Increase Your Affiliate Campaign Profitability By Travis Glenn

by Cruz Alvarado on January 29, 2019


Summary: Here are three steps to increasing the profitability of your affiliate campaign through better client relationship tactics.

Affiliates are always looking for ways to increase the profitability of their campaigns. Many times early testing on a specific affiliate campaign will be Return on Investment (ROI) negative or breakeven. In that case, the ability of the affiliate to continue promotion of the campaign will depend on whether he is able to cut the costs of promotion or increase the revenue generated.

If your business utilizes affiliates, you have to ensure that you are making it easy as possible for them to optimize their campaigns.

Offer optimization tactics can fall into one of these three categories:

First there is offer and demographic information sharing, the next step is optimal relationship communication, and the closing step would be reevaluation after long-term results are available.

During the first phase, merchants should pass the affiliates as much reliable information as possible regarding the customer demographics for the product or service. This can include data such as primary age range, income levels, gender, geo-location data, and any other pertinent information that gives affiliates an idea of exactly who they are targeting. Depending on how the affiliate is advertising, they can choose placements that match the audience the product owner has had success with. Affiliates who are dialed into the correct target audience will save a ton of money by not wasting views and clicks from non-matching sources.

The next phase comes after the affiliate has been running the campaign for several days or weeks. During this phase, the affiliate can make contact with their affiliate manager to see the profitability of their conversions. If the feedback is mediocre, the affiliate should analyze to see what they could do to improve quality. When the feedback is positive, affiliates should negotiate a payout increase. If an affiliate is performing above average, the client may be happy to share more revenue with the affiliate. Good client affiliate relationships consider the long-term potential of the partnership.

The final phase is much like step two above, but this time there is more concrete long-term data. This phase can look over months or years to see what the Life Time Value (LTV) of the conversions. During this phase, the affiliate and client have demonstrated a positive long-term partnership. This can be a good time to see if the affiliate or client can expand the relationship. Does the affiliate have other traffic sources and placements that they haven’t yet tested? Does the client have other products or services that may be worthwhile for the affiliate to promote? Exploring these questions can lead to a gradual increase in the amount of business the parties are able to conduct together.

Affiliate marketing can be a great boost to clients and marketers alike. It can be beneficial for everyone to keep in mind the opportunities to optimize results over the course of the phases of the promotion cycle. Just because something is break-even initially, or worse, negative ROI, affiliates should plan to push into the longer-term opportunities if the campaign shows promise.

Travis Glenn  is PeerFly’s Director of Business Development. @TheTravest – This article appeared in issue 45 of FeedFront Magazine, which was published in January 2019: Visit Here

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