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I would caution anyone to be very slow to reduce commissions to affiliates. Keep in mind these are people who have already taken on the risks (financial and time investment) to promote your business, and they know that in many cases they already lose some of their commissions (i.e. cookie issues, call in customers, etc.).
Affiliates should produce your highest sales conversions and highest ROI, while also providing free promotion of your brand.
In the case of increasing your cost, if you adjust the percentage they don’t lose out, but I prefer the option where they win along with you (meaning that the affiliates get a raise when you decide you want to make money off of their work.)
I am an affiliate, affiliate manager, and a business owner that pays affiliates, so I understand the many sides of the equation. In the end, if you upset your affiliates, you will likely lose them to your competition, so tread cautiously.
Great points, Anthony. I agree, it’s not something to take lightly, and it’s important to create a win-win approach as much as possible!
Thanks for your insights!
Mandy
Hello, I am curious as to your opinion on how much to pay affiliates. I imagine this varies depending on many factors, but as owner of a startup I have never run an affiliate program before and I am looking to start soon.