Sean Sewell of Partnerize, alongside representatives from Expedia Group, GrowthHQ, and Liberty London, advocates for a shift in how brands evaluate affiliate success. During a panel discussion on May 15, 2024, these leaders argued that rising operational costs now squeeze traditional profit margins, necessitating a move toward profit-centric models. The industry currently faces a "new affiliate economy" defined by complex customer journeys and intensified pressure from finance departments.
The discussion highlighted a growing disconnect between volume and value. While many programs report increasing traffic, earnings per click (EPC) frequently remain stagnant or decline. The proliferation of touchpoints, including AI-driven search results and social media interactions, drives this trend. These interactions lengthen the path to purchase and dilute the impact of individual clicks.
Profitability Over Scale
Brands must move away from sheer scale toward profitability as customer acquisition costs (CAC) rise. The panel argued that spending smarter represents the only viable path forward. For luxury retailers like Liberty London, this involves a granular assessment of profitability at both the product and publisher levels.
By identifying which specific partners deliver high-intent audiences rather than broad reach, brands justify higher investment costs. Rising costs only become problematic if they fail to deliver customers with high lifetime value or strong profit margins.
Funnel-Based Payout Structures
The industry's reliance on "one-size-fits-all" commission rates is becoming obsolete. To thrive, brands must align their payout structures with the specific role a publisher plays in the marketing funnel.
Success in the new affiliate economy isn’t about spending less—it’s about spending smarter.
The panel suggested categorizing the ecosystem into three distinct tiers:
- Upper-funnel: Content partners and influencers who drive initial brand discovery.
- Mid-funnel: Review sites and comparison engines that build consumer consideration.
- Lower-funnel: Cashback and loyalty platforms that secure the final conversion.
Mapping the ecosystem this way allows brands to move toward diversified commercial models. These models include fixed CPCs for specific high-value placements or varied commission tiers that reflect the incrementality of a partner's contribution.
Data Integration and Attribution
As AI search experiences like Google’s AI Overviews become more prevalent, attribution becomes increasingly technical. Finance teams no longer accept simple conversion data. Instead, they demand clearer proof of profitability.
The experts agreed that the transition to this new economy requires better data integration across channels. This integration allows brands to measure a "blended ROAS," ensuring that affiliate activities complement rather than cannibalize other paid marketing efforts.
Affilitizer Editorial Team
This article was created with AI assistance and editorially reviewed.
