Podcast: Play in new window | Download (Duration: 24:29 — 22.4MB) | Embed
Merchant ABCs hosts Deborah Carney and Vinny O’Hare are joined by long time affiliate manager and OPM/AM Wade Tonkin to discuss expectations of new merchants that are starting affiliate programs. Managers and OPMs (Outsourced Program Managers) are challenged by companies that expect big things right after launching an affiliate program. Experienced managers often have to bust the bubble to be sure everyone understands that good affiliate programs don’t bring “instant money”.
Affiliate Marketing is a marathon not a sprint.
Show Notes and Points:
It can be 3 – 6 months or more before a new affiliate program makes a sale. Site issues can extend that out even farther. Managing expectations is important.
Developing long term relationships, can’t rush the affiliates to promote a new program.
Affiliates need to know a company isn’t going to disappear. Not only do they need to know you have a good manager, they need to know you are in it for the long haul.
Reality:
If affiliates are making good money with your competitor you have to convince them why they will make more with you.
The metrics aren’t there (within the network) for affiliates to see when a program is new. Non-affiliate channel metrics – a merchant needs to show affiliates that they convert without affiliate traffic. The affiliate program shouldn’t be a merchant’s only traffic source.
Affiliates take their time and vet programs. Merchants need to get on their radar, on their todo list, then stick around long enough and be patient so that when affiliates are ready the merchant is still there.
Good OPMs will tell merchants that they aren’t ready or will let merchant know what needs to be done before they can launch a program. And will not manage a program that will not make the changes that are needed to make the site and company successful.
Money vs Reputation: Reputation first. Good OPMs will not take money for management from clients that aren’t ready. They will consult to get them ready, or recommend someone else that can help them get ready based on their needs.
Merchant needs to be affiliate friendly, don’t reverse affiliate sales because you think that you should have gotten the sale yourself. Don’t make a change to your TOS that restricts a type of promotion, then change your mind and expect affiliates to come back.
PPC affiliates have their place and establish a good policy from the beginning.
Offer development, be sure you can afford what you are paying out because moving commissions to a lower level after being established will kill your program. Do short term promotions instead. Be very clear what your payouts are.
Offer bonuses and tiers instead, tiers based on volume. Go to top affiliates and offer higher right away, based on better placement. Include room for network and management fees. If you have higher conversions than the competition.
Make sure you budget for ongoing management, whether inhouse or OPM, for at least 6 months. This is a long term channel, not PPC or CPA lead gen for a quick hit.
Once you are established affiliates will come to you and your management.
Contact on Twitter:
@gtoman
@merchantabcs
@loxly
@vinnyohare
Websites:
GTO Management
Merchant ABCs
Team Loxly
ABCs Plus Affiliate Marketing Forum
Many thanks to GeekCast.fm for hosting Merchant ABCs podcasts and many other podcasts that marketers should be listening too. Check them out!