Understanding the Pros and Cons of In-House VS Outsourced Affiliate Program Management

There is no doubt in it that affiliate programs are profitable for online businesses. It does not matter whether, you are a small business or big, it will generate good incremental income for you. Business houses have two options to manage their affiliate program. One option is to hire an affiliate manager and the other is by outsourcing their affiliate management requirements. Both these options have some advantages and disadvantages. You may take a little time to understand as which the best option for your company is.

In-house affiliate management

The benefits an in-house affiliate manager can bring for your company revolves around his communication. When your affiliate manager  is in touch with other online marketers regularly, then other marketing initiatives like the PPC and email marketing will remain intact. After analyzing what is the right strategy to cater your company’s business requirements, your AM (affiliate manager) will create other online marketing channels. He will suggest other affiliates as how to utilize the marketing strategies in promoting the program. Your AM will also make good relationships with merchandisers and retail buyers. Moreover, your AM has expertise in dealing with technical issues like data feed problems and conversion tracking. He is your full time employee and he can deal with technical issues at a much faster rate in comparison with an outsourced affiliate manager.

affiliate manager

Corns

Manytimes, it happens that your business house does not have much work to keep AM busy for the whole week. Your AM will typically work from Monday to Friday during work hours, he will not respond to the queries on evenings or weekends. This will increase the response time for affiliate questions from your website visitors. Affiliate management is a skill which requires specialization and that is why AM demands for a higher salary. This is the reason why most of the small business houses cannot hire in-house affiliate manager.

Outsourced affiliate management

Pros

The biggest benefit you will get is reduced cost and availability. You need to pay a fixed monthly rate or a share on generated sales after outsourcing your affiliate program requirements. This is less than the sale of your in-house AM. When you hire a full time employee, you have two give him other benefits like bonuses, health insurance and salary increment. Outsourcing the requirements is helpful for those business houses who have low budget and have difficulty in hiring in-house managers.

Cons

Sometimes it happens that business houses become uncomfortable when they give their affiliate program management to a third party. This is because they lose control over. Actually, they fail to understand that this is not an issue. They can alleviate these issues by scheduling regular meetings with the service provider. This will help clear the issues before they arise.

How to choose

This is a million dollar question, whether you need an in-house affiliate manager or you shall outsource your requirements. It is imperative to consider your company’s goal and objectives you have to achieve by an affiliate program. If you want to keep your marketing cost down, then outsourcing is the best solution for you.