Why do affiliates promoting digital goods are earning the most? The presentation will outline the traits and tactics best affiliates in the software industry use with specific case studies. Experience level: Beginner, Intermediate, Advanced Target audience: Affiliates/Publishers, Merchants/Advertisers Niche/vertical: Software Michael Ni, SVP, Marketing and Products, Avangate

1. 5 Software Niche Affiliate Success Stories Michael Ni, CMO/SVP Marketing & Products

2. 5 Software Verticals Affiliate Success Stories What Are Some of the Best Practices to Drive Conversion in a Software World The Software Vertical Why It’s Good … … and in which Sub-Categories 5 case studies in Software Affiliate Success What’s Your Next Move

3. Vendors

4. Merchants

5. Merchants

6. Affiliates

7. Affiliates Affiliates

8. The Software Vertical The Market The Software Market Worldwide is estimated at over $260 billion SaaS is a $12 billion market (2011) growing to $21 billion in 2015 growing at over 15% a year Year-over-year growth in other key software categories around 6-10% Software is fundamentally shifting to being purchased online … … with Affiliate sales contributing an additional 10-15% to software vendors’ online sales, with some contributing over 30%

9. Software is included in several verticals - accounting for up to 20% of the affiliate preferences* Affiliate Preferences to Date Up to 20% already choose software related categories * According to the data in the AffStat Report 2010

10. GREATER COMMISSIONS  bigger affiliate margins (generally up to 85%) compared to physical products (generally up to 50%) MORE CHANCES TO CONVERT VISITORS  try before you buy, “Freemium” EASIER TO SELL  known need, does not have to be touched, immediate gratification, attractive prices for customers EASIER TO HANDLE  no hassles over delivery, time zones - as in some physical products AN ANNUITY  recurring revenues opportunities, upgrade, renewals focused, multiple modules and related add-on opportunities Advantages of Promoting Software Fast Selling, Low Maintenance, Recurring Revenue

11. Top Selling Software Categories Consumer Titles Comprise the Bulk of Affiliate SW Sales Utilities/Security: est. $ 3 bln. market in 2011 Audio-Video Tools: est. $ 2.5 bln. in 2011 Productivity: est. $ 10 bln. in 2011 Games: est. $ 47.5 bln. in 2011

12. Challenges What Do Prospects Need to Get Past to Make a Decision A considered purchasePrice point, Dependencies, Complexity Fear, uncertainly, and doubtMalware, Security, Compatibility Comparability … TrialPrice, Functionality, Reputation, Credibility, Vendor Longevity, Support What are some of the best practices to helping prospects along …

13. WHILE THERE’S NO RECIPE FOR SUCCESS… PROVEN IDEAS CAN ALWAYS HELP 5 examples in the Avangate Affiliate Network

14. IncrediMail Software Vendors as Affiliates

15. Freemium: IncrediMail Free

16. Freemium: IncrediMail Plus, Toolbars

17. Offers email customization tools & widgets “Leadership in trailing-edge technology” Brings value into very commoditized market Secrets to IncrediMail Success Feature-filled, functional Freemium version leads to Premium “IncrediMail Plus” Add-ons accessorize Freemium & Premium versions to expand revenue flow from existing customers Associates with other complementary vendors to cross-sell whenever possible Uses social media to amplify their messages about “old-fashioned” communication tools. Use “Crowd-sourced” endorsements to drive popular accessories to the top IncrediMail benefits Provides continuous added value to their customers Generates additional interest on frequent return visits Generates add-on sales with conversion rates of over 10%* * Avangate Affiliates Network IncrediMail

18. Freesoft.tvbok.com Original Content Freesoft.tvbok.com: Original Content

19. FreeSoft.tvbok.com Affiliate website for the Japanese audience Offers “how to’s” for various software products & PC-related activities Secrets to their success As an affiliate, Freesoft.tvbok.com promotes video tools and uses tutorials and reviews as customer conversion pages. The benefits Provides added value to its website visitors (over 2 million page views monthly) Generates affiliate sales with a conversion rate of over 0.8%* Freesoft.tvbok.com Use original content to convert audience * Avangate Affiliates Network

20. BitsDuJour.com Leverage the power of the discount coupon BitsDuJour: Power of Coupons

21. BitsDuJour.com Leverage the power of the discount coupon BitsDuJour: Widget

22. Power of Coupons BitsDuJour Offers heavily discounted software titles, each deal only for 24 hours Leverages coupons and sense of urgency to reach/grow broad audience Secrets to BitDuJour’s Success Promotes PC & Mac software titles with steep discounts (over 50%) Community & crowd-sourced W.O.M. marketing Work with multiple affiliate networks & with vendors directly. Affiliate cross-sell program (widget on other affiliate websites) Vendor program (get part of the affiliate commission back) Seasonal & special campaigns – BitsDuJour Holiday Bundle The Big benefit Discounted product offers generate a conversion rate of over 20%* * Avangate Affiliates Network BitsDuJour.com

23. Myce.com User generated content & communities to deliver affiliate promotions Myce.com: User Generated Content & Communities to Deliver Affiliate Promotions

24. * Avangate Affiliates Network Leverages the Shared Bond of Community Website targeted to consumer electronics, gadgets and technology community, engaging members into reviews, discussions and forums Secrets to Myce.com’s success Power of user generated content Create a strong community around it, attracting traffic Contextual advertising used to generate sales Crowd-sourced promoted software in specialized sections and forums The Big benefit Added value through reviews and social interaction on forums and discussions Affiliate conversion rate of over 1.5%* Myce.com User Generated Content & Communities to Deliver Affiliate Promotions

25. Siliconaction.com.br Product catalog with localized user experience SiliconAction: Extensive Catalog, Local User Experience

26. Siliconaction.com.br Product catalog with localized user experience SiliconAction: Installment Plan

27. Siliconaction.com.br Product catalog with localized user experience SiliconAction: Brand and Product-Specific Keywords on local markets

28. Product catalog with localized user experience Brazilian product catalog / e-tailer selling software online with over 1,400 titles Secrets to SiliconAction’s success Localized buying experience (localized payment methods, installment plans, etc.) Recognize their role in supporting local purchase user experience rather than deep investigation, comparison, consideration Generate traffic via targeted PPC campaigns, newsletters and advertising serving as a regional conduit for latest software availability Uses both the affiliate and reseller model being flexible to offer the largest selection The Big benefit Generate sales as an affiliate with a conversion rate of ~20%* Linked to from vendors to handle traffic from that region, trusted to use AdWords * Avangate Affiliates Network Siliconaction.com.br

29. Software is a rich vertical that has inherent advantages to be sold online … both standalone, as well added onto existing affiliate sites Consumer focused software categories currently perform best … … but growing opportunities in business, and SaaS solutions creating interesting niche possibilities in this huge market ($12 billion), not to mention, education Get started - join a dedicated software affiliate network – let them handle tracking & payments and benefit from their advanced marketing features PC business maybe declining, but in the post-PC era, the software business is more vital than ever Finally … Takeaways

30. Find a parade and get in front of it!

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32. Thank you