Rates for Managing Affiliate Programs

September 19th, 2008 · Comments

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Q: I’ve been asked to put together a proposal to create and manage an affiliate program, and I was wondering what I should charge for my services?

A: There is not a stock answer - it depends on a few different variables.

I have no idea what kind of experience you have, and what you’ve done in terms of being an affiliate manager.

The company asking for the proposal matters, too. Are they a big retailer, a Mom & Pop, or something in between? Also, what are they selling?

If the affiliate program is based around selling some sort of hard goods, the margins could be limited, while there can be rather large margins with something like software downloads.

The way I’ve structured it in the past, when I’ve pitched affiliate management services, has been to have a set monthly fee, as well as a percent of the action generated by affiliates.

As far as ranges, I’ve seen OPMs (c) charging from $2,000 to over $10,000 per month.

Simply put, experience and reputation equal higher rates.

I’d say that if you’re relatively new to affiliate management, try pricing towards the lower end and increase progressively as you build up a name and history in the business.

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Tags: Affiliate Managers · Ask Shawn Collins

Viewing 5 Comments

Kirk 2 months ago 1 point
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Thanks for your blog ,it is the only one I hesitate
to pass over when i'm busy,always a useful nugget.

Is there a place or board wher i can post an ad for an affiliate mgr.

Or do you feel that the independent mgrs from shareasale,pepperjam,linkshare etc
do the job just as well and are basically no cost

We are actually waiting for a B-B network to emerge.

As our product is Green and sold to offices.

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http://www.ecomugs.com

Shawn Collins 2 months ago 1 point
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If you have the patience, I would suggest taking the time to join the affiliate programs of your competition. Then scope out which has the best affiliate manager and try to hire them over.

Just because somebody is an experienced affiliate manager doesn't mean they have experience and connections in your niche.

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14 /people/affiliatetip/ /people/affiliatetip/following/ http://blog.affiliatetip.com 504429203 in/shawncollins affiliatetip affiliatetip affiliate affiliate

Justin Hitt 1 month ago 1 point
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Kirk,

There are B-to-B products in the larger networks, you just have to look hard for them. The managers for larger consumer programs are much better, they actually have useful tips to boost sales. Shawn's advice on joining your competitors programs also works for joining comparables (products sold to the same audience.)

Shawn,

Thanks for pointing out that experience counts. Today anyone with a merchant account can setup an affiliate program. The large networks will let anyone sign-up if you pay the fees.

It's just a disservice to customers to charge them a bunch of money to setup a program that doesn't produce. I've taken affiliate management like a sales management position, base plus commission override.

Best,

Justin

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TonyT 2 months ago 1 point
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APMs need to base their charges on net income earned, especially when they are starting out.

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Richard 1 month ago 1 point
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this doesn' help at all. It seem i made more with some merhcnats 4 years ago then i make now.

Those programs that i manage that are rev share hardley pay for my time until after 6 months or more IF the merchant waits that long.

I used to charge min $35/hour when i worked with Kowabunga 4 years ago but dont get close to that now.
Time to find merchants that make more so they can pay more :-)

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