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July 14th, 2006, 10:49 AM #1
Negotiating improved payouts
- Join Date
- January 17th, 2005
I want to get some clarification over what kinds of negotiations are possible with some of the affiliate networks.
1. Do most affiliate programs offer tiered payment where you get a better rate if your volume is high?
2. What kind of percentage improvements are possible according to $x? Double? 10%? 100%?
3. How do you best negotation these increases?
July 14th, 2006, 10:52 AM #2
I don't know if it is at all possible to negotiate with "affiliate networks". Merchants - yes...
Also, what exactly do you mean by "percentage improvements"? At the expense of the tiers?
Geno Prussakov AM Navigator LLC Twitter.com/ePrussakov We Manage: These affiliate programs My Services: Affiliate program management, audit, consulting, speaking
July 14th, 2006, 11:31 AM #3
Ya, if you are with a direct merchant, yes they will negotiate. Example, if you are new or do not have the numbers, but need the 'investment' of a better commission. You can offer a half share like 2%, but say you will take only half of that and in return will show what you will do with it, like make a better site, do CPC, or more search to drive more traffic. Make them see it as an investment and if it pays off they will get more traffic and you can eventually get the full 2%
As for a network, i have had calls from them every once in a while, saying they have a growing client who requests a rate increase, but it does not happen too often. Maybe affiliates feel reluctant to make such requests. But the network will first look at your traffic, conversions and last check and if your numbers do not inspire them, they will be polite, but will reject it. I guess it is kind of like the egg before the chicken.
July 14th, 2006, 12:23 PM #4
Hey Jon, if you feel the traffic you are sending is of high volume and good quality, then you should not hesitate for a second to request for higher payouts. It's like what my friends tell me when I'm out at a club and want to ask a girl to dance...to give me encouragement, they all say "what's the worst she will say..."no" ?" And more times then not...yeaa...that's what she says. But don't be reluctant to initiate the negotiations for a higher payout. What's the worst they will say, "no" ? Depending on the type of offer it is and who the owner of the offer is, will determine what the rate of increase will be, as well as if it is even possible. Many merchants set a ceiling for the payout they are willing to offer the network and what they would like the network to pay it's affiliates. But it never hurts to ask. And don't approach it with a simple "Hey, can you increase my payout on such in such offer?". Give them a breif reasoning for your request and bring it to their attention your value to them. And if for some reason they decline any increase, be sure they provide you with an explanation why. If they say "Bring us more traffic, then we'll increase your payout." Tell them "Increase my payout and I'll bring you more traffic."[B]Jon Lyons[/B]
Director of Affiliate Operations
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