Home Depot: Driving Affiliate Revenue Growth with a Flat Budget

Challenge

Home Depot came to Gen3 with a simple, yet difficult, challenge — Develop a program that could support revenue growth with 0% budget growth YoY.

Action

Gen3 developed a 4-pronged approach to cost-savings:

1. Restructured the baseline, moving to a tiered commission strategy by publisher type, while customizing individual publisher commission based on their value proposition.

2. Moved to a SaaS fee network, migrating from CJ (% of sales/commission) to impact (fixed yearly fee).

3. Creatively leveraged CPA in multiple ways:

Secured high-impact placements by reinvesting commission cost savings.
Successfully negotiated high impact CPA-based exposures with a top loyalty publisher.
Leveraged short-term, attractive cashback on seasonally relevant categories.
Integrated SKU-based tracking to support category cashback.

4. Removed the #2 revenue-driving publisher (coupon browser extension) from the program.

Coupons are never available for customers.
Sales were being misattributed.
Commissions were being wasted.

Results

68%

Increase in revenue YoY

69%

Reduction in cost YoY

45%

ROAS increase YoY

0%

Increase in publisher commission costs

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