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  1. #1
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    Compensation for Affiliate Managers??
    Hi all,

    We are launching a consumer-focused ecommerce website in (hopefully) 2 weeks that sells refurbished cameras. We have operated on EBay for a while, but this is our first foray into our own static website.

    We have begun talking with potential affiliate managers. Our goal is to pay $40K base salary (to pay the bills) plus a generous bonus ($25 to $50K, maybe more if the person is a superstar) based on performance.

    Does this sound reasonable? Will we attract good talent with this comp plan?

    --Larry

  2. #2
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    What % of a Aff Mgrs should be comission-based?
    Other merchants out there have an opinion? 25% 50%

  3. #3
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    Hi Larry. That salary will probably attract an inexperienced manager, someone with experience will command a higher salary. You are actually in the range of a parttime person. You might want to consider outsourcing to get started, and even there you are in the low end of the ball park.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  4. #4
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    Larry I merged your threads since they are the same question basically.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  5. #5
    Newbie Rolet's Avatar
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    Larry,

    Your budget sounds more like you should be searching for an outsourced program manager. Especially if you are looking for "super star"

  6. #6
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    I've seen similar figures ($40K plus bonuses) in many ads on CraigsList and elsewhere, but that's not likely to attract a top-notch affiliate manager.

    However, a good affiliate manager is certainly going to look carefully at any bonus structure. The worry, of course, is that if someone accepts the job and works to build the program up, the payoff won't come for many months. And there is, unfortunately, ample precedent where companies to hire someone for low base salary, work them hard, and then fire them just before they would have been eligible for bonuses.

    Of course, it all depends on the terms of the contract. If you do consider hiring an OPM, definitely get a clear contract that describes the actual work that will be done, and who will actually do the work (the expert or the intern?), and who will own the data (such as the list of affiliates recruited, etc.). I'm a strong advocate of "in-house" affiliate management, but some companies do well by hiring OPMs.

    For $40K, you're probably going to get a "trainee," someone who will be learning on the job.

  7. #7
    Outsourced Program Manager John Jupp's Avatar
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    I dont know.

    New website - been successfully trading on Ebay so possible to switch to dedicated site and transfer customer base.
    In demand products - refurbished cameras are niche but also in demand.
    Affiliate base - there are some superb affiliates with specialist niche sites promoting these products and their content is superb.

    My advice - hold off the affiliate channel for six months and bed the site in so it is trading successfully using your marketing plan for non affiliate channels.

    Then come back again with proposals which can be reviewed and an affiliate marketing plan enacted.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  8. #8
    Affiliate Manager PetsWarehouse.com's Avatar
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    I don't see why you need to wait 6 months, test the new site and go for it.

    You can post a link to the site for opinions on design and layout.

    You should look for an OPM they are in the range of $1,000-3,000 permonth plus a 1-5%.

    There are plenty of good opm's here in fact the best in the biz.

    Then buy an announcement here and get stated, the OPM will get you going, to go inhouse and train someone will take forever.

    A good opm will get you seeing sales within two months or less.
    Bob Pets Warehouse
    Worlds Largest Pet Supply DataBase
    Join our Share-A-Sale Program [since 2003] Twitter



  9. #9
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    Quote Originally Posted by PetsWarehouse.com

    A good opm will get you seeing sales within two months or less.
    That highly depends on the product and conversion of the merchant site, that should not be a blanket statement.

    A good OPM will get your site affiliate ready and will get affiliates to trust you and get you on the radar. Your site needs to already be converting and your product needs to be attractive to affiliates and shoppers.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  10. #10
    Affiliate Manager PetsWarehouse.com's Avatar
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    Debbie, he has been selling on Ebay so he has a product that has proved to him there's a market.

    So my comment isn't a blanket statement, it applies to him.
    Bob Pets Warehouse
    Worlds Largest Pet Supply DataBase
    Join our Share-A-Sale Program [since 2003] Twitter



  11. #11
    Outsourced Program Manager
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    Quote Originally Posted by PetsWarehouse.com
    You should look for an OPM they are in the range of $1,000-3,000 permonth plus a 1-5%.
    $1,000 per month plus incentive? Surely you jest, Bob?
    Brook Schaaf
    Schaaf-PartnerCentric
    p/f: 512.464.1122
    Skype - brookschaaf
    www.schaafpc.com | brook@schaafpc.com

  12. #12
    Best New ABW Member 2007 sfcom's Avatar
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    Quote Originally Posted by brookschaaf
    $1,000 per month plus incentive? Surely you jest, Bob?
    That is a little low on the food chain there. Are you talking 10 hours/week? If so, then not bad.

    Otherwise, where is the inspiration to stay out of the affiliate side of things and move on to the OPM side? Please tell me, as I am looking forward to moving into an OPM position sometime. I wouldn't jump and leave my aff stuff behind though unless it was at least $30k plus a nice incentive for a 40-50 hour week.

    -sfcom


  13. #13
    Affiliate Manager PetsWarehouse.com's Avatar
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    Quote Originally Posted by brookschaaf
    $1,000 per month plus incentive? Surely you jest, Bob?
    Not at all, that's a fact!
    Bob Pets Warehouse
    Worlds Largest Pet Supply DataBase
    Join our Share-A-Sale Program [since 2003] Twitter



  14. #14
    Affiliate Manager JusticeforGirls's Avatar
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    Originally Posted by brookschaaf
    $1,000 per month plus incentive? Surely you jest, Bob?
    Seriously?? I would reccomend against finding a "bargain" AM.

    Here's a link to a thread about AM salaries: http://forum.abestweb.com/showthread.php?t=102392

    Still laughing,

  15. #15
    Outsourced Program Manager
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    I concur with Stefanie.

    You may be able to come to a lower cost arrangement if someone provides administrative services like reporting and approvals, but if you want serious program management, you get what you pay for.
    Brook Schaaf
    Schaaf-PartnerCentric
    p/f: 512.464.1122
    Skype - brookschaaf
    www.schaafpc.com | brook@schaafpc.com

  16. #16
    Outsourced Program Manager kgarcia's Avatar
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    Quote Originally Posted by PetsWarehouse.com
    You should look for an OPM they are in the range of $1,000-3,000 permonth plus a 1-5%.
    While there are several "turn and burn" companies out there that offer cheap "affiliate management" services, I wouldn't call them qualified or experienced.

    In fact, I don't know any experienced managers, OPM or in-house, that would take on a program for only $12K a year plus points.

    ~Karen
    Karen Garcia
    [URL=http://lab6media.com]Lab6 Media[/URL]
    Are you a content creator? A serial entrepreneur? New to the space or a long time player? We'd love to work with you!
    [URL=http://lab6media.com/clients/]Explore the affiliate programs we manage![/URL]

  17. #17
    Affiliate Manager JusticeforGirls's Avatar
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    LKowalski:

    Since you can't PM yet, I sent you an email with some Total/Outsourced Program Management suggestions. I agree that may be the best way to start. Please email me back with any questions.

    Best luck,

  18. #18
    Affiliate Manager PetsWarehouse.com's Avatar
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    Quote Originally Posted by kgarcia
    In fact, I don't know any experienced managers, OPM or in-house, that would take on a program for only $12K a year plus points.
    ~Karen
    There are several right here on ABW
    Bob Pets Warehouse
    Worlds Largest Pet Supply DataBase
    Join our Share-A-Sale Program [since 2003] Twitter



  19. #19
    Outsourced Program Manager John Jupp's Avatar
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    Quote Originally Posted by PetsWarehouse.com
    There are several right here on ABW
    Not for serious program management. The lower side of the scale would buy things like approvals, training and modifications and reporting services but for serious integrated marketing preparation and planning then no, the money available has to be a lot higher.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  20. #20
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    Bob, prices may have changed a bit since you last priced OPM services. There are lower cost solutions for clients that need less hours or less services, but 1% is an insult.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  21. #21
    Newbie Rolet's Avatar
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    Quote Originally Posted by loxly
    but 1% is an insult.
    A SMACK in the face.......

  22. #22
    Affiliate Manager PetsWarehouse.com's Avatar
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    That depends on the sales volume, bonuses etc.,
    hey guys I'm just telling you what I gathered in speaking with over a dozen OPM's.

    (Debbie it was a year ago.)
    Bob Pets Warehouse
    Worlds Largest Pet Supply DataBase
    Join our Share-A-Sale Program [since 2003] Twitter



  23. #23
    Outsourced Program Manager John Jupp's Avatar
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    Getting back to the original statement and questions put by the poster of the thread....Larry, a performance base such as you propose is reasonable depending on the criteria for the earning of that bonus, however to successfully achieve such performance targets would require either a full time AM or one who will concentrate on just a couple of accounts and who answers to an OPM.

    Either way, the base salary will not pay for a competent full time OPM and definitely not for an OPM AND and an assigned AM.

    It all depends as I have quoted on other threads....how deep are your pockets, what are your aspirations, what is the business plan and where do you want to see your business in two years time.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  24. #24
    Member JAYMEDINC's Avatar
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    I think his question was answered to his dis-satisfaction about 10 days ago. He heard exactly what he didn't want to hear, and realized his eBay business can't handle an experienced OPM or AM.

    I guess I'm just looking at it through his eyes. Or at least I think I may be on track. Then again, maybe not.

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