Affiliate Marketing talk by Marina Mann

Affiliate Marketing How to make money and do it right

Affiliate Marketing is part of the eCommerce ecosystem (cc) http://promote-my-site.com Thanks! My brand Stupid! Sucks! Love it! Love it! You rock! The Internet is the world’s largest market place. eCommerce or doing business electronically is changing business models and transforming corporations. Affiliate Marketing is the digital enablement of the word of mouth economy.

For publishers it’s away to generate revenue from your Web site Here’s an example of how a blog can build a CPA, or Cost Per Acquisition strategy with Affiliate Marketing. Leveraging the exchange of opinions within the community, these recommendations can turn into revenue in exchange for traffic to the merchant’s site.

Where the opportunity lies in understanding the opportunity

The advertiser is not in the business of generating traffic; publishers create content and context for referrals Cost $ 298 Pays $ 15
By creating relevant content, publishers drive traffic to merchant sites. A pay-for-performance program is where the publishers or affiliates receive a commission for generating a lead or a sale.

Affiliate
The affiliate marketing ecosystem Network Publisher Sends traffic Paid per performance Connects Affiliate to Advertiser Tools Pays commissions Engager Transacts Receives value Customer Advertiser Merchant Seller CRM payment & orders

Top advertisers and eCommerce powerhouses use affiliates as a virtual sales force
Targeted affiliate marketing promos, in all categories drive online sales.

The network is the technology and the relationship connector

Each network operates somewhat differently but all pay-per-performance
Moved from CJ to own in-house network in May 2008
$10 - $35 per lead
40%+ of winning bid revenue
Global network - get paid on actions made globally
Easy to sign-up
Pay affiliates per lead and commission sales
Represent ~50% of top 500 U.S. retailers
Great tools & profit tracking
Advertiser set up $12K, 4-6K/month
Difficult to join the merchant network
Require exclusivity from retailers
Have a large B2B network
Good screening of Affiliates
Pay flat fee per action
Pay on Try offers (free trial)
Pay on Sign-up, Subscriptions
Include Canadian retailers The Bay, Zellers, Home Outfitters
New UK player to watch

An affiliate displays a link, a visitor clicks on the link and makes a purchase, the affiliate earns a commission
Here’s an example of how an affiliate has built a business out of making eBay easier to search.

An different affiliate model born of transparency - “cash back shopping” surpassed $1billion in sales
“ Cash back” models share the affiliate commission with the customer. The average customer is the affiliate!

How WestJet grew to 850 affiliates in their first year and generated over $20M in sales
Due to the success of their Affiliate Program, WestJet encouraged soliciting charities to sign up! Not sure if the commissions paid were tax deductible.

Categories that worked Source: Internet Retailer Top 500 Guide, 2007 Edition and internal data analysis. CJ lists the following as well performing product categories in 2007

Product categories consumers are buying online in 2008

Take a performing product category like “health and fitness” and strategically set up a niche site, create content to generate inbound traffic and links
Create content and generate inbound traffic…
Google Alerts for new stories
Search.twitter.com for RSS keyword notifications
Google trends for breaking stories
Use RSS to create a post around a news story and refer the source
Respond to top rated videos on youtube.com to generate huge traffic
Use StumbleUpon.com to generate in-bound links
By Sean Collins http://blog.affiliatetip.com

It’s not easy money
Affiliates
Top ~20% of affiliates make a substantial income
Merchants
Be careful not to bankrupt yourself with leads
Barriers to success: lack of internal resource, restricted budget & difficulty attracting affiliates
CPA fraud - Ask yourself: "Who is this affiliate, who came from nowhere to be my #2 biggest producer?”
Difficult to measure results unless you de-dup sales across different channels

Affiliate Marketing in email, social media , blogs and social networking sites
The emerging market is Social Media - it’s the ultimate formula to monetize the word of mouth economy with integrity. Imagine Facebook meets eBates! Also use contextual affiliate links in newsletters.

SEO, Real-time SMS , micro-blogging models continue to drive multi-channel marketing (online and in-store)
Game changers include: mobile/in-store technology & location based mobile coupon-ing as well as up-to the minute micro-blogging or word of mouth text and video broadcasting.

In an economic downturn Affiliate Marketing will thrive - offering a lower-cost way of finding customers in tough times
Don’t search for home runs, try and test
Practice transparency
Deliver context and relevancy
Your integrity rules
Opportunity doesn’t wait …

In an economic downturn Affiliate Marketing will thrive offering a lower-cost way of finding customers in tough times For publishers this space doesn’t cost money, it costs time
Don’t search for home runs, try and test
Testing creates historical data and trending insights
Practice transparency
If you care about your audience, whatever your niche is, you can get paid without “selling out”
Deliver context and relevancy
Don’t under estimate matching your content to products with similar brand values
Your integrity rules
Opportunity doesn’t wait …

Terry Kukle, Tag International Media, [email_address]
David Jones, Web Visionary previously at WestJet [email_address]
David Benoliel, VP Marketing Services, CX Digital [email_address]
Brian Conchuratt, Senior Sales Manager, Commission Junction [email_address]
Andrea Stairs, Affiliate Marketing, eBay [email_address]
Derek Szeto, President & Founder, Redflagdeals.com [email_address]
Thanks to …

Marina Mann
eCommerce &
Digital Marketing
call me / 416-532-8454
email me / [email_address]
check out /
www.marinamann.com
twitter.com/marinamann
Facebook: Marina Mann
Get in touch… Contact Thank you! http://www.marinamann.com

Affiliate Marketing talk by Marina Mann

by Marina Mann on Nov 18, 2008

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