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Rates for Managing Affiliate Programs

September 19, 2008 by Shawn Collins

Q: I’ve been asked to put together a proposal to create and manage an affiliate program, and I was wondering what I should charge for my services?

Shawn CollinsA: There is not a stock answer – it depends on a few different variables.

I have no idea what kind of experience you have, and what you’ve done in terms of being an affiliate manager.

The company asking for the proposal matters, too. Are they a big retailer, a Mom & Pop, or something in between? Also, what are they selling?

If the affiliate program is based around selling some sort of hard goods, the margins could be limited, while there can be rather large margins with something like software downloads.

The way I’ve structured it in the past when I’ve pitched affiliate management services has been to have a set monthly fee, as well as a percent of the action generated by affiliates.

As far as ranges, I’ve seen OPMs (c) charging from $2,000 to over $10,000 per month.

Simply put, experience and reputation equal higher rates.

I’d say that if you’re relatively new to affiliate management, try pricing towards the lower end and increase progressively as you build up a name and history in the business.

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