July 21, 2005
Secrets your Affiliate Program doesn't want you to know about.
A significant number of Publishers who are "Producers" could earn more money from their Affiliate programs by simply asking. Their are some secrets and tips to deploy which produce the desired results.
Understanding your business partner
Generally, the 80/20 Rule applies to a given affiliate program. Eighty percent of the revenue is produced by 20% of the Affiliates. It's those 20% of Affiliates which is the primary focus of this entry. Don't expect your AM (Affiliate Program Manager) to have the necessary skill set or desire to recognize quality, potential, or Producers. Unfortunately, a significant percent of the industry is populated by inexperienced Marketing Centric folks who have never run a successful web site. The other challenge you face is that a given affiliate program may have thousands of affiliates and your only a number on the board.
Preliminary steps for Affiliates
Don't hide. It just doesn't work and it's a trivial task to discover your secret. Insure that all your contact data, including your Whois profile is current and accurate. Strive to be totally transparent, ethical, polite, and compliant. Next, you need to initiate contact with your AM. Begin a dialog and continue it. We haven't asked for anything special yet. Rather, we are developing a "face" on those numbers you generate and hopefully enhancing your image. Take notes! Family names, vacations, birthdays, and such are a wonderful way to develop a relationship which fosters special deals for you. Attend industry events and meet the folks you do business with. If you see something that could be improved with a given affiliate program, always begin the dialog with a positive and then talk about an issue which you think could be improved. Provide the fix with lots of details. If you don't have a fix, keep your yapper closed.
If you spend your time in a quality Webmaster/Publisher Community which also includes Affiliate Program members, don't burn your bridges. Don't engage in micro management. Be very polite and respectful. Always start with a positive and view your contributions as an opportunity to "network" and ultimately obtain special deals just for you.
The magic question
The foundation is in place. You have established a relationship with your AM. Your a "Producer" in a given network. If it's a CPA relationship your generating a significant number of valid sales. If it's a CPM/PPC network your delivering millions of views plus an above average click through rate. You have already produced these results. Not your potential or pie in the sky data you think will happen.
It's time to ask the magic question during your next regular contact with your AM: Sally, I think I'm producing some great numbers for both of us and I enjoy our relationship. How can I earn more money from these results?
Wait for a response. Keep your yapper closed. What happens next will vary, depending on the level of experience and knowledge of the respective AM. Affiliates should never assume that a given AM is aware of all the sites which you own that are producing these results. Affiliates need to be very skeptical of the words "VIP Affiliate" since these words often mean nothing and are simply a marketing ploy which doesn't represent the maximum amount of additional money you can earn from the same results. Affiliates should have all their numbers and data in front of them when they ask this question.
A smart AM may and should spend the time to pull your results out of the database. Politely ask them to do this so both of you can intelligently negotiate more money for you, the Affiliate. A smart AM may simply turn the tables and ask you: Jim, what number did you have in mind?
Detailed guidance for more money
If it's a CPA relationship, politely ask for double the standard commission. For example, if the advertised cut is 9%, then ask for 18% and be prepared to talk about the unique and quality aspects of your site and how it continues to produce great results. Don't be reluctant to tell the AM in a polite manner that you appreciate the increase from 9% to 12% but you will do some additional research to see if that's fair. Don't hesitate to foster an environment where 2 different quality and trustworthy CPA networks are effectively bidding against each other for your business. Tell each party in a very polite manner and justify your reasons.
If you have a CPM/PPC relationship then a given Networks position in your "chain" is an important negotiating tool. Remember, you have already produced the results and have taken the time to establish a relationship before you asked the magic question. The content and quality of your site will also play a role in your results. Certain "niches" are far more desirable than others for a given Network. I know I'm repeating this but it's important: Don't hesitate to foster an environment where 2 different quality and trustworthy CPM/PPC networks are effectively bidding against each other for your business. Tell each party in a very polite manner and justify your reasons.
If the AM offers you an increase in revenue for the same results, say thanks but continue to negotiate for more money. At a certain point in this dialog you will reach a definitive number.
Tips for Affiliate Program Managers
Don't send me nasty email about this entry. Many many smart affiliates use these techniques to generate thousands of additional dollars. As an industry, you need to do a much better job in recognizing "quality" and few if any of you choose to think in a defensive manner. Let me explain:
Spend the time to learn what a quality site is in a given niche. If you don't have these skill sets, then hire a consultant who can teach you. Stop thinking like a low priced and high volume drive through restaurant who rarely gets to know their partners, often fails to perform continuing due diligence, and rarely takes the initiative to contact your real producers and offer them an increase in revenue before they ask. Your job is not 9 to 5. Adjust your work hours to accommodate the folks who pay your wages and that's Affiliates. Take these request very seriously and if you are not authorized to grant an increase, pound on your bosses desk until a definitive number is reached. If you don't reach a reasonable number with your current Affiliate, expect them to leave for greener pastures (think defensively) and remember that few if any of you offer a truly unique proposition that other networks don't offer.
Leaving the door open
Regardless of the results, Affiliates should spend the time to send a formal thank you email to the AM. If you negotiated a higher payout for the same results, make sure you clearly and accurately document the new deal in your email. Don't worry, you haven't done any damage to your reputation or adversely affected your earnings. What you have accomplished is hopefully earning thousand of additional dollars per year for the same results.
Posted by Steve_S