VPC Sessions – Analytics – Re-evaluating Affiliate Deals

Ante looked as his new screen. It was the just released Philips Momentum 43″ 4K HDR Quantum Dot Monitor.

It was twice the width of his old screen. Much clearer and brighter, too. And this new screen had the advantage of actually showing images.

His old screen used to be able show images. But last Tuesday he had picked it up and thrown the it in the air. Two seconds later it landed, cracked and twisted, on his office floor.

After that, the old screen wasn’t much of a screen at all. Ante had killed the messenger.

Now that he had the new screen in place, he saw the message even more clearly: His largest affiliate had stopped sending traffic.

It was a negotiating tactic. He was pretty sure about that. The affiliate was squeezing Ante.

“How many more dollars are there for me to share?” ante asked himself. He didn’t want to lose the business. But he also didn’t want to lose money on the deal.

The whole situation made Ante feel nauseous. Low sales would affect his monthly revenue targets. Low profit – or losses on the deal – would directly affect his personal income.

How could he figure out a payout number for this affiliate that would help him to reach his revenue and profitability targets?

Ante didn’t want to increase his costs more than he needed to…and he definitely didn’t want to have to buy yet another new screen.  

  • What is my process for negotiating the price of deals?
  • How do I figure out the value of deal?
  • How do I calculate the point where a deal just isn’t worth it?