Ask Shawn Collins: Performance Based Affiliate Management

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I am working part-time as an affiliate manager. The merchant wants to pay me performance-based with a percentage of all partner income. What percent do you think would be a fair deal for both sides?

Beware of any merchant that insists that you manage their affiliate program strictly on performance. Of course, the merchant prefers that approach – it presents them with zero risk.

It also takes away their incentive to properly invest in the affiliate marketing channel for their company. They may not have a completive offer, affiliate commission, etc.

And if the affiliate program flops, you lose and the affiliates lose, but the merchant is unaffected.

They’ll tell you they want you to have skin in the game to keep you motivated. When they say that, be sure to smile and agree. Then tell them that you’d like a hybrid deal that provides you with a monthly retainer for your services, as well as a percent of the transactions generated by the affiliates.

And if you are working on a contract basis, don’t blindly signed their agreement. Run it by a local attorney to be sure that the terms of mutual and fair.