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  1. #1
    Certified Affiliate Manager sunshiner's Avatar
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    July 12th, 2007
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    How do OPMs affect affiliate pay?
    This may seem like an odd question, but I've noticed a program management team touting that they don't make commission on affiliate sales so the bottom line is they don't affect the affiliate commission.

    I'm sure that a lot of management teams can say the same thing, though some may get a bonus for exceptional sales, which I agree is a good thing, but isn't that pretty much the norm for this industry.

    As an affiliate I am just curious. I guess I was under the impression that most of the OPM's worked by monthly retainer, and that what they make really doesn't have any affect on what the affiliates make.

    Clarifications please?

  2. #2
    The "other" left wing davidh's Avatar
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    Maybe whoever said that is working for a flat rate, which would be rather odd.

    Normally there would be a flat fee plus a small percentage of the commissions generated.

    I'd be leery of any OPM (or in-house manager) whose pay rate is not based on performance.
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  3. #3
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    Different OPM firms do things differently, and here we work on a case by case basis. We have mostly merchants that are a set rate per month (an hourly rate) but we do have merchants that are on other arrangements. We make sure that what we make doesn't affect the amount of affiliate commission, for example I would rather the merchant pay us in a way that it doesn't look like we are increasing commissions just to get "more money" for ourselves.

    That said, all merchants have a set amount that determines what they can pay affiliates and stay profitable. OPM costs or inhouse AM costs will always figure into that equation.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  4. #4
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    Quote Originally Posted by davidh View Post
    I'd be leery of any OPM (or in-house manager) whose pay rate is not based on performance.
    In-house almost never is on commission or performance basis. Our "reward" for performance is to make sure everyone makes money or the merchant wouldn't continue to work with us Flat rate plus commission is normal for many OPM firms.

    We take it on a case by case basis and compensation at the beginning of a program, which takes much more work without much "reward", will be structured differently than compensation once the merchant is established.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

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