How to Negotiate Your Payout
So you are kicking ass as an affiliate and funneling all kinds of business to your affiliate operator. Now, you may be thinking of increasing your pay—whether this means negotiating your contract for higher commissions or other payout options. But what are the chances of your partner agreeing to this, right?
Actually, operators are willing to negotiate higher payouts for affiliates who do high-volume sales and generate referrals. You are important to their business, and they know it.
Here are some ideas to boost your income from your managers.
Make a Name for Yourself
When dealing with an affiliate program, it may be difficult to make a name for yourself, but do everything you can to get yourself noticed. Get your name to the top of performance lists, make steady increases and deliver solid referrals. If your manager becomes aware of who you are and your consistent track record, pitching negotiations or at least starting a dialogue about increasing your pay will be easier. If you can prove your value to the company, you have more ammunition for your request.
Ask For What You Want
This may sound obvious, but many affiliates who are doing fantastic never get a pay raise because they don’t ask for it. Don’t expect your program to come to you with bonuses to keep you around. In a professional request, state your evidence for a commission increase and ask for what you want. Your manager is likely to comply, or at least counter-offer before they lose a great affiliate to one of their competitors.
Consider Your Options
Before you begin to negotiate, look at your options and present your manager with at least three for them to consider. These options can include:
- A straight finder’s fee for every sign up (i.e. $50-150)
- Performance bonuses
- Back end commissions
- An increased percentage of a high-end user’s recurring bets
- An increased percentage for referrals that result in other referrals
As a trustworthy affiliate who has delivered good business over time, your program manager is likely to welcome your feedback on how to make their business more profitable for the both of you. Ask your manager for more information on their business and show that you are genuinely interested in the program. Discuss site improvements or new ideas to drive traffic and improve the overall user experience. This will open the door to discussions about what they’re willing to do to reward your efforts.
What Are You Willing to Lose?
Before entering into any negotiation, it’s important to know what you’re willing to give up for the sake of getting what you want. What’s the least you’re willing to accept in order to stay with your partner? Do your research and know what the going rates are. Let your program know what you want for your efforts. You have proven you can deliver the goods—now it’s time for the program to reciprocate—or find a program that will.
Have you negotiated a payout recently, or are thinking about it? What is your plan of attack? Tell us in the comments below.