Commissions, Competitors, Cookies & CPA’s. Forging the Right Affiliate Payout Presented by Jonathan Miller, CEO – ForgeBus...
<ul><li>There are many factors that influence the success of your new or existing affiliate program. </li></ul><ul><li>Fou...
<ul><li>This presentation assumes you’ve already taken a few significant steps in your online strategy: </li></ul><ul><ul>...
<ul><li>In order for an affiliate program to thrive / or even survive / it’s imperative that you have a well defined affil...
<ul><li>Affiliate Channel takes time to develop - not a magic bullet or last minute strategy. </li></ul><ul><li>Needs to g...
<ul><li>Research your competitors </li></ul><ul><li>Learn from competitors </li></ul><ul><li>Research takes time and effor...
<ul><li>Programs fail when they go to market with either a too low commission and then try to raise it – or by going in wi...
<ul><li>Affiliates and Merchants have an equal obligation </li></ul><ul><ul><ul><li>Affiliates need to deliver valid, pre-...
<ul><ul><li>Most programs pay either </li></ul></ul><ul><ul><ul><li>Once off Acquisition CPA </li></ul></ul></ul><ul><ul><...
<ul><ul><li>What kind of payout do you want to pursue? </li></ul></ul><ul><ul><ul><li>Does your product sell fast and deli...
<ul><ul><li>List active competitors </li></ul></ul><ul><ul><li>Check inbound links & research affiliates </li></ul></ul><u...
 
Disadvantages
 
<ul><li>Varying reports that cookies track between 50% and 99% of all sales </li></ul><ul><li>Consensus amongst managers t...
<ul><li>Other Factors that influence affiliate program success: </li></ul><ul><ul><li>Program platform selection & Setup <...
 
<ul><li>please visit: </li></ul><ul><li>http://www.forgebusiness.com </li></ul><ul><li>US:  1-800-841-1369 /   SA:   086-1...
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Affiliate Program Development Forging The Right Affiliate Payout No Audio

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Affiliate Program Development Forging The Right Affiliate Payout No Audio

  1. 1. Commissions, Competitors, Cookies & CPA’s. Forging the Right Affiliate Payout Presented by Jonathan Miller, CEO – ForgeBusiness USA Inc.
  2. 2. <ul><li>There are many factors that influence the success of your new or existing affiliate program. </li></ul><ul><li>Four of the most fundamental of these are: </li></ul><ul><ul><li>Your competitive Environment (COMPETITORS) </li></ul></ul><ul><ul><li>Your Customer Acquisition Cost Model (CPA) </li></ul></ul><ul><ul><li>Your Affiliate Commission Strategy (COMMISSIONS) </li></ul></ul><ul><ul><li>The length of time you track Affiliate Sales (COOKIES) </li></ul></ul>
  3. 3. <ul><li>This presentation assumes you’ve already taken a few significant steps in your online strategy: </li></ul><ul><ul><li>Selected the Network / Software Platform </li></ul></ul><ul><ul><li>Selected the Product Mix </li></ul></ul><ul><ul><li>Defined your End Customer </li></ul></ul><ul><ul><li>Identified an affiliate opportunity online </li></ul></ul>
  4. 4. <ul><li>In order for an affiliate program to thrive / or even survive / it’s imperative that you have a well defined affiliate strategy that takes into account </li></ul><ul><ul><li>Your technology platform </li></ul></ul><ul><ul><li>Your competitive environment </li></ul></ul><ul><ul><li>Your Value proposition / Unique selling proposition </li></ul></ul><ul><ul><li>Your marketing mix </li></ul></ul><ul><ul><li>Your business imperatives (sales vs customer acquisition </li></ul></ul><ul><ul><li>Tracking options (primary and secondary affiliate tracking </li></ul></ul>
  5. 5. <ul><li>Affiliate Channel takes time to develop - not a magic bullet or last minute strategy. </li></ul><ul><li>Needs to grow to reach critical mass </li></ul><ul><li>You will not have thousands of affiliates sending you traffic </li></ul><ul><li>Tracking does Fail unexpectedly </li></ul><ul><li>Don’t underestimate launch costs </li></ul><ul><li>It’ll take 7 months to hit ROI </li></ul>
  6. 6. <ul><li>Research your competitors </li></ul><ul><li>Learn from competitors </li></ul><ul><li>Research takes time and effort, but is a critical to developing your strategy </li></ul><ul><li>Join each of your competitors programs </li></ul><ul><li>Send them traffic and understand how they operate in order to improve or match their performance. </li></ul><ul><li>Resources and affiliate directories available online to help you find programs. </li></ul>
  7. 7. <ul><li>Programs fail when they go to market with either a too low commission and then try to raise it – or by going in with too high a commission and then lowering it. </li></ul><ul><li>Selecting your Payout Model </li></ul><ul><ul><li>Benchmark against competitors </li></ul></ul><ul><ul><ul><li>What are my competitors doing? </li></ul></ul></ul><ul><ul><li>Use Internal Proven Marketing Metrics </li></ul></ul><ul><ul><ul><li>Affordability per sale / per customer acquisition / per lead / per click / per impression </li></ul></ul></ul>
  8. 8. <ul><li>Affiliates and Merchants have an equal obligation </li></ul><ul><ul><ul><li>Affiliates need to deliver valid, pre-qualified customers </li></ul></ul></ul><ul><ul><ul><li>You need to monetize the customers and extract maximum share of spend. </li></ul></ul></ul>
  9. 9. <ul><ul><li>Most programs pay either </li></ul></ul><ul><ul><ul><li>Once off Acquisition CPA </li></ul></ul></ul><ul><ul><ul><li>Recurring Revenue </li></ul></ul></ul><ul><ul><ul><li>Upfront CPA with recurring revenue </li></ul></ul></ul>
  10. 10. <ul><ul><li>What kind of payout do you want to pursue? </li></ul></ul><ul><ul><ul><li>Does your product sell fast and deliver immediate value for affiliates? </li></ul></ul></ul><ul><ul><ul><li>Does the product have a longer sales cycle or is a bigger ticket item? </li></ul></ul></ul><ul><ul><ul><li>Can you share ongoing revenue with affiliates or pay only for the introduction? </li></ul></ul></ul><ul><ul><ul><li>What is your current cost per acquisition for new customers? </li></ul></ul></ul><ul><ul><ul><li>How much can you afford to share with affiliates and how should you structure the compensation? </li></ul></ul></ul>
  11. 11. <ul><ul><li>List active competitors </li></ul></ul><ul><ul><li>Check inbound links & research affiliates </li></ul></ul><ul><ul><li>Research top keywords and see who’s bidding on those keywords </li></ul></ul><ul><ul><li>Determine competitors affiliate payout </li></ul></ul><ul><ul><li>What is their relative strength in the marketplace </li></ul></ul><ul><ul><li>How dominant are they in terms of ad placement </li></ul></ul><ul><ul><li>What are the Strengths and Weaknesses of their program </li></ul></ul><ul><ul><li>What opportunities and threats does this present </li></ul></ul>
  12. 13. Disadvantages
  13. 15. <ul><li>Varying reports that cookies track between 50% and 99% of all sales </li></ul><ul><li>Consensus amongst managers that cookies track well </li></ul><ul><li>Good affiliate programs offer redundant tracking </li></ul><ul><li>Affiliates want lifetime cookies. </li></ul><ul><li>Merchants can choose from a 1 day to lifetime cookie </li></ul><ul><li>Few cookies survive longer than a year - use a LIFETIME identifier and assign the affiliate ID to the customer, so repeat sales are tracked without needing a cookie. </li></ul>
  14. 16. <ul><li>Other Factors that influence affiliate program success: </li></ul><ul><ul><li>Program platform selection & Setup </li></ul></ul><ul><ul><li>Affiliate Recruitment Strategy and Targeting </li></ul></ul><ul><ul><li>Affiliate Activation and Communications strategy </li></ul></ul><ul><ul><li>Promotions, Special Offers and Affiliate Incentives </li></ul></ul><ul><ul><li>Custom creative and Super Affiliate Content </li></ul></ul><ul><ul><li>Real-time Tracking and Troubleshooting </li></ul></ul><ul><ul><li>Payment Frequency </li></ul></ul>http://www.forgebusiness.com/?ppt
  15. 18. <ul><li>please visit: </li></ul><ul><li>http://www.forgebusiness.com </li></ul><ul><li>US:  1-800-841-1369 /   SA:   086-10-FORGE (36743) </li></ul><ul><li>UK:  0808-234-7039  /   CAN:  1-866-761-5644 </li></ul><ul><li>DIRECT:    +27-12-676-9360 </li></ul><ul><li>E: [email_address] </li></ul>
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