It’s not a secret that the commission rate is what usually motivates salespeople and affiliates to promote your products or services properly and effectively. The more competitive commission fees your affiliate program offers, the more attractive it is for potential publishers. High commission rates can help you recruit the most hardworking and successful affiliates and make it easier for you to retain them.
However, over time, a commission rate that you perceive to be high may become too low for some affiliates. If they decide that they deserve to be paid better for their work, they will start looking for a new affiliate program to join or ask you to increase the commission rate. The latter is the better outcome for you because it leaves you some room for negotiation and setting your own conditions.
In some situations you might not be able to increase the commission fees you offer. In this case, you can still negotiate with an affiliate who asks for a raise or, if you can’t provide them with an alternative, politely decline their request and explain why you are doing so. We have prepared a few email templates that you can use to deny a commission increase request in both cases.
Before we present these templates, let’s discuss incentives other than an increased commission rate that you can offer your affiliates.
As already said, commission rates usually motivate affiliates the most, but you can also win their engagement by offering things like gifts, merchandise, discounts, or coupons for them to use. Sending them your products or giving access to your services for free can really work wonders. As they spend lots of time promoting your offerings, they probably like them already and would be happy to try them out.
Discounts and coupons work in the same way – affiliates can use them to buy goods you offer, choosing the items they are the most interested in. This is also a great way to build brand loyalty among your publishers, showing them that they are a valued part of your business, not just a source of conversions.
You can also incentivize affiliates by offering them exclusive coupons and deals for their target audience. The fact that their followers will be getting an exclusive deal will work as recognition and motivation too.
Declining a commission increase request without providing any explanation will be a huge demotivator for any affiliate. In turn, this will probably lead to the affiliate dropping out of your program. That’s why you should always share at least a few words explaining your decision. For example, you can point to your company's financial situation as the reason for the refusal or to the fact that you do not allocate commission increases to individual affiliates. In general, the reasons for declining the request may vary, but you should always explain what influenced your decision.
If you can offer your affiliates any alternative incentive instead of a commission increase then do it! This won’t guarantee that the affiliate will keep working for you, but it will certainly increase your chances of retaining that publisher. You can also ask what else, apart from a commission increase, could help you meet their expectations. This will give you some insights into the expectations of your affiliates, enabling you to adjust your incentive structure in the future.
If you plan on increasing commission rates in the future or do so regularly, it’s a great idea to inform affiliates about this, especially if you are declining a commission increase at that time. You can imagine that such a rejection may demotivate and frustrate affiliates, so receiving information that they may get a raise soon can help to diminish the negative effect of a decline.
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