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  1. #1
    Affiliate Manager
    Join Date
    October 27th, 2010
    Location
    San Diego, CA
    Posts
    5
    Red face Affiliate Marketing Consultant
    Hi Everyone-

    Painting the picture...

    My company's affiliate program is mature (5 years active, 2 networks and 3,000 affiliates, Conv 3%, AOV $212). I have an AM who has almost 2 years experience in the affiliate channel. That AM is doing a great job with the level of experience and I have no plans to replace the AM.

    The question...

    I was approached my someone whom I have known for a few years now who has lots of experience in the affiliate space. I thought it may make sense to engage with him on a project to get some ideas on growing sales at an even faster pace and somewhat of mentor to the current AM

    I received a service proposal from the consultant that was not detailed and lacked structure. The consultant is asking for X% commission on sale that are generated from affiliates that are not currently joined. X% of sale over and above a mutually agreeable monthly sales. (no other details)

    I'm in the process of adding more structure to the service agreement and need your help.

    My current AM is actively pursuing advertisers and is looking into signing up with another network (possible but not likely). So how do I know which affiliates the AM recruited and which affiliates the consultant recruited? I also want to put a cap on total payout and time limit of payout. Example if the consultant recruited 50 advertisers and 5 are generating money I don't want to pay commission on that money generated for the life of the program. I need to know what a fair cap on time after an affiliate is launches. And the best way to keep track of recruitment process.

    The big question here is “what is a fair payout structure on an established program with an AM in place?”

    Any help and ideas you can send my way would be greatly appreciated.

    Respectfully,
    JOAffiliate

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Location
    Park City Utah
    Posts
    16,646
    With a CJ program we setup the affiliates had to be identified by the consultant and he got a percentage of their sales. He had access and could go after known affiliates that were not in the program. He advised us for a consulting fee and only made the rev share for his affiliates.

    We created a Group and tagged the affiliates he recruited into that group. Was easy to track only their sales that way.
    Last edited by Chuck Hamrick; October 27th, 2010 at 05:01 PM.

  3. #3
    Affiliate Manager
    Join Date
    October 27th, 2010
    Location
    San Diego, CA
    Posts
    5
    Thanks Chuck!

    What's reasonable monthly consulting fee?

  4. #4
    Outsourced Program Manager e-Gazer's Avatar
    Join Date
    January 18th, 2005
    Location
    Toronto, Ont, Canada
    Posts
    1,605
    Alternatively you could have this consultant sign up as an affiliate and have all his recruits sign up under him (if you have a 2nd tier program in place). Not sure if there are any ethical problems with doing it that way but don't think so since affiliates in programs with more than one tier do it all the time and, in essence if he is primarily acting in a recruiting role for you, he/she is playing the role of a T1 affiliate bringing T2's into the program and taking a cut of their sales as a performance bonus anyway. Same idea as what Chuck suggested only managed differently.

  5. #5
    Affiliate Manager
    Join Date
    October 27th, 2010
    Location
    San Diego, CA
    Posts
    5
    Talking Affiliate Marketing Manager
    Thank you both for your reply. The suggestions you both laid our are very helpful.

    Could you tell me how much you would pay, on a monthly base, an affiliate consultant to optimize your program? I'm sure there is a wide range, but I looking for a starting point.

    Thanks again for your help!

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