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A Conversation with Nancy Mai Harnett
Affiliate marketing is undergoing a dynamic transformation. As the creator economy flourishes, payout structures become more intricate, and the demand for authentic partnerships grows, brands are rethinking their approach to affiliate programs to achieve real impact.
Today, I’m excited to chat with Nancy Mai Harnett, Head of Affiliate Marketing at HubSpot, who has been at the forefront of this transformation. Nancy brings a wealth of experience from her work at both HubSpot and Teamwork, where she’s excelled in launching, scaling, and optimizing affiliate programs. Her unique focus on data-driven insights, transparency in partnerships, and innovative tiered payout models have set new standards for engaging and rewarding top affiliates in a competitive landscape.
Nancy, thank you so much for joining me today! I’m really looking forward to diving into this conversation.
Q1: To kick things off, I’d love to hear your thoughts on the biggest mistakes you see brands making when building their affiliate programs. What are the common pitfalls that hold companies back from creating a truly high-performing program?
Thanks for having me, Rubi!
A1: This is an excellent question, as there are several common pitfalls that brands often encounter when building their affiliate programs. One of the most significant mistakes is the perception that affiliate marketing is a “silver bullet” solution for driving demand. Companies frequently assign this responsibility to a junior marketing individual, expecting them to create and manage the program without adequate support or expertise in the affiliate marketing domain. While it is possible for someone to succeed under such circumstances, the lack of a robust support system can make this an overwhelming challenge. Success in affiliate marketing requires a well-structured program backed by the right people, processes, and tools.
As programs begin to scale, brands may encounter additional challenges such as increased costs, evolving negotiation strategies, and a scarcity of suitable partners. It’s crucial for companies to understand the financial implications of a high-performing program, which may include commissions, participation in conferences, compliance efforts, and increased headcount. Affiliate marketing is fundamentally a relationship-driven business and should be treated as an extension of the sales team, deserving of corresponding resources and attention – nothing less.
Q2: You mentioned the importance of treating affiliate marketing as an extension of the sales team and providing adequate resources and support. What specific resources or investments do you think are essential for building a successful affiliate program? How can brands allocate their budget effectively to maximize their ROI in affiliate marketing?
A2: I think this is one of the biggest misconceptions with affiliate marketing, that it’s your ‘set and forget’ channel. Building a successful affiliate program requires strategic investments and the allocation of resources that align with the program’s goals and growth ambitions.
Your first hire will be very important to your program. Investing in personnel who possess both marketing acumen and a deep understanding of relationship management will be the foundation of your program’s success. These professionals will act as the bridge between the brand and its affiliate partners, ensuring seamless communication and alignment of objectives.
After that, it’s about equipping your people with the tools they need. An efficient affiliate tracking software is indispensable for managing affiliate performance, tracking conversions, and analyzing data to optimize strategies. These tools provide insights that help brands make data-driven decisions, and enhance program effectiveness. Over time, investing in other tools that help with recruitment, fraud detection, and performance would help with taking your program from that kick-off to scaling stage.
When it comes to the partner side of the program, this is where that extension comes in. Offering competitive commissions and incentives is vital to attract and retain high-quality affiliates. Structuring with tiered commission models or performance bonuses that reward their partners for exceptional results.
Similarly, when you send your sales team out into the world, they are well equipped to handle that challenge. Investing in education and training for both internal teams and affiliates can significantly boost program performance. Creating a resource center with all the assets they need, along with ongoing support demonstrate a commitment to success and empower affiliates with the knowledge and skills they need to succeed.
Q3: You’ve highlighted the importance of competitive commissions and incentives in attracting and retaining top affiliates. How significant a role do you think the payout process itself plays in affiliate satisfaction and program success? Have you seen instances where inefficient or unreliable payouts have created problems, even when commissions and incentives were attractive? And what innovations or improvements do you think are needed in the payout space to better serve the needs of both brands and affiliates?
I’m so glad you asked this question, Rubi!
A3: Commissions are the number one topic for any partner we work with, and this is the same for any program. There is always a push / pull between a brand and partner, each trying to get the biggest bang for their buck, but it’s ultimately what leads to frustrations in a relationship.
At HubSpot, we have a very different approach to commissions with our partners. Our process has been developed over years of learnings, feedback, and finding that sweet spot between performance and profit – on both sides of the relationship. It all starts with being transparent and honest with the partner, and if they are willing to do the same back, it will be, by far, your strongest relationship that leads to the greatest success.
But having the best relationship in place is only the beginning, if your systems are inefficient or unreliable, it can lead to dissatisfaction among affiliates, potentially damaging the brand’s reputation and leading to attrition. The payout process is something that we’ve seen some great frustrations with across the industry, and something we’ve put a lot of time and effort into perfecting.
I’ve observed instances where affiliates have faced frustration due to delayed payments, unclear payment terms, or complexities in the billing process. These issues can undermine trust and deter high-performing affiliates from continuing their collaboration, regardless of the offered incentives. I mean, can you blame them?
One of the biggest wins we’ve had is adopting an automated payout system that ensures timely and accurate payments, reducing the room for human error and enhancing transparency. Implementing this system has meant that partners have full visibility into their earnings – both earned and expected – along with when they can expect those payouts. We’ve also taken partner payment preferences into account by increasing the amount of methods we offer via our systems, eg. PayPal, bank transfer, etc.
I’m a firm believer that by prioritizing an efficient, reliable, and transparent payout system, brands can significantly enhance affiliate loyalty and optimize the performance of their affiliate programs.
Q4: As we wrap up, Nancy, if you could redesign the affiliate marketing industry from scratch, what radical changes would you make to create a truly transformative and future-proof ecosystem for brands and affiliates alike?
This is a great question, Rubi! Thought provoking!
I think one thing I’m an advocate for is ensuring that there is a core understanding by all businesses that affiliate marketing is more than a ‘set and forget’ program. It requires the resourcing and the attention of any other partner program to succeed. Successful affiliate marketing hinges on robust relationship building and transparency. This means actively managing relationships, providing support, and being transparent with data and expectations.
Following that, I think a no-tolerance policy for fraud should be standardized across the industry. The integrity of affiliate programs must be protected, allowing fraud to persist in one program can have detrimental effects on others. This commitment should be industry-driven, prioritizing the industry over individual metrics. Every stakeholder should work collaboratively to establish stringent measures for fraud detection and prevention.
One that might be controversial is returning to the classic pay-per-performance model. The industry has seen a move toward flat payments and short-term financial incentives that detract from the essence of affiliate marketing as a performance-driven channel. Incentivizing affiliates based on their results ensures that all parties are aligned with performance goals, encouraging higher levels of motivation and engagement.
Finally, implementing standardized payout methods across the industry would improve reliability and trust in affiliate programs. There is room for greater consistency and reliability. Partners need the assurance of timely and accurate payments to maintain trust and foster long-term collaboration. Standardizing these processes would enhance the stability and predictability of the affiliate network, benefitting brands and affiliates alike.
Nancy, thank you so much for taking the time to share your valuable insights and experiences today. Your unique approach to transparency, relationship-building, and your vision for the future of affiliate marketing have made this conversation incredibly enlightening.
It’s evident that your dedication to elevating the affiliate marketing industry goes beyond strategy and metrics—you are shaping a space where authenticity and collaboration thrive. I’m confident our audience will find your advice and perspectives as insightful as I have.
