Affiliate marketing opportunities in            Baltic states              Pjotr Tsvetkov             altex marketing
About me• Have been affiliate from 2004• I been focused on US market mostly• Have been dealing with Internet marketingas p...
I will tell you•   What is affiliate marketing?•   How affiliate marketing works•   Some facts about affiliate marketing• ...
What is affiliate marketing ?
What is affiliate marketing ?   Affiliate marketing is            SOPS
What is affiliate marketing ?Affiliate marketing isSellingOtherPeople’sStuff
How Affiliate Marketing works    Some  company    Submit
How Affiliate Marketing works    Some                Affiliate  company               Website    Submit
How Affiliate Marketing works    Some                Affiliate  company               Website                          ban...
How Affiliate Marketing works    Some                Affiliate  company               Website             Visitors        ...
How Affiliate Marketing works    Some                Affiliate  company               Website             Visitors        ...
FACTS ABOUT AFFILIATEMARKETING
Facts about Affiliate Marketing:• Reward affiliates when sales are made
Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner
Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner• Outsourced marketing team
Facts about Affiliate Marketing:•   Reward affiliates when sales are made•   Display your banner•   Outsourced marketing t...
Facts about Affiliate Marketing:•   Reward affiliates when sales are made•   Display your banner•   Outsourced marketing t...
Facts about Affiliate Marketing:•   Reward affiliates when sales are made•   Display your banner•   Outsourced marketing t...
Facts about Affiliate Marketing:•   Reward affiliates when sales are made•   Display your banner•   Outsourced marketing t...
Facts about Affiliate Marketing:•   Reward affiliates when sales are made•   Display your banner•   Outsourced marketing t...
Facts about Affiliate Marketing:•   Reward affiliates when sales are made•   Display your banner•   Outsourced marketing t...
HOW BIG IS AFFILIATEMARKETING?
2004-2010 Growth of UK Affiliate Marketing                 Value of UK affiliate industry, based on value of sales        ...
Market Value and Growth• Affiliate marketing is driving 8% of all online retail sales in  the UK• For many “blue chip” mer...
Is your company planning to spend more or less                      budget in 2010?                    Descrease          ...
Commission to networks andaffiliatesCommission level examples:• Travel (flights) – 1%• Retail – 5%• Subscriptions – 20%• D...
RETURN ON INVESTMENT
Return on InvestmentDrive revenue• Generate sales/actions• Drive acquisitions• Generate leads• Increase conversion rates
Return on InvestmentReduce costs• Only pay for the sales/acquisitions• Marketing activity can be less hit-and-miss
Return on InvestmentImprove branding• Exposure on quality affiliate websitesImprove marketing activities• Learn from affil...
STRENGTHS, WEEKNESSES,OPPORTUNITIES & THREATS(SWOT)
Strengths• Merchants like the performance marketing channel due to  the reliance on the CPA model
Strengths• Merchants like the performance marketing channel due to  the reliance on the CPA model• Despite the recession, ...
Strengths• Merchants like the performance marketing channel due to  the reliance on the CPA model• Despite the recession, ...
Strengths• Merchants like the performance marketing channel due to  the reliance on the CPA model• Despite the recession, ...
Strengths• Merchants like the performance marketing channel due to  the reliance on the CPA model• Despite the recession, ...
Weaknesses
Weaknesses• Terms violation
Weaknesses• Terms violation• “Dark arts” affiliates
Weaknesses• Terms violation• “Dark arts” affiliates• Fear of brand damage
Weaknesses•   Terms violation•   “Dark arts” affiliates•   Fear of brand damage•   Tracking is an issue
Opportunities
Opportunities• Affiliate marketing is a highly flexible business model
Opportunities• Affiliate marketing is a highly flexible business model• The quality-based CPC model
Opportunities• Affiliate marketing is a highly flexible business model• The quality-based CPC model• New channels opportun...
Opportunities• Affiliate marketing is a highly flexible business model• New channels opportunities• New technologies
Threats• Voucher-code VS “true content” affiliates.• Bid on brand name terms• Google represents a significant threat to SE...
WHERE TO START IF ACOMPANY WISHES TO OPENAFFILIATE PROGRAM?
Know your own numbers
Know your own numbers• How much money can you share?
Know your own numbers• How much money can you share?• How much money do you currently spend for getting your  customers?
Know your own numbers• How much money can you share?• How much money do you currently spend for getting your  customers?• ...
Know your own numbers• How much money can you share?• How much money do you currently spend for getting your  customers?• ...
Know your own numbers• How much money can you share?• How much money do you currently spend for getting your  customers?• ...
Test your conversions•   Website design•   Shopping process•   Pricing•   Marketing materials.
Test your conversions•   Website design•   Shopping process•   Pricing•   Marketing materials.•   Get the consultancy from...
Test your conversions•   Website design•   Shopping process•   Pricing•   Marketing materials.•   Get the consultancy from...
Test your conversions• Website design• Shopping process• Pricing• Marketing materials.• Get the consultancy from affiliate...
Questions please
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iLive 2011 - Pjotr Tsvetkov: How to start an affiliate program?

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iLive 2011 - Pjotr Tsvetkov: How to start an affiliate program?

  1. 1. Affiliate marketing opportunities in Baltic states Pjotr Tsvetkov altex marketing
  2. 2. About me• Have been affiliate from 2004• I been focused on US market mostly• Have been dealing with Internet marketingas professional last 6 years• I’m head of affiliate network pay4results.eu
  3. 3. I will tell you• What is affiliate marketing?• How affiliate marketing works• Some facts about affiliate marketing• How big is affiliate marketing• Return on Investment• Strengths, Weaknesses, Opportunities & Threats (SWOT)• Where to start if a company wishes to open affiliate program?
  4. 4. What is affiliate marketing ?
  5. 5. What is affiliate marketing ? Affiliate marketing is SOPS
  6. 6. What is affiliate marketing ?Affiliate marketing isSellingOtherPeople’sStuff
  7. 7. How Affiliate Marketing works Some company Submit
  8. 8. How Affiliate Marketing works Some Affiliate company Website Submit
  9. 9. How Affiliate Marketing works Some Affiliate company Website banner Submit
  10. 10. How Affiliate Marketing works Some Affiliate company Website Visitors banner Submit
  11. 11. How Affiliate Marketing works Some Affiliate company Website Visitors banner Submit €€€
  12. 12. FACTS ABOUT AFFILIATEMARKETING
  13. 13. Facts about Affiliate Marketing:• Reward affiliates when sales are made
  14. 14. Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner
  15. 15. Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner• Outsourced marketing team
  16. 16. Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner• Outsourced marketing team• Easy access to technology and affiliates using networks
  17. 17. Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner• Outsourced marketing team• Easy access to technology and affiliates using networks• Affiliate marketing is technique
  18. 18. Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner• Outsourced marketing team• Easy access to technology and affiliates using networks• Affiliate marketing is technique• The majority of merchants involved
  19. 19. Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner• Outsourced marketing team• Easy access to technology and affiliates using networks• Affiliate marketing is technique• The majority of merchants involved• Affiliate market is growing
  20. 20. Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner• Outsourced marketing team• Easy access to technology and affiliates using networks• Affiliate marketing is technique• The majority of merchants involved• Affiliate market is growing• Not slowing down
  21. 21. Facts about Affiliate Marketing:• Reward affiliates when sales are made• Display your banner• Outsourced marketing team• Easy access to technology and affiliates using networks• Affiliate marketing is technique• The majority of merchants involved• Affiliate market is growing• Not slowing down• The three sectors expected to experience the greatest growth – Travel, finance and mobile phones
  22. 22. HOW BIG IS AFFILIATEMARKETING?
  23. 23. 2004-2010 Growth of UK Affiliate Marketing Value of UK affiliate industry, based on value of sales driven by sector(£) 5 4,62 4,5 4,13 4 3,82 3,5 3,13 3Billions 2,5 2,216 2 1,5 1,35 1 0,6 0,5 0 2004 2005 2006 2007 2008 2009 2010 Econsultancy 2010
  24. 24. Market Value and Growth• Affiliate marketing is driving 8% of all online retail sales in the UK• For many “blue chip” merchants, particularly in retail and travel, this figure is much higher• 36% of responding companies were planning to increase their affiliate marketing budgets
  25. 25. Is your company planning to spend more or less budget in 2010? Descrease Keep the same Increase100% 90% 21 25 80% 46 70% 67 60% 50% 65 40% 64 30% 50 20% 29 10% 15 11 0% 4 4 Retail Financial Travel Other Source: Econsultancy and ExactTarget. Marketing budgets 2010
  26. 26. Commission to networks andaffiliatesCommission level examples:• Travel (flights) – 1%• Retail – 5%• Subscriptions – 20%• Digital goods – up to 50%
  27. 27. RETURN ON INVESTMENT
  28. 28. Return on InvestmentDrive revenue• Generate sales/actions• Drive acquisitions• Generate leads• Increase conversion rates
  29. 29. Return on InvestmentReduce costs• Only pay for the sales/acquisitions• Marketing activity can be less hit-and-miss
  30. 30. Return on InvestmentImprove branding• Exposure on quality affiliate websitesImprove marketing activities• Learn from affiliatesOpen new markets• Export opportunities
  31. 31. STRENGTHS, WEEKNESSES,OPPORTUNITIES & THREATS(SWOT)
  32. 32. Strengths• Merchants like the performance marketing channel due to the reliance on the CPA model
  33. 33. Strengths• Merchants like the performance marketing channel due to the reliance on the CPA model• Despite the recession, the affiliate marketing channel continues to grow at a strong rate
  34. 34. Strengths• Merchants like the performance marketing channel due to the reliance on the CPA model• Despite the recession, the affiliate marketing channel continues to grow at a strong rate• Affiliate marketing is often described as a “win-win” marketing channel
  35. 35. Strengths• Merchants like the performance marketing channel due to the reliance on the CPA model• Despite the recession, the affiliate marketing channel continues to grow at a strong rate• Affiliate marketing is often described as a “win-win” marketing channel• The affiliate marketing channel works well for both small and large-sized organizations
  36. 36. Strengths• Merchants like the performance marketing channel due to the reliance on the CPA model• Despite the recession, the affiliate marketing channel continues to grow at a strong rate• Affiliate marketing is often described as a “win-win” marketing channel• The affiliate marketing channel works well for both small and large-sized organizations• The company has control over who they work with
  37. 37. Weaknesses
  38. 38. Weaknesses• Terms violation
  39. 39. Weaknesses• Terms violation• “Dark arts” affiliates
  40. 40. Weaknesses• Terms violation• “Dark arts” affiliates• Fear of brand damage
  41. 41. Weaknesses• Terms violation• “Dark arts” affiliates• Fear of brand damage• Tracking is an issue
  42. 42. Opportunities
  43. 43. Opportunities• Affiliate marketing is a highly flexible business model
  44. 44. Opportunities• Affiliate marketing is a highly flexible business model• The quality-based CPC model
  45. 45. Opportunities• Affiliate marketing is a highly flexible business model• The quality-based CPC model• New channels opportunities
  46. 46. Opportunities• Affiliate marketing is a highly flexible business model• New channels opportunities• New technologies
  47. 47. Threats• Voucher-code VS “true content” affiliates.• Bid on brand name terms• Google represents a significant threat to SEO affiliates
  48. 48. WHERE TO START IF ACOMPANY WISHES TO OPENAFFILIATE PROGRAM?
  49. 49. Know your own numbers
  50. 50. Know your own numbers• How much money can you share?
  51. 51. Know your own numbers• How much money can you share?• How much money do you currently spend for getting your customers?
  52. 52. Know your own numbers• How much money can you share?• How much money do you currently spend for getting your customers?• Do you know something about average lifetime value of your customers?
  53. 53. Know your own numbers• How much money can you share?• How much money do you currently spend for getting your customers?• Do you know something about average lifetime value of your customers? With these numbers, you can calculate How much you can pay out commissions on sales.
  54. 54. Know your own numbers• How much money can you share?• How much money do you currently spend for getting your customers?• Do you know something about average lifetime value of your customers? With these numbers, you can calculate How much you can pay out commissions on sales.
  55. 55. Test your conversions• Website design• Shopping process• Pricing• Marketing materials.
  56. 56. Test your conversions• Website design• Shopping process• Pricing• Marketing materials.• Get the consultancy from affiliate marketing expert. Ask him if they will review your and offer a report of suggestions that need to be addressed before you launch
  57. 57. Test your conversions• Website design• Shopping process• Pricing• Marketing materials.• Get the consultancy from affiliate marketing expert. Ask him if they will review your and offer a report of suggestions that need to be addressed before you launch
  58. 58. Test your conversions• Website design• Shopping process• Pricing• Marketing materials.• Get the consultancy from affiliate marketing expert. Ask him if they will review your and offer a report of suggestions that need to be addressed before you launch• Contact affiliate network
  59. 59. Questions please

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