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5 Software Niche Affiliate Success Stories
 

5 Software Niche Affiliate Success Stories

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Avangate's presentation at Affiliate Summit East 2011 - discover some of the most successful ways to promote software online as an affiliate. See how others are doing it, learn from the best.

Avangate's presentation at Affiliate Summit East 2011 - discover some of the most successful ways to promote software online as an affiliate. See how others are doing it, learn from the best.

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    5 Software Niche Affiliate Success Stories 5 Software Niche Affiliate Success Stories Presentation Transcript

    • 5  So%ware  Niche    Affiliate  Success  Stories  Michael  Ni,  CMO/SVP  Marke<ng  &  Products  
    • Who  are  you?   Affiliates,  ISV’s,  networks,  vendors  …  www.avangate.com   2  
    • 5  So%ware  Ver<cals  Affiliate  Success  Stories   What  Are  Some  of  the  Best  Prac<ces  to  Drive  Conversion  in  a   So%ware  World  !   The  So)ware  Ver.cal  !   Why  It’s  Good  …  !   …  and  in  which  Sub-­‐Categories  !   5  case  studies  in  So)ware  Affiliate  Success  !   What’s  Your  Next  Move  www.avangate.com   3  
    • Vendors  www.avangate.com   4  
    • Merchants  www.avangate.com   5  
    • Merchants  www.avangate.com   6  
    • Affiliates  www.avangate.com   7  
    • Affiliates   Affiliates  www.avangate.com   8  
    • The  So%ware  Ver<cal  The  Market    !   The  So)ware  Market  Worldwide  is  es.mated  at  over  $260  billion  !   SaaS  is  a  $12  billion  market  (2011)  growing  to  $21  billion  in  2015  growing   at  over  15%  a  year  !   Year-­‐over-­‐year  growth  in  other  key  so)ware  categories  around  6-­‐10%  !   So)ware  is  fundamentally  purchased  online  …  !   …  with  Affiliate  sales  contribu.ng  an  addi<onal  10-­‐15%  to  so%ware   vendors’  online  sales,  with  some  contribu.ng  over  30%  www.avangate.com   9  
    • Affiliate  Preferences  to  Date  Up  to  20%  already  choose  so%ware  related  categories   Jewelry  &  Accessories   Computers  &   Insurance  /  Financial   Electronics  !   So%ware  is  included  in   Services   8.97%   several  ver.cals  -­‐   Health  &  Beauty   Home  &   Garden   accoun.ng  for  up  to   Green  /   Eco   Magazines   20%  of  the  affiliate   Gi)  Cer.ficates   Medical   Food  &  Entertaining   preferences*   Flowers  &  Gi)s   Office  &  Business   So%ware   7.46%   Financial   related   Event  Tickets   Department   Stores   Pets   Real  Estate   Da.ng   Apparel   Career  /  Business   Travel  &   Spiritual   Auto   Outlet  &  Discount   Opp   Books,   3.73%   Sports  &   Movies  &   Wedding   Recrea.on   Music   Educa<on   Toys  &  Hobbies   Gaming   0.4%   Contests  /  Giveaways   0.1%   *  According  to  the  data  in  the  AffStat  Report  2010  www.avangate.com   10  
    • Advantages  of  Promo<ng  So%ware  Fast  Selling,  Low  Maintenance,  Recurring  Revenue    1.  GREATER  COMMISSIONS    bigger  affiliate  margins  (generally  up  to  85%)   compared  to  physical  products  (generally  up  to  50%)  2.  MORE  CHANCES  TO  CONVERT  VISITORS    try  before  you  buy,  “Freemium”  3.  EASIER  TO  SELL    known  need,  does  not  have  to  be  touched,     immediate  gra.fica.on,  ahrac.ve  prices  for  customers  4.  EASIER  TO  HANDLE    no  hassles  over  delivery,     .me  zones  -­‐  as  in  some  physical  products  5.  AN  ANNUITY    recurring  revenues  opportuni.es,  upgrade,     renewals  focused,  mul.ple  modules  and  related     add-­‐on  opportuni.es    www.avangate.com   11  
    • Top  Selling  So%ware  Categories  Consumer  Titles  Comprise  the  Bulk  of  Affiliate  SW  Sales  !   U<li<es/Security:  est.  $  3  bln.  market  in  2011      !   Audio-­‐Video  Tools:  est.  $  2.5  bln.  in  2011      !   Produc<vity:  est.  $  10  bln.  in  2011      !   Games:  est.  $  47.5  bln.  in  2011  www.avangate.com   12  
    • Challenges  What  Do  Prospects  Need  to  Get  Past  to  Make  a  Decision  !   A  considered  purchase   Price  point,  Dependencies,  Complexity  !   Fear,  uncertainly,  and  doubt   Malware,  Security,  Compa.bility  !   Comparability  …  Trial   Price,  Func.onality,  Reputa.on,  Credibility,  Vendor  Longevity,  Support   What  are  some  of  the  best  prac.ces  to  helping  prospects   along  …  www.avangate.com   13  
    • WHILE  THERE’S  NO  RECIPE  FOR   SUCCESS…     PROVEN  IDEAS  CAN  ALWAYS  HELP       5  examples  in  the     Avangate  Affiliate  Network  www.avangate.com   14  
    • IncrediMail  So%ware  Vendors  as  Affiliates  www.avangate.com   15  
    • Freemium:  IncrediMail  Free  www.avangate.com   16  
    • Freemium:  IncrediMail  Plus,  Toolbars  www.avangate.com   17  
    • IncrediMail  !   Offers  email  customiza<on  tools  &  widgets     “Leadership  in  trailing-­‐edge  technology”       Brings  value  into  very  commodi.zed  market  !   Secrets  to  IncrediMail  Success     Feature-­‐filled,  func.onal  Freemium  version  leads  to  Premium  “IncrediMail  Plus”     Add-­‐ons  accessorize  Freemium  &  Premium  versions  to  expand  revenue  flow  from   exis.ng  customers     Associates  with  other  complementary  vendors  to  cross-­‐sell  whenever  possible     Uses  social  media  to  amplify  their  messages  about  “old-­‐fashioned”  communica.on   tools.    Use  “Crowd-­‐sourced”  endorsements  to  drive  popular  accessories  to  the  top  !   IncrediMail  benefits     Provides  con.nuous  added  value  to  their  customers     Generates  addi.onal  interest  on  frequent  return  visits  www.avangate.com   add-­‐on  sales  with  conversion  rates  of  over  10%*     Generates   18   *  Avangate  Affiliates  Network  
    • Freeso%.tvbok.com  Original  Content   Freeso%.tvbok.com:  Original  Content  www.avangate.com   19  
    • Freeso%.tvbok.com  Use  original  content  to  convert  audience  !   FreeSo%.tvbok.com     Affiliate  website  for  the  Japanese  audience       Offers  “how  to’s”  for  various  so)ware  products  &  PC-­‐related  ac.vi.es  !   Secrets  to  their  success     As  an  affiliate,  Freeso).tvbok.com  promotes  video  tools  and  uses  tutorials  and  reviews   as  customer  conversion  pages.    !   The  benefits     Provides  added  value  to  its  website  visitors  (over  2  million  page  views  monthly)     Generates  affiliate  sales  with  a  conversion  rate  of  over  0.8%*   *  Avangate  Affiliates  Network  www.avangate.com   20  
    • BitsDuJour.com  Leverage  the  power  of  the  discount  coupon   BitsDuJour:  Power  of  Coupons  www.avangate.com   21  
    • BitsDuJour.com  Leverage  the  power  of  the  discount  coupon   BitsDuJour:  Widget  www.avangate.com   22  
    • BitsDuJour.com  Power  of  Coupons  !   BitsDuJour     Offers  heavily  discounted  so)ware  .tles,  each  deal  only  for  24  hours     Leverages  coupons  and  sense  of  urgency  to  reach/grow  broad  audience  !   Secrets  to  BitDuJour’s  Success       Promotes  PC  &  Mac  so)ware  .tles  with  steep  discounts  (over  50%)     Community  &  crowd-­‐sourced  W.O.M.  marke.ng     Work  with  mul.ple  affiliate  networks  &  with  vendors  directly.   »  Affiliate  cross-­‐sell  program  (widget  on  other  affiliate  websites)     »  Vendor  program  (get  part  of  the  affiliate  commission  back)     Seasonal  &  special  campaigns  –  BitsDuJour  Holiday  Bundle  !   The  Big  benefit       Discounted  product  offers  generate  a  conversion  rate  of  over  20%*   *  Avangate  Affiliates  Network  www.avangate.com   23  
    • Myce.com   User  generated  content  &  communi<es  to  deliver  affiliate  promo<ons  Myce.com:  User  Generated  Content  &  Communi<es   to  Deliver  Affiliate  Promo<ons   www.avangate.com   24  
    • Myce.com  User  Generated  Content  &  Communi<es  to  Deliver  Affiliate  Promo<ons  !   Leverages  the  Shared  Bond  of  Community     Website  targeted  to  consumer  electronics,  gadgets  and  technology  community,  engaging   members  into  reviews,  discussions  and  forums  !   Secrets  to  Myce.com’s  success     Power  of  user  generated  content       Create  a  strong  community  around  it,  ahrac.ng  traffic     Contextual  adver.sing  used  to  generate  sales     Crowd-­‐sourced  promoted  so)ware  in  specialized  sec.ons  and  forums    !   The  Big  benefit     Added  value  through  reviews  and  social  interac.on  on  forums  and  discussions     Affiliate  conversion  rate  of  over  1.5%*   *  Avangate  Affiliates  Network  www.avangate.com   25  
    • Siliconac<on.com.br  Product  catalog  with  localized  user  experience   SiliconAc<on:  Extensive  Catalog,  Local  User   Experience   26  www.avangate.com  
    • Siliconac<on.com.br  Product  catalog  with  localized  user  experience   SiliconAc<on:  Installment  Plan  www.avangate.com   27  
    • Siliconac<on.com.br   Product  catalog  with  localized  user  experience  SiliconAc<on:  Brand  and  Product-­‐Specific  Keywords   on  local  markets   28   www.avangate.com  
    • Siliconac<on.com.br  !   Product  catalog  with  localized  user  experience     Brazilian  product  catalog  /  e-­‐tailer  selling  so)ware  online  with  over  1,400  .tles  !   Secrets  to  SiliconAc<on’s  success     Localized  buying  experience  (localized  payment  methods,  installment    plans,  etc.)     Recognize  their  role  in  suppor.ng  local  purchase  user  experience  rather  than  deep   inves.ga.on,  comparison,  considera.on     Generate  traffic  via  targeted  PPC  campaigns,  newslehers  and  adver.sing  serving  as  a   regional  conduit  for  latest  so)ware  availability     Uses  both  the  affiliate  and  reseller  model  being  flexible  to  offer  the  largest  selec.on  !   The  Big  benefit     Generate  sales  as  an  affiliate  with  a  conversion  rate  of  ~20%*     Linked  to  from  vendors  to  handle  traffic  from  that  region,  trusted  to  use  AdWords   *  Avangate  Affiliates  Network  www.avangate.com   29  
    • Takeaways  !   So)ware  is  a  rich  ver<cal  that  has  inherent  advantages  to  be  sold  online  …  both   standalone,  as  well  added  onto  exis.ng  affiliate  sites  !   Consumer  focused  so)ware  categories  currently  perform  best  …  !   …  but  growing  opportuni<es  in  business,  and  SaaS  solu.ons  crea.ng  interes.ng   niche  possibili.es  in  this  huge  market  ($12  billion),  not  to  men.on,  educa.on  !   Get  started  -­‐  join  a  dedicated  so)ware  affiliate  network  –  let  them  handle  tracking   &  payments  and  benefit  from  their  advanced  marke.ng  features  !   PC  business  maybe  declining,  but  in  the  post-­‐PC  era,  the  so%ware  business  is   more  vital  than  ever  !   Finally  …  www.avangate.com   30  
    • Find  a  parade  and  get  in  front  of  it!  www.avangate.com   31  
    • Thank  you  Avangate  Inc.  Redwood  City  CA.,  USA  Tel:  +1  650  249  5280  Avangate  B.V.  Amsterdam,  The  Netherlands  Tel:  +31  20  890  8080  info@avangate.com  www.avangate.com