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The Top 5 Affiliate Management Myths Debunked
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The Top 5 Affiliate Management Myths Debunked

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This presentation is from Affiliate Summit West 2014 (January 12-14, 2014 in Las Vegas, NV). Session description: Four top producing affiliate managers dispel the myths and mysteries of program …

This presentation is from Affiliate Summit West 2014 (January 12-14, 2014 in Las Vegas, NV). Session description: Four top producing affiliate managers dispel the myths and mysteries of program management and show a clear, grounded path to doing it right.

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  • Kim R & Karen
  • Kim S
  • Kim S
  • Kim S
  • Amy & Kim S
  • Amy & Kim S
  • Karen & Vanessa
  • Karen & Vanessa
  • Vanessa & Kim R
  • Vanessa & Kim R
  • Vanessa & Kim R.
  • Vanessa & Kim R
  • Vanessa & Kim R.
  • Vanessa & Kim R.
  • Amy & Kim S.
  • Kim S.
  • Kim S.
  • Kim S.
  • Transcript

    • 1. The Top 5 Affiliate Management Myths Debunked Karen McMahon, The Affiliate Whisperer Kim Rowley, Key Internet Marketing Kim Salvino, Chateau 20 Vanessa Branco, Versa9 Amy Ely, Under Armour
    • 2. Agenda • • • • • • • Introduction Myth #1: Launching = Instant Revenue Myth #2: Affiliate Marketing is Risk Free Myth #3: It Doesn’t Work For Small Businesses Myth #4: Affiliates Don’t Add Value Myth #5: I Need Paid Placements Year Round Questions?
    • 3. Myth #1: Launching = Instant Revenue Overview • Manage your expectations o A look at affiliate program launch statistics • Look at it from the affiliate perspective o It takes time for affiliates to get started o Auto-approvals help • Have a solid affiliate strategy • Keep calm and carry on! • Take time to educate your affiliates Myth #1: Launching = Instant Revenue
    • 4. Myth #1: Launching = Instant Revenue Key Influencer **If your site is not already primed to convert consumers to buyers, then affiliate traffic will NOT increase your revenue.** Set Yourself Up For Success • Your product/offer is your responsibility • You must attract & recruit affiliates Myth #1: Launching = Instant Revenue
    • 5. Myth #1: Launching = Instant Revenue Your Product/Offer is Your Responsibility • Quality product/offer, non-gimmicky • Site must instill consumer confidence o o o o Clear, easy navigation Crisp product images Functional in all browsers No interference (no ads, no pop-ups, no flash heavy ads) • Ongoing site optimization Myth #1: Launching = Instant Revenue
    • 6. Myth #1: Launching = Instant Revenue You Must Attract & Recruit Affiliates • Supply creative that converts + deep links • Assess your competition • Ensure products appeal to their site audience • Provide accessible and responsive support • Share marketing materials o Demographics, seasonality information, top sellers, new products Myth #1: Launching = Instant Revenue
    • 7. Myth #2: Affiliate Marketing is Risk Free Gaming The System • Some affiliates look for easy money o Forced clicks, pop ups, etc. • Loyalty & incentive sites can entice customer fraud Legal Compliance & Managing Multiple Relationships • Evolving FTC regulations • Managing hundreds of relationships is a challenge Myth #2: Affiliate Marketing is Risk Free
    • 8. Myth #2: Affiliate Marketing is Risk Free Protect Your Program • Manually approve affiliates • Use monitoring tools and run your own tests • Review changes in performance • Stay informed on FTC updates • Leverage all available support o Call center, network reps, etc. Myth #2: Affiliate Marketing is Risk Free
    • 9. Myth #3: It Doesn’t Work For Small Businesses A Big Brand Name Isn’t Required For Success • Look at your affiliate program as part of your total brand marketing strategy • Address poor converting links and banners • Focus your attention • Keep your links fresh • Manage your affiliate program costs Myth #3: It Doesn’t Work For Small Businesses
    • 10. Myth #3: It Doesn’t Work For Small Businesses Questions To Ask Yourself • Who are your current affiliates? Who else can you contact? • Does your offer match the affiliate type & their marketing activities? • Are you providing the proper tools for affiliate success? • When was the last time you contacted your affiliates? o Do you know who is performing well and who isn’t? o What can you do to help low performers? • What kind of payouts and incentives are you using to attract & motivate your affiliates? Myth #3: It Doesn’t Work For Small Businesses
    • 11. Myth #4: Affiliates Don’t Add Value Proven Results • Affiliate marketing is a powerful source of new customer business o Some merchants in the 50%-70% range for new-to-file • Attribution studies reinforce that this channel drives incremental value Myth #4: Affiliates Don’t Add Value
    • 12. Myth #4: Affiliates Don’t Add Value Measuring Holistically - Attribution Affiliate marketing affects other channels/affiliates. Some affiliates (not all) are under-rewarded since lastclick doesn’t show full funnel…some affiliates are overrewarded if only focusing on last-click. Myth #4: Affiliates Don’t Add Value
    • 13. Myth #4: Affiliates Don’t Add Value Affiliate (Just Like Every Other) Has Its Own Silo • Search, display, affiliate, video and social are all ignorant of other contributing channels o Some affiliates introduce (originate) the entire transaction!!! Myth #4: Affiliates Don’t Add Value
    • 14. Myth #4: Affiliates Don’t Add Value Understanding How Affiliates Impact Each Other…. (Data courtesy C3 Metrics) • Prior to using C3 Metrics measurements, 52% of last click revenue (and cost) came from top 3 affiliates ZERO 52% (excludes google remarketing) Myth #4: Affiliates Don’t Add Value
    • 15. Myth #4: Affiliates Don’t Add Value • Top 25 affs indexed on attributed value vs. last click • Affiliates driving highest value are in Top 25, not Top 3 • Aff #16 delivering more value than #1 paid affiliate Attribution Index 120 100 80 60 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Myth #4: Affiliates Don’t Add Value 19 20 21 22 23 24 25
    • 16. Myth #4: Affiliates Don’t Add Value Results • Affiliates further down the chain will do well • Affiliates at very top will have comp adjusted • Cash-back affiliates continue to do well b/c they originate customers • Advertisers will focus on origination + demand generation…less on last second “jump ins” (focus more on starting rather than finishing) • In five years, 50% of digital ad dollars will use attribution vs. last click/last view (Gartner) Myth #4: Affiliates Don’t Add Value
    • 17. Myth #5: I Need Paid Placements Year Round Key Questions • What are your success metrics? Revenue? Return on Ad Spend (ROAS)? Impressions/Visits? Branding? Explore Your Options • Placements are not a requirement to grow revenue o Test performance with & without placements • Be selective: choose top performing placements at times when extra visibility is needed Myth #5: I Need Paid Placements Year Round
    • 18. Myth #5: I Need Paid Placements Year Round Case Study: December 2013 • Bookings drop due to seasonality during this period • Schedule placements to coincide with best sale of the year Campaign Statistics • Budget: $37,350 • Revenue Driven by Placements: $144,813.72 • Return on Ad Spend: 288% Myth #5: I Need Paid Placements Year Round
    • 19. Myth #5: I Need Paid Placements Year Round Mitigate Risk by Allocating Spend For Both Content & Coupon Sites Spend by Placement Type Myth #5: I Need Paid Placements Year Round
    • 20. Myth #5: I Need Paid Placements Year Round Content Sites Have Significantly Higher Return Than Coupon Sites Return on Ad Spend Myth #5: I Need Paid Placements Year Round
    • 21. We Welcome Your Questions! Questions?
    • 22. Contact Us Find Us On Twitter Karen McMahon @Aff_Whisperer Kim Rowley @kimarketing Kim Salvino @kim_salvino Vanessa Branco @VanBranc Amy Ely @aely