Commission Splitting: To Split or Not to Split?
Download as PPTX, PDF0 likes627 views
The document discusses the benefits and challenges of splitting commissions in marketing, emphasizing that while it aligns with contributions made across various channels, it also presents complexities such as fraud risk and redistributing spend without impacting revenues. The presentation outlines marketing goals and common outcomes linked to commission splitting, noting potential declines in ROAS and ROI. It advocates for data-driven decisions and recognizing contributions beyond the last click, suggesting a measured approach to rewarding partners.
Commission Splitting: To Split or Not to Split?
- 1. Commission Splitting: to split or not to split, that is the question
- 2. ● Co-founder & VP Strategic Initiatives, Impact Radius: 2008 - present ● VP Sales & Business Development, Digital River, oneNetworkDirect : 2006 - 2008 ● Founding Team, Commission Junction: 1998 - 2006 Todd Crawford W E L C O M E
- 3. Why do we want to split commissions Challenges Goals Common Outcomes AGENDA Rewarding Contributions
- 4. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS?
- 5. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc.
- 6. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion?
- 7. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion? ● Some media partners are stronger last click referrers (coupon, loyalty, retargeting) than others like influencers and content review sites.
- 8. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion? ● Some media partners are stronger last click referrers (coupon, loyalty, retargeting) than others like influencers and content review sites. ● It seems like the fair thing to do.
- 9. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS
- 10. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all
- 11. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels?
- 12. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels? ● Fraud risk increases
- 13. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels? ● Fraud risk increases ● Will it drive more value?
- 14. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS
- 15. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues
- 16. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS
- 17. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin
- 18. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV
- 19. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV ● Acquire new customers
- 20. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV ● Acquire new customers ● Maximize ROI
- 21. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING
- 22. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed
- 23. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same
- 24. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same ● ROAS decreases
- 25. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same ● ROAS decreases ● Poor ROI of resources
- 26. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHERE SHOULD WE INVEST TO MAXIMIZE OUR ROI?
- 27. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions
- 28. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions
- 29. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions ● Less is more (80/20 rule)
- 30. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions ● Less is more (80/20 rule) ● Communication
- 31. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS
- 32. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters
- 33. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner
- 34. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses
- 35. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid $0.25/CPC or 8% of sale
- 36. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid ○ CPC $0.25 CPC
- 37. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid ○ CPC ● Measure and optimize partnerships, not the channel
- 38. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE LET’S DISCUSS!
- 39. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE THANK YOU todd@impactradius.com