Affiliate Management – What to Do When an Affiliate Does the Wrong Thing
First things first, no, I'm not writing this because one of my affiliates have "done the wrong thing" – far from it. I love what my affiliates are doing at the moment and some of them are having success – it's good to see.
But … * if * an affiliate was to do the wrong thing … what should we do?
Sometimes we should first define "the wrong thing."
• Spamming your offer in unsolicited emails? Definite yes.
• Blog comment posting using your affiliate link? Sketchy.
• Facebook and / or other PPC ads? Not likely.
But how about not generating high enough conversions? Hmmm.
These days one of the big buzz-words in IM is EPC (not so much a buzz 'word' as a buzz phrase). EC stands for Earnings Per Click. It relates to the amount of clicks that (for example) a solo eZine add would produce and the income returned.
ie Your affiliate mails out to his or her list and 126 people 'click the ad' landing on the sales page. Of those 126 people, 16 of them buy and it's an offer that sells for $ 97.
Once upon a time we only care about 'conversion ratios' – 126 clicks, 16 sales = 12.6% conversion. Not bad.
However, once EPC came into the equation, people wanted to know * how much * they might earn PER CLICK. Therefore, with the above example, the EPC would be $ 12.31 (16 x $ 97/126).
Forget about the fact that affiliate agreements are then taken out, holdback is put into reserve etc, these are the basic numbers.
And naturally, if the same numbers were true, but the price point was much lower, then the EC would be less as well. ie on a $ 17 product the EPC would be $ 2.15.
Using THESE numbers, a product owner can confidently approach a potential affiliate and say, "Hey, we're getting an EPC of $ X and you'll make some good money."
Sounds simple does not it?
But what should you do if an affiliate does not "perform". Let's say they send you 200 "clicks" and for that the only generate 3 sales, or worse yet, none?
Should you ban them?
That's the question which was asked recently by one such product owner. Not being happy with his EPC from one particular affiliate he deleted the affiliates account and effectively banned him from getting any further affiliate commissions.
Small wonder Mister Affiliate was PISSED! I would be too.
There are two schools of thought here … those who would do the same because they are more about the "EPC" and how "their offer looks" to potential partners than they do people; and there are those who would be happy for the traffic, even if it was not converting, because they know that they can make change and try and convert that traffic by improving their sales copy / offer etc.
Two schools of thought …. I'm in the second one. I'm not going to burn my people just because they have not performed as well as I might like them to have done. I'd bet hands down that they were not too happy also.
The thing is, while most people are quick to blame the "offer" when an affiliate campaign does not work, the thing they should most likely look at is the traffic source! Even the worst possible offer will sell to the right people!
So no, I would not ban someone for not performing. But that's just me.
What would YOU do? Why?
Source by Paul Barrs