How to Get Affiliate Management Experts to Manage Your Program Without Overpaying (Part I)
What can affiliate management experts bring to the table? Their knowledge is second to none in their sector and they can be a valuable asset to your thriving online business. With that being said, how can you get an affiliate management company to oversee your program without overpaying?
First, it’s vital to note, you get what you pay for. You can’t expect to have an affiliate management specialist manage your program for below his or her worth. The best affiliate management agencies tend to handle many programs at a time. Your aim is to get your program to their list!
Next, it’s crucial to realize how affiliate managers are paid. There are several compensation models out there, but the three most well-known ones are:
- Monthly retainer + performance bonus
- Flat monthly fee
- Performance-based compensation
It’s suggested going with the first of the above three. It provides for the affiliate manager’s motivation to keep developing your affiliate marketing program. As the merchant, you will want to concur with the manager on the precise compensation model to use as well as negotiate to be sure you’re not overpaying.
When the time comes to discuss the affiliate manager’s compensation, it’s first vital that you layout what job-related to your affiliate program you want the professional to be responsible more. More jobs might cost more, but it will make it so you don’t have to worry at all about your affiliate program and you’ll realize that it’s in good hands.
Assuming you want the affiliate management specialist to oversee each facet of your affiliate program. You want to negotiate the lowest possible fee that you can. In order to do this, try offering a big performance bonus to further entice the affiliate management expert.
The performance bonus is usually a percentage of revenue or a percentage of affiliate payouts. This way, the merchant can compute their margins and never lose money on the bonus part of the compensation. It’s a real win-win for both sides because if sales are growing then everyone is earning more.