The Truth About Relationships

One of the most common pieces of advice given  to affiliates is for them to develop relationships with merchants and program managers. New merchants and program managers are told to foster relationships with their affiliates. The main reason for this is that many believe that a strong relationship will result in preferential treatment, additional perks, extra assistance and of course, additional income. Relationships can be beneficial to both parties but everyone, especially those new to affiliate marketing, needs to give it proper weight.

My advice is to develop relationships but keep them in perspective and do not give them more value than they deserve. It is important to understand that when making business decisions, you need to make actual business decisions. Relationships can be valuable, but they will not be the sole reason for your success or failure.

My advice to Affiliates is to develop relationships with merchants but do not allow them to replace sound business practices.

• Do not allow relationships prevent diversification. Always have a couple of back ups for every merchant and product. This will ensure that you will have continued income potential if a program closes or you are removed over an issue such as Internet sales tax. Never become totally reliant on on merchant or product regardless of the “close and valued” relationship.
• Do not allow relationships to give you a false sense of security.  Merchants will make business decisions based on their needs; your needs or wants may not be a consideration. Case in point:  Even top producers can be removed from a program due to nexus issues. A relationship is not an insurance policy. Merchants will come and go.
• Do not allow relationships prevent you from developing other relationships because of  loyalty. Make business decisions.
• Do not allow a relationship to cause you to lower your standards. Hold all your merchants to a standard of performance. Do not turn a blind eye to merchants who operate in an unethical manner simply because you have a relationship.
• Understand that some merchants may not be able to attend conferences and may communicate primarily via email. Everyone has a different definition of relationship. For me, I want accessible merchants/managers and tools/answers/commission bumps/responses to queries.
• Don’t allow a relationship deter you from speaking your mind. If a relationship causes you to be afraid of speaking your mind, the relationship is not a sound one for you.

My advice to merchants is quite similar.

• Do not allow your relationship with one affiliate prevent you from fostering relationships with affiliates. Just as affiliates should always be seeking new merchants, you should always be developing relationships with new affiliates.
• Do not allow a relationship cause you to look the other way or turn a blind eye to unethical practices.
• Never feel like you have enough relationships or become too dependent on any small group of affiliates. Affiliates will come and go.
• Understand that not every affiliate is able to attend conferences  or speak via phone at a moment’s notice. Relationships do not only come from conferences.
• Some affiliates will have a different definition of relationship and every affiliate has different needs. Many affiliates will never call you but they need to feel you are accessible.
• Treat affiliates with respect and, value and  foster all relationships.

Relationships in business are good, just be sure to keep them in the proper perspective.  A relationship is not a guarantee or an insurance policy, it is just one aspect of business.

Relationships should complement your sound business practices, not replace them.

Tagged as: Affiliate Education, Merchant Education