Anatomy of an Affiliate Program

View All

Almost every company has affiliates, although before the advent of the internet they were simply called "salespeople". The internet has provided businesses with the opportunity to have a virtually unlimited number of salespeople, promoting their products and services to literally millions of prospects that otherwise may not heard of them.

It is unfortunately common for both affiliates and merchants to misunderstand, or ignore, this synergistic relationship, and to try and take unfair advantage of the other party. The most successful programs are based on mutual respect, open dialogue, and proper recognition and reward for success.

Affiliates, like many salespeople, work on performance-based compensation, and in the gaming industry this is either a commission as a percentage of revenue, termed "rev share", a one time payment based on a predetermined sales result, called a "CPA" (cost per acquisition), or a blend of both, known as a "hybrid" plan.

To be successful in promoting the products of a merchant the affiliates need to have the proper tools to sell the products and services. For online promotion these include creative; usually online banners, as well as text links, site reviews, and other information about the merchants services.

Affiliates also need to have the proper reporting of their efforts so that they can determine how well they are succeeding, and make the necessary adjustments to maximize this success. In the gaming industry reporting is usually provided by the merchant themselves, and includes tracking of impressions, clicks, customer registrations, customer conversions, (purchases), and ongoing activity. In some cases this reporting is handled by an outside provider which works as well, and in many cases better.

Successful affiliate programs have dedicated personnel that work with the affiliates to ensure that they have the tools that they need, the reporting that is required, and to ensure that they are compensated fairly and in a timely fashion. Again these services are either provided to the affiliates by an individual or team that works directly for the merchant, or by an independent affiliate management company. Either solution is acceptable to affiliates providing that they receive the level of support that they require.

Providing that the affiliates are successful in delivering prospects to a merchant – customers that convert into paying customers – and they earn money, they will continue to promote them, and the more that they earn, the better the promotion is likely to be. Online affiliates have a set amount of “real estate” on their sites for promotion – they of course have to provide content to their visitors – and this is allocated to those merchants from whom they earn the best return.

To keep affiliates motivated, merchants should work with them to create incentive programs and special events that will provide them with opportunities for increased recognition, and revenue. They should also take the time to meet with them whenever possible to help them with their promotions.

A successful affiliate program can, and will, provide both parties with a long-term, mutually beneficial relationship.

Gian Perroni is the President of the Canadian Affiliate Management Company, (CanAffco.com), and has been in the online gaming industry since 1997. A frequent speaker at gaming conferences, Gian has himself been an affiliate, an affiliate program director, and an operator. He and his team work with gaming and retail merchants, helping them manage their affiliate programs. Gian can be reached by email at gian@canaffco.com.

Sphere: Related Content

Rate this page - Is this page helpful to you?