A Schaaf-Centric World

I woke up this morning to the press release sitting there in my inbox announcing that Schaaf Consulting had acquired PartnerCentric. Of course, I read it backwards in my bleary-eyed, pre-coffee state. Then it hit me: Linda Woods, often credited as the first OPM in affiliate marketing, had sold to the Brothers Schaaf.

As we watch the expansion of OPMs (that’s Outsourced Program Management, not Other People’s Money), we also can see the consolidation of top OPM firms. Schaaf Consulting acquired Stephanie Agresta’s firm a couple of years ago before Ms. Agresta made the leap to PR.

The newly formed company Schaaf-Parntercenteric will have over 40 clients including eBay Partner Network, 21st Century Auto Insurance, Constant Contact, Moosejaw Mountaineering and Quicken Loans.

Below along with a clip that came to mind when I read the story:

We talked to Brook Schaaf about the acquisition and his plans for world domination:

How did the acquisition come about?

We’ve been talking to Linda for a while and we’ve enjoyed a friendly relationship on a business and personal level for years. She expressed interest in moving on from the OPM space and we  realized that it was a pretty good opportunity for her to make a nice exit while ensuring her clients were in good hands while allowing us to take advantage of what she had built and the opportunity in the marketplace.

What will happen to the PartnerCentric Team?

We obviously have people on our side who are experienced and talented but we couldn’t move one inch on this deal without her team. We’re pleased to be working with the core group Linda has put together at PartnerCentric. The teams on both sides understand the impact of the merger and are ready to make sure the clients get the services they need.

Over time we will share information, including tactics and best practices. I think there is going to be some really good things we can learn that will strengthen the whole team.

How do you keep two teams in sync with so many clients?

That’s a great question. We’re based in Los Angeles but everyone we are working with is virtual. Allowing for a virtual workforce is a really nice thing from an employee standpoint. It allows you to work with talented folks who are maybe not able to move from an area. A virtual outsource model doesn’t work, of course, if someone doesn’t have a good work ethic, but it’s the type of problem you would encounter in an office environment as well. We trust our team and make sure they have access to a very good internal communication structure.

Not to downplay the other clients involved in the acquisition but obviously the crown jewel is Ebay’s Partner Network. With such a big client involved was there some type of oversight or query with them before this type of merger?

We talked to Ebay before completing the deal to make sure that everything was okay with their team. We were actually involved in the R&D process with PartnerCentric for the Ebay program. So they were very good on their side in helping us work through matters, which we appreciated.

If we look at past examples, Pepperjam being one of them, the next logical phase in such growth is the temptation to become a network. What is Schaaf’s ultimate goal here?

I think our ultimate goal is to provide the highest level of affiliate marketing service. That is really my primary interest in building the business. Schaaf Consulting only provides affiliate marketing management. No SEO, no PPC, no WOM, no Social Media, we are focused on affiliate.  In terms of becoming a network I think it is a logical progression for many people but I don’t think it is a logical progression for us at all. I don’t see becoming a network as advantageous in any way. The space is very compacted and I don’t think we could build any new technology that could create new value in it. Whereas with affiliate marketing management I think we really can create value for our clients.

Obviously there are a lot of affiliates impacted by this and there is concern when a new team steps into a program. Is there anything you’d like to communicate to those affiliates?

We definitely want to give everyone a sense of confidence and continuity with the combined entity. We want that sense to extend to our clients and to the combined relationships like the networks. The same people will manage the same accounts. But what will improve is our ability to aggregate and distribute certain types of information, like coupons. So this should only be a plus for everyone currently involved. That’s something we understand about the nature of the affiliate model. We are committed to doing what needs to be done to make sure our clients receive the level of service they need to succeed with their programs.

About David Lewis

David Lewis is the CEO and founder of 77Blue which operates online shopping websites. Prior to that, he worked in business development at GoTo / Overture. David was a product manager and accountant in past lives. In 2006, David won Commission Junction’s Horizon Award for Innovation and was a finalist for Linkshare’s Golden Link Award. You can find David on Twitter @thedavidlewis.

Website: http://davidlew.is

Twitter: thedavidlewis