In an industry as dynamic and rapidly evolving as affiliate marketing, few journeys encapsulate the blend of creativity, adaptability, and strategic insight quite like that of Thomas McMahon, Director of Partnership Development at ClickBank.
From his beginnings as a creative writing major to his pivotal role in shaping the future of ClickBank, Thomas’s path is a testament to the unconventional routes one can take in digital marketing.
I tried to get as much information as possible from Thomas in this second interview for the “Champions of Performance Marketing” series.
And trust me, he is a like a Christmas present, full of surprises!🙂
Here is the first part of our discussion:
Q: Thomas, can you share your journey from a creative writing major to becoming a Director of Partnership Development at ClickBank? What pivotal moments led to this transition?
Thomas: Happy to share! Honestly, my college decision was initially driven more by my love for tennis than my career ambitions.
I landed at The College of Idaho on a tennis scholarship without a clear career path, initially opting for a business major. However, I soon discovered it wasn’t for me. My passion for writing kindled during high school journalism, and a sophomore year creative nonfiction course led me to switch to a creative writing major.
This decision opened the door to my first job at Page One Power, an SEO agency, where I was tasked with creating personas and writing guest blogs for client backlinks. My work there allowed me to use my real name and paved my path to management and, eventually, to ClickBank.
Joining ClickBank as an account manager, I immersed myself in learning both sides of the affiliate marketing game – a crucial turning point in my career.
My dedication led me to take on new challenges, and eventually, I was promoted to Business Development Manager. This role required a shift from managing existing businesses to actively seeking new opportunities, a transition that I navigated through what I call ‘consultative selling’ – an approach focused on adding value to every interaction.
The transition to Business Development Manager at ClickBank marked a pivotal shift in my career, requiring a new approach to sales and client relations. It was a challenge I embraced, leading to significant growth for myself and the company
A significant milestone in my career at ClickBank was the partnership with ShipOffers.
This collaboration, which I played a key role in developing, was transformative, diversifying ClickBank’s product range from primarily informational products to physical goods like supplements.
The success of this partnership, generating close to a billion dollars in sales, marked a new era for ClickBank and spurred my desire to explore larger opportunities.
Now, as part of the new Partnership team, we’re looking to replicate this success and continue innovating in the affiliate marketing space.
Q: What was your first contact with affiliate marketing? Any funny stories from that period?
Thomas: My first brush with affiliate marketing was in high school, and quite by accident.
I was buying things like spearfishing equipment or tennis shoes online, not realizing that these were actually affiliate marketing transactions. It’s funny to think back on that now, considering where I am in my career.
The real, professional introduction to affiliate marketing came during my time at Page One Power.
There, I encountered blogs that were monetizing through various affiliate networks and tools like Skimlinks, Amazon Associates, and other banner ads.
I remember in my job interview for ClickBank, I somewhat overstated my experience in affiliate marketing. I said, “Oh yeah totally – I work around that space all the time,” even though my actual experience was quite indirect. 🙂
It was only after I started at ClickBank that I had this moment of realization: “Oh no… I really didn’t understand affiliate marketing at all before this.”
Q: In your years at ClickBank, how has your role evolved, and what have been the key factors in your successful career growth within the company?
Thomas: Over my eight years at ClickBank, my role has undergone quite a transformation. I started as an account manager, handling our core clients, including Platinum affiliates and business opportunity sellers. About a year and a half into this role, I transitioned into business development, a shift from managing existing clients to onboarding new ones. This was a significant change for me, moving from what I’d call ‘farming’ to ‘hunting’.
I faced some mental hurdles initially but eventually excelled once I found my stride. After achieving a level of success and competence there, I felt the need for a new challenge and moved into the partnerships role.
I’ve always been driven by a desire for constant learning and growth. I believe that’s been pivotal in my success; I get bored with stagnation and always look for the next opportunity for advancement.
Being at ClickBank has allowed me to be entrepreneurial within the company.
I’ve been involved in various projects, like starting a podcast and speaking at major industry events. I’ve filled voids within the company, stepping into roles and becoming a recognizable face at conferences. This exposure has been gratifying personally and professionally, as it’s allowed me to add value to others’ lives, which I find incredibly rewarding.
Q: What major changes have you observed in direct response marketing over the last five years, particularly regarding compliance and user experience?
Thomas: The landscape of direct response marketing has significantly changed in the last five years, especially regarding compliance and user experience.
A major driving force behind these changes has been the advertising policies of platforms like Facebook, Google, and YouTube. They are shaping compliance standards because that’s where the ads run, and they need to maintain a good user experience.
When I started at ClickBank eight years ago, there was a major shift in compliance standards.
We drew a line in the sand, demanding higher compliance with our VSLs (Video Sales Letters) and other content. This shift initially drove some clients away, but it was necessary for long-term sustainability and alignment with regulatory standards like those of the FTC.
Now, I’ve noticed that most marketing copy is compliant, primarily because it’s written to meet the compliance standards of these major platforms.
Another trend is the development of different landing pages for different traffic sources, each with varying levels of compliance.
For instance, you might have a Facebook-compliant page, a Taboola-compliant page, and a more aggressive page for email marketing. This approach reflects an understanding of the diverse standards across platforms.
Furthermore, there’s been a significant blurring of lines between traditional direct response marketing and branded e-commerce.
More marketers are finding a middle ground, balancing customer acquisition through performance channels and e-commerce/branding strategies. This hybrid model offers stability and adaptability, especially in response to changing compliance requirements and rising customer acquisition costs.
Q: For those interested in becoming affiliates, what advice would you give? Where should they start, and how should they engage with affiliate managers?
Thomas: Affiliate marketing is a field where anyone has the potential to succeed, but it’s important to understand that it’s not easy, and success isn’t guaranteed for everyone.
A common misconception in the industry is the belief in easy money, like making thousands a day through affiliate marketing, drop shipping, or lead generation. The reality is much more complex.
Success in affiliate marketing boils down to being a good marketer. It’s about creating compelling ads and getting them in front of the right audience at the right time with the right offer. The technicalities of how to do this are what make the difference.
Throughout my career, I’ve seen both successful and unsuccessful affiliates. The key difference is persistence. Many give up too early, while others don’t understand why their successful tactics work, which makes it hard to replicate success when those tactics stop working.
For newcomers, I suggest setting long-term goals and not focusing solely on immediate profit. For example, aim to make $10 million in commissions over four years.
Break down what it takes to reach that goal regarding customer conversions and daily targets. This approach shifts the focus from short-term earnings to developing a sustainable, scalable method for sales.
When engaging with affiliate managers and others in the industry, remember that while it’s a supportive community, it’s also a competitive business environment.
New affiliates shouldn’t be surprised if they don’t get immediate attention from busy affiliate managers, especially if they haven’t yet demonstrated their ability to generate sales.
Networking and being active in communities like Facebook groups, Discord, and forums, as well as attending tradeshows, can accelerate the learning process and build useful connections.
Q: Could you elaborate on the key factors a business should consider when setting affiliate commissions, ensuring they’re both competitive and sustainable?
Thomas: Setting the right affiliate commissions is a balancing act that many businesses struggle with.
The common mistake is to focus too much on not overpaying, but the reality is that an affiliate program should be viewed primarily as a customer acquisition channel, not a direct profit center. The real profitability should come from the lifetime value (LTV) of the customers acquired through affiliates.
View your affiliate program as a customer acquisition channel, focusing on the lifetime value of the customers, not just the immediate profitability.
When determining commissions, it’s crucial to understand the competitive landscape.
Your competitors in the affiliate space aren’t just those in your direct market; they include any offers that could potentially attract the attention and resources of the affiliates you’re targeting. This broader perspective is essential.
After assessing the competition, evaluate your offer’s unique selling points.
Can you compete with higher conversions, larger commissions, or faster payments? Ideally, your offer should excel in multiple areas.
The aim is not just to match the competition but to create an offer so compelling that affiliates would be remiss not to promote it.
Q: Can you share a significant success story or a ‘big win’ you’ve witnessed in the affiliate marketing industry, particularly one that benefited a brand or product?
Thomas: Absolutely! Emily Lark’s story is a standout example of success in affiliate marketing. Emily, who started as a yoga instructor in Michigan, represents an incredible journey of self-learning and determination in the affiliate marketing space.
She discovered the potential of making money online and took the initiative to educate herself about affiliate marketing and ClickBank. Her approach to learning was hands-on; she analyzed other people’s VSLs (Video Sales Letters), understood their structure, and then wrote, recorded, and published her own.
Her success didn’t come easy. Emily hustled hard, networking relentlessly to get traffic for her offer. Her breakthrough moment came when she partnered with a seasoned media buyer and effectively managed her email list, leading her to become a diamond seller on ClickBank for many years.
Emily Lark’s journey from a yoga instructor to a successful affiliate marketer exemplifies the power of self-learning, determination, and the importance of networking in the affiliate marketing industry.
What’s even more inspiring is how Emily extended her success to help others. She mentored Alex Miller, who was new to the industry, teaching her copywriting and product creation. Under Emily’s guidance, Alex launched her own offer and rapidly achieved diamond status, signifying at least $5 million in sales. This accomplishment is especially noteworthy for someone new to the space, marking a record achievement.
To sum up…
We conclude the first part of our in-depth exploration into Thomas McMahon’s insights and experiences in the affiliate marketing landscape.
From his transition from a creative writing major to a pivotal figure at ClickBank, to his first brush with affiliate marketing, and the evolution of his role within the company, we’ve covered a diverse spectrum of his journey. We’ve also delved into the major changes in direct response marketing, and the valuable advice for those aspiring to become affiliates, along with strategies for setting sustainable and competitive affiliate commissions.
Thomas is full of knowledge, and we tried to get the most out of it.
So, stay tuned for the second part of this series, where we will continue to unfold more of Thomas McMahon’s expertise and advice in affiliate marketing.
We’ll explore further into the future trends of direct response and affiliate marketing, effective strategies for optimizing affiliate offers, the most successful commission strategies, and how his experience at ClickBank has shaped his personal and professional growth.
I met Thomas in Barcelona last year, and I loved his speech and how he knew the numbers running on Clickbank.
Where to find Thomas McMahon from ClickBank?
In the meantime, you can find Thomas:
- On Linkedin: https://www.linkedin.com/in/thomasmcmahon1855/
- Instagram and TikTok: @happyscaling
- Can listen to him at the Affiliated Podcast with Kyle Kostechka and their amazing lineup of guests.