Typical Agency Fees

Affiliate Marketing / SEM - what should you be charged?

[Hennatron]

There are a lot of agencies that charge for management of affiliate programmes and SEM - but what is a reasonable pricing structure?

Affiliate Programme management. I've heard that 10-15% on top of the network invoice is standard.

Keyword Marketing. Assuming the campaigns are ready to roll, what should you be charged, 10-15% on top of the costs again?

Are hourly rates / fixed fees + the invoice overides common place?

Can we leave ROI factors out of this, I'm just looking for general pricing structures.

Thanks!

[skibum]

Not sure that there are "typical" agency fees. Some charge a percentage fo the media spend, some charge hourly, some a flat fee.

For a large affiliate program, 10-15% on top of the network fees (including commissions) might make sense for a large program but even if you go directly to LinkShare or CJ and have them handle most everything, you're looking at 40 -100k/year typically. Some commissions that the networks charge may be factored into that number.

It is certainly possible to do the CJ Vantage program which will run a $500.00/month minimum but that is basically use of the network and access to publishers, no management whatsoever.

[Catalyst]

Most of the outsourced affiliate management companies I know charge $3-5K a month, but they are highly skilled with great track records for getting results. Some charge a small performance fee on top. Last I heard LinkShare and CJ charge around 6K a month to do full blown management. (That was awhile back.)

Linda

[Hennatron]

great - thanks for the feedback and figures. I went with a competetive fixed managment fee + 15% on top of network invoice.