1. Resources
The affiliate channel is not a bolt on channel. You will not start getting sales immediately just because you open a program. Rather, the program needs to be actively built up and managed. This takes resources and preferably resources with specialized knowledge about the affiliate space. Managing the program as a side project alongside SEM, social media and others will not bring you anywhere close to the level of results that are otherwise possible.
At the same time, adding internal resources takes time and continuing to scale them even more so. However, an specialized agency already a experienced team ready to scale your program. By specialized, I am not referring to large multi-channel agencies which may offer affiliate program management services as an add-on. This is something important to consider - especially if you are assigned a somewhat green junior account manager. Similarly, some affiliate networks do offer account management services - some great, and some not so much so. However, the issue with these networks unfortunately is their tech platform, which is sometimes struggling to catch up with the speed the industry grows, expanding the way partnerships are forged.
To avoid these issues, hiring an agency that specializes in this channel is usually a preferred choice. They will have not only specialized staff but also access to specialised resources to build and grow the program.
2. Cost Savings
There are a number of cost savings from working with an experienced affiliate marketing agency. These are not limited to just savings on your internal resource costs or the cost of specialised affiliate tools, although they certainly exist. An experienced agency will also help you save costs in other ways.
First of all, by driving additional sales, they can help reduce your fixed costs such should the tech platform be a fixed monthly fee. As sales grow, the fixed cost becomes an increasingly smaller part of the cost of sale. This translates directly into increased ROI. Secondly, they will have existing connections and relationships in the market which will help you better negotiate your commission levels. Which leads me onto the third reason…..
3. Access & Experience
A specialised agency comes with existing relationships and connections in place. This means everything will move faster for your program overall. You will have access to key publishers and be able to get additional exposure with them. At the same time, you will not waste as much time with publishers you thought would be a good fit but really are not for your program, and even publishers who do not work on cost-effective compensation and so on. The agency's experience (and specialised tools) will help you uncover the right publishers more efficiently. This in turn results in a faster growing program with higher sales and a better ROI for you.
And that is what you are looking for, after all, I am sure.
Lodestar Marketing are such specialist agency which can take full management control of a new or existing program. With over 35 years collective experience in this channel, there really isn't any other agency in this region that competes.
Please do get in touch with us to find out more about how we can help! Lodestar Marketing is a leading specialist Digital Marketing Agency as seen on DesignRush.