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  1. #1
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    Exclamation $ Affiliate Manager Salaries - how much?
    Hi - I'm the CEO of a successfull online business and I'm considering hiring a full-time Affiliate Marketing Manager.

    How much will I need to pay (in US$) to attract an experienced affiliate marketing specialist and how are packages usually structured?

    For instance I was thinking of offering a 50/50 salary vs commission split, whereby the commission is based on a % of affiliate sales over the existing sales level?

    Thanks a load
    Jason
    Last edited by Leader; October 24th, 2005 at 04:48 AM. Reason: Clarified title

  2. #2
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Hi, I took the liberty of clarifying the Title of your post, since an "affiliate" and an "affiliate manager" are two different species...
    There is no knowledge that is not power. ~Hemingway

  3. #3
    Affiliate Manager
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    A salary plus a performance bonus (commission) is the best way to go. The performance bonus can be based on the growth of the affiliate program since the new Affiliate Manager took over. For example if you already average $20,000 in sales per month you can offer a performance bonus of anything over that $20,000 and pay a commission on the amount over that. Hope that made sense

    As far as the amount that would have to be agreed with between you and the Affiliate Manager.

  4. #4
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    Smile Cheers - I still have a question though
    Thanks for your responses guys, I appreciate it.

    My question is more "how much does a good Affiliate Marketing Manager expect to earn"? Is it a $40,000 / $60,000 / $80,000 role (as an overall package - at say a 50/50 split for commission vs base)?

    Kind regards
    Jason

  5. #5
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Quote Originally Posted by Jason
    My question is more "how much does a good Affiliate Marketing Manager expect to earn"? Is it a $40,000 / $60,000 / $80,000 role (as an overall package - at say a 50/50 split for commission vs base)?

    Depends on vertical and base .... if you are an electronics merchant you can picture 250K for a real manager to do 5MM++ for ya or if your a vitamin merchant you could pay 30K for 20K affs to do 300K ... it really is realitive.

    Email me with specs and I'll help you more.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  6. #6
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by Jason
    My question is more "how much does a good Affiliate Marketing Manager expect to earn"? Is it a $40,000 / $60,000 / $80,000 role (as an overall package - at say a 50/50 split for commission vs base)?
    It also somewhat depends on where you're based at (i.e. what part of the country; assuming you're in the US). It'd be less for SC or NE, and more for NY and CA.

    I'd take Haiko on his offer of help. That would probably be the best advice you could get on this.

    Geno

  7. #7
    ABW Ambassador
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    Or you could outsource your AM program. I'd recommend the AMWSO group. They have a forum on this board.

  8. #8
    AM Navigator Geno Prussakov's Avatar
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    Affiliate Manager Salaries
    Quote Originally Posted by Jason
    How much will I need to pay (in US$) to attract an experienced affiliate marketing specialist?
    Jason, here's what my quick online research has shown (starting from the older stats to the most recent):

    Less than $40K per year - 8.70%
    $40K to $59K per year - 41.30%
    $60K to $79K per year - 28.26%
    $80K to $99K per year - 8.70%
    $100K to $119K per year - 4.35%
    More than $120K per year - 8.70%

    Source: United States Affiliate Manager Coalition, 07/2000
    less than $30,000 - 10%
    $30,000-$40,000 - 10%
    $40,000-$50,000 - 15%
    $50,000-$60,000 - 15%
    $60,000-$70,000 - 14%
    $70,000-$80,000 - 5%
    $80,000+ - 32%

    Based on: poll conducted amont 73 affiliate managers
    Less than $40k 21%
    $40k to $50k 14%
    $50k to $60k 12%
    $60k to $70k 6%
    $70k to $80k 13%
    $80k to $90k 8%
    $90k to $100k 6%
    $100k to $110k 4%
    $110k to $120k 6%
    More than $120k 10%

    Source: AffStat 2005 Report (based on reports from 130 affiliate managers; published in July 2005)
    Good luck finding a good AM!

    Geno

  9. #9
    Outsourced Program Manager
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    As always, you get what you pay for. If you are going to pay under $40k, I would highly suggest going the outsource route that WomanHT suggested. We work with Andy Rodriguez, and he is truly top notch. I have heard great things about Chris Sanderson as well.

  10. #10
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by EasyClickTravel
    As always, you get what you pay for. If you are going to pay under $40k, I would highly suggest going the outsource route that WomanHT suggested. We work with Andy Rodriguez, and he is truly top notch...
    So you have both an AM within the EasyClickTravel, and you outsource a consultant? Could you please clarify?

    Geno

  11. #11
    Outsourced Program Manager
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    Hey Geno,

    Yes, I have two affiliate programs here. I also handle new business development, so Andy handles a lot of the EasyClickTravel aspects. The end result is a very successful program. Andy more then pays for his fees every month by bringing us new, high quality affiliates, and keeping us on the cutting edge. If we didn't have him, we'd probably have to hire a couple of people to replace his team, so he is more then worth it.

  12. #12
    Outsourced Program Manager
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    Also, Jason,

    You may want to attend Andy's seminar (rescheduled due to Hurricane Wilma, date TBD). You will find:

    A) Experienced AM's looking to learn more
    B) Affiliates looking to become AM's
    C) Information on what a good AM will do for you
    D) Merchant's wanting to know what affiliate marketing is all about
    E) How to do it all the right way

    Here is the link:

    http://www.andyrodriguez.com/Affilia...mi-05-abw.html

  13. #13
    AM Navigator Geno Prussakov's Avatar
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    Sounds like you're doing a good job, Andy. Some flattering words above...

    Congrats!

    Geno

  14. #14
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    Thanks everyone - you have been great. I'm happy to pay $60k-$70k and I thought that by having a full timer on board, they could focus solely on the top compleimentary sites. I have checked out Andys site and it looks good - I have no problem getting a consultant involved as well.

    One final question - which sites are the best for advertising for my Affiliate Manager position? It seems that it is a very specialized area, so the local job sites and papers are a waste of time.

    Kind regards
    Jason

  15. #15
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by Jason
    One final question - which sites are the best for advertising for my Affiliate Manager position?
    Jason, here's the place:

    Affiliate Manager Job Openings

    The best place to start advertising your AM position! By advertising here, you are "doomed" to get an excellent reply.

    Geno

  16. #16
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    Excellent - cheers
    Jason

  17. #17
    AM Navigator Geno Prussakov's Avatar
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    Any time...

  18. #18
    Outsourced Program Manager
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    Hey Jason,

    If I may offer some advice.

    It is VERY difficult to find a good AM. Usually, people are usually good at relationship building or they are good at the technical aspects. Very rarely do you find those who are good at both.

    If your budget allows, you may want to employ the services of a recruiter. I can't tell you how many times I've been contacted by a "retained" recruiter.

    Also, be open to hiring someone with no AM experience. More importantly, make sure they have experience being an affiliate. A good AM needs to be able to relate to what their affiliates are going through. They need to know the tricks of the trade, and be able to communicate those to their affiliates.

    Creativity is key. This is such a young universe. They need to be able to envision new tools that affiliates can use to turn traffic into sales.

    They need to understand tracking, datafeeds, search strings, search boxes, a little javascript, php, and asp. This is where the technical knowledge comes in. I am sure I am missing a few key aspects, but you get the idea.

    Feel free to contact me with questions.

    Thanks,

    Michael

  19. #19
    Affiliate Manager PaulS's Avatar
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    I'd also be very careful to point out the policies of your affiliate program BEFORE offering a compensation package based too much on % of sales.

    Yes, you might end up with a determined affiliate manager who is willing to put in the work to earn the money. You may also end up with an affiliate manager who partners up with parasite and spyware in order to make the numbers "look good."

    If you're not clear that you want a clean program up front, it could cause issues later.

    Just something to consider...

    Paul

  20. #20
    Outsourced Program Manager
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    Great point Paul.

  21. #21
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    Excellent point
    Thanks Paul, thats an excellent point. I dont suppose you know of a good place to download an example of a suitable Affiliate Managment policy?

    Kind regards
    Jason

  22. #22
    Affiliate Manager PaulS's Avatar
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    I don't... sorry.

    However, I'd recommend taking a look at some of the Program Terms for the "Trusted Merchants" here on ABW (http://www.atrustedmerchant.com/). They should give you a sense of what kind of program you want to run.

    - Obviously, you want to run a clean, Parasite and Spyware free program (no downloads, BHOs, etc.).

    - Your program and affiliates should always be CAN-SPAM compliant (you don't want affiliates sending SPAM on your behalf.)

    - You'd have to decide on trademark bidding for PPCs, as that's a strategic decision that every company needs to make for themselves. I've seen valid arguments for both sides, so I can't help you there.

    - Other points that you'll need to decide based on your other channels, etc.

    The main point is to ensure that you capture all affiliate sales, but set the ground rules for what kind of program you are running so that the AM knows the rules.

    Some of the points-of-discussion you can decide with your possible AM, but if the AM you're interviewing has a problem with running a spyware-free program, then I'd recommend moving onto the next AM...

    Hope that helps.

    Paul

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