Scaling Affiliate Growth: How Expanding Partnerships Transformed A.L.C.’s Program

Background

A.L.C., a high-end fashion brand, sought to revamp its affiliate marketing program to drive sustainable growth and increase revenue diversification. The team identified opportunities to enhance the affiliate strategy to drive growth. In November, the team implemented a series of strategic changes to scale the program effectively.

The Challenge

Before November, A.L.C.’s affiliate program relied heavily on a few top partners, with limited diversification. There was an opportunity to engage with emerging affiliates, optimize commission structures, and expand into new performance-driven partnerships to maximize growth.

The primary goals were:

• Leverage data-driven insights to refine affiliate strategy.
• Reduce reliance on a small number of partners for the majority of revenue.
• Identify and onboard new high-value affiliates.
• Optimize commission structures to drive better performance.

The Strategy

1. Expanding & Diversifying Affiliate Partnerships

One of the first steps was to broaden A.L.C.’s affiliate network by onboarding new partners. Previously, a single top partner—Rakuten Rewards—drove over 33% of affiliate revenue in Q4 2023. By Q4 2024, this reliance was reduced to 22%, thanks to the addition of 10 new partners ranking among the top 25 revenue drivers.

New additions included:

• Capital One Shopping (cashback partner)
• ShopMy (influencer network)
• Other emerging affiliate partners identified through competitive analysis.

This approach allowed A.L.C. to reach new audiences and spread revenue across multiple partners, ensuring a more resilient and scalable program.

2. Leveraging Competitive Insights for Growth

A key factor in scaling the program was conducting a comprehensive gap analysis across affiliate programs. By benchmarking A.L.C.’s program against other brands across the JD portfolio, the team identified high-performing affiliates missing from A.L.C.’s roster and onboarded them to drive incremental revenue.

3. Optimizing Commission Structures

Adjusting commission rates strategically played a significant role in incentivizing partners. Key changes included:

• Increasing LTK (top influencer network) commissions from 10% to 16%, elevating A.L.C. to a “premier advertiser” status. This unlocked greater exposure to influencers and increased engagement.
• Testing cashback event participation with Rakuten Rewards, leading to a 60% revenue lift in December from the first campaign. The success led to further investment in seasonal promotions like Presidents Day.

These optimizations ensured A.L.C. remained competitive within the affiliate space while maintaining profitability.

4. Investing in Influencer Partnerships

A.L.C.’s influencer program, historically managed separately from affiliates, became a key growth area. Unlike paid social influencer campaigns, where brands select influencers, the affiliate model allows influencers to choose brands they want to align with.

By strengthening relationships with influencer networks like ShopMy and LTK, A.L.C. gained increased exposure among content creators who genuinely resonate with the brand. The team worked closely with A.L.C.’s internal influencer team to align affiliate partnerships with broader brand-building efforts.

5. Strategic Use of Creative Assets

While creative isn’t as central to affiliate marketing as it is in paid media, it played a role in flat-fee placements such as:

• Rakuten Rewards & Capital One Shopping homepage placements
• Dedicated email campaigns featuring A.L.C. offers

Investing in these placements further amplified visibility and conversions within key affiliate networks.

Results & Key Takeaways

• 10 new top-performing affiliates added, reducing dependency on legacy partners.
• Diversified revenue streams, with new affiliates driving a significant share of Q4 sales.
• 60% lift in revenue from Rakuten Rewards after testing cashback event participation.
• Stronger influencer impact, leveraging networks like ShopMy and LTK to gain new customers.

Implications for Other Brands

This case demonstrates how proactive management, partner diversification, and commission optimization can unlock significant affiliate program growth. Brands looking to scale their affiliate marketing efforts should consider:

• Regular gap analysis to identify untapped partners.
• A balanced commission strategy that incentivizes key affiliates while maintaining profitability.
• Expanding into influencer-driven affiliate partnerships to drive brand-aligned, always-on exposure.

By taking a data-driven and strategic approach, brands can transform their affiliate programs from passive revenue channels into powerful growth drivers.