3 Challenges of Managing Referrals

How are payment agreements managed?

How do you track affiliate payment?

What if the affiliate doesn’t do anything?

How Do You Manage Them All?

Alright. So you’re convinced that you need partners and affiliates. But managing those relationships can be daunting on its own. The last chapter reviewed the pains of financial overhead. Now we are going to address the complexity of trying to manage affiliates, vendors, and partners.

affiliate referral system

First, how is payment determined? The value of each of your affiliates or partners is going to vary. Partnering with a slightly larger vendor down the street is beneficial. However, that partnership is not as likely to bring in the large quantity of buyers that a guru in your industry can produce. That being the case, the guru deserves more from you because they are offering you significantly more business.
Secondly, how do you know if the affiliate is truly increasing your business? At Infusionsoft, we grapple with this issue on occasion. Someone partners with us, anticipating the affiliate check they will be receiving for their referrals. However,

several months may pass by where their “partnership” appears to have failed. If I have offered
them a free copy of the software, expecting them to spread the word, their lack of production is
actually hurting my business. But, if you have no way of tracking that information, it might be
some time before you are made any wiser.

Finally, how do you track the payment of your affiliates? As I mentioned a time or two before,
manual systems don’t work! Faulty financial management can cause unpleasant situations to
arise. The partnerships you build can be easily destroyed if you are unprepared for the management of such partnerships.

 © 2008 By Clate Mask

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Posted in: Chapter 10- Grow Through Partners