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Yesterday I got a call from a company offering to manage my program for me. They would do the recruitment of affiliates, and in return take a percentage of the sales and a $1,299 fee per month!
That's a bit too steep for my blood. It's a $9.95 widget I'm selling, so they'd need to get me about 250 extra sales a month just to break even.
It did, however, get me thinking. Maybe a full time Affiliate Manager might be helpful -- if their rates were more reasonable.
Has anyone here used one? Was it effective? Can you share your experiences?
[edited by: eljefe3 at 2:51 pm (utc) on Feb. 26, 2005]
So what makes a good affiliate manager? Someone with sales experience. It may sound a bit off the wall, but an affiliate manager is alot like a sales person for your company. S/he is selling your company and the products you sell. S/he is keeping your sales force happy while making sure they don't take the shirt right off your back. It is a delicate balance.
I know that pricing may sound high, but if you consider the cost of a full-time employee, that would be a whole lot more expensive.
And the $1,299/month rate is actually way below average for an experienced person to run an affiliate program.
That said, outsourcing your affiliate management can make a lot of sense if you find the right person.
The problem is that there are not a lot of skilled folks out there. If you hire somebody on an outsourced basis, be sure to get some references and look into their background/track record.