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March 11th, 2009, 04:09 PM #1
A non-OPM pitching an affiliate program to a new merchant
- Join Date
- October 16th, 2008
So here's the pickle...
I manage B2B lead-gen at a software company for a living and do some affiliate stuff on the side and consider myself pretty familiar with the ins and outs of the industry.
I recently met the owner of a small company that sells an amazing product and I think they could significantly benefit from starting an affiliate program. While their profit margins are unknown to me, they have a handful of products (different sizes in the product line) ranging in the $50-$1k range. Their technology is great and very relevant for today's economy.
I'm considering approaching them to be a CPA consultant and would want to get them setup with SaS, however I need some advice on how best to proceed w/ that.
A couple questions I have are:
1. Ideally I want to be the sole point of contact with the affiliates. Is there a way to structure the SaS setup so that I am the only one who can email them and so the account is in my name (even if this company pays the fees and loads the account)? I'm looking for a way to cover my ass in the likely event that the program takes off and they for some reason decide they no longer need me. If I could "take the affiliates with me" as it were, that would be ideal (though I fully understand I would need a comparable program,etc. and need to convince them to follow me).
2. Are there any good resources for OPM rates? I searched a bit but couldn't find anything on here. I would probably be pushing them for a monthly service fee plus a percentage of affiliate sales--I'm just looking for guidance on what other OPMs here charge and what commission rate they request.
3. I'd certainly consider outsourcing this as an option if I land the gig and would love to work with one of the great OPMs on here. I would of course only consider an agreement where I received a percentage of sales with protections in place to protect my relationship. Have any of you folks here engaged in such agreements in the past? If so how were the structured and how have they worked for you?
Any thoughts you guys have on these would be much appreciated--I'm happy to clarify anything within reason.
March 11th, 2009, 09:08 PM #2Originally Posted by Haltingpoint
@1. The best idea is to just help them start and manage the program and do all the setup for them and they still own everything at the end like affiliates, (not really own them but you also cannot take them away, etc). Essentially if you run a good program affiliates will follow you and you do not need to get into who owns what or get affiliates to leave program. You really cannot get mad with a merchant and if they decide to leave you after few years to try and close down their program or drop affiliates or not pay them just to get back at merchant or because merchant does not want to work with you or you work with them.
@2. Here is ours just as an example so you get an idea, but this is just us. You can basically charge 0-10k per month since not all programs are created equal or require the same time structure all the time. http://www.jrami.com/merchants-new-j...ing-structure/
You basically have two options
A - is to setup an agreement with the merchant like a partnership where you may act as the merchant and they just provide the site/store/cart and take care of shipping
B - you manage the program just as an OPM and when they or you decide to part ways they keep managing the program on their own, stay with the network, affiliates and handle all as usual.
@3. We have something similar working with our programs with us. Send me your contact info and a best date time to call you no obligation: jorge /at/ jrami.com
March 12th, 2009, 05:27 PM #3
- Join Date
- October 16th, 2008
Very helpful--thanks for the info.
I'll shoot you a PM w/ my details for a call.
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