$5 huh? Doesn't put much value on your time, does it? Was it motivating?

I like to think about what keeps me motivated, what makes me work on one thing over another, and what drives me to do better.

Of course it usually comes down to money. But recently, I wrote about commission incentives and how, for many affiliates, performance tiers can actually act as disincentives.

Another way that many affiliate managers challenge their affiliates to do better (or do anything at all) is with contests and prizes. I get these all the time. Here's two just today:

Example 1:

Make your Holiday marketing efforts pay off... really pay off! Earn a $25 commission bonus compliments of [MerchantX]. Qualifying is easy. Simply generate $250 in sales between now and December 31, 2005 and I will personally add $25 to your commission check for December Sales.

Example 2:

We wanted to take this opportunity to thank you for your interest in partnering with [MerchantY] Affiliate Program. However, we've noticed that you haven't generated a sale recently. We want to help you become an active participant. So, for a limited time, generate $600 in sales and earn a $50 bonus.

The last thing I mean to do is belittle an affiliate manager's efforts, but I have to wonder, is anybody motivated by a chance for $25? You're targeting your inactive affiliates. How much effort do you think it takes to start promoting a new merchant?

As one of my favorite former bosses used to say, "Don't come to me with a problem, come to me with a solution." He also said, "Swing the pendulum." I haven't figured that one out yet, but anyway...

Retention marketing plays a strong part of an Affiliate Manager's role. There are hundreds or thousands of affiliates who have signed up, but how to get them active?

An effective incentive program is one that has a "wow" factor. $25 for $250 in sales? Sure, I could probably generate that, but if I'm not already prepared to promote this merchant (and if I was, I could probably get that $25 without lifting a finger), it takes more than merely a chance at $25 to overcome my inert state.

C'mon, I'll barely drop a business card in a bowl for a chance at $25.

To expend a few hours of work, it'll take a bit more. A shot at $2500 would at get my attention. How about in addition to that $25 for $250, offer me $100 for $1,000 and $1,000 for $10,000? Same percentage -- a helluva lot more interesting.

Of course you got to do what you can afford, but put some value on my time and the longer-term partnership. And put some value on your own time as well. How much of your time does it take to come up with one of these promotions, track it, and make sure the right people are paid? Give yourself a chance to actually get something for that effort.

I had one merchant this past spring offer me 100% commissions for two months. You better believe that got me working. I generated 50% more sales for that period of time (and for me with this program, that's blood from a stone). Now don't cry for them. The average lifetime value of those sales are worth much more than 100% of the initial sale price. Besides that, the effects of those efforts on my part continue long after the commissions ended, and they bought earned a friend for life, which will pay off next time a competitor comes a-courtin'. They probably don't want me to mention who they are, since they didn't offer this to everybody, so I won't. (They also bought my silence.)

Another example for which I will name names, look at BuyCostumes.com. They put together a very compelling contest this year.

First, the big one. A chance to win $10,000. Every $1000 in sales generated in Sept and October is a chance to win. Now if that won't get your attention, you probably won't fog a mirror.

Besides that, there's something for everyone.

• $1000 gets you a t-shirt (yawn, but don't fall back asleep...).
• $10,000 gets you an iPod shuffle (cool enough. I've got two regular iPods and a Mini, but no Shuffle yet. That and a Nano and I'll hit for the cycle.)
• $25,000 a Sony PSP (now you're talking)
• $50,000, a Bose SoundDock (sweet) and an iPod (hopefully a sassy new Nano)
• $75,000 gets you all of the above. (hint, now that's motivating)

and don't give up there, because once you claim a prize, the counter resets and keeps counting. And again, every $1000 is a chance to win the ten-large.

If you know anything about costumes at Halloween, you know these are very realistic goals. But if you haven't started yet, you're probably too late. Get'em next year.

BuyCostumes.com puts in a huge effort to motivate affiliates because they need to overcome the dreaded inactive-affiliate-inertia every summer as Halloween approaches, even for the active affiliates from prior years.

So why shouldn't this apply to any affiliate program? It does. Do a blockbuster "get-em-active" promotion and do it right.

Oh yeah, about that $5. If you don't feel it this read was worth at least that, drop me a note (scott at jangro dot com) and I'll paypal you $4.98. I figure it's worth at least 2 cents.