COMPENSATE according to performance.
It’s best to have several different options available for compensation.
Generally this is going to include either –
(a) Hourly Rate,
(b) Commission, or
(c) A Combination of both.
In my opinion, straight “commission” is the best option.
Why?
Because the more dedicated the affiliate manager is, the more money they make.
By giving them a large percentage of the overall profit produced through the affiliate program you, in essence, give them a partnership in the business.
It eliminates risk on your part: they only get paid if they produce.
And it encourages hard work on their part: they only get paid if they produce!
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Now, I will say that in order to attract a quality affiliate manager on a commission only compensation package, the percentage should be at least 25% of the total revenue produced.
You may also want to consider “revenue level bonuses”. In other words, if X number of dollars are generated in revenue, the affiliate manager gets X number of dollars as a bonus.
That’s another great way to attract a quality affiliate manager who will be dedicated to your project.
CONSIDER the duration of the partnership.
Most quality affiliate managers want at least a six-month contract if the arrangement is commission-based.
The reason is very simple: affiliate programs generate “popcorn” revenue. That is, sales often come in more frequently over time.
An affiliate manager wouldn’t want to take the risk of working hard for your program for 3 months only to realize the most significant results of her work come in after she is no longer working with you.
In the early months, much of the affiliate manager’s work is on establishing your program (Setting up the affiliate center, recruiting affiliates, training, etc.). While profit is generated during this time frame, the real harvest comes after the
introductory period when the foundation is being laid.
So, you’ll need to consider how long your affiliate manager partnership will be in place.
I know, I know: as long as things are going well, you plan on keeping the person in the position.
Not good enough.
You need something solid in place. A quality affiliate manager wants some assurance that you’re not just gonna dump him after he gets things setup for you or begins to generate sales before he’s able to reap the profit from his effort.
Decide on a time frame – the recommendation is six months minimum.
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The Ultimate Free Traffic Blueprint