Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Commission Splitting: To Split or Not to Split?

369 views

Published on

This presentation is from Affiliate Summit East 2017 (July 30 - August 1, 2017 in New York).

Session description: This session will focus some of the most cutting-edge ways to increase your website or landing page’s conversion rate so you can advertise more effectively online.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Commission Splitting: To Split or Not to Split?

  1. 1. Commission Splitting: to split or not to split, that is the question
  2. 2. ● Co-founder & VP Strategic Initiatives, Impact Radius: 2008 - present ● VP Sales & Business Development, Digital River, oneNetworkDirect : 2006 - 2008 ● Founding Team, Commission Junction: 1998 - 2006 Todd Crawford W E L C O M E
  3. 3. Why do we want to split commissions Challenges Goals Common Outcomes AGENDA Rewarding Contributions
  4. 4. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS?
  5. 5. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc.
  6. 6. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion?
  7. 7. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion? ● Some media partners are stronger last click referrers (coupon, loyalty, retargeting) than others like influencers and content review sites.
  8. 8. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion? ● Some media partners are stronger last click referrers (coupon, loyalty, retargeting) than others like influencers and content review sites. ● It seems like the fair thing to do.
  9. 9. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS
  10. 10. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all
  11. 11. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels?
  12. 12. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels? ● Fraud risk increases
  13. 13. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels? ● Fraud risk increases ● Will it drive more value?
  14. 14. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS
  15. 15. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues
  16. 16. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS
  17. 17. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin
  18. 18. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV
  19. 19. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV ● Acquire new customers
  20. 20. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV ● Acquire new customers ● Maximize ROI
  21. 21. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING
  22. 22. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed
  23. 23. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same
  24. 24. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same ● ROAS decreases
  25. 25. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same ● ROAS decreases ● Poor ROI of resources
  26. 26. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHERE SHOULD WE INVEST TO MAXIMIZE OUR ROI?
  27. 27. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions
  28. 28. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions
  29. 29. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions ● Less is more (80/20 rule)
  30. 30. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions ● Less is more (80/20 rule) ● Communication
  31. 31. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS
  32. 32. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters
  33. 33. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner
  34. 34. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses
  35. 35. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid $0.25/CPC or 8% of sale
  36. 36. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid ○ CPC $0.25 CPC
  37. 37. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid ○ CPC ● Measure and optimize partnerships, not the channel
  38. 38. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE LET’S DISCUSS!
  39. 39. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE THANK YOU todd@impactradius.com

×