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Persuasion and Negotiation in the Affiliate Marketplace

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This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: Learn tools and tips for negotiating win-win deals in the affiliate space from an award-winning OPM. Whether you’re a merchant, affiliate, or an agency, you’ll find valuable information.

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Persuasion and Negotiation in the Affiliate Marketplace

  1. 1. Persuasion and Negotiation in the Affiliate Marketplace Shaughn O’Neill Strategic Account Manager / Publisher Development Manager AffiliateManager.com @soneill06
  2. 2. Summary ● Success Stories ● Tactics We Use ● Takeaways ○ Affiliates ○ Merchants ○ Agencies
  3. 3. Success Stories
  4. 4. Pursue Non-Traditional Affiliate Arrangements ● Players: Menfluential Media and Sunglass Warehouse ● Publisher accustomed to doing paid placement marketing ● Convinced publisher and client of a hybrid approach--20% less up front and double our average commission ● Ran the numbers to determine what it would take to get them to break even ● Deal was signed and placement (banner, blogpost, and email blasts) went live
  5. 5. Convince Reluctant Affiliate Base to Test ● Essential oils client ● Due to product mix (cannabis-based oils), traction for client was slower than average ● Found pet blogger/product reviewer ○ Affiliate outreach focused on products related to pets ● Affiliate saw benefits, posted review, and became lifelong customer
  6. 6. Craft Traditional Deal Site Placement ● Slickdeals placement-Sunglass Warehouse ● Negotiated with client and affiliate to find right deal (% off category) ● Free test turned into a huge success ○ One-day sponsored (paid) placement saw second sales bump ● Testing off-season was even more successful
  7. 7. Be competitive with Amazon ● Afrotechmods.com (and associated YouTube site)--site for maker community ● Joined Arrow.com program through AffMgr Biz Dev Manager ● Base commission rate is lower than other brands and Amazon ● We offered to match Amazon in exchange for placement; Affiliate accepted and tested link on homepage (displacing AdSense)
  8. 8. Tactics
  9. 9. Persistence ● Determine soft no’s from hard no’s ● Work around or through roadblocks ● Keep trying until you get an answer!
  10. 10. Being Data-Driven ● Placement trackers ● Historical expectations ● Break-even or ROAS models ● Year-over-Year or Month-over-Month goals
  11. 11. Flexibility ● Hybrid payment model ● CPA vs. CPM vs. CPC ● Trial request--asking for a time frame
  12. 12. The Right Fit for the Right Brand ● Demographic focus ● Deal-centricity ● B2B versus B2C
  13. 13. Using spend/budget responsibly ● Controlling marketing spend for rev-share clients ● Obtaining a budget when we don’t control marketing spend
  14. 14. Takeaways
  15. 15. Takeaways for Affiliates ● Merchants can be open to testing alternative models of revenue generation in the affiliate channel: ○ Awareness for popularity of flat-fee placements is high ○ Be open to suggesting mixed/hybrid models ● Utilize the in-network placement marketplaces. ● Find savvy in-house program managers and agency partners.
  16. 16. Takeaways for Merchants ● Just like for affiliates, awareness that CPA is not the only way to do affiliate anymore is crucial. ● Bloggers and content site owners are finding they are doing better via other means and are less open to CPA-only trials. ● Maintaining a healthy affiliate program (high conversion rate and commission rate, resulting in a high EPC) will help keep you competitive.
  17. 17. Takeaways for Agencies ● Due to our unique position in the marketplace, we are (or should be) very responsive to what we’re hearing from affiliates and merchants. ○ Connecting the right client to the right affiliate(s) is why we’re hired to do what we do. ● Convincing both parties of a win-win deal is as crucial now as ever. ● Knowing where you can push is the biggest part.
  18. 18. Thank You!

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