Visualsoft Affiliate Marketing for SME's Workshop - How Affiliate Marketing Works

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Visualsoft's continuing efforts to educate users of their highly successful e-commerce platform lead to a client forum event held at the NEC in Birmingham during 2012. It was here that some of the more complex website marketing practices were explained in workshop format. This workshop lead by Affiliate Manager Luke Atherton gives small to medium businesses an introduction to Affiliate Marketing with steps on how to set a website up on an affiliate network as well as how this is used to generate leads and revenue.

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Visualsoft Affiliate Marketing for SME's Workshop - How Affiliate Marketing Works

  1. 1. Welcome to theAffiliate Marketing for SME’sWorkshopLead by Luke AthertonAffiliate Manager
  2. 2. Today’s workshop…1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  3. 3. What is affiliate marketing?Definition"Affiliate marketing is a marketing practice in whichone or more affiliates are rewarded upongenerating successful sales for a merchantthrough their own marketing practices."
  4. 4. 1.The merchant2.The network3.The affiliate4.The customerWhat is affiliate marketing?Parties involved
  5. 5. Anyone who has a website through which...1.They sell products2.Provide servicesBusiness to business does not work very well!What is affiliate marketing?Who can run an affiliate programme?
  6. 6. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  7. 7. How does it work?The affiliate process…
  8. 8. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  9. 9. 1.Webgains2.Affiliate Window3.OthersHow to setup an affiliate programmeChoosing a network
  10. 10. 1.Contact the network2.Request proposal3.Sign contract4.Pay any setup fees5.Fill out all programme detailsHow to setup an affiliate programmeSigning up
  11. 11. How to setup an affiliate programme.Signing up - Webgainswww.webgains.com●Choose ‘Merchants’●Use contact form●Or call
  12. 12. How to setup an affiliate programme.Signing up – Affiliate Windowwww.affiliatewindow.com1.Choose ‘become a merchant’2.Use contact form3.Or call
  13. 13. How to setup an affiliate programmeDeciding commissionRegular Commission Example£100.00 (sale value) = 8% (commission)+ 30% (network override)Total you pay for £100.00 sale is:(8% of £100 = £8 ) + (30% of £8 = £2.40 )£10.40
  14. 14. How to setup an affiliate programmeDeciding commissionTiered Commission Example0 – 10 Sales = 8%10 – 20 Sales = 9%20+ Sales = 10%£100.00 (sale value) = See Above (commission)+ 30% (network override)Total you pay for £100.00 sale is:Based on performance
  15. 15. How to setup an affiliate programmeSetting up commission - Webgains
  16. 16. How to setup an affiliate programme.Setting up commission - Webgains
  17. 17. How to setup an affiliate programme.Setting up commission - Webgains
  18. 18. How to setup an affiliate programme.Setting up commission – Affiliate Window
  19. 19. How to setup an affiliate programme.Setting up commission – Affiliate Window
  20. 20. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  21. 21. Technical AspectsImplementing a tracking code●Self-managed programmes - contact Visualsoftby putting a ticket in to receive a quote●Visualsoft-managed programmes - pay nothing,we will integrate the tracking code for you
  22. 22. Technical AspectsProduct feed implementation●Self-managed programmes - contact Visualsoftby putting a ticket in to receive a quote●Visualsoft-managed programmes - pay nothing,we will create the feed for you
  23. 23. Technical AspectsBespoke product feedsSome affiliates require bespoke product feeds●Self-managed programmes - contact Visualsoftby putting a ticket in to receive a quote●Visualsoft-managed programmes - we willidentify and create the feeds for you
  24. 24. Technical AspectsChecking your setup (monthly)●Check tracking of voucher codes●Check tracking of all currencies●Check product feeds are updating●Check latest data is in product feeds
  25. 25. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  26. 26. Types of AffiliatesThe different types●Voucher Code Websites●Cash Back Websites●Price Comparison Websites●Specialist Affiliate Websites
  27. 27. Types of AffiliatesVoucher code websites●Promotes offers and discount codes formerchants●Provides a solid starting point for any programme●Excellent way to increase exposure, even onsearch engines●Usually one of the top earners on a programme
  28. 28. Types of AffiliatesVoucher code websites - processCustomer searches Google for a voucher code.Top Tip! Voucher codes can help convert thosesales that might otherwise have left your website
  29. 29. Types of AffiliatesVoucher code websites - processThe top result is one of the biggest affiliates
  30. 30. Types of AffiliatesVoucher code websites - processCustomer can now browse your active discounts and offers
  31. 31. Types of AffiliatesVoucher code websites - best practices●You can run any kind of discount code●You don’t have to run discount codes, you canrun offers and promotions to●Having at least one discount code and onepromotion is essential●You can release the same offers and discountcodes to multiple affiliates●They can offer you extra exposure for exclusivediscount codes
  32. 32. Types of AffiliatesCash back websites●‘Pays’ customers to shop●Pass on the commission to their users,incentivising them to shop●High conversion rates due to above●Also uses product feeds and discount codes
  33. 33. Types of AffiliatesCash back websites - processCash back customer searches for a shopTop Tip! Cash back websites have a highconversion rate because the decision to ‘shop’has already been made
  34. 34. Types of AffiliatesCash back websites - processCustomer finds the most appealing cash backoffer
  35. 35. Types of AffiliatesCash back websites - processCustomer clicks through to merchant and shops as usual.
  36. 36. Types of AffiliatesCash back websites – best practices●Having a higher commission rate than yourcompetition can help your brand awareness withcustomers●Offer higher rates for short periods in return forextra exposure●Cash back is an excellent brand buildingexercise, customers will return after first sale●Many big name brands have low cash back, thisis your ‘way in’
  37. 37. Types of AffiliatesPrice comparison●Makes big use of product feeds and product data●Can send a lot of traffic to your website●Excellent way to target your competition●Great way to gain new customers that will keepcoming back●Excellent way to associate yourself with a productor brand
  38. 38. Types of AffiliatesPrice comparison - processCustomer searches for product or brand.Top Tip: Price comparison websites are oftenproduct orientated, if youre competitive on oneproduct and not another then push it!
  39. 39. Types of AffiliatesPrice comparison - processCustomer views their preferred product.
  40. 40. Types of AffiliatesPrice comparison - processCustomer clicks through to one of the cheapest merchants.
  41. 41. Types of AffiliatesPrice comparison – best practices●You need to be competitive●Having a simple but lucrative commissionstructure will help you get listed●Try to price match key products and brands●Running temporary sales or offers can providespikes in sales
  42. 42. Types of AffiliatesSpecialist affiliates●Can drive much more relevant traffic●Focuses on your market where you are mostsuited●Harder to find and get listed, usually work with aselect few●Can generate excellent sales and returningcustomers quickly
  43. 43. Types of AffiliatesSpecialist affiliates – best practices●Use the affiliate network to find potential affiliates●Be willing to negotiate. And sell your business●Communicate new brand launches and topsellers●Consider CPC affiliates
  44. 44. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  45. 45. Building RelationshipsBest practices●Communicate everything●Plan seasonal events well ahead of time●Offer exclusives to top performers●Enquire about opportunities regularly
  46. 46. Building RelationshipsRelationship - success funnelStrong Relationships.All Channels Targeted.Some Strong Relationships.Most Channels Targeted.The Odd Relationship.Some ChannelsTargeted.No Relationships.Some ChannelsTargeted.NO RELATIONSHIPS, VERY FEW CHANNELS TARGETED.
  47. 47. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  48. 48. Discount Codes & OffersTypes of discount code●Site wide●Brand/category specific●Percentage/value discount●Buy one get one free●Postage discount●Global offer
  49. 49. Discount Codes & OffersReleasing a discount code●Setup your code in VS admin●Add the details to your network●Send an email to relevant affiliates●Post a blog and forum article on relevant sites
  50. 50. Discount Codes & OffersReleasing a code - Webgains
  51. 51. Discount Codes & OffersReleasing a code - Webgains
  52. 52. Discount Codes & OffersReleasing a code – Affiliate Window
  53. 53. Discount Codes & OffersReleasing a code – Affiliate Window
  54. 54. Discount Codes & OffersReleasing a code – blogs & forumsPost your offers and discount codes to popularaffiliate blogs and forums, such as:●A4U - Affiliate Marketing Forum●Webgains - Blog●Affiliate Window - The Hub (Blog)
  55. 55. Discount Codes & OffersExample 110% Off Men’s JacketsFree Next Day DeliveryTop Performer 1Top Performer 2AffiliateAffiliateAffiliateAffiliateAffiliate
  56. 56. Discount Codes & OffersExample 210% Off Men’s Jackets Increased CommissionVoucher Code AffiliateVoucher Code AffiliateCash Back AffiliateCash Back AffiliateVoucher Code AffiliateVoucher Code AffiliateVoucher Code AffiliateCash Back AffiliateCash Back AffiliateCash Back AffiliateSeparate exclusives based on affiliate if necessary
  57. 57. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  58. 58. BannersUsing banners●Used as advertising links on websites●All affiliates use them to some degree●Various sizes required●Some affiliates may request bespoke sizes
  59. 59. BannersGetting new banners●If you run your own programme you can uploadyour own banners or request a quote from ourdesign team●If Visualsoft manage your programme we willorganise all banners for you
  60. 60. 200 x 40 160 x 100 250 x 25088 x 31 120 x 60 125 x 125120 x 600 234 x 60 468 x 60BannersBanner sizes
  61. 61. BannersAdding new banners – Affiliate Window
  62. 62. BannersAdding new banners – Affiliate Window
  63. 63. BannersAdding new banners – Webgains
  64. 64. BannersAdding new banners – Webgains
  65. 65. BannersSome examples…
  66. 66. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  67. 67. Tenancy explainedWhat is tenancy?●Tenancy is a paid advertising slot on a website●It usually costs a one off fee in the region of £250for one week●If your programme and brand are strong on thesite you can gain a boost in visits and sales
  68. 68. Tenancy explainedWho offers tenancy?●Voucher code websites●Cash back websites●Some specialist affiliates●And many others
  69. 69. Tenancy explainedHow does it work?
  70. 70. Tenancy explainedTenancy – best practices●Choose sites that you have a strong presence on●Shop around for the best deals●Negotiate a reduction in return for an exclusiveoffer
  71. 71. 1.What is affiliate marketing?2.How does it work?3.How to setup an affiliate programme4.Technical Aspects5.Types of affiliates6.Building relationships7.Discount codes and offers8.Banners9.Tenancy explained10.Costs
  72. 72. CostsSignup costs - WebgainsIf you run your own programme:●£950 setup●£350 monthly Webgains account management andtechnical support fee.●£1000 top up (used to pay commission)If Visualsoft run your programme:●£500 setup●£100 monthly Webgains technical support fee.●£1000 top up (used to pay commission)
  73. 73. CostsSignup costs – Affiliate WindowExample 2011 costs:If you run your own programme:●Variable, discuss with networkIf Visualsoft run your programme:●£1500 setup fee●£200 monthly network fee
  74. 74. CostsSignup costs – Visualsoft●If you have a marketing retainer already you can addour affiliate marketing service to it.(Please speak to David Duke who is just outsideabout our retainer services and costs)
  75. 75. Closing statements
  76. 76. Closing statements
  77. 77. Closing statements

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