Affiliate Marketing 101. Learn the basics of affiliate marketing and why you'll love affiliates but dislike them at the same time.

2. Affiliates – A Love Hate Relationship
David Jones
VP of E-Commerce
Arhaus Jewels
Some of the brands David has worked with:

3. Affiliates – A Love Hate Relationship
David Jones
VP of E-Commerce
Arhaus Jewels
http://www.arhausjewels.com
Web Only Business

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Affiliates – A Love Hate Relationship
Formula For All E-Commerce Business
WEBSITE TRAFFIC X CONVERSION RATE X AVERAGE ORDER VALUE
= $$$$ MONEY
1,000,000 X 2.2% X $200
= $4,400,000
1,000,000 X 2.0% X $200
= $4,000,000

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Affiliates – A Love Hate Relationship
Formula For All E-Commerce Business
WEBSITE TRAFFIC X CONVERSION RATE X AVERAGE ORDER VALUE
= $$$$ MONEY
1,200,000 X 2.0% X $200
= $4,800,000
1,000,000 X 2.0% X $200
= $4,000,000

6. Affiliates – A Love Hate Relationship
Speaking Of Traffic, What Are Typical Traffic Sources?

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Affiliates – A Love Hate Relationship
How Do Affiliates Work?
WEBSITE TRAFFIC X CONVERSION RATE X AVERAGE ORDER VALUE
• Affiliates send traffic to your website
• If anyone they send your way buys, they get X% of the sale
GET PAID FOR PERFORMANCE!

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Affiliates – A Love Hate Relationship
How Do Affiliates Work?
WEBSITE TRAFFIC X CONVERSION RATE X AVERAGE ORDER VALUE
• Affiliates send traffic to your website
• If anyone they send your way buys, they get X% of the sale
GET PAID FOR PERFORMANCE!

9. Affiliates – A Love Hate Relationship
What are some popular Affiliate Networks?
Difference between networks is niche, cost, and size of the network
(Apple.com,BestBuy.com)
(Walmart.com, OfficeDepot.com)
(Sears.com, Netflix.com)
(OneKingsLane.com, Wayfair.com)(Moosejaw.com, Bootbarn.com)
(Toys ‘R Us, Aeropostale)

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Affiliates – A Love Hate Relationship
Who Are Some Of The 200,000+ Popular Affiliates?

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Affiliates – A Love Hate Relationship
Who Are Some Of The 200,000+ Popular Affiliates?

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Affiliates – A Love Hate Relationship
Popular Types of Affiliates
• Coupons and deals
• Loyalty/Rebates
• Comparison Shopping
• Email only
• Straight content
• Social Media

13. Logically Speaking, How Does It Work?

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Affiliates – A Love Hate Relationship
Technically speaking, how Does It Work?
One popular way is your affiliate network will give you a pixel.
<script type="text/javascript“ src="/library/javascript/avantlink/avmws_1011289.js"></script>
<script type= "text/javascript" >
var _AvantMetrics = _AvantMetrics || [];");
sb.Append("_AvantMetrics.push(['order',{ order_id:'" + MyOrderNumber +
"', amount:'" + SaleAmount + "',state:'" + strBillState + "', country:'" + strBillCountry
+ "'}]);");
</script>
THIS GOES ON EVERY PAGE
THIS GOES ON THE CHECKOUT ORDER CONFIRMATION PAGE

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Affiliates – A Love Hate Relationship
Now That You Signed Up An Affiliate Network, Now What?
• Recruit
• Be found by affiliates in the network
• Send the affiliate an email invitation
• Social Media
• Offer big % for an initial placement in high traffic area
• Offer to signup now and we’ll give you X% commission
• 80% of your affiliate revenue will probably be from 5-10 affiliates
• Newsletters
• Incentivize
• Give exclusive deals or exclusive coupon
• Bonus them if they sell X% of product
• Give them product
• Give them their own landing page on your site

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Affiliates – A Love Hate Relationship
Things To Love About Affiliates
• Easy to setup
• Only get paid if they perform
• Easy to measure

17. • Usually only looking for a deal
• Will call your 1-800 sales number, trying up your lines
for customers who will actually pay
Affiliates – A Love Hate Relationship
Things To Hate About Affiliates
• Maybe would’ve got the sale anyway, added expense.
• Brand image
• Attribution
• Affiliates will bid on your branded terms in paid search and will bid on
terms you aren’t bidding on but are popular
• Affiliates will do anything for you to click their link even lie, cheat,
spam, even spyware
• Affiliates are super needy
• Customer Refunds and Cancellations!
• Customers referred aren’t the best customers

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Affiliates – A Love Hate Relationship
How can you keep affiliates honest?
• Constantly watch them & bust their chops
• Only let affiliates into your program that you want
• Take up the real estate on search engines that’s rightfully yours
• Including natural listing. Create your own coupon/promo page

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Affiliates – A Love Hate Relationship
How can you keep affiliates honest?
• Constantly watch them & bust their chops
• Only let affiliates into your program that you want
• Take up the real estate on search engines that’s rightfully yours

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Affiliates – A Love Hate Relationship
How Much Is It?
• Affiliates typically get 5-9% of each sale
• Affiliate Networks typically gets 2 - 3% of each sale
• Affiliate Network dedicated account manager
• Hire can be “in house”
• Or, account manager at the network. Count on at least $20,000/year

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Affiliates – A Love Hate Relationship
How Do You Measure Performance?
• Affiliate Network will have a reporting platform
• Google Analytics

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Affiliates – A Love Hate Relationship
How Do You Measure Performance?
• Affiliate Network will have a reporting platform
• Google Analytics

23. Questions?
djones@arhaus.com
David Jones
VP of E-Commerce
Arhaus Jewels