Episode 6
· 21:16
You are seeing the clicks, right?
Maybe even some sales are, uh, popping up.
Mm-hmm.
But are you actually building something
that you know lasts or does it feel
like you're constantly having to
hustle just to stay in the same place?
Yeah.
That hands wheel feeling.
Yeah, it's real.
Exactly.
So today we're cutting through the
noise to pinpoint what truly makes
an affiliate program worthwhile,
the kind that actually.
Propels you forward, it
helps you dish that feeling of
being on a never ending treadmill,
right?
It's really about looking beyond
just the, uh, the immediate
buzz of a high commission rate.
We're
diving into the core elements
that lead to, well, sustainable
growth and a sense of real momentum
because it can feel like a very
unpredictable income landscape, sometimes
totally unpredictable.
We're focusing on insights from
people who've figured out how to build
affiliate income that actually I.
You know, sticks around.
Okay.
So let's paint a picture then.
Imagine an affiliate marketer.
Let's call him a nil.
He's pulling in solid traffic, right?
Like 45,000 monthly visitors and his
conversion rate's pretty healthy.
4.2% seems okay on the surface.
Yeah,
well, it's good from the outside,
but here's where it gets kind of tricky.
Anil's income, it's all over the place.
Mm-hmm.
And almost a quarter of his
sales end up as refunds.
Yeah, like a painful 22% clawback.
Ouch.
That hurts the bottom line.
And your planning.
You bet.
And despite his efforts, those,
uh, premium affiliate programs,
he really wants to get into.
They keep saying no.
So he's putting in the work,
generating the traffic, but
not seeing that real progress.
He's after.
Exactly.
Not the sustainable kind.
Anyway,
what's fascinating there is
that disconnect, you know?
Between the effort he's putting
in and the actual outcome, right?
Anil is clearly driving traffic,
but that one time commission
structure, he's mostly relying on.
It just has inherent limits
for long-term growth.
Yeah.
Tell me about the hidden costs, sir.
Well, think about it.
Those commission clawbacks from the
high refunds, that's direct money lost.
Then there's the constant need to just
churn out new content constantly just
to keep his income somewhat steady.
The content treadmill.
Exactly, and even the potential hit
to his reputation, you know, promoting
loads of different products, maybe some
aren't a perfect fit for his audience
leads to more refunds, probably.
Precisely.
It's just, it's an income rollercoaster.
Very unstable.
So, okay.
Anil stuck.
What was his first reaction?
His instinct?
Well, like a lot of people,
he thought more is better.
Ah, right.
So he jumped from managing five
affiliate programs to get this.
23.
23. Wow.
Did it help?
Well, his annual revenue
did get a temporary bump.
Yeah.
Went from about $12,000
maybe up to around $28,400.
And that sounds better initially.
Initially, yeah.
But he pretty quickly hit a wall.
Just diminishing returns.
How so?
More programs meant even more comparison.
Articles to write, more
form threads to monitor more
customer questions, flooding in,
and let me guess, more potential
for those refund clawbacks.
You got it.
Even more commission reversals
eating into his earnings.
It just scaled the
complexity in the headaches.
So what was the like?
The fundamental mistake
there, the misstep,
he fell into a really common trap.
I think the belief that simply creating
better content would solve everything.
The better content
misconception you called
it, right?
He actually invested a whole
month revamping his reviews
using fancy AI tools, the works,
thinking this was the golden ticket,
exactly his golden ticket to those higher
paying recurring commission programs.
He wanted.
His conversion rates
did nudge up a tiny bit.
But those refund rates still stubbornly,
high uhhuh, and those premium program
applications still getting rejected.
It wasn't the core issue.
So what was the light
bulb moment for a nil?
What changed?
It wasn't about just pumping out
more content or promoting more stuff.
Yeah.
The
real game changer was
realizing something crucial.
Okay.
The best affiliate programs,
the ones offering that sweet,
sweet, recurring revenue.
They prioritize keeping their
customers happy for the long haul.
Ah, retention over just acquisition?
Precisely.
It's not just about the initial signup.
They evaluate potential affiliate
partners using a completely
different set of criteria.
Okay.
So what are they looking for then?
These recurring programs
and they look for partners who
deliver on basically four key fronts.
First customer retention rates.
Yeah.
It's
not just who you bring in, but who stays.
That's huge.
Makes sense.
What else?
Second, a really strong
audience to product fit.
Yeah.
You want people who genuinely
need and will use the product.
Minimizing those early drop offs.
Right.
Less churn.
I. Third content that sets
realistic expectations.
No.
Hyping it up with crazy promises
that the product can't deliver on.
Manage expectations.
Got it.
And fourth traffic that shows
genuine buyer intent, not just
tire kickers or casual browsers.
Mm-hmm.
But people actively
looking for a solution.
So qualified traffic.
Exactly.
And Anil discovered the
really savvy programs.
They're almost as interested in who
doesn't sign up through your link.
Really?
Why's that?
They wanna avoid customers who
are likely to churn quickly.
Yeah, those folks end up
creating more support load
and hassle than they're worth.
Even if they convert initially,
they want sustainable customers.
It makes a lot of sense.
Filter out the poor, fits early.
Right?
So this insight led Neal to
completely rethink his whole strategy.
How did he change things?
Instead of just chasing every
single click, every potential sale.
He started laser focusing
on the right conversions,
quality over quantity.
You got it.
This meant actively fing out
prospects who weren't a good
match even before they clicked.
How would he do that?
Crafting content that
resonated specifically with
potential long-term users.
Building his authority around
solving the specific problems
his audience actually faced.
Becoming more of a specialist.
Yes.
And targeting traffic sources
known for higher customer
stickiness, higher quality leads.
He basically shifted his mindset
from what to what?
From being just a transactional
affiliate, pushing products to
becoming a trusted resource.
A guide.
Nice.
That sounds much more valuable.
That's where his three
part system came into play.
Really practical stuff.
Okay.
Lay it on me.
What are the three parts?
First, he really concentrated
on authority positioning,
meaning
instead of those generic, you know,
top 10 best widgets style reviews.
Yeah, we've all seen those,
right?
He started creating in-depth
problem based content.
Showing he really understood his
audience's specific pain points and how a
particular tool could solve that problem.
Okay.
Deeper content.
What's second?
Second, he implemented audience filtering.
I. He actually developed
prequalification content.
Prequalification like what?
Think of it like, uh, articles or
sections that gently say, Hey, this
tool is amazing for X, but if your
main challenge is actually y, this
might not be the magic bullet for you.
Helping people self-select
out if it's not a fit.
That's smart.
Super smart.
Saves everyone time and
prevents future refunds.
Okay, and the third part,
finally, he focused on
retention optimization.
This meant adding valuable
post-purchase resources
after they'd already
bought through his link
exactly.
Guides, tutorials, checklists, stuff
to help new customers actually get the
most outta the products he recommended.
Increasing their success,
making them stickier.
Wow.
Okay.
So authority positioning, audience
filtering, retention, optimization.
That's a big shift.
Huge shift.
And what was the impact?
Did it work?
Oh, yeah.
The results were pretty remarkable.
He dramatically cut down the
number of programs he was promoting
from 23 down to
just eight.
Eight carefully chosen ones
that fit this new strategy.
Wow.
And the income.
Really significant change.
His recurring revenue, the
sticky stuff jumped from only
about 8% of his total earnings.
Yeah.
To a much healthier 42%.
That's a massive difference in stability.
Absolutely.
Plus, remember those awful refund rates.
So 22%
plummeted?
Yeah.
Down to just 7%.
Okay.
That's huge.
Less clawbacks, more predictable income.
Exactly.
His monthly income became way more
predictable, less of that roller coaster.
That's the progress people
are looking for, isn't it?
That's exactly it.
And what's really insightful is the
knock on effect, the other benefits.
Like
what?
By focusing on quality over quantity.
Anil didn't just.
Improve his finances.
He actually freed up a ton of his time.
Makes sense.
Managing fewer programs.
Right.
His content creation workload
apparently dropped by about 40%.
He reported working fewer hours.
Overall, I. While actually earning more
the dream work less, earn more,
pretty much.
And other unexpected benefits too.
Like fewer support headaches from
mismatched customers complaining.
Ah, yeah.
Because he filtered them out early.
Exactly.
And he started building stronger, more
collaborative relationships with the
affiliate managers at those eight programs
because he was sending them quality.
Long-term customers, they valued him more.
That's a much better position to be in.
So let's get really clear for
everyone listening, what exactly
is a recurring affiliate program?
Okay.
Simple definition.
It's a partnership where you earn
commissions, not just once when
someone buys, right, but repeatedly.
Over and over for as long as the
customer you referred remains an active
user of the service or subscription.
So.
Unlike those one hit wonders.
Exactly.
A single successful referral can
turn into a consistent monthly or
sometimes even annual income stream.
It's like planting seeds that
keep bearing fruit rather than
just picking berries once.
I like that analogy.
Planting seeds.
Yeah.
Instead of constantly having to
hunt for that next sale just to
make the same income next month.
Mm.
You're building something cumulative.
Mm-hmm.
Something that provides ongoing value.
So smart affiliates, they
need to look beyond just that
headline commission percentage.
Absolutely.
That flashy 50% one-time
commission might look tempting.
Sure does.
But you need to calculate the true
long-term value, the lifetime value, LTV
of a customer in a recurring program.
How do you figure that out?
Well, roughly you'd look at the average
customer lifespan, how long they
typically stay subscribed and multiply
that by the monthly commission you earn.
Okay, gimme an example.
Sure.
Let's say program A offers a one-time
50% commission on a $200 product.
That's a hundred dollars once, right?
Program B offers a 20% recurring
commission on a service that costs,
say, $299 a month, and maybe customers
typically stick around for 18 months.
Okay?
So 20% of $299 is about $60 a month,
right?
And if they stay for 18 months.
$60 times 18, that's over
a thousand dollars from one
referral paid out over time.
Wow, okay.
That a hundred dollars upfront
suddenly looks tiny in comparison.
Exactly.
It's a completely different
way of building income.
And that leads into this
idea of commission stacking.
Right.
Precisely.
Imagine getting just a handful
of solid referrals each month
to a good recurring program.
Yeah.
If
those commissions start stacking up,
that first referral keeps paying.
Then the second one adds on top,
then the third, soon you can build a
significant baseline, monthly income
income that keeps coming in.
Even if you say take
a month off promoting.
That's the beauty of it.
It offers a level of financially
predictability that's often
totally missing in the traditional
one-off commission world.
Plus, it feels like a
healthier setup, doesn't it?
Your earnings are tied to the
product continuing to be good.
Absolutely.
With recurring programs, your
incentives are perfectly aligned
with the company and the customer.
You only keep earning if the
product delivers ongoing value
and keeps customers satisfied.
It encourages promoting quality.
Right.
You're invested in their success too.
Definitely.
Are there particular niches or
types of products where this
recurring model is more common?
Yeah, definitely.
SaaS platform software as
a service are a huge one.
Like email marketing tools.
SEO software.
Exactly.
Email marketing.
SEO tools, analytics software,
project management systems.
Mm. Things businesses often
pay for monthly or annually.
Okay.
What else?
Membership communities can be great too.
One's focused on like professional
development or specific niche skills
where people pay ongoing fees.
Sure.
And other subscription services,
especially B2B business to business ones.
Things that provide a clear return on
investment for the subscribing business.
Why B2B?
Especially
generally speaking, business services
often have higher customer retention
rates than consumer products.
Businesses integrate them into
their workflow, making them stickier
leads to those longer
lasting commission streams.
Gotcha.
Exactly.
Okay, so let's say I'm convinced
recurring is the way to go
for stability and progress.
How do I actually evaluate these programs?
How do I size them up?
Good question.
It's definitely about digging deeper than
just that headline commission percentage,
right?
We established that
first.
You absolutely need to consider
that true lifetime value.
We talked about,
yeah,
try to get a realistic sense of
how long customers stick around.
Should I just ask the affiliate manager?
You should.
And don't just accept a simple,
average number if you can help it.
Ask if they can share retention curves.
Retention curves.
What are those?
They show the percentage of
customers remaining subscribed
over time, like after month one,
month three, month six, month 12.
It gives you a much clearer
picture than a single average.
Okay, that's a great tip.
What else?
Payment, reliability
and speed are critical.
You need to know they
actually pay out and on time,
non-negotiable for sure,
and check the cookie duration.
How long the tracking lasts
after someone clicks your link.
Right.
Especially for higher price services
or things with a longer decision cycle.
You want a decent window,
ideally 60 days or more.
Some even offer 90 or 120 days.
Okay.
Good to know.
And definitely, definitely scrutinize
the actual commission structure itself
beyond just the percentage.
Yeah.
Are there tiers, like do you earn a higher
percentage if you send more volume, or
if your referrals have better retention?
That could be motivating.
It can be.
But also check for
minimum payout thresholds.
Is it like 50 or $500?
Make sure it's reasonable,
right?
And any tricky exclusions.
Yes.
Read the fine print, are
certain plans excluded?
Do renewals count, understand
exactly what you get paid on,
and also be realistic about how
hard it is to actually make a sale.
Right?
Absolutely.
What's their typical conversion rate
from Qlik to trial or trial to paid?
How much effort does it generally
take affiliates to get results?
A high commission doesn't mean
much if conversions are terrible.
Good point.
Are there any major red flags to watch
out for when evaluating programs?
Definitely a big one is reluctance
to share retention data.
If they're cagey about how
long customers stick around,
that's usually not a good sign.
Okay.
Transparency matters
hugely.
I. Also be wary of overly
complicated commission tier that
seem designed to be hard to reach.
Makes sense,
and watch out for those lifetime
commissions that come with a
big asterisk and a long list of
exceptions or conditions in the terms.
Sometimes lifetime isn't quite lifetime.
Always read the terms
and conditions always.
Okay.
Let's talk about setting
up these partnerships.
You mentioned different
commissions structures.
Right.
There are a few common models.
The gold standard for many
is true lifetime commissions.
You earn for the entire time your
referred customer stays active.
Simple and powerful.
That's the ideal problem.
Often.
Yeah.
Then you have tiered commissions.
These can be based on volume, send more
sales, get a higher rate, or sometimes
based on retention, your rate increases
if your referrals stick around longer.
Or maybe a mix
could be a hybrid.
Yeah.
Maybe higher commission for the
first few months than a lower
lifetime rate, or maybe a larger
one-time bonus upfront, combined
with a smaller recurring percentage.
Yep.
Various flavors exist.
So when you're actually pitching yourself
to an affiliate manager for one of these
better programs, what should you focus on?
Good question.
Don't just say, I have a website.
Yeah.
Emphasize the quality of your
audience and how well it aligns
with their ideal customer.
Show the fit.
Exactly.
Yeah.
Talk about the specific channels
you plan to use for promotion.
Your blog, your email list,
your YouTube channel, whatever.
Be specific.
Demonstrate a plan.
Yes.
If you have a track record with
similar products, mention it.
Show past successes, proof helps.
Absolutely.
And really stress your commitment
to a long-term partnership.
You're not looking for a quick buck.
You wanna send them
valuable lasting customers.
Position yourself as a partner,
not just a traffic source.
That's the key.
And don't be afraid to ask if
they offer performance incentives
or higher rates for top partners
who consistently deliver quality.
Negotiate based on value,
if you can back it up.
Yes.
What about support from
the program itself?
What makes a program good
to work with on that front?
Oh, this is huge.
Look for programs that
actually equip you for success.
Do they provide effective
conversion tools?
Uh, like what kind of tools?
Well-tested email sequences you can adapt.
High converting landing page
templates, maybe even professionally
designed ad creatives or banners.
Things that save you time
and are proven to work.
Okay, makes sense.
What else?
A responsive, helpful affiliate
manager makes a world of difference.
Someone who actually understands
marketing, not just admin,
someone you can actually
talk strategy with.
Ideally, yes, realtime reporting
dashboards are also crucial.
You need clear visibility into your
clicks, conversions and earnings.
No black boxes,
right?
Early access to product updates
or beta programs can be nice too.
Lets you create timely content.
Good
point.
And sometimes the best programs even
offer co-marketing opportunities, like
joint webinars or content collaborations
that shows real partnership.
That's a strong signal.
Yeah.
And payment terms.
We touched on it, but let's nail it down.
Absolutely Critical, reliable
payment terms are non-negotiable.
You want consistent
payouts, usually monthly,
right?
Reasonable minimum payout thresholds.
You don't want your money locked
up for ages because you're
$5 short of a $500 minimum,
right?
A variety of payment methods is helpful
with PayPal bank transfer, et cetera.
And again, transparent tracking
of commissions so you know exactly
what you're earning and why
trust and transparency seem key
fundamentally.
Yes.
So as someone starts building this out,
maybe moving from one time to recurring,
how should they build their portfolio?
Any strategic advice?
Yeah.
I'd say start by focusing on maybe
one or two stable, reliable programs.
Ones with a proven track record of good
customer retention and solid support.
Build a base,
get some stability first.
Exactly.
Then look for complimentary offers.
What other tools or services
would the audience use?
Your primary recommendations?
Likely find valuable.
Leverage the existing audience,
right?
You might also, as you grow and get
more experienced, consider adding
a few higher risk, potentially
higher reward options into the mix.
Maybe newer programs with
potential, but less track record.
Diversify a bit.
Balance, stability and growth potential,
something like that.
Yeah,
and crucially, track your results.
You need to know the return on investment.
ROI for the time and effort
you're putting into each program.
Measure what matters
always, and as your performance improves
and you demonstrate your value, don't be
shy about going back to your affiliate
managers and negotiating for better
terms or higher commission rates.
Earn your raise,
essentially.
Yes.
Okay, so let's try and bring it
all home for everyone listening,
if you had to boil it down.
What's the core message today?
I think the core message is that a
truly good affiliate program, the
kind that leads to real progress.
Mm-hmm.
It isn't just about that quick
initial payout number, right?
It's really about fostering long-term
value, prioritizing customer retention,
and building a genuine partnership that
benefits everyone involved, the company,
the customer, and you, the affiliate.
That's the path to more predictable
progress, more sustainable income
in this affiliate marketing world.
That's exactly it.
It requires a shift in focus
from what to what?
From just chasing clicks
and immediate signups.
Hmm.
To truly understanding the
whole customer journey.
How can you contribute
to their ongoing success?
With the products you recommend,
thinking Beyond the Sale,
way beyond, look past the immediate
commission percentage and really
assess the long-term viability, the
potential LTV, and critically the level
of support and partnership offered
by the programs you're considering.
Makes sense.
It's a more mature approach, really.
It is.
It's about building a real asset,
not just generating transactions.
So here's maybe a final thought
for you, the listener to chew
on as you go about your week.
Okay.
How can you actively pivot your focus?
How can you shift from just
generating clicks to becoming a
genuine catalyst for customer success
through your affiliate partnerships?
Ooh, I like that.
A catalyst for success.
Yeah.
What kind of trusted advisor can you
become for your audience rather than
just someone pointing to products?
That's a powerful question.
It changes how you approach
content promotion, everything.
It really does something well worth
exploring as you evaluate and refine
your own affiliate marketing strategies.
Thanks for spending
this, uh, 3:03 with us.
Yeah, great chat.
Hopefully that gives people some
concrete things to think about.
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