering between many products by several manufacturers, especially if you fail to know the products by heart.
Of course, it is possible to mix the attitudes - every partner in accordance with the time he has to spare, his skills and emotions in this regard. The secret of making profits is the ability to become flexible and match your practice to the market and the possibilities it offers at any point.
In any case, we wish all partners the best of luck and keep our fingers crossed for a quick revenue!