Robust, profitable affiliate programs are all about relationships
Initially I was going to use this particular post to talk about what advertisers need to do to get a better affiliate program with affiliates acting as agents on their behalf and extensions of their company. Given the early stages of this blog I decided to go in a different direction and talk about 'relationships' which are the foundation of every business decision I make. Then we can expand into the nitty gritty about affiliate marketing over the next few weeks. Affiliate marketing is nothing without relationships.
There are several different styles of business- my primary goal when creating any new business venture is to make it sustainable and scalable. I am not looking for a flash in the pan or to manufacture value or money. I look to create a business that can sustain long after I have touched it.
In order to do this you need to set a really solid foundation, which means understanding your business partners, their goals and perspective. You need to view the world through their eyes before opening your mouth and especially before making a proposal. If you build this relationship properly- not only will you understand what they are trying to achieve out of the gate- but as the dynamics of the market and business change (which is inevitable) they will keep you in the loop so you can continually respond accordingly.
Shifting the paradigm to constantly looking at the world from a perspective other than your own- and communicating accordingly is not easy. You need to fully immerse yourself in it and make a conscientious decision to work on it for several months.
If you are interested, I suggest you start the process by reading Dale Carnegie's How to Win Friends and Influence People. I have read that book 10 times- and reread a chapter every month just to keep it top of mind.
Ultimately you can get business deals going without good relationships- but I find these are the deals that disappear on a whim and are minimizing to your professional and personal network. Most importantly- they never reach their potential and leave dollars on the table. In the day and age of technology and instant gratification- don't underestimate the power of people and spending the time to show them you care about them.
Obviously you have to achieve your goals as well- so I am not saying you need to 'give up the farm' for the partnership- being honest and forthright about your objectives and business realities is just as critical as understanding theirs. What I want you to understand is the implementation and presentation of accomplishing this is equally important to content.
Please post a comment if you disagree/agree/ or want to share a story/situation.
PS. Welcome CMU!
Labels: affiliate marketing, affiliates, relationships
posted by Paul Moss @ 9:29 AM
5 Comments
5 Comments:
Thanks for the welcome, Paul : ).
As a novice undergraduate, I don't know how much value I can add to the conversation, but I am curious about what happens when relationships come into conflict with efficiency.
At CMU, I've picked up on two distinct schools of thought. The first being "in business, relationships are everything," and the second more focused on always making the efficient, profit-maximizing decision for a company--"it's just business."
Now, I'm not saying that the two are inherently at odds, but what I'd like to learn more about is how to reconcile a strong, long-lasting partnership with a new, more lucrative opportunity that cuts out your prior partner. Obviously at the extreme you don't 'give up the farm' for your long-time associate. But is maintaining business relationships in this situation about respectfully parting ways after an unsuccessful renegotiation, or could sticking with the less profitable option be the right choice, depending on circumstances?
Great Question Ben. I can't speak for all business- but for affiliate marketing- it is all about relationship. Those who try the efficient, profit-maximizing approach will never reach their potential. Being in Biz Dev, Sales, and Marketing over the course of my career- I would say the same holds true across industries and positions.
Now- the crux of your question. Relationships are about communication and honesty. Everyone understand that we are in business to make money. If you have a better offer- give your existing partner the ability to keep your business. Get creative- if they can't price match- then only buy a subset of their products that they can price match. Most importantly- ensure the new partner is going to be sustainable and able to handle the volume you send at that price point- and is not just a bait and switch 4 months down the road. Finally, never burn the bridge- if you do move the business keep the lines of communication open- and keep in touch with that person even when you are not doing business. You never know when you need to implement a contingency plan. Always ask if there is anything you can do to help them-even if you can't give them the business. Business is dynamic- the solution today- might not be the solution tomorrow.
Thanks, Paul. I appreciate the response. That's an interesting point about getting creative--from my partner's point of view, few things are worse than flat-out losing business, so I can see how there would be motivation to invent a non-standard contract or business model if it was the only feasible option for me.
Hey Paul, seems like that exists for many areas of business though. I am an undergraduate who recently got an internship on Wall St. and one thing that I was told was that its an extremely small community. Any bridges that are burned can always come back to haunt you. However, if you were to stop doing business with someone wouldn't you have inherently hurt that relationship. Although we can say business is just "business," obviously people do take it personally.
Good point- and, yes, people do take it personally. One message I want to be explicitily clear: presentation is just as important as the content. This goes for the good and the bad news. The presentation of the news is what will salvage the relationship. If someone feels like you are doing all you can to continue to give them all or some of the business- that goes a long way. Initial contact with the bad information with your mind made up would ever be difficult to reconcile. One mistake a lot of people make is ending the commerce relationship and not keeping the personal relationship going. Put it on your calendar once a month to follow up- and see if their prices, conversions, discounts, terms, etc have changed. One day when you do need the business they will be more than willing to give it to you. Overcoming the human side of these transactions are not easy- but if you view the world through their eyes before you speak and execute accordingly- you can salvage the inherently bad situation.
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