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Being an expert in negotiation will help you in a lot of situations in life but particularly in getting the most out of deals and partnerships. With managing thousands of clients’ affiliate programs, we’ve somewhat mastered the art. We’ve found the perfect approach to guarantee you have the upper hand in any negotiation you’re in. Whether you’re working on a plan for promotion with an affiliate or with a network on a strategic optimization, defining your approach ahead of time and leveraging data to support your position will help get you what you want out of each partnership. Here are some of our strategies for navigating the negotiation process with confidence to achieve mutually beneficial terms for partnerships for our clients that you can use too to foster strong and effective working relationships with partners for your brand.
Tip #1 Preparation is Key
Before you find yourself in the heat of the negotiation it’s critical to do your research so you can support your position with hard facts. Proper preparation can be boiled down to 3 main steps.
Define your goals
First things first, figure out exactly what you want out of the negotiation. What would your ideal outcome look like? Now we can’t always get what we want, so take your list of wants a step further by figuring out what aspects of the deal you’re willing to compromise on and what you can’t move forward without. Knowing where your boundaries lie will help you down the line decide whether negotiation is getting out of hand.
Research the market
Make sure you’re looking at your list of wants and your compensation offer through a lens of reason and comparing your proposal to industry standards for commission rates and competitor programs. A deep understanding of current rates in the market will help you go into the deal with realistic expectations and a strong offer.
Know your “why”
Be prepared to vouch for your brand and why it’s the right advertiser for an affiliate to work with. What is unique about your product that’s gonna connect with the affiliate or their audience? What sets your brand’s affiliate program apart from other companies? How will the affiliate benefit specifically from promoting you as opposed to working with another brand?
Tip #2 Relationships will carry you through
Building rapport and nurturing relationships with your business partners will put you in a better position to negotiate with them down the line. Focus on these tips to strengthen your partner-relations.
Build a sense of trust
Demonstrate your expertise with thorough preparation and professionalism to support your credibility. Present case studies with past affiliate campaigns and provide context of your proposed promotion and your target audience and goals. Showcase yourself in the best light by providing your affiliates with high-quality marketing materials that instill confidence in your brand and its products.
Recruit for the long-haul
Emphasize the value of establishing long-term, mutually beneficial partnerships and highlight how a strong collaboration can drive sustainable growth and value for all parties involved. Reminder that it costs more to recruit a new affiliate than to optimize on an existing relationship, and long-term partnerships yield compounding returns.
Tip #3 Emphasize benefits for both parties
You can be going into detail about all the little things that set your brand apart from others and make you so special and such a great partner, but what the affiliate is really waiting to hear is how you’re going to create value for them. Getting across what they’ll take away from the relationship is key to getting their attention in the first place.
Find a baseline
Figure out your shared goals and interests to establish a solid foundation for negotiation. Focus on areas where both parties can achieve their objectives and create mutually beneficial outcomes.
Pressure test
Apply pressure to find what areas your negotiation partner is willing to compromise on. See if there are more efficient manners to achieve the same outcome, or if there are value add-ons you can implement to get more from the partnership until you are satisfied with the final intended promotion.
Consider using incentives
Proposing incentives like tiered commission structures or bonuses tied to achieving specific targets can significantly impact affiliate performance. The possibility of earning an exclusive payment structure can influence affiliates and motivate them to actively contribute to the partnerships’ success by getting their skin in the game.
Becoming an effective negotiator is a critical matter in the affiliate industry. As an affiliate manager working on behalf of a brand, you will be forced to learn the art of procuring the best promotional packages for your client and will need adept negotiation skills and tactics to do so. With extensive preparation, strong relationships, and a partner-oriented approach to explaining the benefits of joining your affiliate program, you will be able to recruit every affiliate you could want and have them eager to create value for your company. Remember, successful negotiations are built on trust, transparency, and fostering a relationship that has equal benefits for both parties. With these strategies in your arsenal, you can negotiate with confidence and unlock new opportunities to drive your affiliate marketing towards success.
