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If you take away poker, dating, and naked ladies, custom merchandising is the big success story of the Internet. The ultimate combination of e-commerce and affiliate marketing, millions of websites around the world turn to online merchandising companies - both to market their URL and to extract some cash from loyal visitors.
The key to the success of the industry is on-demand printing, meaning website owners don't usually incur setup costs and do not have to carry inventory.
The business model usually works like this. The webmaster signs up for free - or for a small monthly fee - at the merchandising company site. Having uploaded his/her own designs - often logos, catchphrases or drawings, the webmaster can then place these designs on the range of products offered by the merchandiser. Usually, the merchandise company places a base price on each product, to which the webmaster adds his/her own commission or markup. In some cases, the webmaster can then create a shop which can be integrated into their own site.
The merchandising company normally handles credit-card processing, printing, shipping, and customer service while the webmaster incurs the slightly less arduous task of collecting and banking the commissions.
Beginning to see why its so popular? Let's have a look at some of the industry's big players:
Cafepress
The daddy of the bunch. Founded in 1999 in California, Cafepress was one of the first companies to exploit the massive custom merchandise market. It now sells products on behalf of over 2 million website owners, mainly in the USA.
For all its longevity and wide reach, Cafepress has yet to solve many of the original problems that still bother its users. Despite the clamour from customers, the company has yet to find a way to offer black, or even dark, garments - still relying on the old white and grey staples and a rather odd collection of pastels. Nor has the company embraced internationalisation, and website owners outside of the USA still baulk at hefty shipping charges and US Dollar pricing.
The free Cafepress service offers limited functionality to users, with only one version of each product allowed. For a monthly fee, Cafepress allows unlimited selling. However, excessive branding makes it rather difficult to integrate the Cafeshop into the look and feel of an existing site.
Zazzle
Another California-based company that launched a similar service to Cafepress in 2003 and has a substantial share of the US market. Again pricing is only available in US Dollars. And while Zazzle's range of garment colors is stronger than Cafepress, printing on black or dark shirts is still not supported.
Zazzle does not charge a monthly fee but webmasters will find it rather more difficult to integrate their shop into the look and feel of their own site.
Spreadshirt
This one looks interesting. Spreadshirt was founded in Germany in 2002 and boasts over 60,000 partners across Europe, winning the Hewlett Packard Business Innovation Award in 2004. Unlike its American competitors, Spreadshirt caters for both European and US customers, using regional shipping companies and allowing webmasters to price products in Euros, Sterling, or US Dollars. Shops can also be automatically translated into eight languages.
Spreadshirt has also solved the thorny "black shirt" issue, offering over 50 products in a full range of colors. However, it's probably the different printing options that sets the service apart. In particular, Spreadshirt's "flock" printing - creating a raised felt finish - produces a result much more impressive than regular digital print.
Finally, hats off to Spreadshirt for managing to keep its branding on the product but still allow webmasters full control over the look and feel of their shops. Already a dominant force in the European market, Spreadshirt could be set to give Cafepress a run for their money in the US.
Spreadshirt US Spreadshirt UK
EShirt
EShirt is another European company - this time Italian-based - providing an almost-identical product range to Cafepress ie no dark shirts. Euro, US Dollar and Sterling pricing is available. However, the only print option available is digital hot press printing - not the longest lasting technique.
The most inconvenient aspect of EShirt's service is shop integration. You must register as a Tradedoubler affiliate before you can even apply for an EShirt shop. And even then, it is not possible to recreate the look and feel of your own site.
Suzanne Power is the editor of GrandWebDesigns.com
MORE AFFILIATE REVENUE RESOURCES updated Thu. February / 09 / 2012Disney's Earnings Beat; CEO Bob Iger Talks Piracy, Parks CNBC.com Increased guest spending and attendance at the parks, and higher advertising rates and affiliate revenue at the media networks drove the earnings upside. The revenue fell short of analyst expectations (Disney doesn't provide guidance) – at $10.779 ... |
 Globe and Mail | Disney derring-do New York Post “Affiliate revenue will kick up due to Comcast and other deals that will be negotiated,” Disney CEO Bob Iger said yesterday on a conference call with analysts to discuss first-quarter results. Iger noted the Mouse House doesn't yet have deals with ... The Walt Disney Company Reports First Quarter Earnings Disney Posts 7% Broadcast Revenue Drop Walt Disney's CEO Discusses Q1 2012 Results - Earnings Call Transcript |
 Telegraph.co.uk | News Corp. Earnings Jump in Second Quarter Broadcasting & Cable Affiliate revenue rose 9% at the domestic cable channels. Operating income for the television unit, which includes Fox Broadcasting, rose 25% to $189 million from $151 million. The company said the growth was the result of increased broadcast network ... News Corporation Reports Second Quarter Net Income of $1.06 Billion Headwinds Fail to Deter News Corp. |
 The Frisky | Pinterest Is Making Money In A Slightly Shady Way The Frisky It's also a boon for a company like Skimlinks, which takes 25% of all affiliate revenue. So what's the problem here? Well, Pinterest hasn't been disclosing to users when and how it is making money from their posts. If I pin a link to a cute pair of ... Skimlinks is the real story behind Pinterest's success |
AMD, Nike, Disney, Panera Bread Among Stocks Driving Big News Feb. 7th Wall St. Cheat Sheet The increase at ESPN was driven by higher affiliate revenue reflecting contractual rate increases and a reduction in revenue deferrals related to annual program commitments. During the quarter, ESPN deferred $190M of revenue compared to $266M in the ... |
Fox Studio, TV Divisions Boost News Corp. Q2 Profits Despite Hacking Investigation Reuters A little bit of everything contributed to the higher figures, from a nine percent growth in affiliate revenue to a six percent increase in advertising revenue. FX in particular continued to stand out as a top performer, while the NBA lockout both ... |
Fox on Top Multichannel News SNL Kagan calculates FNC's affiliate revenue at $985.3 million in 2012, based on 82 cents per sub each month. “The network is getting strong monthly subscriber fee increases, up from 58 cents in 2009,” according to Baine, who projects average license ... |
 Fortune | It's time for Disney to cut ABC loose Fortune Disney (DIS) blamed the poor showing at ABC on lower affiliate revenue following the end of Oprah Winfrey's popular talk show and a decrease in political ad spending, as it was not an election year. While both may explain a decrease in revenue, ... |
Cruise line, theme parks propel Disney profit Orlando Sentinel Operating income at Disney's media networks rose 12 percent for the quarter to $1.2 billion, as higher affiliate revenue at ESPN and the Disney Channel cable stations more than offset declines at broadcast station ABC. Operating income at Disney's ... |
Viacom's CEO Discusses Q1 2012 Results - Earnings Call Transcript Seeking Alpha We expect our affiliate revenue to grow on an annualized basis in the high-single to low-double digit for the foreseeable future. As we unlock value for our content across platform, we're unlocking growth potential across global markets as well, ... |
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