Hear me out. I did NOT say Affiliate is dying. I said that “Affiliate Agencies” are dying in their current form. The model has been around 25+ years, nearly quarter of a century. We have to evolve. Here are the principles of the statement….
1. Affiliate is Not a Channel—It’s a Payment Agreement
• Email, social, influencer, paid search, and content are channels.
• Affiliates leverage those channels but are just being paid differently (CPS, CPA, CPL, etc.).
• If an advertiser is already paying for traffic via paid search, social, and influencers, why should an affiliate agency manage them separately?
2. The Rise of Growth-Focused Firms
• Brands are moving toward agencies that view marketing holistically.
• Growth firms and performance agencies are integrating paid media, influencer, affiliate, and direct partnerships into a unified strategy.
• Affiliate-specific agencies (OPMs) that only manage networks and publisher relationships are being commoditized.
3. “Affiliate Incrementality” is a Flawed Debate
• The focus on whether affiliate is incremental is misguided.
• The real question should be: “What is the affiliate’s role in the overall funnel?”
• Instead of treating affiliates as an isolated budget, the right approach is to assess contribution margin dynamically—adjusting payouts based on their impact.
4. Brands Want Full-Funnel Accountability
• If an agency only manages affiliate but has no control over paid search, influencer, and social, they are blind to the full customer journey.
• The days of just optimizing an affiliate program in a vacuum are over—brands want partners who can manage the full marketing stack.
5. Technology is Making OPMs Redundant
• AI-driven attribution, affiliate networks’ automation, and better internal brand teams are making the traditional OPM role obsolete.
• Networks like Impact, CJ, Partnerize, and Rakuten now offer self-service solutions that reduce the need for a standalone affiliate agency.
What’s Next?
Enter the New “Growth Firm” Model:
The winning strategy is to integrate affiliate into a broader, full-funnel growth model that includes:
• Paid Media (Search, Social, Display, CTV)
• Influencer & Creator Economy
• SEO & Content
• Email & CRM
• Direct Partnerships
• Affiliates (performance-based payouts across all channels)
Conclusion:
OPMs that refuse to evolve will become irrelevant. The new model is growth-first, channel-agnostic, and fully integrated. Those who understand how to merge performance-based payouts into an overarching marketing strategy will win.
What do you think? Where do you see the biggest resistance to this shift? Share if you agree.