Are you considering pausing or suspending your affiliate program?
While working at Coldwater Creek right after 9/11, I learned that the work we do as affiliate marketers helps people stay employed.
During that time I saw other channels like retail and catalog laying off employees, while those investing in the affiliate channel did not. I want to help your business make it through this and keep everyone on staff.
If you are considering pausing or closing your affiliate program, here are a few things to think about.
Revenue Now
The affiliate channel provides retailers with revenue now – and cost later. Because you are receiving orders now and paying for them only after they happen, your invoice comes from the network at a later date.
Allowing your online store to time-shift your cost, receiving revenue before you have to pay commissions and fees.
Low-Risk
Affiliate marketing is a low-risk way for you to continue communicating with your audience.
Unlike other advertising channels that measure cost per click or cost per impression, affiliate marketing is based on a cost per action (CPA) payment structure. Meaning you only pay for converted sales and leads.
Reputation
Another thing to think about is reputation. If you bring commission rates down to 0% or shut down the program, affiliates are talking about it.
This industry is, and always has been, about relationships. If you are concerned about what to do when this has passed, think about protecting your reputation and relationships.
Affiliates are innovators, doing unique things that large brands are unable to do. Many are quickly trying new strategies and technologies to reach their audiences, which can help you pivot to be successful.
If you would like to brainstorm ideas or need help building relationships with innovative affiliates, I would love to spend some time with you. Add time to my calendar here or email me directly.
Video: Should I Pause My Affiliate Program?
Transcript of “Should I Pause My Affiliate Program?” Video:
Hey, Jamie Birch here!
While working at Coldwater Creek right after 9/11, I learned that the work we do as affiliate marketers helps people stay employed. During that time I saw other channels like retail and catalog laying off employees, while those in affiliate did not. I want to help your business make it through this and keep everyone on staff. If you are considering pausing or closing your affiliate program, here are a few things to think about.
The affiliate channel provides you revenue now, with a cost later. Because you are receiving orders now and paying for them only after they happen, your invoice comes from the network at a later date. This financial arrangement can allow you to time-shift your cost, receiving revenue before you have to pay those commissions and fees. With many networks, this period is typically 30 days. This is a low-risk way for you to continue marketing, as it is different from display, SEM or other activities where you have to pay up front. Many brands are pulling back on traditional advertising, allowing you to get more attention from online consumers.
We saw a dramatic drop in conversion rate, average order value, and traffic during the week of March 16, but after those seven days, brands saw a significant improvement in many areas, making affiliate a generally steady, low-risk channel to operate.
Another thing to think about is reputation. If you bring commission rates down to 0% or shut down the program, affiliates are talking about it. This industry is, and always has been, about relationships. If you are concerned about what to do when this has passed, think about protecting your reputation and relationships. Affiliates are innovators, doing unique things that large brands are unable to do. Many are quickly trying new strategies and technologies to reach their audiences, which can help you pivot to be successful.
If your plan was to shutter a program to cut costs, I understand. There are two types of leaders during this crisis. Those operating out of fear will contract everything they can, while others are looking farther ahead. I want to help you look farther ahead.
If you would like to brainstorm ideas to avoid any pitfalls and thrive in this environment, visit calendly.com/jamiebirch to set up a time to meet.
