• Home
  • Publications & Software
  • Contact us
  • Privacy policy
  • Cookie Policy

Commissions Autopilot

Earn Money Online From Home

  • Affiliates
  • Make Money Online
  • Work at Home
  • Videos
> Home / Make Money Online / Affiliate Management In-House vs. Agency

Affiliate Management In-House vs. Agency

June 15, 2020 by admin

Spread the love

Prosperity Marketing System




Affiliate marketing or, as it is being referred to more and more, performance marketing continues to blossom as an online marketing strategy, supporting a wide range of sectors by driving new revenue streams. In 2016, AMNavigator reported that developed affiliate programs generate 15% to 30% of all advertiser’s online sales. Yet, 78% of CMOs admit affiliate marketing to be their least mastered area of digital marketing.

This means, if you are a financial institution looking to increase the sale of your products and services or a marketer looking for new ways to get quality leads, it is vital to consider an affiliate management program.

Affiliate management consists of the following:

  • Proper tracking and report technology to monitor campaign performance
  • Recruiting and screening new affiliates to diversify exposure
  • Activating existing affiliates on new offers and promotions
  • Providing fresh creatives and content to create engagement
  • Monitoring and reporting on program growth and delivery
  • Optimizing affiliate performance to drive results

Choosing Between In-House and a Specialized Agency

When it comes to planning your affiliate management approach, you have two main options, and each has its pros and cons. The first option is to keep the management in-house. The second option is to leverage the expertise of an outsourced organization and partner with a company that specializes in affiliate marketing.

Read on to find out which solution is right for your business:

For an affiliate program to be successful it requires someone to manage it.  Managing an affiliate program is dependent on building quality relationships and taking a partnership approach with your affiliates. Therefore, it is important when establishing an in-house affiliate manager or team to dedicate resources to manage both the strategy and day-to-day operational activities.

Here are some of the pros of in-house affiliate management:

  • The team has direct access to key decision-makers and planning to provide affiliates with timely content.
  • Affiliate marketing can be fully integrated into the marketing team.
  • The team can learn from the affiliate strategy and apply these lessons to other channels.

And the cons:

  • It often detracts from being able to focus on other areas of the business, as managing an affiliate program takes time and resources, especially in the growth phase.
  • Building relationships with affiliates and creating a diversified, scalable approach can be challenging without an established network and understanding of the market.
  • It can take longer to achieve desired results, as affiliates require attention and need to establish trust in your tracking and reporting capabilities.
  • Affiliate networks normally have a finance team that oversees invoicing and commission payments. When running an in-house program, you will be ultimately responsible for affiliates being paid.

Working with an external party means leveraging a team with expertise in a niche channel. You’ll have a dedicated affiliate manager working with you to ensure they are meeting expectations and growth targets. They handle the day-to-day work and provide regular reports to optimize performance.

Here are some of the pros:

  • Outsourcing can be resource efficient, as the key team members are already trained in affiliate marketing and have established relationships with affiliates.
  • They have bespoke affiliate technology and an established affiliate network, which ensures that you have the tools needed to quickly grow and scale across partners, payments, commission calculations and campaigns.
  • You have a partner who focuses on your industry and has relationships with affiliates in your niche, industry context and an understanding of key metrics that drive business growth.

Cons

  • When affiliate management agencies are not included in the overall business strategy, they can be less integrated in your overall marketing approach, which may be detrimental to program growth.
  • Outsourced partners require support from an internal resource to provide creatives, direction, and approvals when needed.
  • Depending on the business approach, resource costing internally, and prioritization logic, outsourcing can be seen as an unnecessary expense.

As it pertains to cost, since affiliate marketing is based on a performance model, the bulk of the cost will correlate directly with the results delivered by affiliates. These acquisitions ultimately contribute directly to the business’s revenue.

Managing a program in-house means an additional salary and overhead expenses, as well as a longer training and time to get up to speed. A salary can range from around $40k to $80k per year, which for some companies makes sense. With an outsourced agency, you’ll likely spend less than a full-time employee.

Ultimately, when considering what approach is most suitable to your business, key considerations should include your goal and future plans for the affiliate channel.

Still have questions on what approach to take? Please don’t hesitate to reach out! We’ll be happy to help.

If you’ve enjoyed this read, visit our website for other articles and our management services.

Affiliate Marketing Website Design

Source link

Follow us

  • Facebook
  • RSS

Subscribe to Our Newsletter

Join thousands of people who get the most updated news delivered free to their email!

Check your inbox or spam folder to confirm your subscription.

Mind Secrets

Affiliates

Acceleration Partners acquires R.O.EYE’s UK agency business

March 4, 2021 By admin

As of the 2nd March 2021, Acceleration Partners has officially completed the acquisition of R.O.EYE’s agency business, a UK-based performance marketing agency founded by Mark Kuhillow.   As a result of the acquisition, Acceleration Partners will be taking over the management of R.O.EYE’s affiliate marketing clients in the UK and incorporating them into the Acceleration Partners business. […]

Acceleration Partners Acquires R.O.EYE’s UK Agency Business

March 3, 2021 By admin

As of March 2nd, 2021, Acceleration Partners has officially completed the acquisition of R.O.EYE’s agency business, a UK-based performance marketing agency founded by Mark Kuhillow. As a result of the acquisition, Acceleration Partners will be taking over the management of R.O.EYE’s affiliate marketing clients in the UK and incorporating them into the Acceleration Partners business. “We have […]

Profile of a Growth Marketer: Stephanie Solty, Drop

February 26, 2021 By admin

Profile of a Growth Marketer is an ongoing series where we feature partner marketing industry leaders from around the globe. We sat down with Stephanie Solty, Senior User Acquisition Manager at Drop, to learn more about her role in the company, and how Drop is placing the earning and redemption process of their free rewards […]

How Affiliate Management Agencies Strengthen In-House Teams

February 25, 2021 By admin

While many companies rely solely on an affiliate program management agency to support all aspects of their affiliate program, some divvy up the responsibilities with their in-house affiliate marketing team. This is especially true for: Companies who started with a small, private affiliate program run by an in-house manager and promoted by a few select […]

Employee Spotlight: Kelly Ground | Acceleration Partners

February 20, 2021 By admin

How long have you been with Acceleration Partners and what is your current role? I have been at Acceleration Partners for 4.5 years and I am currently the Associate Director of Strategic Accounts.   What brought you to work in the affiliate marketing industry? Wow where do I start. After graduating college, I was fortunate […]

Partner Spotlight: DealNews | Acceleration Partners

February 17, 2021 By admin

Acceleration Partners’ Partner Spotlight is an ongoing series where members of our Partner Development team shine a light on innovative partners from across the world. This month, Meghan Hamme, Publisher Development Manager at Acceleration Partners, chatted with Shauna Cortazzo, Business Development Manager and Tim Mueller, Head of Business Development at DealNews.   What is DealNews all about? […]

Employee Spotlight Martin Bartsch | Acceleration Partners

February 14, 2021 By admin

In this month’s edition of our Employee Spotlight series, we talked to Account Manager, Martin Bartsch. Martin shares how the pandemic has helped to accelerate the demand for affiliate marketing and reveals the time former British Bake-off judge Mary Berry cooked lunch for him!   Can you tell us more about your role at AP […]

Employee Spotlight: Wendy Lim | Acceleration Partners

February 13, 2021 By admin

How long have you been with Acceleration Partners and what is your current role? I’ve been with Acceleration Partners for eight months. I’m on the Global Accounts team and help our clients to launch and manage their affiliate programs in the Asia Pacific (APAC) region from Singapore, where I’m based.   What do you do […]

Self Healing Secrets

banner

Copyright 2020 Commissions Autopilot | Designed by Ahead Hosting

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.