Affiliate networks and arbitrage teams always seek new markets to increase profits and ROI.

However, with no background in a desired niche, generating fine traffic and finding good payouts from advertisers can be pretty tricky.

In order to overcome this challenge and succeed in a new industry, affiliate networks can try subsidizing new partners.

In this article, we'll explain how a subsidy program works and how to apply it with maximum profit at no risk.

What does it mean to subsidize partners?​

In the domain of affiliate marketing, a subsidy can manifest in various ways but typically refers to one of these practices:
  1. Providing some partners with higher commission rates by either decreasing the company's profit or even briefly operating at a loss.
  2. Purchasing traffic from particular partners on a PPL basis. This approach implies paying affiliates upfront to recuperate the expenses through subsequent Pay Per Sale and RevShare conversions.
  3. Making an upfront payment to a partner relying on future revenue through follow-up conversions derived from the partner's traffic.

Benefits of subsidizing affiliates​

Despite the perceived risks associated with subsidizing affiliates, such as paying them upfront or sharing profit margins, this strategy can yield numerous benefits for a company. Below are some of the advantages:
  1. More attention to a brand: By subsidizing affiliates, you can encourage them to promote your products or services more actively, which can increase your brand's exposure and attract more customers.
  2. Boost in sales: By incentivizing your affiliates, they may become more motivated to actively promote a company’s products to their audience, resulting in higher sales figures.
  3. Expansion of the customer base: Subsidizing affiliates can help you reach new customers and expand your customer base. Your affiliates may have access to a different audience than you do, and by subsidizing them, you can tap into that segment.
  4. Budget-friendly marketing: Subsidizing affiliates can be a cost-effective way to promote your products or services. You don't have to spend as much on advertising or other forms of marketing since your affiliates are doing the promotion for you.
  5. Enhanced customer commitment: Subsidizing affiliates can help build stronger relationships with your customers. If your affiliates offer discounts or other incentives to customers, it can create a sense of loyalty and encourage them to continue doing business with you.
  6. Improved reputation: If you work with reputable affiliates and offer them subsidies, it can enhance your company's reputation and credibility in the market.
  7. Flexibility: Subsidizing affiliates can give you more flexibility than traditional marketing methods. You can adjust the subsidies based on the affiliates' performance or the market conditions, allowing you to optimize your return on investment.

What to take into account when implementing subsidization?​

In general, the process of implementing a subsidization program is not complex and typically involves the following moves:
  1. Define clear goals: Before implementing subsidization, it's crucial to define clear goals and KPIs for the campaign. These goals should be specific, measurable, achievable, relevant, and time-bound.
  2. Identify the right partners: It's essential to carefully select the partners who will be subsidized. Look for partners with a proven track record of driving conversions and revenue and who are aligned with the company's values and goals.
  3. Determine the appropriate subsidy amount: The amount should be enough to incentivize the partners but not so much that it eats into the company's profits. It's crucial to strike a balance between the two.
  4. Monitor performance: It's vital to continuously monitor the performance of the subsidized campaigns. This will help in identifying any issues or areas for improvement.
  5. Adjust the subsidy program as needed: Based on the performance of the subsidized campaigns, adjust the subsidy program as needed. This could involve increasing or decreasing the subsidy amount, changing the partners who are being subsidized, or adjusting the goals and KPIs of the program.

How to maximize the effectiveness of subsidies?​

In addition to subsidization, at UCLIQ, you can make use of a brokerage suite that has a spectrum of tools for repackaging existing offers and creating new ones.

The suite includes features such as custom payout rates and the ability to convert offers from one mode to another.

In addition, UCLIQ enables users to unite conversions into a single one with a higher rate and merge various offers into a smartlink with customized distribution and payout rules.

The suite also provides tools for monitoring and analyzing budget spending and performance, allowing for the creation of specialized campaigns based on specific GEOs, partner groups, risk tolerance, and performance goals.


Therefore, sponsoring partners in affiliate marketing can provide significant benefits for networks looking to enter new niches or expand their market impact.

By offering incentives or upfront payments, businesses can increase sales, improve brand recognition, and expand their customer base.

However, to maximize the effectiveness of a subsidy program, it's essential to select partners carefully and use appropriate tools like UCLIQ to automate the process.