Go Beyond the Discount Code: A Strategic Framework for Creative Partner Incentives
It’s the path of least resistance in the affiliate industry.
You recruit a new partner, generate a generic 10% discount code, and simply hope for the best.
But Chris Coppola, founder of Coppola Consulting, argues that this default setting is actually a trap. With a track record of optimizing Lifetime Value (LTV) and driving 50% ROAS increases for major brands like Acorns and Canon USA, Coppola brings a sophisticated, data-driven perspective that moves far beyond simple transaction management.
"If your 'weekly win' is just sending a new coupon code out, you are on autopilot," Coppola says. "You are training customers—and partners—to wait for a sale. Eventually, your brand becomes interchangeable."
When a program relies solely on discounts, it doesn't just erode margins; it erodes loyalty. Partners promote you because of the deal, not the product. Customers buy because of the price, not the value.
In this Masterclass, Coppola breaks down how to escape the "Discount Rut." He outlines a framework for structuring incentives that reward behavior, strategies for waking up dormant partners, and the mindset shift required to evolve from an Affiliate Manager into a true Marketer.
How to Diagnose a Stagnant Affiliate Program
How do you know if your program is stuck in this trap? According to Coppola, stagnation is something you feel before you see the final revenue drop.
The 3 Warning Signs of an Underperforming Program:
- The Top 5 Problem: "You will see 80-90% of your sales coming from the same five affiliates," Coppola notes. "When one of those goes away and you lose 25% of your revenue overnight, that is not an easy conversation to have with your VP."
- Crickets Upon Activation: You recruit new partners, but they don't produce. You send welcome emails, and you get silence.
- Flatline Growth: You are maintaining sales, not growing them. You are effectively managing a decline.
To break this cycle, you must move beyond the transactional relationship and start treating partners like insiders.
The Framework: Reward Effort, Not Just Outcomes
The old way of tiering commissions was simple: Sell 50 units, get a higher rate. Sell 100 units, get an even higher rate.
Coppola argues this is outdated because it ignores the work required to get that first sale. Instead, he suggests a Tiered-Action Framework.
The New Tier Structure:
- Tier 1 (The Action): Incentivize the first post. "Reward the effort of getting live," Coppola advises.
- Tier 2 (The Threshold): Incentivize the performance outcome (e.g., hitting a revenue target).
- Tier 3 (The Expansion): Incentivize channel diversification. Offer a bonus if they expand from a blog post to an email blast or a video review.
By providing a step-by-step roadmap, you aren't just saying "make us money." You’re showing them how to succeed.
“The Test, Don't Promote” Activation Hack
One of the biggest friction points in affiliate marketing is the cold start. You sign a partner, and then you ask them: "When can you start promoting us?"
Coppola calls this a mistake. "You’re asking them to sell for you immediately. Instead, lower the bar. Ask them to test."
The Script Flip:
- Don't Say: "Here is a code, please post it."
- Do Say: "I saw your article on [Topic]. We would fit perfectly in that section. Can we test an inclusion there?"
By framing this as a test or a content fit, you remove the pressure. Once they get that first easy win and see a conversion, trust is built. They know your offer converts, and the partnership is officially active.
Structuring the Hybrid Deal (Flat Fee + CPA)
Premium publishers and content sites often refuse to work on a pure CPA basis because doing so puts 100% of the risk on them. The solution is the Hybrid Deal, but Coppola warns brands not to treat flat fees like lottery tickets.
The Golden Rule of Hybrid Deals:
- The Flat Fee buys Visibility. (The Deliverable).
- The CPA buys Performance. (The Upside).
"Do not invest a flat fee in the 'hope' you will get a return," Coppola warns. "The flat fee should be tied to a specific asset—a placement, a video, an email. The CPA is where you share the upside."
This structure aligns incentives. The publisher gets paid for their work (content creation), and the brand pays for the results (conversions). This approach turns a transactional vendor relationship into a shared-risk partnership.
Measuring Incrementality: Did You Just Tip Them?
When you start getting creative with incentives—bonus payouts, tiered commissions, placement fees—tracking can get messy. How do you know if that extra $500 actually drove new revenue, or if you just paid more for customers who were going to buy anyway?
Coppola’s litmus test is Behavior Change.
The Incrementality Checklist:
To validate a creative campaign, look for lift in secondary metrics, not just total revenue:
- Did the New Customer Rate increase?
- Did the Average Order Value (AOV) go up?
- Did the partner promote a new SKU or category they hadn't touched before?
If the behavior didn't change, the incentive didn't work.
The Marketer Mindset for 2026
As we look toward 2026, the role of the Affiliate Manager is evolving. It is no longer enough to be a relationship manager who hands out codes. You must become a Data Storyteller.
"If a spike happens, you need to know why," Coppola says. "Did a top affiliate promote a competitor? Did a specific article go viral? You have to think like a marketer."
The Challenge:
If you’re stuck in a "Discount Rut" today, Coppola challenges you to run one No-Discount Experiment next week.
- Offer exclusivity instead of a coupon.
- Offer early access to a product launch.
- Offer a content bonus for a review.
If the experiment works, you’ve proven you don't need to erode your margins to grow. If it fails, you’ve learned a cheap lesson. But,either way, you’ve started the necessary work of building a brand that survives beyond the next sale.
