Ask Shawn Collins: Outsourced Affiliate Management Pricing

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How much does an affiliate marketing agency normally charge to run an affiliate program for a merchant: 15% or 20% of revenue, plus a flat fee?

The rates vary wildly depending on which company and/or affiliate manager is managing the affiliate program.

Outsourced affiliate program managers (OPMs) general charge a flat fee per month, and some also require a percent of the transactions referred by affiliates.

According to the latest data I collected for the AffStat 2007 Report, about 30% of OPMs charge a total of $4k or less per month and a similar group of approximately 30% of OPMs cost their clients over $10k with the remaining 40% or so ranging from $4k to $10k per month.

While you might be able to find affiliate managers who are willing to work strictly on performance, I’d urge you to take a good look at their background and get references.

Then again, do this for any prospective affiliate management firm.