Dynamic Affiliate Payouts
When to Increase and When to Cut
Presented by:
Introductions
Joseph Hansen: CEO – Evolved Marketing
Introductions
Chris Kramer: Head of Operations – House of Kaizen
Introductions
Paul Schroader: President – PS Web Solutions
Session Format
Open panel discussion
What is the value of an Affiliate Sale?
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,0...
What is the value of an Affiliate Sale?
Is it more valuable than a Dealer /
Retailer sale?
More than a Paid Search sale?
R...
What is the value of an Affiliate Sale?
Understand your Media Mix
Know your touch points
1+1+1+1+1 = 8 or 9
Affiliate Program’s Role in Media Mix
Standard Marketing Strategy
Drive
Capture
Convert
Retain
Are All Affiliate Sales equally valuable?
What role did the Affiliate play in the
sale?
Introducer?
Influencer?
Closer?
Affiliate Sales: Introducer Scenario 1
Whoa! That looks way
cool.
I didn’t even know these
existed.
Affiliate Sales: Introducer Scenario 2
I’m in the market for a
new mountain bike.
What are my options?
Affiliate Sales: Influencer Scenario 1
I’ve heard good things
about these new jet
packs.
I wonder which one is
the best.
Affiliate Sales: Influencer Scenario 2
I was going to buy this
product but, based on
this info, I think I need to
research...
Affiliate Sales: Closer Scenario 1
I was thinking of buying
from Merchant X, but
this looks like a much
better deal.
Affiliate Sales: Closer Scenario 2
I want to buy this gadget
from Merchant X.
I wonder if they have a
coupon.
All Affiliates are not created equal
Establish a Payout Range
Commissions must be flexible in order to
maximize affiliate sales
Establish a Payout Range
Use various commission rates based on:
Understood Value of Affiliate’s sales
Incentive / Activati...
Q & A
Contact Info
Joseph Hansen: www.linkedin.com/in/josephhansen
joseph@evolvedgroup.com
Chris Kramer: www.linkedin.com/in/chr...
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Dynamic Affiliate Payouts – When to Increase and When to Cut

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This presentation is from Affiliate Summit East 2014 (August 10-12, 2014 New York City).
Session Description: Discussion on a merchants’ need to focus on long-term customer acquisition goals through direct e-commerce sales and understand which payouts make the most sense for which affiliate models.

Published in: Marketing
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  • Dynamic Affiliate Payouts – When to Increase and When to Cut

    1. 1. Dynamic Affiliate Payouts When to Increase and When to Cut Presented by:
    2. 2. Introductions Joseph Hansen: CEO – Evolved Marketing
    3. 3. Introductions Chris Kramer: Head of Operations – House of Kaizen
    4. 4. Introductions Paul Schroader: President – PS Web Solutions
    5. 5. Session Format Open panel discussion
    6. 6. What is the value of an Affiliate Sale? $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 2010 2011 2012 2013 2014 E-commerce Revenue thru June 2014 Untracked E-mail Social Retargeting Paid Search Affiliate
    7. 7. What is the value of an Affiliate Sale? Is it more valuable than a Dealer / Retailer sale? More than a Paid Search sale? Retargeting?
    8. 8. What is the value of an Affiliate Sale? Understand your Media Mix Know your touch points 1+1+1+1+1 = 8 or 9
    9. 9. Affiliate Program’s Role in Media Mix Standard Marketing Strategy Drive Capture Convert Retain
    10. 10. Are All Affiliate Sales equally valuable? What role did the Affiliate play in the sale? Introducer? Influencer? Closer?
    11. 11. Affiliate Sales: Introducer Scenario 1 Whoa! That looks way cool. I didn’t even know these existed.
    12. 12. Affiliate Sales: Introducer Scenario 2 I’m in the market for a new mountain bike. What are my options?
    13. 13. Affiliate Sales: Influencer Scenario 1 I’ve heard good things about these new jet packs. I wonder which one is the best.
    14. 14. Affiliate Sales: Influencer Scenario 2 I was going to buy this product but, based on this info, I think I need to research the one they recommend.
    15. 15. Affiliate Sales: Closer Scenario 1 I was thinking of buying from Merchant X, but this looks like a much better deal.
    16. 16. Affiliate Sales: Closer Scenario 2 I want to buy this gadget from Merchant X. I wonder if they have a coupon.
    17. 17. All Affiliates are not created equal
    18. 18. Establish a Payout Range Commissions must be flexible in order to maximize affiliate sales
    19. 19. Establish a Payout Range Use various commission rates based on: Understood Value of Affiliate’s sales Incentive / Activation Strategy Revenue Goals
    20. 20. Q & A
    21. 21. Contact Info Joseph Hansen: www.linkedin.com/in/josephhansen joseph@evolvedgroup.com Chris Kramer: www.linkedin.com/in/chriskramer chris@houseofkaizen.com Paul Schroader: www.linkedin.com/in/paulschroader pauls@pswebsolutions.com
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