Setting your partnerships budget
Because you're only paying for actions that generate revenue, the concept of setting a budget doesn’t necessarily apply to partnerships. However, the reality is that finance teams need budgets. Ideally, you and finance would work together to approach the task. Aim for a budget that’s as flexible as possible so you can increase your investment in partners that deliver value. You may not be accustomed to the flexibility that a partnership budget allows — but you might quickly get used to it when your returns increase. Budget planning for partnerships is flexible and individualized
Consider the following as you plan your partnership budget:
The affiliate channel operates on a fixed cost-per-action (CPA) model, so your budget “asks” will naturally grow as demand and affiliate promotion grows for your product.
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Assuming your growth is incremental, there may be little formal budget planning ahead of time.
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