The cost of living crisis is affecting everything, even the affiliate marketing industry. The digital industry is learning quickly that the rising growth and engagement they saw during lockdown was in fact a temporary thing and they have to rethink your budgeting and where their money is going. No doubt a lot of other businesses in affiliate marketing are met with the same problem.
This week, Lee-Ann is joined by founder and CEO of LT Partners, Lacie Thompson to discuss setting up your budget for success. Listen in to find out their valuable insights.
Walgreens’ shift from data
As we reported on a week ago, Walgreens announced that it was shifting away from affiliate marketing to focus on traditional means of marketing as a means of rethinking their budgeting. Lacie seems to think that’s a mistake.
Lacie said: “My perspective on why a brand, especially a brand as large as Walgreens, would say we have to stop, is because they don’t have enough confidence that the channel is bringing the value that it needs to bring.
“And so I think, I think what I hear a lot from companies of all sizes is that it doesn’t really matter if it’s pay for performance, if the performance that I’m paying on is not really that valuable. And I think that’s going back to the inherent challenge that we have in this industry is that I think.”
Chemistry in affiliate marketing?
Lacie introduced the idea of what makes for a good affiliate partnership, saying: “We don’t make the most money from our engagement with a client because we’re doing something that is in their best interest. I know that it builds trust in the partnership and the relationship, and it will lead to a longer term engagement together, which ultimately is good for our company as well.”
In response, Lee-Ann said: “And I think it’s also a little bit about chemistry too. … You can have a really bad car and a really good driver and still win. So, it really is a marrying of not only culture in terms of how the agency runs their business and how the, how the client runs their business. It’s also around chemistry. Like, are we going to have each other’s best interests at heart?”
Brands need to loosen the reins
Maybe it doesn’t come down to how much you are spending when budgeting but where you are spending your money. Lacie gave an insight that a lot of brands can work on, saying: “Some brands are very protective of their data for some reason, and I think that to me, I don’t really understand why. … So, if companies are like that, I don’t think that they should have an agency partner, if you’re not willing to share your information with your partner, as you would share it with somebody that’s in house, then don’t work with an agency.”
It goes back to an earlier point: that this is a partnership, and for a partnership to be beneficial, even an affiliate marketing partnership, there needs to be trust.
If you are interested in more affiliate and social media marketing insights, take a look at our blog for all the latest news and advice. Or for a more personalised approach, book a free call with a member of our team.
Or, for the very best advice from industry peers, register to gain access to our Amplify Action Day. Taking place in January 2023 doesn’t mean you’ve missed it. Amplify aims to bring you the latest affiliate, performance, and partner marketing insights from across the globe and it’s all available to stream from our website.
Listen to find out more about:
- How Lacie got started in affiliate marketing
- Is there value to paying for performance?
- Should companies be so protective of their data?
Key segments of this podcast and where you can tune into go direct
[10:00] – Finding lookalike opportunities in Google Analytics
[20:00] – The advantages of brands using agencies to grow
[25:00] – The importance of chemistry between affiliate partners
[35:00] – The value of a program audit for your brand
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