• 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 / Affiliates / Approaching supplier contracts in affiliate marketing

Approaching supplier contracts in affiliate marketing

July 27, 2020 by admin

Spread the love

Prosperity Marketing System




This article was originally featured on PerformanceIn.

 

The last few months have been challenging, but also a chance for companies to review their current marketing activities and suppliers.

 

We often engage with new clients when they are unhappy or feel they have outgrown their current supplier.  One of the issues they run into is that they have long terms left to go on their contracts, sometimes up to 18 months. But are long term contracts bad, or even avoidable?

 

Why do suppliers request long-term contracts?  The investment it takes to work with a new client is significant; the cost is often higher than the return for an initial period. Depending on the size of the contract, it could mean employing more people, investing in new technology or services. Companies need to protect themselves and not risk a high upfront investment for a neutral or negative return.

 

Many suppliers request rolling contracts or auto-renewal terms.  The benefit of this is that you don’t need to get into distracting and lengthy contract discussions every renewal date. The downside is that if you are not aware of this, you could end up in a longer-term contract than planned.

 

Why would a client approve a long-term contract? Often contracts are dealt with by procurement, not by the marketing teams using the services. Last year I attended an enlightening session by someone that had a lengthy career in procurement. They have targets to hit, and quotas to reach like any other part of the business, and signing an improved deal on a 3-year contract might well be part of that. It’s also positive that an advertiser might want to commit to a long-term engagement with a supplier; it shows loyalty, trust and the desire to build a long-term partnership.

 

There is an alternative view, that if you are doing an excellent job for a client, why do you need a contract term, they won’t want to leave you? Contracts are not a problem when things are going well; they only become a problem when things are not going so well, for either advertiser or supplier.  So, what’s the answer, how do you create a term length that is acceptable to all parties?

 

A quote I always remember is “In a good negotiation, both sides are unhappy”, the point being that to build a good relationship, both sides have to make compromises. It’s fair for a supplier to ask for a term that protects their business and investment into your programme, it’s also reasonable for advertisers to have protection if things don’t go to plan.

 

A few areas to consider for current and future contracts:

  • Is there an auto-renewal or rolling contract term? Know the date this triggers from and what conditions are in place after that date (i.e. termination, contract term).
  • Be fair in your compromises. You want a supplier that is motivated and able to perform for you. If one party feels more beat up than the other, it doesn’t bode well for a future relationship.
  • Ensure your pricing is fair, cheap isn’t always best. As a general rule, the more you invest, the better outcome you get.
  • Set service level expectations and KPIs from the start. Everyone is aligned and clear on what the measure of success is.
  • Check your out clause, especially if this is a new service or partner. Make sure you can get out if things are not going as planned, such as an early break clause or failure to deliver the services to an agreed standard or KPIs.
  • Consider the future implications of the contract term. While it may feel great now, what if that changes, what if your team changes? Think about elements you can weave into the contract to mitigate these issues.
  • Use a long-term commitment to your advantage; ask for a discount on price or additional services.

 

Ultimately, the purpose of a contract is to protect businesses and people. Understanding what both parties want from the relationship, what your compromises are, and measuring risk are crucial to getting to an agreement that works for everyone.

 

If you would like to find out more about how our team develops better partner marketing programmes, get in touch today.

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

Benchmark Report of Q1 2021 Global Affiliate Programs

April 11, 2021 By admin

It’s true when they say a year can make all the difference. Just one year ago, we were coming off a very strong January and February when things changed drastically in March due to the start of a global pandemic. However, economic conditions are improving dramatically in the U.S. and across the globe, according to […]

Employee Spotlight: Asher Levine | Acceleration Partners

April 10, 2021 By admin

How long have you been with Acceleration Partners and what is your current role? I’ve worked at Acceleration Partners since February 2019, so just over two years. I am currently an Associate Account Director in Key Accounts.   What do you do as an Associate Account Director in Key Accounts? As an Associate Account Director […]

Q1 2021 global affiliate programmes

April 9, 2021 By admin

It’s true when they say a year can make all the difference. Just one year ago, we were coming off a very strong January and February when things changed drastically in March due to the start of a global pandemic. However, economic conditions are improving dramatically in the U.S. and across the globe, according to the National […]

Partner Spotlight Increasingly | Acceleration Partners

April 2, 2021 By admin

Acceleration Partners’ Partner Spotlight is an ongoing series where members of our Publisher Development team highlight different partners from across the region. This month, David Vince, Senior Partner Development Manager EMEA, at Acceleration Partners, caught up with Satish Jayakumar, Co-founder, and COO at Increasingly.   Welcome to our Partner Spotlight! Would you mind introducing yourself to […]

Questions about Diversifying Affiliate Partnerships

April 1, 2021 By admin

A common challenge for many brands is how to accelerate their affiliate program growth – regionally and globally – without over-relying on “traditional” partners. Many brands are not even aware of just how many unique “nontraditional” affiliate partners there are and the incredible value they can bring to their affiliate program. Nontraditional partners can bridge […]

Partner Spotlight: Increasingly | Acceleration Partners

March 31, 2021 By admin

Acceleration Partners’ Partner Spotlight is an ongoing series where members of our Publisher Development team shine a light on innovative partners from across the world. This month, David Vince, Senior Partner Development Manager EMEA, at Acceleration Partners, caught up with Satish Jayakumar, Co-Founder, and COO at Increasingly. Welcome to our Partner Spotlight! Would you mind introducing […]

Expanding your affiliate programme to APAC

March 26, 2021 By admin

The e-commerce landscape is flourishing across the Asia-Pacific (APAC) region with 50.3% of the world’s internet users. This phenomenon occurred long before the COVID-19 pandemic hit. Still, the abrupt shift to homebound work, education, socialising and shopping has resulted in an exponential rise in e-commerce across APAC. For brands looking to expand their affiliate programme, […]

Expanding Your Affiliate Program to APAC

March 25, 2021 By admin

The e-commerce landscape is flourishing across the Asia-Pacific (APAC) region with 50.3% of the world’s internet users. This phenomenon occurred long before the COVID-19 pandemic hit. Still, the abrupt shift to homebound work, education, socializing and shopping has resulted in an exponential rise in e-commerce across APAC. For brands looking to expand their affiliate program, […]

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.