advertisers: why affiliate commission segmentation matters
DESCRIPTION
Schaaf-PartnerCentric CEO Brook Schaaf shares insights for advertisers as to the value of commission segmentation to reward affiliates for the results you want.TRANSCRIPT
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Advertisers: Why Commission
Segmentation Matters to You
Affiliate Summit East 2014
Aug. 11, 2014 New York City
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Presented by
If you’re live-tweeting about this presentation
be sure to use hashtag #ase14.
Brook Schaaf
CEO and Co-Founder
Schaaf-PartnerCentric
Affiliate Program Management Agency
Twitter: @schaafpc
Thank you for being here!
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What is Commission Segmentation?
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The Path to Purchase Arrow
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ShareASale LeapFrog Tool
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Common Forms of Commission Segmentation
• Tiered by Volume
• First Touch Credit
• Time Based (Click to Conversion)
• New vs. Returning Customers
• Category Based/Flat Changes
• De-duplication Across Channels
• First to Cart
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Case Study – Touch Points
• 12 month time span
• 121,000 total conversions
• One channel only: 51%
• Including company email
• Affiliate first click: 17,000 or 14.7% of conversions
• 66% credited to affiliate with last click
• 34% credited to a channel other than affiliate
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Conversion Path Touch Points
% Solo
% 2 Participants
% 3 Participants
% 4 Participants
% 5+ Participants
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Case Study – Coupon / Loyalty
• After analyzing program performance we began segmenting
coupon and loyalty publishers for a retail client.
• Value was lower for these “introducers” than it was
for other publishers who were “closers.”
• Coupon/loyalty publishers commissions were lowered
from 8% to 5%
What was the outcome?
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Case Study – Coupon / Loyalty
• Revenue for coupon/loyalty publishers saw a modest year-
over-year decrease (6.66%) while the commissions paid to
those publishers dropped by 49.95%.
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Overall Revenue and Commissions
Spread of Publisher Commissions
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Case Study – Midline Commissions
• A new client had been paying coupon publishers a 5%
commission and non-coupon publishers a 20% commission.
However, many non-coupon publishers were still
promoting coupons.
What was the solution?
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Case Study – Midline Commissions
• We established a midline commission rate and based a
tiered commission structure on that.
Commission payouts and the cost of sale remained
steady during this period of adjustment.
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Monthly
Data Table
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Revenue and Commissions Over Time
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Cost of Sale Over Time
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Case Study – Lowering Commissions
• An advertiser was offering a default 8% commission rate
that we lowered to 5% for most publishers (allowing two
top performers to remain at 8%).
Commission payouts fell from an average 6 - 6.5% to 5 –
5.5%. Click throughs and revenue remained consistent
with advertiser’s historical data.
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Monthly
Data Table
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Revenue and Commissions Over Time
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Cost of Sale Over Time
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Case Study – Lowering Commissions
• A top coupon publisher was earning a 10% commission rate
at initial takeover. This was lowered to 5% and then 1%,
dramatically reducing the cost of sale. Revenue remained
consistent with past performance.
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Top Coupon Publisher
Revenue & Commissions
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Top Coupon Publisher
Cost of Sale
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Paid Placements
• A summary of Q4 2013 placements (20 in all) for a client:
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Examples – Paid Placements
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Examples – Paid Placements
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Examples – Paid Placements
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Paid Placements