[Azam Marketing]

What advice would you have for paying bonuses/incentives to an Affiliate Manager?

I can understand it is relatively straightforward to pay an Affiliate Manager when they are exclusively involved in managing a program, but if there are a few people involved, what can be done?

On what basis do networks, agencies and advertisers generally award Affiliate Managers bonuses?

Thanks :)

[geofferson]

I think a proven bonus plan for Affiliate Managers is a tiered system based on Gross Profit Margin. This rewards the Affiliate Manager for producing volume, while at the same time maintaining profitibiliy.

For example, based on the overall margin for the month, the commission would be paid on overall sale revenue.

Margin Commission
0-10% 0.20%
10.1-13% 0.75%
13.1-16% 1.00%
16.1-19% 1.25%
19.1-22% 1.50%
22.1-25% 1.75%
25.1-28% 2.00%

[John Jupp]

Nadeem

Generally there are two ways - feel free to contact me through the usual channels.

First there is % of affiliate earnings
Second there is % of revenue generated from affiliate channel.

The latter being preferable to the affiliate manager. As for margins it depends on the program. My highest being 30% of revenue generated, however you'll find most agencies negotiate a deal up to 10% with the client and split this down the middle with the affiliate manager.

[MichaelColey]

I think you guys are missing the main part of the question... when several parties are involved. Basically, he's asking how to fairly compensate multiple affiliate managers.

There are two basic ways that I can think of:

1) Assign each affiliate to a specific affiliate manager and bonus based on the results of the affiliates under that affiliate manager.
2) Group all the affiliate managers together and bonus them as a group, splitting the bonus evenly or in some other predefined manner (for instance, giving affiliate managers one share of the bonus for each quarter that they work for you).

[Azam Marketing]

Thank you everyone for your advice. Much appreciated.

Michael's right - that's what I was referring to.