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Commission Splitting: to split or not to split, that is the question
● Co-founder & VP Strategic Initiatives, Impact Radius:
2008 - present
● VP Sales & Business Development, Digital River,
oneNetworkDirect : 2006 - 2008
● Founding Team, Commission Junction: 1998 - 2006
Todd Crawford
W E L C O M E
Why do we want to split commissions
Challenges
Goals
Common Outcomes
AGENDA
Rewarding Contributions
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
WHY DO WE WANT TO SPLIT COMMISSIONS?
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
WHY DO WE WANT TO SPLIT COMMISSIONS?
● All other media is paid on contributions (not just
last click)
○ Display, social, search, etc.
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
WHY DO WE WANT TO SPLIT COMMISSIONS?
● All other media is paid on contributions (not just
last click)
○ Display, social, search, etc.
● Do we really know which affiliate or marketing
touch point caused the conversion?
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
WHY DO WE WANT TO SPLIT COMMISSIONS?
● All other media is paid on contributions (not just
last click)
○ Display, social, search, etc.
● Do we really know which affiliate or marketing
touch point caused the conversion?
● Some media partners are stronger last click
referrers (coupon, loyalty, retargeting) than others
like influencers and content review sites.
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
WHY DO WE WANT TO SPLIT COMMISSIONS?
● All other media is paid on contributions (not just
last click)
○ Display, social, search, etc.
● Do we really know which affiliate or marketing
touch point caused the conversion?
● Some media partners are stronger last click
referrers (coupon, loyalty, retargeting) than others
like influencers and content review sites.
● It seems like the fair thing to do.
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
CHALLENGES WITH SPLIT COMMISSIONS
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
CHALLENGES WITH SPLIT COMMISSIONS
● One size doesn’t fit all
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
CHALLENGES WITH SPLIT COMMISSIONS
● One size doesn’t fit all
● What about other paid channels?
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
CHALLENGES WITH SPLIT COMMISSIONS
● One size doesn’t fit all
● What about other paid channels?
● Fraud risk increases
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
CHALLENGES WITH SPLIT COMMISSIONS
● One size doesn’t fit all
● What about other paid channels?
● Fraud risk increases
● Will it drive more value?
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
MARKETING GOALS
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
MARKETING GOALS
● Grow revenues
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
MARKETING GOALS
● Grow revenues
● Increase ROAS
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
MARKETING GOALS
● Grow revenues
● Increase ROAS
● Improve margin
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
MARKETING GOALS
● Grow revenues
● Increase ROAS
● Improve margin
● Increase AOV
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
MARKETING GOALS
● Grow revenues
● Increase ROAS
● Improve margin
● Increase AOV
● Acquire new customers
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
MARKETING GOALS
● Grow revenues
● Increase ROAS
● Improve margin
● Increase AOV
● Acquire new customers
● Maximize ROI
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
COMMON OUTCOMES OF COMMISSION SPLITTING
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
COMMON OUTCOMES OF COMMISSION SPLITTING
● Spend is redistributed
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
COMMON OUTCOMES OF COMMISSION SPLITTING
● Spend is redistributed
● Revenues remain the same
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
COMMON OUTCOMES OF COMMISSION SPLITTING
● Spend is redistributed
● Revenues remain the same
● ROAS decreases
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
COMMON OUTCOMES OF COMMISSION SPLITTING
● Spend is redistributed
● Revenues remain the same
● ROAS decreases
● Poor ROI of resources
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
WHERE SHOULD WE INVEST TO MAXIMIZE OUR ROI?
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
HOW DO WE MAXIMIZE OUR ROI?
● Data driven decisions
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
HOW DO WE MAXIMIZE OUR ROI?
● Data driven decisions
● Drive more value - not just split commissions
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
HOW DO WE MAXIMIZE OUR ROI?
● Data driven decisions
● Drive more value - not just split commissions
● Less is more (80/20 rule)
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
HOW DO WE MAXIMIZE OUR ROI?
● Data driven decisions
● Drive more value - not just split commissions
● Less is more (80/20 rule)
● Communication
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
REWARDING CONTRIBUTIONS
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
REWARDING CONTRIBUTIONS
● Last click still matters
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
REWARDING CONTRIBUTIONS
● Last click still matters
● Some (not all) partners should be rewarded when
not the winner
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
REWARDING CONTRIBUTIONS
● Last click still matters
● Some (not all) partners should be rewarded when
not the winner
○ Contribution bonuses
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
REWARDING CONTRIBUTIONS
● Last click still matters
● Some (not all) partners should be rewarded when
not the winner
○ Contribution bonuses
○ CPC/Hybrid
$0.25/CPC
or
8% of sale
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
REWARDING CONTRIBUTIONS
● Last click still matters
● Some (not all) partners should be rewarded when
not the winner
○ Contribution bonuses
○ CPC/Hybrid
○ CPC
$0.25 CPC
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
REWARDING CONTRIBUTIONS
● Last click still matters
● Some (not all) partners should be rewarded when
not the winner
○ Contribution bonuses
○ CPC/Hybrid
○ CPC
● Measure and optimize partnerships, not the
channel
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
LET’S DISCUSS!
THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE
THANK YOU
todd@impactradius.com

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Commission Splitting: To Split or Not to Split?

  • 1. Commission Splitting: to split or not to split, that is the question
  • 2. ● Co-founder & VP Strategic Initiatives, Impact Radius: 2008 - present ● VP Sales & Business Development, Digital River, oneNetworkDirect : 2006 - 2008 ● Founding Team, Commission Junction: 1998 - 2006 Todd Crawford W E L C O M E
  • 3. Why do we want to split commissions Challenges Goals Common Outcomes AGENDA Rewarding Contributions
  • 4. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS?
  • 5. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc.
  • 6. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion?
  • 7. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion? ● Some media partners are stronger last click referrers (coupon, loyalty, retargeting) than others like influencers and content review sites.
  • 8. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHY DO WE WANT TO SPLIT COMMISSIONS? ● All other media is paid on contributions (not just last click) ○ Display, social, search, etc. ● Do we really know which affiliate or marketing touch point caused the conversion? ● Some media partners are stronger last click referrers (coupon, loyalty, retargeting) than others like influencers and content review sites. ● It seems like the fair thing to do.
  • 9. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS
  • 10. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all
  • 11. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels?
  • 12. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels? ● Fraud risk increases
  • 13. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE CHALLENGES WITH SPLIT COMMISSIONS ● One size doesn’t fit all ● What about other paid channels? ● Fraud risk increases ● Will it drive more value?
  • 14. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS
  • 15. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues
  • 16. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS
  • 17. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin
  • 18. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV
  • 19. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV ● Acquire new customers
  • 20. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE MARKETING GOALS ● Grow revenues ● Increase ROAS ● Improve margin ● Increase AOV ● Acquire new customers ● Maximize ROI
  • 21. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING
  • 22. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed
  • 23. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same
  • 24. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same ● ROAS decreases
  • 25. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE COMMON OUTCOMES OF COMMISSION SPLITTING ● Spend is redistributed ● Revenues remain the same ● ROAS decreases ● Poor ROI of resources
  • 26. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE WHERE SHOULD WE INVEST TO MAXIMIZE OUR ROI?
  • 27. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions
  • 28. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions
  • 29. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions ● Less is more (80/20 rule)
  • 30. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE HOW DO WE MAXIMIZE OUR ROI? ● Data driven decisions ● Drive more value - not just split commissions ● Less is more (80/20 rule) ● Communication
  • 31. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS
  • 32. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters
  • 33. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner
  • 34. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses
  • 35. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid $0.25/CPC or 8% of sale
  • 36. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid ○ CPC $0.25 CPC
  • 37. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE REWARDING CONTRIBUTIONS ● Last click still matters ● Some (not all) partners should be rewarded when not the winner ○ Contribution bonuses ○ CPC/Hybrid ○ CPC ● Measure and optimize partnerships, not the channel
  • 38. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE LET’S DISCUSS!
  • 39. THIS PRESENTATION CONTAINS CONFIDENTIAL INFORMATION - DO NOT DISTRIBUTE THANK YOU todd@impactradius.com