April 2, 2008

Insurance companies pulling out of affiliate marketing

by Brian Turner

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Looks like the Credit Crunch is impacting insurance affiliate programs, as a number of insurance companies either downsize of close down their affiliate programs.

Sheila’s Wheels, First Alternative and Click4Group insurance affiliate programs all closed down on OMG yesterday, and now Norwich Union has announced a downsizing of commissions on car and home insurance payouts.

The move comes as the Credit Crunch continues to wreak havoc in the finance industry, as different financial institutions look to hoard their cash to ensure liquidity in the face of mounting investment losses.

It doesn’t help when the economic outlook looks steadily worse as well for business across the UK, Europe and USA.

Even still, it’s probably something of a warning that the smaller insurance companies and products are being removed - the danger is that we could see a larger trend at work here.

It’s already well known in the marketing industry that major banks, building societies, and insurance companies have been increasingly turning to SEO as a marketing strategy.

In doing so, they are slowly but surely displacing their affiliates from prime marketing positions and setting themselves up there in a more cost-effective manner.

The result could see affiliate marketing for insurance in the UK seriously undermined, as affiliates have to increasingly compete for Longtail positions as prime keyword positions become inaccessible.

However, after badly managed SEO campaigns for Gocompare.com, Kwik Fit, and Liverpool Victoria left those companies kicked out of prime keyword positions on Google, it remains to be seen whether the financial sector’s relationship with SEO remains experimental or long-term.

In the meantime, insurance companies are slowly but surely increasing their pressure on affiliates as they look to downgrade their affiliate programs, and increase their overall internet presence directly.

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Story link: Insurance companies pulling out of affiliate marketing

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