I just got back from Affiliate Summit in Las Vegas, and as always, it was a phenomenal event. It was the biggest ever (by some reports over 3,000 attendees), and we had the chance to visit with a lot of old friends. One of the things I most enjoy about the event is the ability to get face to face with people with whom we usually only talk to on the phone. There’s something about being face to face that helps to deepen the personal relationships that so often drive this business.
As I went from meeting to meeting, a theme began to emerge; relationships are the key to success. There is often an immense amount of trust required in the business relationships which form the heart of this business. Sensitive information is passed back and forth, transparency is often limited, and in its place “trust” is a foundation.
Now many people might say this is true in every industry, and to some extent this is right. Human beings naturally do business with those they like and trust. But having served in a legal and executive capacity in industries as diverse as manufacturing, technology and real estate, I can attest that it really is different in the affiliate marketing space.
In other industries, it’s not unusual that very large deals are done without pre-existing relationships. There may be extensive due diligence and contracts may be hotly negotiated, but it’s common to execute large contracts where millions of dollars change hands, when the parties had no pre-existing relationship. But things don’t generally work that way in our industry.
As we went from meeting to meeting, we kept hearing people talk about “starting slowly” in situations where they didn’t have pre-existing relationships. And anytime people were talking about larger deals, there was always the accompanying discussion about “shared history” and the importance of the long term “relationship.”
As a lawyer, I’m fully aware of the protections which exist in a well drafted contract, and I know how important good due diligence can be. But even the best due diligence and the tightest contract don’t generally prevent a situation from going bad. Sometimes things just happen. And if litigation ensues, I’m one of those lawyers who believe that no one really wins. So the goal is always to avoid getting into situations which might lead to litigation.
In almost twenty years of experience as a lawyer and business executive, I’ve noticed a conspicuous absence of litigation between parties with long term relationships in place. Not that problems don’t arise; but when there’s a positive, pre-existing relationship, the parties tend to work their way through difficult situations, instead of litigating.
As I participated in meeting after meeting at Affiliate Summit, I became more and more thankful for the relationships that we have developed over the years. There are so many incredible people and companies in this industry, and because they’ve all taken the time to build the relationships, large deals get done, and when the chips are down, litigation is avoided.
If you’re reading this and you’re new to the industry, I’d say the take away lesson from Affiliate Summit is to take your time, be patient, and invest the necessary effort in building long term relationships. For those of you who have been around for quite some time, I know I’m preaching to the choir. You know the power of your relationships, and you’re already either reaping the benefits, or paying the price for not developing them.
Thanks to the folks at Affiliate Summit for giving the industry a place to further the relationships that make this business work. The amount of effort that it takes to put on an event like Affiliate Summit cannot be underestimated. If you see Shawn, Missy or anyone from the Affiliate Summit staff, don’t forget to thank them for helping you to grow your business. They deserve the kudos.
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Come back to the iLegal column every week as we get specific about the rules, regulations, laws and trends that affect the online advertising industry. Each week we discuss important legal issues, talk about how to avoid the pitfalls, and cover the breaking legal and regulatory advertising industry news.
Legal Disclaimer: Information conveyed in this column is provided for informational purposes only and does not constitute legal advice. These materials do not necessarily reflect the opinions of Digital Moses, and is not guaranteed to be complete, correct, or up-to-date. The column is provided for "information purposes" only and should not be relied upon as "legal advice." This information is not intended to substitute for obtaining legal advice from an attorney. No person should act or rely on any information in this column without seeking the advice of an attorney.
Mark Meckler is the General Counsel for UniqueLeads.com, Inc., and Unique Lists, Inc. Mark is the Vice Chair of the eCommerce and Technology Committee of the Association of Corporate Counsel, and is a member of the International Association of Privacy Professionals. www.UniqueLeads.com
Copyright 2008 Mark J. Meckler
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