Incentivizing affiliates may often be a misjudged method in growing an affiliate program. An incetive campaign shouldn’t be the same for all, but rather a more comprehensive system to guarantee all affiliates are dealt with appropriately.
Let’s take an example of creating a “one size fits all” incentive campaign that will provide a 10% commission growth on all sales for affiliates who doubled their closed deals from the previous month.
It may sound like a great idea, but in fact it is isolating the affiliate program’s top performers. They must double their sales in order to get the 10% increase on all sales, but that is a hard task to ask. There was only a short-term outlook, not a long-term one. While rolling out new affiliate stimulating plans, remember to think in versatile way.
Here are some really working ways to incentivize your publishers.
Ideas on Content
This one isn’t a widely used incentive for affiliates, although it should be in every affiliate manager’s portfolio. Content plays significant role, it’s a matter of life or death to any publisher’s business. While your affiliates are struggling daily for fresh content, you can help. Give them a list of best-selling offers or products, which they can use to write reviews. Help your top-performing publishers with some insider info, if there’s any – like early releases, changes in policies etc. Some affiliates like this more than extra money rewards.
Contests with Valuable Prizes
Your affiliates love prizes! Some of them aren’t money-driven, and exotic sea tour in Thailand may be much more of a value for them. Or a giftcard they can give to their relatives. Or something personal and trivial, like silver pen with company’s logo. The fact is, prizes can grow loyalty of your affiliates, and by giving prizes to contest winners you make them friends to your company. These personal relations are something your business can rely upon even in hard times.
Also the reason to hold a contest is for affiliate manager to activate “sleeping” affiliates. This can be a stronger motivation for them.
This relates to an example above and how important it is to make sure the commission increases and bonuses are fair for everyone involved.
This is actually related to an example in the beginning of this text. Your incentive campaign should grant some attractive commission goals. You can divide your campaign in two, and left one (manually managed preferably) for your top performing publishers and the second one, more of “one size fits all”, for the other affiliates.
If the current commission is at 10% per sale, then having a campaign that will top off at 15% (if specific metrics are reached) could be implemented using a tiered strategy.
It should not simply be doubling the number of sales month over month, but instead reviewing their historical performance and devising goals out of it. The top performers produce a majority of the affiliate program’s revenue and need to be treated in a way that they are appreciated. This will help keep them a top partner for many years to come.
On the other hand, doing a tiered commission bonus program can ignite stagnant affiliates and increase their production. By providing them attainable goals they may put in more effort to start producing sales seeing the end result as increasing their bottom-line. It could be as simple as announcing that if affiliates increase their sales in the month by 20% month over month they will receive a 5% commission increase on all sales.
The little things can sometimes induce change, and quickly.
Source is here.