Podcast Summary: Always Be Testing #78 – Designing Sustainable Affiliate Partnerships with Nancy Harnett

Podcast Information:

• Title: Always Be Testing
• Host: Ty DeGrange
• Guest: Nancy Harnett, Head of Affiliate Marketing at HubSpot
• Episode Title: Designing Sustainable Affiliate Partnerships
• Release Date: March 31, 2025

1. Introduction to Nancy Harnett and HubSpot's Affiliate Program

In this episode, Ty DeGrange welcomes Nancy Harnett, the Head of Affiliate Marketing at HubSpot, a leading AI customer platform renowned in the B2B SaaS and software industries. Nancy provides an overview of her role and the robust affiliate marketing team she leads at HubSpot.

Nancy Harnett [00:35]: "HubSpot is the AI customer platform that makes running your business all that little bit easier... I head up affiliate marketing at HubSpot alongside an amazing bunch of affiliate marketers."

2. Building and Scaling the Affiliate Program

Nancy shares her journey of joining HubSpot three years prior to manage one-to-one partner relationships. Initially, HubSpot's affiliate program was modest, but focusing on personalized relationships sparked significant growth. By prioritizing partner needs and expanding the team based on functional roles rather than regions, Nancy and her team were able to scale the program effectively.

Nancy Harnett [01:20]: "We saw that prioritizing relationships and turning to this partner first relationship-based focus really was the kind of catalyst that took off that growth pattern that we have."

3. One-on-One vs. Semi-Managed/Self-Managed Models

Before Nancy's tenure, the affiliate program struggled with limited resources, making it challenging to provide personalized support to all partners. Nancy introduced a dual approach: maintaining one-to-one managed relationships for partners seeking intensive support, while offering semi-managed and self-managed options for others who preferred a more autonomous partnership.

Nancy Harnett [03:49]: "We have individuals on the team that are there for partner management and there to help you grow to that successful point... We've moved from a managed to semi-managed and self-managed model."

4. Importance of Relationships and Partner Customization

Nancy emphasizes that affiliate programs should be viewed as extensions of the sales team. Success hinges on the brand's investment in partners, aligning incentives, and customizing support to meet each partner's unique needs. This relationship-centric approach fosters long-term growth and trust.

Nancy Harnett [06:26]: "If you're not putting your partner first, you're just not going to, you're just not going to win, are you?"

5. Experimentation and 'Fail Fast' Philosophy

A cornerstone of HubSpot's strategy is continuous experimentation. Nancy advocates for a "fail fast" mentality, where testing new ideas is crucial for uncovering impactful strategies. This approach allows the team to quickly identify what works and iterate efficiently.

Nancy Harnett [09:12]: "We fail fast. We're always testing, we're always experimenting... If we're leaving an opportunity on the table, it means there's something that could be a potential big needle mover."

6. Example of Successful Experiment: Bridging the Freemium Gap

Nancy discusses a notable experiment aimed at addressing the revenue gap associated with HubSpot's freemium model. By offering partners interim rewards for actions leading up to a sale, rather than traditional bonuses or flat fees, the team maintained positive ROI while keeping partners engaged during the conversion period.

Nancy Harnett [11:27]: "We looked at different models that would keep the ROI positive... rewarding them for a different action. It didn't have to be the sale, it can be something in between."

7. Long-term Thinking and Culture at HubSpot

The long-term perspective is deeply ingrained in HubSpot’s culture. Nancy credits the company's leadership for fostering an environment where innovative ideas are welcomed and partners are viewed as integral to the company’s success. This cultural support enables sustainable growth and robust partner relationships.

Nancy Harnett [17:01]: "We prioritize our customer and that's ultimately where we start our program... ensuring our partners are getting what they need to better serve our customers."

8. Platform and Tech Stack for Affiliate Marketing

HubSpot leverages a sophisticated tech stack to manage its affiliate program. The primary platform is Impact, complemented by custom APIs with HubSpot for CRM functions. Additional tools include Adplice for fraud detection, Breezy for recruitment, and various AI tools like Claude, Gemini, and ChatGPT to enhance partner interactions and operational efficiency.

Nancy Harnett [26:12]: "We work solely off of Impact... we use a lot of AI tools. AI has become a whole new thing for us and we're bringing a whole new meaning to it by affiliate intelligence."

9. Pitfalls to Avoid in Affiliate Programs

Nancy highlights key challenges in affiliate marketing, particularly compliance and fraud prevention. She advises implementing robust monitoring systems to detect suspicious activities and maintaining value-based partnerships over short-term incentives to build lasting, trustworthy relationships.

Nancy Harnett [29:12]: "Compliance is a really big one... having different tools to identify what might be a red flag is important for your business."

10. Underappreciated Partner Types and Industry Evolutions

The affiliate landscape is evolving, with collaborations between internal partner programs becoming more prevalent. Nancy points out the increasing sophistication and diversity of partnerships, from large organizations to specialized niche partners, highlighting the industry's growth and the expanding roles within affiliate marketing.

Nancy Harnett [31:47]: "These are tangible partnerships, these are people behind the link... we're looking at not just individuals anymore, you're looking at large organizations."

11. Future Challenges and Growth Opportunities

As HubSpot’s affiliate program matures, Nancy identifies the need to explore new partnership opportunities beyond traditional avenues. This involves venturing into unexplored "green spaces" to sustain growth, embracing the challenges that come with innovation, and continuing to foster strong, mutually beneficial relationships.

Nancy Harnett [35:37]: "We've tapped out all of the traditional areas... Now we're having to create new opportunities and work with different types of partners."

12. Fun and Personal Insights about Nancy

Towards the end of the episode, Nancy shares personal interests, including her support for Arsenal Women’s Soccer Club, her love for animals, and her passion for motorbiking. These anecdotes add a personal touch, showcasing her multifaceted personality beyond her professional expertise.

Nancy Harnett [43:16]: "I'm a huge supporter of Arsenal Women's the soccer club in the UK... I have a motorbike and enjoy getting out."

Notable Quotes:

• Nancy Harnett [01:20]: "We saw that prioritizing relationships and turning to this partner first relationship-based focus really was the kind of catalyst that took off that growth pattern that we have."

• Nancy Harnett [06:26]: "If you're not putting your partner first, you're just not going to, you're just not going to win, are you?"

• Nancy Harnett [11:27]: "We looked at different models that would keep the ROI positive... rewarding them for a different action."

• Nancy Harnett [26:12]: "We use a lot of AI tools. AI has become a whole new thing for us and we're bringing a whole new meaning to it by affiliate intelligence."

• Nancy Harnett [35:37]: "We've tapped out all of the traditional areas... Now we're having to create new opportunities and work with different types of partners."

Conclusion

This episode of Always Be Testing offers invaluable insights into designing sustainable affiliate partnerships, emphasizing the importance of relationship management, continuous experimentation, and long-term strategic thinking. Nancy Harnett’s experiences at HubSpot provide a comprehensive roadmap for building a successful affiliate program that adapts and thrives in a dynamic marketing landscape.