How to Make B2sB Profitable

January 10, 2012Affiliate Summit West

PanelistsMarty MarionAffiliate Marketing ManagerDeluxe Corp.Sherry TingleyOwnerOne Click LLC.George HansenDirector of SalesDigital River – oneNetworkDirect

Agenda  What is B2sB affiliate marketing  The opportunity  B2sB Affiliate Marketing, why now?  B2sB vs. B2C differences  Who is the B2sB audience & how to market to them  Will the SB buy from an Affiliate?  Top things an Affiliate can do tomorrow to earn big  Panel discussion  Q&A  Key takeaways / wrap

What is B2sBAffiliate Marketing? Marketing business products & services to small businesses

How big is the opportunity? 28.7 million SBs in North America (with < 20 employees) 26,501,128 2,204,103 Sources: 2009 IRS/U.S. Census Bureau, Statistics Canada 2007

How much do SBs spend? $142.3 Billion /yr.On goods and services to run and promote their business*Includes: Marketing services Computers and software On average, SBs will spend Printing Office supplies about $5,000 /yr. on Business forms Promotional products these products & services Apparel etc. How much of that budgetDoes not include: Raw materials do YOU want? Manufacturing equipment Utilities etc. Sources: SBs Directions 2011, Gartner 2011, Deluxe Corp. 2010 , IBIS World 2011, Barnes 2011 & InfoTrends 2009

How much do SBs spend online? Over 60% make business purchases online That’s 17.2 million potential customers With an $86.1 billion combined budget How much of this could be in the Affiliate Channel? Source: Small Business Directions, 2011; n=842 SBs

B2sB Affiliate – why now? Overall Affiliate Revenues Projected to Soar  Despite economic downturn, Merchants are projected to pay out over $4 Billion in commissions by 2014 Source: Forrester Research Affiliate Marketing Forecast, 7/09 (US)

B2sB Affiliate – why now?Going mainstream As budgets tighten, Merchants are increasingly adding Affiliate Marketing to their marketing mix  Usually not part of a fixed marketing budget  Low risk pay for performance model  Provides a competitive ROI compared to other channels  Healthy competition between affiliates is leading to more relevant niche sites increasing traffic and conversions  Merchants and Affiliates are increasingly working directly together toward mutually beneficial results

B2sB Affiliate – why now?B2sB Affiliate Footprint is relatively small  B2C market is fully matured and saturated  B2sB is just entering its growth stages  B2sB merchants increasingly entering the channel, so their growth incentive is at an all time highWhat does this mean for B2sB affiliates?  Less competition  Incremental revenue stream  Higher average commissions  Time to establish expertise “before the rush”

B2sB vs. B2C – differences SB Consumers  Purchase decisions are less impulsive & require more info  They are “cost conscious” not “price sensitive”  Looking to answer a question or solve a business problem

B2sB vs. B2C – differencesSB Merchants  Depending on the product/service AOV can be substantially larger  Overall higher commission rates  Place education in the Affiliates hands, similar to offline distributed selling model

B2sB vs. B2C – differencesSB Affiliates  Play a crucial part of informing SBs consumer in the purchase process  Builds a strong and direct working relationship with Merchants  Understand that the B2sB affiliate blueprint for success is still being drafted A little more effort will equal a lot more $$

Who’s your target audience? or

Who’s your target audience?Small Business Over 3/4 of SBs are run by sole proprietors The same people who buy shoes, CDs, TVs, gadgets, gifts and more They use similar purchase behaviors when buying for their business More SBs look to buy products online than those trying to sell online* A recently survey by Deluxe Corp.

How do you reach the SB Consumer? Are there people who make money (or want to) by doing what I describe on my site?  If you answered “YES” you already have a B2sB opportunity

How do you reach the SB Consumer? Am I already providing content that is relevant to SBs?  Business Services & How To sites • SEO, hosting, social media, marketing, business growth, time management, etc.  Business Products • Office supplies, computers, software, checks, forms, printer Ink, business cards, etc.

How do you reach the SB Consumer? Can I create or provide something that would speak directly to a small business owner’s needs?  Business Segmentation • Creating SB categories within existing sites, offers and email lists can take your marketing in a new & profitable direction

How do you engage the SB Consumer? By asking these Questions…  How can this help SBs attract more customers?  How can this help SBs manage their time and money more efficiently?  How can this help SBs keep their customers coming back? And putting the answers into practice on your site...

Will the SB buy from an Affiliate?Yes! The SB consumer needs 24/7 access to products so that theycan buy for their business outside of their own business hoursYes! The decision making process is less about emotion & more aboutknowledge & trustYes! Price sensitivity is more about added value of the product or servicethey are buying…They are still looking to cut costs so balance here is crucialYes! SBs are everywhere, easy local access to business products & servicesis notYes! More SBs look to PURCHASE business products online than thosewho try to SELL them Understanding the small business consumer = $$

Top things an Affiliate can dotomorrow to earn big Reach out to merchants & establish an open line of communication  Don’t be passive in your relationship  B2B Merchants rely on the connection between their distributors & the consumer  B2B Merchants are more willing to share data, take advantage Create a SB section of your site  The SBs Consumer is looking for a place to go…GIVE IT TO THEM  Create a section / content just for the SB Consumer – SEO/SEM  Affiliate Marketing is not simply building links and collecting commissions Organize your site with visitors in mind creating content to support product sales  Merchandise site with as much care as you would a consumer product site  Insure that relevant content surrounds the products & services you promote

Top things an Affiliate can dotomorrow to earn big Educate your visitors, offer a POV and show expertise  Pack your site with relevant content, and make sure they can find it  The SB Consumer is looking for an answer, GIVE IT TO THEM  Its your site, share an opinion Connect with or create a blog around the SB Products / Services you offer  Social Media - I’m sure you use it, but don’t just spam, have an opinion  Niche vertical blogs - Connect to your prospects where they are Sell like products  Organize SB products / services in “Stacks”  You have brought them to your site for a reason, ASK FOR THE SALE

Top things an Affiliate can dotomorrow to earn big Test products, promotions & content continually  Don’t set it and forget it!  Understanding the SB market will quickly make your efforts successful Share successes and challenges with your Merchants  Share what works and doesn’t  Data - You have it, the Merchant has it, combine it and win big  The more you and your Merchant work together, the easier success will be Participate in the industry  You don’t have to give away your secrets to participate in the industry  Two heads are better than one, share your success & learn about others  Look for places to earn more money through contests, surveys, etc.

Panel discussion

Key takeaways / wrap up The SB consumer is still a consumer! The SB consumer is looking for answers & experts! Organizing your site with relevant content! If you learn from your visitors and the sales they create, you WILL create more sales! Communicate openly with your Merchants, they are eager to work with you! Potential for higher AOVs & commission rates! Be patient, effort = reward! B2sB is an incremental way to grow your business today! We are all here to make more money…. follow these steps and you will

How to Make B2sB Profitable

by Affiliate Summit on Jan 12, 2012

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How to Make B2sB Profitable — Presentation Transcript