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News Stories Tuesday, April 8, 2003   
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Ritz consolidates its affiliate management contracts


After a year of acquisitions, Ritz Interactive Inc. found itself with a large affiliate network and four companies that had contracts to manage those networks. Ritz this week consolidated its affiliate management relationships with ValueClick Inc.’s Be Free network. “Those relationships were unwieldy, difficult to manage and they didn’t give us the purchasing power that we would have under one umbrella,” Fred H. Lerner, CEO of Ritz Interactive, tells InternetRetailer.com.

In the past year, Ritz acquired CameraWorld.com, PhotoAlley.com and WolfCamera.com. All had their own affiliate networks. Making the most of affiliate relationships is important to Ritz. “Affiliate programs are a very strategic part of our business,” Lerner says.

Ritz chose Be Free in part because of its recent acquisition by ValueClick, which provides a broader array of marketing services. Lerner says Ritz, which also operates boating and fishing sites, will be able to take advantage of a suite of web-based marketing programs through one provider.

While Ritz reduced its number of affiliate managers, it also is taking a closer look at its affiliate network with an eye toward paring out the unproductive affiliates. “Our affiliate relationships operate a step above the 80/20 rule, more like 90/10,” Lerner says. “10% of the affiliates generate 90% of the traffic. We’ll be working with Be Free to identify those and work more closely with those that produce.”

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