Are affiliate schemes only for mediocre companies?

Posted by adi on Mar 1, 2009 in Default

I was thinking today about how word of mouth spreads and people share positive experiences about companies.  I don’t mean simply recalling a job done properly but a tale of exceptional customer service, a proper fan boy moment.  And it struck me that when you’re in that position you don’t need or demand any kind of bounty for sharing this news, you’re happy to do so because of the benefit it will bring your friend.

Twitter for instance has spread via word of mouth because of the value inherent in its service.  It didn’t need to pay people to talk about them, they were happy to do so because of the value it gave them and the value it could give their friends.  I could say exactly the same about Facebook or YouTube or Google.  Even Amazon now pay significantly less than other retailers in affiliate bounty yet still demand loyalty because of the service they provide.

So are affiliate schemes merely the attempts by the mediocre to buy into some of this word of mouth marketing?  Would their money not be better spent on creating a service that truly excited people to the extent that they will actively promote them without recourse to financial incentives?

Tags: Customer service, Online Communities, Word of mouth