How To Negotiate with an Affiliate Manager Part 1
How To Negotiate with an Affiliate Manager Part 2
In this post we'll be talking about the third tip on how to negotiate with your affiliate manager.
Understand the industry and ask appropriately.
First an example, then an explanation.
You sell Pink Widgets for $7.95 each. You make 10% on the gross sales $0.80 (rounded up).
If you talked to your affiliate manager and said, I can't afford to keep your links on my page unless I am making $1.50 per sale (almost double). You might be able to get that amount, but probably not.
The reason is because you haven't researched the industry. You need to look at the competition for the product you are selling. If there are 8 other companies selling Pink Widgets and 3 of them are on CommissionJunction.com, how much do they pay? What about the one with ShareASale? How much does that one pay?
You don't have any idea the percentages they pay? What if they all only pay 3%? You are asking for 10%! Why should your affiliate manager give you 10% when they are already at the top of the game by giving out 5%. Is there a benefit to them? Did you actually take the time to explain the benefits to them?
These are the questions you need to ask yourself before you go demading a greater payout.
What do you have to offer the program? (Why you and not another affiliate?)
Where will the extra money go? (Does it go back into your PPC campaign, or does it pay the lease on your Covette?)
Do you have a history with this, or another, affiliate to prove you can do what you say? (Talk is cheap in the affiliate game)
The answers to these questions should be used to show the affiliate manager that you are ready to take their affiliate program and your earnings to the next level!
