Partnerships
Performance-based partnership programs and affiliate management
Affiliate marketing drives 16% of all ecommerce sales and generates $12 billion in revenue annually. Average affiliate conversion rates: 0.5-1%, commission rates: 5-30% of sale value, cookie duration: 30-90 days. Top affiliates generate 80% of affiliate revenue.
Commission models: Flat rate per sale ($10-$100), percentage of sale (10-30%), tiered commissions (volume incentives), recurring commissions (subscriptions), and performance bonuses. Cookie duration: 30 days minimum, 60-90 days competitive. Payout terms: Net 30-60 days.
Partner acquisition strategies: Content creators, niche bloggers, coupon sites, comparison/review sites, loyalty programs, and influencers. Recruitment channels: Affiliate networks (ShareASale, CJ, Impact), direct outreach, competitor affiliate analysis, and program directories.
Equip affiliates for success: Banner ads (8-12 sizes), text links, product feeds, email templates, social media graphics, landing pages, promo codes, and content suggestions. Provide: Onboarding training, dedicated support, performance dashboards, and regular updates.
Track affiliate program health: Active affiliates, new affiliate sign-ups, average order value from affiliates, conversion rate by affiliate tier, EPC (earnings per click target: $0.50-$2), return on ad spend, and fraud detection. Top 10% of affiliates typically drive 70-80% of sales.
Depends on your margins and CAC. Typical range: 10-30% for digital products, 5-10% for physical products, 30-50%+ for software. Must be attractive to affiliates while maintaining profitability.
Use reputable tracking software, set clear program terms prohibiting fraud, monitor for suspicious patterns (cookie stuffing, incentivized traffic), and do not hesitate to ban bad affiliates.
Manual approval for high-ticket or regulated products. Auto-accept for lower-risk products to reduce friction, but actively monitor and remove poor performers or policy violators.
30 days is standard for most products. Longer (60-90 days) for complex B2B sales. Shorter (7-15 days) for impulse purchases. Balance affiliate incentive with attribution accuracy.
Software handles tracking and payouts, but active affiliate management drives performance. For programs over 10K per month, dedicated management (in-house or agency) significantly increases ROI.