An Affiliate’s Life Vinny Lingham Affiliate Dag May 19, 2009 Twitter: @yolaweb
About Vinny <ul><li>Vinny Lingham </li></ul><ul><li>Founder, CEO </li></ul><ul><li>Seasoned entrepreneur who founded award...
Life as an affiliate Confidential & Private document. This remains the intellectual property of Yola Inc.
Clicks2Customers <ul><li>Founded in 2003 </li></ul><ul><li>Grew the business from 6 people to 70 people </li></ul><ul><li>...
Benefits of being an affiliate Confidential & Private document. This remains the intellectual property of Yola Inc.
Challenges of being an affiliate <ul><li>Change in Terms </li></ul><ul><li>Fluctuating exchange rates </li></ul><ul><li>Sh...
Key to becoming a successful affiliate <ul><li>Keep the team small </li></ul><ul><li>Stay focused </li></ul><ul><li>Much v...
Key to growing and staying successful <ul><li>Be ready for volatility in earnings </li></ul><ul><li>Maintain a healthy cas...
Lessons learned as an affiliate <ul><li>Conversion rates are important </li></ul><ul><li>Try to engage your traffic so tha...
How the PPC ecosystem operates in different economies Information Commerce Entertainment Natural Listings Confidential & P...
Customer Lifetime Value 20% 80% Affiliate businesses can’t be too big  because the revenues are only short term. 0 5 24 12...
Why did I leave affiliate marketing? <ul><li>Merchants did not always understand their own business nor their customers li...
Affiliate Marketing Glass Ceiling Clicks2Customers <ul><li>The chances of building a billion dollar company in affiliate m...
Challenges of now running a start-up company (Yola) <ul><li>More overhead </li></ul><ul><li>Higher investment </li></ul><u...
Choose: technology company or affiliate?... <ul><li>… You can’t be both </li></ul>Confidential & Private document. This re...
Do what makes you happy Confidential & Private document. This remains the intellectual property of Yola Inc.
Thank You Contact Info:  Vinny Lingham Email: vinny@yola.com Blog: vinnylingham.com Confidential & Private document. This ...
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Vinny Lingham - “An Affiliate’s Life”

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Learn what it takes to be a successful affiliate. Vinny will share his experiences of his life as an affiliate and the pros and cons to working in the industry. He’ll talk about how he grew his previous company, Clicks2Customers, into a search affiliate powerhouse and and why he chose to leave the affiliate world to found his current company.

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Vinny Lingham - “An Affiliate’s Life”

  1. 1. An Affiliate’s Life Vinny Lingham Affiliate Dag May 19, 2009 Twitter: @yolaweb
  2. 2. About Vinny <ul><li>Vinny Lingham </li></ul><ul><li>Founder, CEO </li></ul><ul><li>Seasoned entrepreneur who founded award-winning search engine marketing company, Clicks2Customers. </li></ul><ul><li>Awards: YGL Honoree 2009 by the World Economic Forum, High-impact entrepreneur by Endeavor Global, and 2006 Top Young IT Entrepreneur. </li></ul><ul><li>Serves on numerous international advisory boards for search engine and affiliate marketing, including Commission Junction and Yahoo! </li></ul><ul><li>Speaks at conferences around the world and is frequently cited on Web 2.0 trends. </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  3. 3. Life as an affiliate Confidential & Private document. This remains the intellectual property of Yola Inc.
  4. 4. Clicks2Customers <ul><li>Founded in 2003 </li></ul><ul><li>Grew the business from 6 people to 70 people </li></ul><ul><li>Awards: 2004 Commission Junction Horizon Award for Innovation, 2006 Minister's Award for Overall Excellence (Small/Medium Enterprises), 2007 nomination for Best New Affiliate at the LinkShare Golden Link Awards </li></ul><ul><li>Built a cool technology, which is how Yola (formerly SynthaSite) was created </li></ul><ul><li>Affiliate Marketing Model and Excellent Customer Service </li></ul><ul><li>Clients include 3 of the top 30 online retailers in the US, 2 of the top 10 UK travel brands, and the biggest online retailers in both South Africa and Australia. </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  5. 5. Benefits of being an affiliate Confidential & Private document. This remains the intellectual property of Yola Inc.
  6. 6. Challenges of being an affiliate <ul><li>Change in Terms </li></ul><ul><li>Fluctuating exchange rates </li></ul><ul><li>Short term gains </li></ul><ul><li>Crowded marketplace – many pitfalls and risks </li></ul><ul><li>Not easily scalable </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  7. 7. Key to becoming a successful affiliate <ul><li>Keep the team small </li></ul><ul><li>Stay focused </li></ul><ul><li>Much value is in the long tail of search </li></ul><ul><li>Focus on the user </li></ul><ul><li>Don’t compete against the media agencies who are incentivized by their clients to spend more money by paying them on % of spend models </li></ul><ul><li>Detailed Business Intelligence </li></ul><ul><li>Grow revenues by optimizing campaigns, not just increasing bids </li></ul><ul><li>Align metrics between affiliates and marketers </li></ul><ul><li>Focus on real value linked to ROI </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  8. 8. Key to growing and staying successful <ul><li>Be ready for volatility in earnings </li></ul><ul><li>Maintain a healthy cash balance </li></ul><ul><li>Excellent communication between the affiliates and the advertisers </li></ul><ul><li>Transparency to establish trust and protect merchant brand equity </li></ul><ul><li>Need to be flexible and able to follow the trends, e.g. twitter </li></ul><ul><li>Network: Attend Industry Conferences and build your profile and reputation </li></ul><ul><li>Don’t just be another invisible affiliate </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  9. 9. Lessons learned as an affiliate <ul><li>Conversion rates are important </li></ul><ul><li>Try to engage your traffic so that it becomes recurring and reduces your cost of traffic acquisition </li></ul><ul><li>You have a small window of opportunity to getting $$$ from a customer </li></ul><ul><li>Work with reputable affiliate networks </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  10. 10. How the PPC ecosystem operates in different economies Information Commerce Entertainment Natural Listings Confidential & Private document. This remains the intellectual property of Yola Inc. Good Times Bad Times CPC Price Impact in Current Economy I C E I C E A L A L People tend to spend less time searching People tend to spend more time bargain hunting
  11. 11. Customer Lifetime Value 20% 80% Affiliate businesses can’t be too big because the revenues are only short term. 0 5 24 12 Months Party Affiliates and Merchants share this portion Merchants Typical Company Size 5 100 Ex. Share of money to the Affiliate $50 $200 Duration 1-5 months 6-24 months
  12. 12. Why did I leave affiliate marketing? <ul><li>Merchants did not always understand their own business nor their customers life value </li></ul><ul><li>Merchants kept running out of a budget (retarded concept) </li></ul><ul><li>Affiliate Marketing was becoming commoditized </li></ul><ul><li>I reached the glass ceiling and felt like I couldn’t go any higher </li></ul><ul><li>Wanted to build my own product and services </li></ul><ul><li>Didn’t want to make $$$ for other people, instead leveraged my skills for my own benefit </li></ul><ul><li>Wanted to build a strong business model for affiliates to market </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  13. 13. Affiliate Marketing Glass Ceiling Clicks2Customers <ul><li>The chances of building a billion dollar company in affiliate marketing are very small </li></ul><ul><li>The industry size determines how big companies can grow to </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc. Scale Revenue Level to Achieve % Who Achieve This $100K Easy 50% $1 million Moderate 10% $5 million Difficult 5% $10 million Exceptional 1% $50 million Almost impossible .01% $1 billion Impossible ???
  14. 14. Challenges of now running a start-up company (Yola) <ul><li>More overhead </li></ul><ul><li>Higher investment </li></ul><ul><li>Must wear multiple hats </li></ul><ul><li>Staying on top of your email </li></ul><ul><li>Many stakeholders </li></ul><ul><li>Managing growth and capacity </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  15. 15. Choose: technology company or affiliate?... <ul><li>… You can’t be both </li></ul>Confidential & Private document. This remains the intellectual property of Yola Inc.
  16. 16. Do what makes you happy Confidential & Private document. This remains the intellectual property of Yola Inc.
  17. 17. Thank You Contact Info: Vinny Lingham Email: vinny@yola.com Blog: vinnylingham.com Confidential & Private document. This remains the intellectual property of Yola Inc.

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