Negotiating Pay Bumps (9)
Hi All,
I am wondering if any of you can provide some insight into negotiating bumps. I run search traffic for Pay-Per-Call primarily, so quality if very good, and advertisers want more. However, I am new to negotiating bumps, generally.
What is considered a reasonable bump? I understand that you have to take into consideration what the network is getting from the advertiser, etc., but is there a general rule of thumb?
I typically run higher payout offers in the 60-100 range, with my most profitable offer paying $100.00. The latter is direct with the advertiser, so I am in direct contact with their in-house affiliate manager.
Any insight greatly appreciated!
Thanks
Not a pro either but honestly I think anything you can get is great..!
Even if it's just like 5$ on a 100$ payout, that's a free, 5% ROI right there. Adds up over time!
I'd just ask my AM for it honestly, don't mention any numbers, just ask him/her to check out with the advertiser if it's backing up for them
Great tip from John! Start by asking "how's my lead quality lately?" And when they say "it's good/great/amazing" that would be a good time to pop the question "then how about a pay bump to motivate me to do even bigger volume?"
Another thing you could try:
"I've been testing new traffic sources and some are only breaking-even / are marginally profitable - if you'd give me a bump it would be worth my effort to keep running camps on these sources."
And if you've been split-testing similar offers (which you should be doing anyways):
"I've been testing similar offers on other networks and one of them is looking like it has similar conversion rate as your offer. I told my AM on that other network the volume I'm doing for your offer, and they'd be willing to pay me 5%/10% more to run with them. However, I've been working with you guys for so long that I'm not wanting to switch. Would it be possible for you to bump my payout?"
(Disclaimer: If this is far from the truth of your situation, be sure you know how to keep them from calling your bluff before you try this excuse! By testing different offers to find others that convert as well or better, you can use that as leverage to get bumps from both networks and then choose the one that works the best for you! I've done this a few times, and a couple of times my AMs of the original offers would contact me to find out the reason for the massive decrease / stoppage in traffic, and when I explained that I'd found a better-converting / higher-payout offer, they offered a pay bump to offset the differences in conversion rates / payouts.)
The above are just examples of course. Obviously everyone's in this game to maximize profits. Experienced AMs will often offer bumps to keep the affiliate motivated and loyal, which will often increase profits for all. Some AMs are more short-sighted and need some arm-twisting to agree to bumps. If you can convince them that a bump will either 1)directly result in your doing more volume, or 2)prevent you from taking your volume elsewhere, you will often get that bump. 
Good luck!!
Amy
I think there's three ways and especially moments you can ask your advertiser/network for a pay bump
1. You are doing on a consist basis +500$ a day for one particular campaign. Consistent meaning at least 7 days in a row.
2. The advertiser confirms your quality looks great and that they're happy. If you hear this, that's the perfect moment to ask for a payout increase
3. You are a proven affiliate with the advertiser/network. This means you've probably invoiced them at least $10K in the last few months. In that case you can directly ask for a pay bump (even before starting the traffic on that specific offer)
A good pay bump is 10%, anything above that is really good.
If the advertiser won't directly give you the pay increase in the three situations described above, then you can agree with them on a trapped system.
EXAMPLE: If you are currently doing 500$/day at - lets say - 1$ per lead then you could agree on something like this:
1$ if volume is lower/equal to 500$/day
1.1$ if volume is between 500$ - 750$/day
1.2$ if volume is above 750$/day
In this case the advertiser lowers his % profit margin but makes up for it by the increased volume which will turn in overall greater profits
Of course the preferred option is to get a pay bump without any volume commitments so try to negotiate that first, but the second option (with volume commitments) is always a good back-up plan
Before asking for a paybump/quality check, be as positive as you can that your quality is good...
Another thing to add it's important to find out the network's standard margin they take. That way you really know what you have to work with. Typically networks take between 15% - 35% (even more if they own the offers).
Agreeing to an automatic payout increase early on based on tiered volume structure like cbrugh said is a really good way to go about things.
Really appreciate the insight, guys. Thanks!
Originally Posted by cbrughmans
With that said, business is about relationships and I try to be as transparent as possible...I may be in minority here, but if I'm making a great ROI, I don't get greedy. I'll ask for more, but know that sooner or later that campaign will die and I'll need help on one that isn't so great in ROI.
here is another perspective i took from cmdeal -
create a competitive bidding situation. of course this assumes that your traffic is of reasonably good quality and volume.
we make our advertisers aware of their competition, keep them updated on the other side regularly through reports, and place the responsibility on them to work for our traffic.
of course they also benefit because all our efforts are focused on improving the quality and volume of traffic, and they can see it when they split test us with other affiliates.
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