How much would you charge to manage/promote an affiliate program

by ronr
4 replies
(sorry title too long).. for a medium size offline company.

I'm talking to a company that does 3-4 million in sales. They sell training DVD's in the recreation niche. Nothing to do with IM or make money.

They are pretty savvy online and have a full time webmaster, outsource their PPC and pay someone to manage their offline and online ad campaigns.

However they are doing nothing to promote their affiliate program so they are leaving a lot of money on the table. I don't even think they have banner ads or links on their website tell about it.

How much would you charge to manage/promote an affiliate program like this? Would you go for a base+ percentage of affiliate sales?

Thanks,

Ron
#affiliate #charge #manage or promote #program
  • Profile picture of the author webhosting
    I can give you a feedback from the point of view of company running its own affiliate program. When I decided to start affiliate marketing and hire affiliates the main reason was that while with PPC is possible to have negative ROI, affiliate marketing is more predicable. I exactly know how much we can pay for a new customer to maintain ROI in the positive numbers.

    So if I decided to hire somebody to promote the affiliate program, I would split the commission paid for every sale between the affiliate manager and the affiliates.
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    • Profile picture of the author savidge4
      Interesting question... Because the webmaster is in-house that would suggest they want to control the situation as a whole. The PPC budget is probably run with the WebMaster. The on/offine sales is run by someone, Ill bet they are salary + commission. Once again probably an employee.

      Now you want to propose affiliate marketing to them and catch a percentage. So say in the 1st year you could produce 10% of their current sales 3 - $400,000 and the following year grab 20% - $800,000. at 3% you would be looking at $12,000 the 1st year $24,000 the 2nd. Not a bad part time job if you can get it. Set up an affiliate site yourself and double your income.

      Or what is the likely hood of getting into a full time $30,000+ position and getting paid for your work, and still running an affiliate site and making a decent living with good part time money.

      Its all a numbers game and looking at where you are in life right now. Are you doing other projects, or could you take this on full time? I would go into the negotiations with 1 option and keep the other as a back-up option.

      And regardless of how it turns out remember that once you bring the short coming to light, you or someone else WILL be doing it for them!
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      • Profile picture of the author ronr
        Yes there are a lot of possiblities.

        If I was the company I would definitely want to have incentives and give a percentage of the new business the affiliate manager brought in.

        Since it will take some initial work to create affiliate materials I think a base + percentage of affiliate sales until it gets to a certain level when it would be strictly percentage is the most likely with them.

        Ron
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  • Profile picture of the author Peter Lessard
    Hi Ron

    Base + percentage is what I would go for. How much exactly I cannot say as I do not know all the particulars.

    For those less experienced reading this post I would share this point.

    I always decide first how much money I want to make with a new project and find a project to fit that goal, never the other way around.

    Also I might determine this company will likely not want to pay me what I want for taking on just their affiliate marketing but if I take it and knock it out of the park, I may prove myself enough with them, that they would port other responsibilities and thus income to me.
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