How to Develop a Successful Payout Structure

Sarah Howes

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A great way to motivate publishers to increase their performance is to create an affiliate program that utilizes Performance Incentives and Bonuses. To some this might seem like a daunting and overwhelming task but it doesn’t have to be! I’m here to help you manage the process in three easy steps that will generate more revenue for your CJ Affiliate program.

Step 1: Decide What You Can Offer

The first thing to do as you develop a successful payout structure is evaluate how much you can pay publishers based on the revenue you expect to earn from each transaction. In order to determine your benchmark commission rate, if you are running a leads based program calculate the life time value (LTV) of a customer, otherwise you can determine what your margin is on a sale. Once you have your estimated base commission rate be sure to pad it so you have some wiggle room for extra payouts in the form of Performance Incentives (commission increase with volume) and Bonuses (one time manual payout).

*TIP: Do not use Performance Incentives and Bonuses as an alternative for a base commission rate that is competitive to other advertisers in the CJ Marketplace.

Step 2: Group Publishers and Set Goals

In order to set up compensation structures that will motivate publishers across the board, divide publishers into segments based on performance: new, inactive, middle, and high-performing. Then create Publisher Groups in the CJ Account Manager. For each Group set different yet inspiring and attainable goals. One way to do this is to create Program Terms with Performance Incentives that will kick in at each level of performance for each group. Another way is to create a manual Bonus for each publisher that has reached the determined goal that you communicated to their Group.

Originally published on CJ Blog. Read the full article here:
http://blog.cj.com/09282016/how-develop-successful-payout-structure