With patience and persistence, affiliate programs and partnerships can help improve moving company profitability. They take time and effort to establish and grow. Most importantly, they require continual nurturing or they wither on the vine.
It’s Not Easy, and It’s Not Quick
Affiliate programs and partnership development takes time and effort. Affiliates and partners must be carefully selected for both their standing in the community and their ability to drive traffic to your door. For this reason, it’s best to filter your search for affiliates and partners down to those who are most likely to be successful. Specifically, select companies and individuals, such as real estate agencies, contractors, remodelers, and businesses whose clients have an immediate need for moving services. When these affiliates and partners are earning money for their referrals, it keeps them interested in participating in the program.
Successful Partnerships and Affiliate Programs Require Continual Grow
Businesses come and go, ownership changes, the economy evolves. If you rest your laurels on existing partners and affiliates, you can expose yourself to revenue declines when there is a disruption in the network. As such, you need to continually search out to new partners and new affiliates to expand your network. Your moving company profitability depends on continual expansion in this regard.
Profitability Depends on the Right Commission
Increased business means increased costs. As such, you don’t want to set your rates with partners and affiliates so high that they sap your profit margin. Most companies pay affiliates between 25% to 50% of the profit generated from the sale so that it’s attractive for them to participate. Moreover, many offer tiered percentage programs that increase the percentage paid based on the amount of sales/traffic the affiliate generates. You will need to determine the right percentage and incentives to offer so that your ledger stays in the black.
Profits Depend on Dedication & Determination
Affiliate programs and partnerships need continual adjustment as the market evolves and economy shifts. This means having to pay close attention to what’s happening with your partners and affiliate’s businesses. You may find that you need to adjust your programs as their needs and situation changes. All of this requires continual communication…and that takes time. For this reason, it’s best to schedule “affiliate time” into your weekly plans so that you can exert the effort needed to stay on top of your affiliates and partners needs.
Communication is Critical
Your affiliates and partners need oodles of information in order to help with your moving company profitability. They need to know the ins and outs of your business so that they can pass this information on to their clients. This creates a strong referral and a steady stream of customers most likely to purchase your services. The more you communicate with your partners and affiliates, the more profits will be generated for everyone in the network.
Tips for Top Results
In order for an affiliate and partnership program to be successful, you need to include the following key elements into the mix:
- Solid services and a reliable product from your business.
- Make it easy for partners and affiliates to refer business to you and collect their percentage.
- Make it attractive with commissions that are high enough that they reward partners and affiliates for their efforts.
Partners and affiliates who are rewarded for their efforts will reward you with continued participation and increasing numbers of referrals. It takes time, patience, and energy, but the rewards are most certainly worth the effort you will invest in building, developing, and nurturing your network.