5 Steps to Accelerate Your Affiliate International Expansion


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This presentation is from Affiliate Summit West 2014 (January 12-14, 2014 in Las Vegas, NV). Session description: Replicating the home country model may not always be the best solution when going international. Learn about the key aspects that you should consider when launching an international affiliate project.

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5 Steps to Accelerate Your Affiliate International Expansion

  1. 1. 5 Steps to Accelerate Your Affiliate International Expansion Cristian Miculi – Sr. Affiliate Marketing Manager
  2. 2. Agenda Accelerating the International Growth through Affiliates › Profitability – is it worth expanding? › Where to develop locally? › The 5 steps to accelerate expansion through affiliates with examples 2
  3. 3. Who I am Cristian Miculi Sr. Affiliate Marketing Manager, Avangate 6+ years of hands-on experience within affiliate marketing in the digital goods area (managed over 100 affiliate programs) Presentations at Affiliate Summit / other affiliate venues a Published articles in FeedFront, Revenue Performance magazines Focus on growing affiliate programs for merchants +1 650.249.5280 ext. 4645 cm@avangate.com linkedin.com/in/cristimiculipop 3
  5. 5. Are you ready to expand via affiliates? Run a profitability check Definitely take it into account if… You have products that can serve multiple local markets e.g. appliances, clothes, software products, subscriptions, relevant eBooks and magazines The business model is easy to scale internationally e.g. digital goods, locally manufactured physical goods You’re getting relevant traffic (5%+ of total) from other countries You’re getting inquiries about availability in certain territories 5
  6. 6. Just try it Worst case scenario: turn the expansion into a long-term deal Think twice before making this step if… Affiliates are not generating significant sales for you e.g. min. 5% of your total volumes via affiliates The products you sell have a high selling point e.g. cars, housing - rentals, professional business products You sell local specific services that don’t apply to other markets e.g. credit scoring, insurance, transport Going abroad would mean a huge logistical investment from your side e.g. showrooms, product stocks, etc. 6
  7. 7. Where should you expand? Western Europe, China, Japan, Australia, Brazil, India 7
  8. 8. Hot affiliate niches – digital goods vertical Utilities, security, audio-video in English speaking countries, Germany, etc. Top 10 countries with affiliate referred sales Top 5 niches in digital goods vertical 1. United States of America 1. eBooks 2. Canada 2. Utilities / PC Support 3. United Kingdom 3. Monitoring / Security 4. Australia 5. Japan 6. France Regional affiliates examples Download.com (US) Altech-Ads (Japan) 4. Audio-video tools 5. Productivity Chip.de (Germany) 01Net (France) Softonic (Spain) Siliconaction (Brazil) PC Advisor (UK) 7. Germany 8. Netherlands 9. Brazil Source: Avangate stats, December 2013 10. Italy 8
  9. 9. Accelerating Expansion You decided where to go. a You know you want to use affiliates. 9
  10. 10. 5 Steps to Accelerate the Affiliate Expansion Customize offer, get local assistance, reward performance 1. Customize offer – website interface, payment methods, support 2. Use local affiliate networks for recruitment 3. Get help from local agencies / OPMs on managing the program locally 4. Nurture relationships with performers – get them to sell more 5. Address the local opportunities – hot shopping dates, events 10
  11. 11. 1. Customize Offer Dress like a local Choose partners to support you with…  Local payment methods  Tax handling – Merchant of Record  Support in local language  Customized shopping cart & emails  Regional pricing  Localized websites 11
  12. 12. France’s Carte Bleue has a market share of 60% Over 25% of shoppers in the Netherlands prefer iDeal, a standardized online bankingbased payment method. 24% of all online payments made by Brazilian shoppers are processed through the 12 Boleto Bancario system. Konbini payments account for up to 17% of ecommerce transactions in Japan. Alipay is the dominant online payment platform in China, accounting for approximately 50% of the market.
  13. 13. AVS4YOU – 40% increase in sales volumes Through localized shopping cart and regional pricing Actions Customized shopping cart Regional pricing Put your screenshot here Results 5% increase in conversion rates 30% decrease of shopping cart abandon rates 40% more sales in France, 20% increase for Germany Source: Avangate 13
  14. 14. 99Designs: +50%-60% growth in DE vs. US After localizing the website for Germany Actions Localized website for Germany, including presentation video! Put your screenshot here Got local support number Started supporting local payment methods Results 50 to 60% increased growth in Germany vs. US Source: TNW Conference Europe 2013, Keynote Patrick Llewellyn, 99Designs CEO 14
  15. 15. 2. Use local affiliate networks Recruit people that target those regions When searching…  North America: CJ, ShareASale, LinkShare  Segment the affiliates from the network you already work with  Europe: Zanox, Affiliate Window, Trade Doubler  See which business models they support  Ask for clients case studies  Latin America: Clickmagic, Soicos, Pampa Network  Get a look at their top publishers  Asia: 8Affiliate, J-A-Net, DGMIndia  Look into the possibility of them managing your program in their network 15
  16. 16. Kaspersky Turkey – 400% uplift in sales From local affiliate network Actions Partnership with local affiliate network adTriplex Local affiliate network to manage program Put your screenshot here Results Affiliate sales going through adTriplex grew the overall program performance with more than 400% Source: Avangate 16
  17. 17. 3. Get local help to manage program Use agencies and affiliate OPMs with local knowledge Have the relevant leverage for your expansion  Save time & money – focus on other things  Accelerate adoption – agencies / OPMs hold the relevant relationships To help your local online presence, also look at agencies for the other channels as well as:  See other local opportunities you may not have thought about  Market research  Get an expert advice on where to take your program further  Lead generation  Localization of campaigns 17
  18. 18. Bitdefender UK: +50% YOY in affiliate volumes With local agency handling affiliate program Actions Hired local agency to handle UK affiliate program: dayto-day management, recruitment, campaigns proposals, reporting. Put your screenshot here Results 50% YOY increase for the UK program Source: Bitdefender 18
  19. 19. 4. Nurture relationship with performers Affiliate manager important for 75% of affiliates Identify, reward performance, motivate  You might have affiliates in your original program that are able to sell locally  Use performance tiers and adjust them according to territory specifics  Keep the communication open – you’ll be the first to know about a better deal from your competitors  Meet your affiliates at events 19 Source: AffStat 2013 Report
  20. 20. IObit – top local affiliate doing 66% of sales Partnership with Incredimail to penetrate US market Actions Custom version for Incredimail users with special discounted pricing to penetrate US market. Put your screenshot here Special affiliates commission for Incredimail. Exclusive email and holidays campaigns for Incredmail users to increase adoption. Results 60%+ of affiliate volumes of Iobit were generated by Incredimail Source: Avangate 20
  21. 21. 5. Address the local opportunities Build affiliate awareness to your program Get noticed locally:  Create a calendar of local holidays and hot shopping dates  Take part at local performance marketing events for networking and education  Run ads on influencer blogs / magazines 21
  22. 22. 85% increase in UK sales for YesAsia.com Via customizing website information & recruiting local affiliates Actions Launched program on network with local capabilities whose account managers helped with local, shopping, cultural and language issues. Put your screenshot here Results YesAsia.com affiliate program has seen an increase in sales by: • 86% across the UK, • 97% across USA, • 65% across France • 58% across Germany. 22
  23. 23. Recap: Accelerating Affiliates Expansion Customize offer, get local assistance, reward performance 1. Customize offer – website interface, payment methods, support • +40-60% more sales 2. Use local affiliate networks for recruitment • +400% more sales 3. Get help from local agencies / OPMs on managing the program locally • +50% more sales 4. Nurture relationships with performers – get them to sell more • +200% more sales 5. Address the local opportunities – hot shopping dates, events • +86% more sales 23
  24. 24. Successful expansions via affiliates Where can you get more examples?  Ask the affiliate network you’re working with about this  See case studies from local agencies and affiliate networks Put your screenshot here  Online marketing communities / affiliate marketing blogs: eConsultancy, Geno Prussakov, ABestWeb, etc. 24
  26. 26. Key Takeaways Just Try It! 1. Be ready to address the local market 2. Use affiliates to penetrate the new local market – risk-free 3. Get all the local help / experience to drive your efforts 4. Be educated about the local opportunities and take advantage of them 5. Monitor what your competitors are doing and keep your performing affiliates loyal 26
  27. 27. Thank you Avangate Inc. Redwood Shores CA., USA Tel: (650) 249 - 5280 Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080 info@avangate.com info@avangate.com Cristian Miculi +1 650.249.5280 ext. 4645 cm@avangate.com linkedin.com/in/cristimiculipop