VigLink Raises $800K To Take Hassle Out Of Affiliate Programs
Jason Kincaid
Jan 12, 2010

Most online publishers are at least vaguely familiar with affiliate programs, which can help them generate revenue from the stores and products they link to. Unfortunately, actually managing accounts with these programs can be a bit of a pain, and many people simply forget to use them. VigLink is a new startup that’s looking to help by automatically inserting affiliate links whenever you link to a product from your site. The company has just disclosed a $800K funding round it raised last summer that was led by First Round Capital and Google Ventures, with a number of angel investors including Reid Hoffman, Dipchand Nishar, Niel Robertson, Hadi Partovi, Ali Partovi, Carlos Cashman, and Micah Adler.

For those that aren’t familiar with them, affiliate programs are often offered by online retailers who pay you a commission to drive traffic (and purchases) to their webstore. Amazon is best known for their program, but many other businesses now feature them as well. VigLink looks to help you use as many as these programs as you’d like with a minimal amount of effort. The site is currently in a private beta, but plans to launch publicly in the next few months.

To start using VigLink, publishers simply drop a snippet of JavaScript into their pages. Then, whenever the publisher links to a valid product (say, some shoes on Amazon), VigLink will automatically convert that standard link into an affiliate link. The publisher still determines which stores and products they’re linking to — VigLink simply modifies that link to include the proper affiliate program URL.

VigLink further streamlines the process by maintaining its own account with these affiliate programs, and any publishers using VigLink are housed under these accounts. This makes it relatively easy for a publisher to get started (they don’t have to sign up for anything other than their initial VigLink account). But I’m not sure it’s a foolproof setup: if one publisher using VigLink starts behaving badly, there’s a chance that the affiliate program being abused will ban the entire VigLink account, which would affect all publishers using it.

CEO Oliver Roup says that the company is being as transparent as possible with affiliate programs to make sure that doesn’t happen. He also says that VigLink has a system that constantly monitors its publisher sites for spam, even long after they’ve signed up for the service (he likens it to the system Google’s AdSense uses).

VigLink generates revenue by taking a percentage of the affiliate fees it generates (the company hasn’t settled on an exact amount yet). Roup wouldn’t comment on any features that are in planning stages, but I suspect that they’ll eventually help publishers monetize by suggesting when they should insert affiliate links at logical places in their blog posts (say, when they mention a product). Likewise, VigLink could potentially offer a feature that would poll all of the affiliate programs in its system before inserting an affiliate link to determine which one would generate the most money for the publisher.

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  • Paul J

    Wow this is fantastic,

    I have always found trying to handle all the seperate affiliate accounts a real painful process, often tying myself down to just one account and thus limiting the spread of potential products.

    Add on to this the fact that my code would often have to try to determine whether a affiliate link was available for an item (across several affiliate networks) and try to auto generate it, overall this caused me great pain.

    With this, I can already see that several of the recent web ideas I have will now be possible!

    My only concern would be to how customisable the javascript will be where the link is generated. Ideally I would want full control over the link, what it looks like, what it says and how it is displayed.

  • John

    Wonder how much they’ll be shaving…

  • http://www.fanduel.com Nigel Eccles

    Impressive set of investors although the concept is identical to Skimlinks which has a 18 month head start on them. They seem to be on a roll so it shouldn’t be surprising to see more competition come into the market.

  • http://www.yukiba.com Travel

    great news now lets hope Roupe comes through

  • Finbarr Taylor

    Another idea I had a couple of years ago comes to fruition.

  • http://www.sriraj.org Sriraj

    Although the concept of viglink isn’t any thing new, getting funded by Google means a lot.

  • http://www.facebook.com/people/Leon_Laon/100000029411733 Leon Laon

    Not bad

  • http://sergekass.blogspot.com Serge Kassardjian

    Love the idea. Timing could not be more perfect with newspapers becoming networks of blogs and old media companies promoting and aggregating user blogs. Definitely think this is a great investment by Google and the First Round guys.

  • Tim

    Sounds a lot like that pirate entity kontera – wonder if they’ll have some silly crap like minimums per month too. Also, zero mention of it working with mobiles.

  • Ya-Bing

    You spelled Oliver’s name incorrectly…it’s “Roup”

  • http://www.nectarin.com Nectarin

    Skimlinks anyone?

  • Bayrider2000

    DrivingRevenue has been doing this in the states for almost 2 years. Skimlinks has been doing this in the UK for over a year. Is that all you’ve got Google?

  • Matt

    Amazon is missing from their list of “affiliate partners”. Anyone from the beta know if they have a relationship w/ them?

  • MatthewR

    Hopefully the automated link builder also makes sure it chooses to build the link through the affiliate for which you have the highest commission. I found that ensuring you are using the most profitable affiliate was one of the most cumbersome steps.

  • http://www.advertisespace.com Chad Randall

    sounds a lot like Chango to me?

    http://www.chango.com

  • http://styleguidance.com Andrew

    so how much do they charge for the service? Nowhere on the site do they mention that

  • Bastian Lehmann

    Isn’t that exactly what Simlinks is doing for quite a while now?

  • Bastian Lehmann

    Isn’t that exactly what Skimlinks is doing for quite a while now?

  • http://affiliateredemption.com Landon S Lang

    Impressive, this simple idea managed to get VC funded?

    I guess the golden age of the internet is REALLY starting. That aside, this should be a useful for affiliate managing tons of links.

  • Frank

    Sounds like it at least.

  • http://www.facebook.com/people/Paramendra_Kumar_Bhagat/621599484 Paramendra Kumar Bhagat

    This looks promising.

  • Ant

    Another article said that was still TBD.

  • http://www.kartme.com Phil Michaelson

    Perhaps now social media sites will have another way to monetize. I’m happy to see competition in this space, and expect to see great things from Oliver Roup.

  • http://www.facebook.com/people/Gijs_Bos/1032129882 Gijs Bos

    Always wondered why the social media sites didn’t come up with something like this. Now they can profit from all the brand chatter/pageviews that’s going on in their network. Wouldn’t surprise me if Facebook/Twitter came up with similar tools.

  • faith wren

    It only looks promising for publishers hoping to find money where there isn’t any.

    Consider this from the reader’s persepctive. They do not want more content monetised by sales, it changes the whole relationship between the reader and the publisher when what the publisher writes is monetised by sales. You virtually become a spin merchant and readers see that a mile off. Plus, affiliate programmes pay very little and payments are being reduced all the time, retailers are finding ways not to pay out to affiliates and that’s before an intermediary takes a cut.

  • http://www.mabailey.co.uk Matt Bailey

    This is exactly what Skimlinks have been doing for some time now, and building great momentum.

    The issue with this kind of technology from an advertisers point of view, is the perception that you are just monetising links that are there anyway. Therefore merchants end up paying for sales that were coming to them anyway.

    In order to combat this perception you require a strong account management element of the business that will work with the publisher base to generate incremental sales and demonstrate true value.

    This is something that Skimlinks have done very well in the UK and have given plenty back to the affiliate community as well as growing their own business.

    Maybe Viglink will be successful but they have a few challenges on their hands.

  • John

    Does this thing even work? I submitted a domain for report and no report even after 24 hours. Are you guys manually preparing the report and too much to handle or that was just a marketing buzz?

  • http://www.faffiliate.com/viglink-raises-800k-to-take-hassle-out-of-affiliate-programs.html VigLink Raises $800K To Take Hassle Out Of Affiliate Programs | The Best affiliate Blog

    [...] more on TechCrunch Related ArticlesBookmarksTags What software and/or company should I use to trade forex [...]

  • http://www.facebook.com/people/Frank_Farmer/776158039 Frank Farmer

    I’ve been seeing ill-behaved bot traffic from a crawler identifying itself as “viglink” running on an Amazon EC2 IP, since 6:40 PM PST Jan 12th.

    It’s requested thousands of non-existent URLs (looks like they have trouble parsing javascript) and bursts requests at up to 100 requests over the span of 20 seconds (5/sec, sustained). Legitimate search engine spiders (google, yahoo) never hit our servers at anywhere near this rate.

    If you’ve requested a “pre-sales report” from these guys, make sure to check your logs for traffic from 174.129.254.123 with the UA “viglink/Nutch-1.0″

  • http://www.facebook.com/people/Oliver_Roup/705684 Oliver Roup

    Frank – I’m the CEO of VigLink and I’m sorry our crawler is being ill-behaved, it’s certainly not our intention. (We completely respect robots.txt for example.)

    Your domain was requested for a crawl and as you mention, our crawler (based on Nutch) is struggling with your domain. We are turning off crawling this domain until we have the issue sorted out. The speed of crawl is a tradeoff between the attempts to be responsive to a crawl request, cover a reasonable sample of the site and not overtax the site in question. It sounds like we overstepped the mark in this case, my apologies.

    Please message me directly if you’d like to talk further about this

    Oliver Roup

  • http://www.facebook.com/people/Oliver_Roup/705684 Oliver Roup

    John – do you mind messaging me with the domain that has not responded after 24 hours? We are experiencing pretty heavy crawl load but to track this issue down it would be helpful to know the domain in question. Thx

    Oliver Roup
    CEO / VigLink

  • http://www.facebook.com/people/Oliver_Roup/705684 Oliver Roup

    Matt – We’re definitely sensitive to merchant concerns like this and have a number of programs we’re working on to add value as you suggest. We’re still in private beta at this point and have more to show before we open up more broadly. I will contact you directly to solicit your feedback.

    Oliver Roup
    CEO / VigLink

  • http://www.facebook.com/people/Oliver_Roup/705684 Oliver Roup

    Faith – The friction between editorial and advertisement has been around for some time and the financial issues in the publishing world show this issue is far from settled. That VigLink can be installed so simply makes it possible to install without changing editorial policy at all. (Versus for example, asking writers to affiliate potential links themselves.)

    We see ourselves as the least-intrusive possible solution for monetizing content and also the one that introduces the least distortion as far as changing the quality of editorial content.

    Compare for example the “double underline” providers who do considerable business but also greatly affect the experience of consuming content. VigLink appeals to a class of publishers who would like to monetize their content but are unwilling to permit this change to their site experience.

    I’m happy to engage further.

    Oliver Roup
    CEO / VigLink

  • http://www.facebook.com/people/Oliver_Roup/705684 Oliver Roup

    That is not all we’ve got. Stay tuned…

    Oliver Roup
    CEO / SkimLinks

  • http://www.affiliatexblueprint.com/affiliate-x-blueprint/viglink-raises-800k-to-take-hassle-out-of-affiliate-programs/ Affiliate X Blueprint

    [...] Read more on TechCrunch [...]

  • http://www.victusspiritus.com/2010/01/03/a-systemic-problem-with-sales-attribution/ A Systemic Problem with Sales Attribution » Victus Spiritus

    [...] VigLink Raises $800K To Take Hassle Out Of Affiliate Programs (techcrunch.com) [...]

  • http://buysellads.com todd

    two questions:

    #1 – how is this different from the handful of other companies who have tried this model and failed?

    #2 – how to they prevent their script from hijacking links for legit paid ads from the ad networks?

  • http://jp.techcrunch.com/archives/20100430posterous-starts-automatically-inserting-affiliate-links-into-sites-forgets-to-tell-users/ Posterous、VigLinkを使ったアフィリエイトリンクを実験中。但し利用者への説明はうっかり忘れてしまっていたようだ

    [...] Posterousは非常に簡単に利用できるパブリッシングプラットフォームで、TechCrunchでも長らく注目しているサービスだ。かなり面白いサービスで、肯定的な記事を多く掲載してきたつもりだ。ただこの度、非常に残念な大失敗をしてしまったようなのだ。とあるPosterous利用者がブログ記事に記載したところによると、サイトにあるリンクがすべてVigLinkを経由したアフィリエイトリンクになっていたのだという。VigLinkというのが何か怪しいサービスだというわけではない。VigLinkは、パブリッシャーに手間をかけることなくアフィリエイトリンクを自動的に生成してマネタイズを支援するサービスだ。Google Ventures、First Round Capital、および有名エンジェルからの出資を受けている。ただこの変更に際し、Posterousは利用者に予め通知することを怠ってしまった。これは利用者からの信頼を失ってしまう振る舞いだ。 [...]

  • http://www.geeksdeal.info/posterous-starts-automatically-inserting-affiliate-links-into-sites-forgets-to-tell-users/ Posterous Starts Automatically Inserting Affiliate Links Into Sites, Forgets To Tell Users

    [...] generate revenue without having to manually insert affiliate links themselves, and has received funding from Google Ventures, First Round Capital, and some prominent angel investors. But Posterous [...]

  • http://www.tradekey.com/affiliate_program.htm Affiliate Program

    Wonderful article, thanks for putting this together! "This is obviously one great post. Thanks for the valuable information and insights you have so provided here. Keep it up!"

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