It’s always better to be getting paid more, but increasing your profits is easier said than done.
On paper, I can write, make it so you’re being paid $13 a lead, while other affiliates are on $7 a lead, but to actually get to this can be tricky.
When we talk about increasing profits we immediately think about increasing output, which is true, but we can also think about cutting back; making more by doing less, which is how I often increase the profits of my campaign.
- Exclude certain devices or ISP’s = 12% higher ROI
- Split test 3 or more landing pages and go with the best performing =17% higher ROI
- Optimize your landing page for speed = 6% higher ROI
- Split test 5 offers and run with the top one = 23% higher ROI
But, the above is a technical way of increasing profits, but it can and does work.
An easier way of increasing your profits, and possibly the easiest way is to do it, is to get a bigger payout on your offer, whether it’s from an advertiser or your affiliate manager. Keep reading.
Getting a bigger payout
When an affiliate manager increases an affiliate’s payout it affects their own income, which is why they are often reluctant to do it.
If you’ve tried getting a larger payout from your affiliate manager before, then you’ve probably come across the various reasons affiliate managers use for not increasing your payouts, I won’t list them here, but, unless the network isn’t making much at the time you ask them then they can give you a bigger payout. You just need to make yourself more important.
How affiliate marketing works
When an advertiser gets a conversion, they pay the affiliate network. Afterwards, the affiliate network pays you.
For example: if an advertiser gets a conversion, and they pay the network $10 as a result, the network may go on to pay you $5. Increasing your payout means increasing this number.
Now, ideally, continuing from the numbers we used above, an affiliate network wants to generate large volume at $5 so that they can take $5 per lead.
But if another network can offer you $6 per lead then why settle for less? At the same time every network knows this and is still trying to gain profits, so they don’t want affiliates leaving. This means they have to be open to increasing payouts, but only to worthy affiliates.
You need to have a reason for your affiliate manager to increase your payout. Think about your relationship with them: have you been beneficial enough to them for them to consider listening to your request?
Send more volume
One of the ways to increase your value is by sending more volume to your network.
Here’s how I increase my volume in a few steps:
- Duplicate profitable campaigns multiple times within the same ad account.
- Duplicate profitable campaigns across multiple ad accounts.
- Use all other available ad formats.
- Scale profitable campaigns to similar traffic sources.
Different things will work for you but whatever you do you have to reach a point where you’re maximising an offer and sending out as much volume as possible with the payout you’re getting. Once you’re doing this, you can say to your manager that you’re breaking even and need a larger payout to so that you can increase your output and send even more volume their way and in turn make them more money. They should be happy to bump you up.
Increasing your volume isn’t easy, but there are other ways to make your contributions to your network bigger so that your manager can increase your payout.
Use there competitors
For this, to work you have to at least be breaking even. If you are, you can contact your affiliate manager and, with a bit of finesse, tell them that you’re breaking even. You can say that in order for you to bring in more volume you need more money, but you also mention that Network B is offering a bit more per conversion.
Here’s an example. Don’t just copy and paste this, write one that’s unique to your manager, this is just to give you an idea.
“Hey . . .
Thanks for letting me know about the Z offer, but I’ve been working it and it’s only allowing me to break even. I’ve been running it for [HOWEVER LONG YOU RUN ON AN OFFER FOR] and I can’t generate more profit without getting more per conversion.
Network B is currently offering $X per conversion, which is what I’d need to make this offer far more profitable for both of us and do more volume. What do you think? . . . I’ll get you a free round of drinks at the next Affiliate World Conference :)”
That should give you an idea. Don’t be arrogant or bossy, it’s better to give your affiliate manager hints and let them decide for themselves 😉
Have and maintain a good relationship with your affiliate managers
If your affiliate manager likes you, it makes life a lot easier. This is common sense and honestly goes without saying, but I just want to quickly remind you of the importance of it.
A good relationship means that they can offer a higher payout per conversion rate from the start and make you aware first of any opportunities popping up. So, be good with them, keep in contact with them, thank them when you know you should and if you have a chance to meet them in person get to know them.
Sending a large number of leads is important, but what’s more important is how much the advertiser generates from them.
For instance, if you send 350 leads and make $6 that’s good for you as the advertiser will pay you $2100, but if the advertiser only makes $1050 from it then it wasn’t lucrative for them, which is why affiliates get paused or removed from offers.
You want the opposite to happen. You send 350 leads, you make $2100 from it, and the advertiser instead generates $4200 because your leads were targeted and of high quality. Because of this, the advertiser will want more leads and pay you more per lead.
This is how thorough and high-quality traffic sources can increase your profit.
What to do once you get a higher payout
Do whatever you want with the money you generate from getting a higher payout. Seriously, it’s your money.
But, and it’s not hard to guess what I’m going to say next, think about reinvesting it, flipping it, doubling up, whatever you want to call it, but use it as a way to make even more money.
Use it in your campaigns, use it in more split tests, use it to test new verticals and use it to outsource grunt work or work you’re not good at such as designing and building new landing pages.
Remember, not every affiliate network can afford to give a higher payout, so if you pester them for it they can create the illusion they’re giving you a higher payout by reducing your conversions and increasing your payout. This is called scrubbing, or shaving. So despite it looking like you’re getting a higher payout, you won’t be as your conversions will be less.
This is why affiliates split-test networks, this involves testing similar offers across 2 or more different networks as a lot of networks work with the same advertiser or broker offers from each other.
Getting a larger payout is what you should be aiming to do, but you need a strong reason for your affiliate manager or advertiser to do it.
Add some weight to your name before you ask for more, and, if anything, people will be happy to pay you more if you’re giving them more.