How much negotiation margin is there when negotiating rev share deals with Affiliate Managers?
How much negotiation margin is there when negotiating rev share deals with Affiliate Managers?
Good question - normally quite a bit.
That depends normally on what domains one operates and what kind of traffic can be generated.
Most affiliate programs will give more out the more they receive
How much do you look for normally?![]()
Hey cmdenny,
In my experience there's almost always a certain amount of leeway between the published rev share levels of a programme and what extra an affiliate might be able to negotiate.
Ultimately it comes down to how much the AM wants to get your site onboard.
Be prepared to justify why you think your site merits the extra and suggest additional marketing activities you'd be willing to undertake such as email shots etc.
if you haven't already, just do a little homework on it and then come straight out and ask for an increased amount.
However, don't forget that in terms of volume, a lower rev share with a good performing brand will often yield higher returns than some crazy percentage with an unproven or poor converting programme.
Just my thoughts on the matter so hope it helps![]()
I personally as an affiliate manager am always happy to negotiate with affiliates to give them the best possible deal we can. There are also other factors to take into consideration as well as rev share. Sometimes an effective promotion will help conversions better and result in a more profitable income for you.
I'm always happy to talk and negotiate a deal, although it's often easier from your point of view to negotiate a higher Rev Share after you've been working with the site for a while as then, hopefully, you'll have the figures to back up your request.
Renee (19 September 2010)
As an affiliate manager, I would say that there is always some room for negotiations on a revshare deal. I like to offer a percentage that I believe the affiliate would naturally achieve. If the affiliate needs a bit more of an incentive, of course I would rather give them an increase then lose them.
I think HodgeyBoy had some legitmate points:
You will need to justify why you merit the extra, and what you might do to bring in the players.
A higher revshare doesn't always result in more money. You are going to make a better return on a lower revshare but a brand that performs.
My thoughts, I hope they are informative![]()
Shelley Shalmoni
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Email: shellsown@hotmail.com
Anthony-Coral (20 September 2010), Renee (20 September 2010)
I'll chime in with the other affiliate managers and say that yes, there is always room for negotiation. It all comes down to what is intended and what is delivered.
Renee (20 September 2010)
So far I have found most affiliate managers to be flexible on rev share percentage amounts. Is there a lot of leeway in program bandings. For example some sites offer a higher percentage for $5k p/month referred, can this regularly be negotiated to being the higher level at say $3k?
i will prefer to have an exclusive deal from the affiliate manager, which will drive more traffic to my website and hence more signups. and this gonna be a win win situation for me, visitors to my website and the affilate program as well.
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There is always room for more negotiation![]()
That is the key to any successful business relationship - keeping the lines of communication open with your affiliate manager helps us work more effectively with you as your business needs change and your affiliate business grows.
I personally am always reviewing existing affiliate deals - to see where we can get more value or enhance performance or conversions.
I think Sarafina from IA - recently summed "the key to good affiliate manager relationships" up perfectly in Budapest - and I'd encourage affiliates to maintain the lines of communication with their AM's to extend their reach and better their commercials as required.
Obviously, if your site has an amazing URL, lots of traffic, or you can promise a guaranteed minimum number of sign ups, it's a lot easier for an affiliate manager to approve you on a higher rate.
If you don't have the above, here's a few things that would warrent a commission increase in my books:
*Write a comprehensive original review
*Send dedicate email promos to a decent sized list (say min 5000 names)
*Have a group of players with whom you actively engage in your own CRM campaigns (example, poker affiliates with active forums who negotiate special rakeback or VIP deals).
*Create a dedicated site for the brand