Learn how to create an affiliate program that drives sales for you. Slides from Affiliate Marketing 101, a class taught by Dan Marques covering the fundamentals of affiliate lead gen, including affiliate networks, search engine marketing, recruiting affiliates, and more.
agendaGet to Know Each OtherWhat is Aﬃliate Marke/ng?Pre-‐Launch – How big can it be? Where do I start? Launch – Process, Best Prac?cesGrow – 90/10, Recrui?ng, PiEalls to AvoidBeyond the NetworkFree GiM!Next Steps
Industry$2-‐4 Billion industry5-‐15% of eCommerce site sales200,000+ aﬃliate “publishers”5,000+ merchants
Pros & ConsPros:-‐ Pay for Performance-‐ Quick & Easy to Launch-‐ Build your online exposure-‐ Easy to Measure ROICons:-‐ Time to maintain & manage-‐ Fraud Risks-‐ Nega8ve Brand Risk-‐ Unsure as to how being promoted
Which Network?Low Cost of EntryHigh Cost of EntryLarge & Diverse Publisher BaseSmaller & Niche Publisher BaseIn-‐House:Info Products:
Key Pre-‐Launch DecisionsManagement? (Self, Network, OPM)Payout & Amount (CPA, CPC, CPL, % Sales) Aﬃliate Agreement / Policies-‐ Acceptance Policy (Auto v. Manual? Types of Publishers?)-‐ Search & TM Policy-‐ Adware / Spyware/ CAN-‐SPAM Compliance-‐ Loyalty / Incen8vized Policy-‐ Plain English, Easy to Understand-‐ Cookie Length / Acribu8on MethodologySign up for an aﬃliate account to “gain inspira8on”
Launch ChecklistOrder Conﬁrma8on Pixel (Net vs. Gross for % Sale)New Merchant Promo8ons w/ Network (Nego8ate Upfront)Categoriza8on & Descrip8onCommission Structure (Benchmark to peers, easier to go up later) Welcome Email Easy to Grab Crea8ve, Feed, Links, and Oﬀers (Tagged for your analy8cs!)Contact info for program manager (Email, Twicer, Phone)“Aﬃliate Program” link on your site with pageProcess & Policy for Returns / Cancelled / Fraud ordersSign up for an aﬃliate account to “gain inspira8on”
Recrui8ng PublishersPay for featured placement, dedicated email (pre-‐nego8ate upfront)Direct Outreach (Forums, Blogs, Compe8tor Men8ons, Network Search, SEO Rankings)Categorize Publishers:-‐ Coupon & Deal -‐ Loyalty-‐ Content-‐ Comparison Shopping-‐ Email-‐ Industry / Niche
Recrui8ng PublishersExample Email:“Hi There,My name is Dan and I am the aﬃliate manager for AwesomeCo (www.awesomeco.com)I visited your site and no8ced that at (URL) you link to LessAwesomeCo.com – who sells similar products to ours. (or category, content, oﬀers, etc.)We would like to work with you and your website. We would like to invite you to join our aﬃliate program – Here is the link to the descrip8on of our program (hcp://www.Awesomeco.com/Aﬃliate)Why partner with AwesomeCo…. Special Oﬀer – If you join and place a link by 2/28 you will get increase commission of $XX and bonus of $XX)Let me know if you are interested or have any ques8ons.”
Incen8vizing Publishers1. Incen8ve to take ﬁrst ac8on (ex. adding links to their site)2. Incen8ve for ﬁrst order3. Special incen8ves to improve performance:-‐ Exclusive content/crea8ve/oﬀers-‐ Tiered payment structure-‐ Bonuses for reaching certain levels-‐ Increased payout for increased exposure-‐ Special landing page / co-‐branded-‐ Free Product-‐ Widgets/Tools-‐ Time-‐Sensi8ve Private Oﬀers-‐ Payment Frequency
90/10 Principle90% of your aﬃliate channel revenue will be generated by 10% of your publishersVast majority will generate 0 traﬃcPriori8ze your eﬀorts (Recrui8ng the top 10% and nurturing exis8ng 10%) Communicate -‐ Newslecers, Direct Outreach, Updates (Crea8ve, Oﬀers, Product)Always Excep8ons to the rule (ex. ShopCrossFitReebok.com)
Coupon SitesCoupon and deal sites are typically the biggest aﬃliates…but is their business incremental?
Coupon SitesA Diﬀerent Strategy for Coupon SitesReward based on incrementality:-‐ Do not allow them to bid in paid search in “yourname + coupons” space-‐ No “exclusive” compe8ng oﬀers-‐ Launch your own coupon site (SEO & PPC)-‐ Reduce commissions for those who rank organic (take what they can get)-‐ Reward coupon sites for incremental campaigns
5 Piralls to AvoidCoupon & Deal Driven ProgramLack of Acribu8onPaying for Fraud/Refund/Cancel Orders (Low Quality Leads)Beware the “Mysterious” Aﬃliate (No Sig. Site, High CR)Search ShenanigansBonus Pirall: Paying upfront for “Placements”
Beyond the NetworkBizDev is the *new* Aﬃliate Remember…Pay for Performance
Beyond the NetworkCustomer Driven ApproachWhat/Where does your audience:-‐ Read Online (Blogs, Magazines, etc.)-‐ Par/cipate in Communi/es / Forums-‐ Purchase complementary products/services -‐ Search for in Google-‐ Follow on TwiVer/Pinterest/Facebook
Beyond the NetworkNegoUate Custom DealsGeneric outreach“Hi There,My name is Dan and I work for AwesomeCo (www.awesomeco.com)I visited your site (twicer/pinterest/etc.) thought it was great and believe your audience may also be interested in Awesomeco.AwesomeCo is…. (brief 1-‐3 sentence about with diﬀeren8ator)I would love to explore poten8al ways we could work together”
Daily Deals / Flash SalesEverything is NegoUableStrive for Proﬁtable Deals Try Non-‐Tradi8onal OﬀersRemember the levers:-‐ Oﬀer-‐ Rev Share-‐ Exclusivity-‐ Your Margin / Economics
Press / MediaApproach with open mindFocus on your beneﬁts to their audienceMany op8ons to work together:-‐ Press / Men8ons-‐ Performance Display -‐ Co-‐Branded ContestBe CreaUve!
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Next StepsSign up as an aﬃliate, join some related programsSelect a Network, Review & Fill out the Pre-‐Launch and Launch ChecklistsLaunch your program!Brainstorm some custom aﬃliate deals and reach out!AddiUonal Resources in sheet