Public: advertisers // Difficulty: easy Difficulty: easy
As we all know, remuneration is the lifeblood of any business! The challenge is to remunerate each affiliate fairly, according to his or her involvement in a sale. Complicated? Not really… In recent years, remunerating affiliates according to their contribution to the conversion chain has become a major issue in the affiliate marketing industry. With the recurring problem of federating all the types of affiliates needed to achieve your objectives.
One of the trends to emerge in recent years is to divide commissions equally by the number of affiliates involved in a sale. So, if 5 players were involved, the commission would be divided into 5 equal parts. While in theory this division may seem fair, in reality it conceals a major flaw: affiliates cannot know in advance what their commission will be, since it depends on a factor over which they have no control: the number of affiliates involved in the sale. Without prior visibility of their real earnings, partners don’t have the necessary elements to decide on their investment, and are therefore less inclined to get involved in a program.
Define a hyper-customized compensation strategy
In a logic of hyper-personalization of affiliation, we need to reverse the reading of the problem. What’s important is not so much the number of players in the conversion chain, but rather the role played by each affiliate.
To achieve this, the first step, too often forgotten when setting up a program, is to clearly identify the target customer, how you want to reach them, and what you expect from the different levers (participation or conversion). Once this strategy has been established, the next step is to determine what you’re prepared to pay for an affiliate who participates in a sale, and for one who converts the sale. This involves adapting the remuneration of partners to their role, and valuing them according to what is expected of them. For example, a coupon site is not expected to be present in the conversion chain. Either it’s the last one, or it hasn’t played its part, in which case it will be paid less.
Control affiliate remuneration
Thus, the advertiser can decide, depending on its objectives, to pay the last participant a certain sum and the other participants another fixed sum. This approach makes it possible to establish a clear remuneration policy that will be easily understood by affiliates and will encourage them to join the program.
When it comes to remuneration, the hyper-personalization of affiliation means matching a partner with a remuneration. The message is: we value you in relation to what we expect of you!
