Choosing the Right Partner to Manage Your Affiliate Program
The affiliate marketing industry is booming, but with growth comes the challenge of managing an increasingly complex program. How do you decide who should manage it? Who do you go to? What’s the best type of manager for your program? Let’s break it down.
As someone who cut her teeth on the advertiser side of the affiliate marketing world, spent time on the publisher and influencer network sides, was hands-on-keyboard for multiple agencies before leading them, and now works as a full-time consultant, I can tell you the pros and cons of each option. While I haven’t worked at any of the platforms, I’ve had extensive experience collaborating with their teams and have a clear understanding of what they can provide.
Now let’s discuss your options when it comes to affiliate program management.
1. In-house Management
Overview: You manage the affiliate program internally with your team.
Who’s Involved: Internal employees from marketing, sales, or a dedicated affiliate manager.
Pros:
Full control over all aspects of the program.
Direct alignment with company goals and brand identity.
Potentially lower costs if you already have internal resources.
Cons:
Requires specialized knowledge and expertise.
Time-intensive; can be challenging for smaller teams.
Limited by internal bandwidth and skillset.
Cost: Expect to pay a competitive salary based on their level of experience, plus normal costs associated with employees.
2. Agency Management
Overview: You hire a specialized agency to run the affiliate program.
Who’s Involved: A team from an affiliate marketing agency or an affiliate marketing team from a marketing agency with dedicated affiliate subject matter experts.
Pros:
Access to experts with established networks and processes.
Can quickly scale the program.
Frees up internal resources for other tasks.
Cons:
Higher cost due to agency fees.
Less direct control over the program.
Often more junior team members are managing your program, not the top dogs that sold you their strategy.
Cost: Expect to pay a premium for agency support, especially with top-tier agencies.
3. Consultant/Freelancer
Overview: You work with an independent consultant or freelancer who manages the program on a contractual or hourly basis.
Who’s Involved: An individual specialist or small business, typically with 5 or more years of experience in the channel.
Pros:
Lower cost compared to agencies.
You know who you’re working with and have direct access to a focused expert.
Flexible and adaptable based on needs.
Cons:
Limited capacity compared to a full team.
May not have all the necessary resources to scale quickly.
Availability may vary if they have other clients.
Cost: Pricing will be commensurate with experience level. Consultants may be more flexible with pricing depending on scope of work.
4. Platform Management
Overview: The affiliate platform (like Rakuten or CJ) offers built-in management services to accompany their platform tools and use.
Who’s Involved: The platform’s in-house team.
Pros:
Integrated technology and support to manage the program.
Automation and tracking tools are part of the platform.
Potentially cost-effective if using basic management services.
Cons:
Limited to the capabilities of the platform.
Often more hands-off than personalized with less human oversight.
One of many accounts managed by a team, so you may be deprioritized.
Cost: Often these costs are built into the platform fees, so navigating these costs against other types of management can be challenging. It’s important to look at what’s included, how many other brands will be managed by the team, and the blended cost of the platform inclusive of management.
Now that we’ve broken down the players in the affiliate program management space, the next step is to determine the type of support your program requires and the investment you are willing to make. Here are some considerations:
Have you committed to making a long-term commitment and investment to the program and want someone fully integrated into your organization, other channels, and overarching digital strategy? An in-house affiliate manager might be the best option, followed by a deep partnership with an experienced consultant.
Do you have a robust program with several products, major promotions, and lot of moving pieces? Considering an agency with a specialized team who can offer scaled management.
Is your in-house team taking on strategy and partnership management, but looking for additional support with reporting, link loading, and more executional support, plus some industry expertise and best practices? If your platform offers managed services, this can be a great way to add bandwidth to your team without a massive investment. (Hint: Consider negotiating managed services during your annual renewal.)
Do you want overarching strategy development, plus best-in-class management or support from a seasoned expert? A consultant or freelancer is your best bet to get hands-on support from an experienced, trusted advisor.
If you’ve read through all of this, and you still need help choosing the right path forward, I can help! I’ve spent nearly 20 years observing and integrating these services and can give you honest feedback and suggestions on what will work best for your business and goals.