How do you diversify affiliate revenue and get publishers active?
Chances are you don’t have “lazy” affiliates but rather a bunch of inactive or semi-active affiliates that need a little incentive to spark their true revenue potential. The benefit to motivating this group? It will help diversify the program’s revenue as it’s all too typical to see the top 10 or so affiliates contributing 90% of revenue.
Now that we know we need to incentivize our affiliates, next steps include determining what groups to target. Do we want our incentive campaign to focus on affiliates by traffic levels, revenue or affiliate type? If the goal is simply to get inactive affiliates to become revenue generating then you’ll likely want to focus on breaking out affiliates by traffic levels and target the top drivers. Helpful hint: a great time to run this type of campaign is right before peak so there are as many revenue active affiliates engaged in the program as possible.
If you’re interested in improving the performance of, say, loyalty affiliates, then we’d recommend breaking them out by affiliate type and setting goals accordingly. Helpful hint: run a loyalty competitive analysis to see how your cashback rates stack against your competitors.
If your goal is to diversify program revenue, then targeting groups of affiliates by revenue is probably the best bet. Group affiliates into tiers such as top, mid and low and set specific, competitive goals for each. Not sure how to best set up goals? Gen3 Marketing can help!
Above all, we need to determine an incentive that is going to motivate those “lazy” affiliates to get into shape! I don’t know about you but it takes me an awful lot of motivation to put in an extra mile at the gym so I need something worth my while to do it. Cheesesteaks usually do the trick but we’re talking affiliates here! Make sure your incentive is compelling enough to motivate your affiliates to pull all the levers and drive performance. The standard incentive is to offer commission increases such as a 2% increase for 30 days or a flat fee amount like an extra $100 for meeting a goal. A more out of the box approach is to offer affiliates an incentive that “money can’t buy” i.e. VIP tickets, gig tickets, private access, etc. Speak with your advertisers and don’t be afraid to get creative with the incentive!
Finally, keep tabs on your affiliates’ performance throughout the incentive campaign and send them regular updates on how close they are to reaching goal! Knowing they are close may warrant added placements and exposure to boost sales before the campaign ends. Notify all the winners and thank your other affiliates for participating. Remember to check in with your advertiser to recap the campaign, discuss what went well, and what could be improved for the next one.