Case Study: How (Not) to Run an Affiliate Program – The Spectacular Disaster of “Brand X”

Background:

Brand X (a name that may or may not resemble real-life disasters) approached our agency with a grand vision: they wanted to scale their business solely through affiliate marketing. No paid search, no paid social, no SEO, no email marketing, no PR—just affiliates. A bold move? Absolutely. A disastrous one? Oh, just wait.

Initial Setup: The Red Flags Waving Wildly

From the moment we onboarded Brand X, the warning signs were clearer than a neon billboard flashing “RUN.” Here’s how they ensured their affiliate program was an absolute train wreck:

1. No TM+ Bidding Allowed
   • Affiliates couldn’t bid on Brand X’s name or any branded terms, effectively cutting off any chance of capitalizing on high-intent searches. The result? Competitors scooped up all the juicy traffic while our affiliates were left bidding on generic, high-cost, low-conversion keywords.

1. No Coupons, No Deals, No Discounts
   • Affiliates love offering their audiences exclusive coupons or promo codes. But Brand X? They prided themselves on “premium pricing,” meaning no coupons. Affiliates had to sell full-priced products in a market where discounts were the norm. Spoiler: they didn’t.

1. Promotions? What Promotions?
   • We asked Brand X for a promotional calendar so affiliates could plan content and campaigns. Their response? “We don’t really plan those ahead of time.” Fantastic.
   • Black Friday? Cyber Monday? Random Tuesday in July? Who knew? Certainly not us, and definitely not the affiliates.

1. Low Commission Payouts – The “Generosity” of a Rock
   • While industry standards for commissions ranged from 10-20%, Brand X decided that affiliates should be thrilled with… 2%. That’s right, a whopping 2% for their hard work.
   • Given the average order value, most affiliates would need to generate thousands of sales just to cover their time and ad spend. That’s what we in the business call “not worth it.”

1. Radio Silence from Brand X
   • Communication with Brand X was like talking to a ghost.
   • Questions? Ignored.
   • Requests for creatives? Met with “we’ll get back to you” (they never did).
   • Affiliate feedback? “We’ll take it under advisement” (they didn’t).

1. No Creatives, No Content, No Fun
   • Affiliates were expected to promote Brand X using… nothing.
   • No banners, no social content, no email templates. Just a logo pulled from Google Images and a hope that conversions might happen through sheer force of will.

1. Restricted Promo Methods – AKA “We Don’t Want Sales”
   • Brand X banned coupon sites, cashback affiliates, incentive programs, email marketing, and influencer discount codes.
   • So who exactly could promote this brand? Apparently, just the rare unicorn influencer willing to promote a product at full price with zero incentives and no marketing support. Spoiler: that unicorn doesn’t exist.

1. Affiliate-Only Marketing (Because That’s Smart?)
   • While competitors had multi-channel marketing strategies driving brand awareness and conversions, Brand X relied 100% on affiliates.
   • No brand recognition, no demand generation, no support—just expecting affiliates to magically generate sales out of thin air. Even Houdini would struggle with that one.

The Outcome: A Masterclass in Failure

• Affiliate Recruitment? Non-existent. No one wanted to join.
• Affiliate Retention? Laughable. Those who joined left faster than a cat avoiding bath time.
• Sales? What sales? Affiliates saw zero traction and quickly pulled their efforts.
• Brand X’s Response? “Affiliate marketing doesn’t work.”

The Takeaway: Learn from Brand X’s Glorious Failure

If you’re looking to create an affiliate program that’s doomed from the start, just follow Brand X’s playbook. But if you actually want affiliates to drive sales, here’s what you should do:

✅ Allow affiliates to bid on TM+ (within reasonable restrictions) ✅ Offer compelling commission rates ✅ Provide coupons, deals, and promotions ahead of time ✅ Maintain open, frequent communication ✅ Supply high-quality creatives and engaging content ✅ Enable a variety of promotional methods ✅ Support affiliate efforts with other marketing channels

Final Thoughts:

Brand X was the affiliate program equivalent of trying to drive a car with no wheels, no gas, and no engine—then blaming the road for not getting anywhere. If your affiliate program looks anything like this, it’s time to course-correct before your brand becomes the next case study in “How Not to Do Affiliate Marketing.”

Want to avoid a disaster like this? Give us a call—we promise we won’t let you “Brand X” yourself.