What's the Role of an Affiliate Manger and %age?

by askloz

Posted: 13 years ago 19 replies

INTERNET MARKETING

Hi everyone, happy easter

I have a question to anyone who's experienced having an Affiliate Manager, or knows the ins and outs of their daily routine.

I have a 12 Month Forex Course being launched soon and I'm looking to find a reliable, loyal, honest person to work with my Company.

At the moment I'm talking to someone about hiring, but I'm getting the impression I'm being stiffed here big time...

50% on ALL sales... To me, that sounds way way too much.. "All sales".

I can't see anyone regardless who they are, what they do, that they would give out 50% of their business to someone they do not know too well, or know if they can actually do what they say they can.

Let me give you a bit of info about the guy I'm talking to.

He said his role is this:

providing online marketing, affiliate partner recruitment, affiliate partner management, service support to affiliate partner & product launching.

And he wants 50% of all sales.

This is where I start to cringe... not at the 50%, but the ALL SALES part.

Why would anyone give up 50% of their business?

Why would anyone give 50% of any sales that YOU PERSONALLY make and give that to your affiliate manager?

And how could I hire more than one affiliate manager, its like this guy is saying to me that since its ALL SALES, if i hire another affiliate manager he wants 50% of that as well.

Something is wrong with this picture...

Personally, 50% i think is fair...
And he / she should only get paid on their performance.

So if he / she makes sales via no affiliates, at his own accord, he / she gets 50%.

Any sales the affiliates make that he / she recruits, will get 50% of what's left over after paying commissions to the affiliates.

I told the guy that he will need to use his own affiliate link if he is personally going to be making sales, and I will capture his plimus username and import it into Getreponse so I can work out who he recruited, and at the end of each month I will tally up the numbers...

Right now, it seems he wants 50% of everything, if that's the case, how is one gonna be able to hire more than one affiliate manager.

Would appreciate your response to help me clear up this matter that's got me baffled.

Cheers

P.S
Where's the places to search for Affiliate Partners?

Loz

#%age #affiliate #manger #role

aendyjones

13 years ago

There are great roles of them, providing net promotion, affiliate partner recruitment, affiliate partner management, service support to affiliate partner & product launching.

Thanks
2 replies

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tacoverhoef

13 years ago

I don't think it is reaseble.

If you want you can PM me because I might know a service that will do this for about 5K and if you give me 7,5% of your profit then we are good

Thanks
1 reply

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askloz

13 years ago

dude, my product is not some $97 product.

its a $1000 product, on a monthly basis.

I'm not looking for one timers, im looking for full time ppl who can recruit and make at least 20 sales a week via their own marketing or via affiliates they recruit... and I'll give them 50% of it, but not off those i recruit or sales i make personally myself.

Originally Posted by tacoverhoef

I don't think it is reaseble.

If you want you can PM me because I might know a service that will do this for about 5K and if you give me 7,5% of your profit then we are good

Thanks

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askloz

13 years ago

no offense, but what is this about?

did you read the actual question?

Originally Posted by aendyjones

There are great roles of them, providing net promotion, affiliate partner recruitment, affiliate partner management, service support to affiliate partner & product launching.

Thanks

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Dennis Murphy

13 years ago

I agree that they should be paid off the work/sales they are responsible for bringing in, and not get paid on sales you bring in personally.

You will also need to clarify what the 50% commission is on. Is it 50% of Total Sales BEFORE the affiliates get paid or 50% of Net Sales AFTER the affiliates have been paid?

There can be a BIG difference and you need to be clear how you are paying them, or this can go bad for you really quickly.

A quick example with Total Sales driven by affiliates of $100,000 for the month.

Affiliate Manager has 50% commission BEFORE affiliates get paid:

AM Cut: $50,000 ($100,000 % 2)
Aff Cut: $50,000 ($100,000 % 2)
You = $0

This may seem obvious, but you must be clear on your terms when you make your agreement - I've seen people get taken to the cleaners on this.

When you say 50%, you must tell them 50% of WHAT PORTION? Most people mean 50% of what is left over after they pay affiliates, meaning 25% of total sales.

In this case;

Affiliate Manager has 50% commission AFTER affiliates get paid:

AM Cut: $25,000 ($50,000 % 2)
Aff Cut: $50,000 ($100,000 % 2)
You = $25,000

Again, this may seem like common sense, but you MUST explain this in detail in your arrangement and not leave any room for uncertainty. When money is on the line, things can go bad really quickly, especially if they expect $50,000 and get $25,000.

Dennis

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1 reply

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askloz

13 years ago

Hey Dennis...

THANKS man for your feedback, really appreciate it bro!

Yeh, its 50% AFTER affiliate commissions are paid... I think their logic goes as far as that... I'm dealing with an Asian guy, nice ole chap... so i think there might be a communication problem along the lines...

he hooked me up to some guy who now I write monthly columns for a forex magazine with over 30,000 subscribers

anyways...
the guy im talking to works for a very well known Stock, commodity and forex expert who's been on CNBC, Bloomberg, and other finance channels around the world.. and taught over 100,000 people at a Singapore seminar...

the guy says that the person he works for has a $998 product (notice how they put an 8 in their figures and not a 7 lol )
and says he's selling them like hotcakes, and I've seen the page, total crap site, & design... yet pulls out sales from his backside.

Cheers again

Loz

Originally Posted by Dennis Murphy

Thanks

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yangman2011 13 years ago

reliable, loyal, honest......do such a person exist these days?
- Thanks
- 1 reply
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- askloz 13 years ago
  
  heehee... believe it or not, there are some really nice ppl out there...
  
  think positive, positive results will follow
  
  nothing more powerful in this world than "positive thinking"
  
  It was the only the other day I said to myself I need an extra 20k without dipping into savings, etc, and low and behold, few weeks later I pulled out $18k from nowhere I like days like that
  
  Originally Posted by yangman2011
  
  reliable, loyal, honest......do such a person exist these days?
  
  Thanks
  
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Christian Little

13 years ago

That does seem pretty steep, but here's another way of looking at things:

50% of something is better than 100% of nothing.

If you think that guy really can drive you revenue then you might want to consider it. While the cost is high, you don't really have any operating costs since it's a course (aside from hosting it).

You probably can find cheaper people to work with, but bear in mind the financial industry is really saturated and it might be hard to find somebody that's good at a decent rate.

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askloz

13 years ago

hey Christian, thanks for the reply bud

Originally Posted by Christian Little

If you think that guy really can drive you revenue then you might want to consider it. While the cost is high, you don't really have any operating costs since it's a course (aside from hosting it).

dont have any operating costs? seriously?

oh yes I do... big outlays...

I gotta hire staff who have forex experience and train them up to watch my videos and answer questions from customers based on those questions...

I'm looking to hire about 20 staff, including email support staff etc and follow up staff to send them emails and phone them up.

and hire ppl to take over webinars for an hour or so, and that can cost like $1k+ per hour!

Thanks

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Christian Little

13 years ago

Ahh, I didn't realize you were running at that scale lol

I thought this was a new product and it was just you lol.

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askloz

13 years ago

It is a new product, not launched yet...

Trying to gear things up to turn it into a million dollar launch, huge $350 or so recurring commissions per month!

It is me, per say, for the most part, unless I can get a big launch going from onset the faster I can hire ppl so the support requests are less than 8 hours to reply, no matter where in the world they sent the support request from...

Otherwise, yeh, it will be me on me own.

might have to split meself into several pieces to get all of it done

Originally Posted by Christian Little

Ahh, I didn't realize you were running at that scale lol

I thought this was a new product and it was just you lol.

Thanks
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doorkicker13

13 years ago

Originally Posted by askloz

It is a new product, not launched yet...

Trying to gear things up to turn it into a million dollar launch, huge $350 or so recurring commissions per month!

might have to split meself into several pieces to get all of it done

I don't really have anything relevant to offer... I just wanted to say good luck! I really hope you make that million dollar launch because that would be an awesome achievement. I like seeing fellow warriors succeed. Good luck!

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Sean A McAlister

13 years ago

Here are some industry stats for you

1st off....50% is out in left field.

Typically there is some form of retainer upfront (and not outrageous)

Then a % of Gross or Net Sales that ranges anywhere from
10-20%

There are some negotiations on that IE % on Gross vs Net and what the percentage actually is and these are often determined by what exactly you
need.

Some product creators / companies need assistance putting the whole shabang together (sales process, affiliate tools, etc) which in turn requires more %....while others require much less and are looking primarily for the management piece.

Another thing to consider and effects the percentage is the Experience and connections of the person you are considering.

I've seen higher % but every deal is different.,...just throwing out some guidelines

All the best

Sean

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askloz

13 years ago

Hi Sean,

Thanks kindly for your post

appreciated

Originally Posted by Sean A McAlister

Some product creators / companies need assistance putting the whole shabang together (sales process, affiliate tools, etc) which in turn requires more %....while others require much less and are looking primarily for the management piece.

Yeh, well I have 15 years of experience online and done almost everything there is possible to do, make money wise, or technical setups.

And I have a couple programmer buddies that can help out with the more advanced php, ajax, etc stuff...

I put all 200+ pages together, all the graphics, site design layout, forum creation, members area installations, front page setup for launches, etc...

got all done in a reasonable amount of time too

Originally Posted by Sean A McAlister

Another thing to consider and effects the percentage is the Experience and connections of the person you are considering.

I've seen higher % but every deal is different.,...just throwing out some guidelines

All the best

Sean

Yeh, the guy i spoke to seems to be experienced, but he's not shown me any stats yet... any ways, got a meeting with him monday and his biz partner, see if we can clear some things up

p.s
gonna send you a PM in a minute, got a quick Q to ask ya

Thanks

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Linda_C

13 years ago

Originally Posted by Sean A McAlister

1st off....50% is out in left field. Typically there is some form of retainer upfront (and not outrageous)
Then a % of Gross or Net Sales that ranges anywhere from 10-20%

I'd agree. I'm familiar with *being* an affiliate manager, not hiring one. lol. I manage 3 affiliate programs for retailers, all run through Share A Sale. Just got notification that one of my programs is hitting PowerRank Top 100. (woohoo!!)

My rates are a flat fee (not outrageous) and 10%. I also know that Share A Sale offers a service for their clients in which they will help launch a program, recruit power affiliats, etc. - and they charge a flat one time fee of 3K and no commission. So that's food for thought regarding rates.

Then again, the 50% is really 25% after affiliate cut, so if they can pull results, it might be worth a shot. Just leave yourself a pull out clause.

Good luck!

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askloz

13 years ago

Thanks Linda (thats me mums name too

), appreciate the feedback... I completely forgot about Share-A-Sale... heard of them before, thx for reminding me

Originally Posted by Linda_C

Hey, thats great! wtg!

are you an affiliate manager for a particular niche, or are you in a wide range of niches? and whats your upfront fee?

Thanks
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Linda_C

13 years ago

Originally Posted by askloz

Thanks Linda (thats me mums name too

), appreciate the feedback... I completely forgot about Share-A-Sale... heard of them before, thx for reminding me

Hey, thats great! wtg!

are you an affiliate manager for a particular niche, or are you in a wide range of niches? and whats your upfront fee?

I like Share A Sale because of the tools they offer affiliates - custom links, video promotions, etc. Really easy to help affiliates sell in there.

All the affiliate programs I manage are in different niches. LOL. I figure "what" I/they sell isn't important, helping the affiliates sell is important. So far, I'm in 3 totally different niches.

My upfront fee varies from $1500 - $3500 depending on how much prep we plan. I generally give my potential clients an overview of what we *can* do, then they choose what they want to do and we agree on a price from there. Someone who wants full monty (video promos, datafeeds, keyword research, affiliate training module, etc) will pay more than someone who wants a more basic setup.

Thanks

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askloz 13 years ago

Hi Linda,

Thanks for the reply, is one of the niches Forex, by any chance
- Thanks
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What's the Role of an Affiliate Manger and %age?

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