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3 Reasons Blogs & Influencers Avoid Your Affiliate Program

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This presentation is from Affiliate Summit East 2017 (July 30 - August 1, 2017 in New York).

Session description: Learn the three biggest mistakes advertisers are making with their affiliate program with regards to content sites, bloggers, and influencers, and how to fix those issues.

Published in: Business
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3 Reasons Blogs & Influencers Avoid Your Affiliate Program

  1. 1. 3 Reasons Blogs & Influencers Avoid Your Affiliate Program PRESENTED BY Mike Nunez AffiliateManager.com
  2. 2. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com
  3. 3. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Advertisers Affiliate Also Known As: ● Merchant ● Retailer ● Brand Also Known As: ● Influencer ● Publishers ● Bloggers ● Forums ● Content Sites
  4. 4. Reason #1: Your EPM
  5. 5. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Primary Monetization Methods ● Display / Banner sales - CPM ● Sponsored Posts - Flat Fee ● Adsense - Pay Per Click ● Affiliate Offers - % of sale Normalizing Revenue to determine profitability ● EPM = Earnings per Thousand Impressions (aka RPM) ● EPC = Earnings per 100 clicks
  6. 6. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Sample Calculations (100,000 uniques) Banner / Display Sales: $5 CPM = $5 EPM Sponsored Post: $500 Flat Fee Paid Placement $500 / 100,000 impressions = $0.005 per impression $0.005 per impression * 1,000 impressions = $5 EPM
  7. 7. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Sample Calculations (100,000 uniques) Adsense: $0.50 per click, 2% CTR 100,000 impressions * 2% CTR * .50 cents per click = $1,000 revenue $1,000 / 100,000 impressions = $0.01 per impression $0.01 per impression * 1,000 impressions = $10 EPM
  8. 8. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Sample Calculations (100,000 uniques) Affiliate Offer: 10% of sale, 3% Conversion Rate, 2% CTR, $100 AOV 100,000 impressions * 2% CTR * 10% Commission * 3% CR * $100 AOV = $600 in revenue $600 / 100,000 impressions = $0.006 per impression $0.012 per impression * 1,000 impressions = $6 EPM
  9. 9. How did you determine your commission percentage? PPC vs. CPA
  10. 10. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Sample Calculations (100,000 uniques) Affiliate Offer: 10% of sale, 3% Conversion Rate, 2% CTR, $100 AOV 100,000 impressions * 2% CTR * 10% Commission * 3% CR * $100 AOV = $600 in revenue $600 / 100,000 impressions = $0.006 per impression $0.012 per impression * 1,000 impressions = $6 EPM
  11. 11. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Sample Calculations (100,000 uniques) Affiliate Offer: 20% of sale, 3% Conversion Rate, 2% CTR, $120 AOV 100,000 impressions * 2% CTR * 20% Commission * 3% CR * $120 AOV = $1,440 in revenue $1,440 / 100,000 impressions = $0.014 per impression $0.014 per impression * 1,000 impressions = $14 EPM
  12. 12. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Google Analytics > Conversions > Multi-Channel Funnels > Top Conversion Funnels
  13. 13. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Google Analytics > Conversions > Attribution > Model Comparison Tool
  14. 14. Reason #2: You’re not making it easy
  15. 15. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Making it easy (for affiliates) ● Generate content on their behalf (i.e. articles or high quality pictures) ● Offer Great Support / Communication / Tools ● Give samples ● Have a clear value proposition, and make sure they know it! ● Consider retweeting / sharing their posts. ● Not everyone is a Best Buy, Macy’s, or Amazon. If you’re not a super hot brand where affiliates are knocking down your door, it’s pay to play.
  16. 16. Reason #3: You’re not using attribution
  17. 17. The “Spirit” of the program has to be to reward affiliates.
  18. 18. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Rewarding high value affiliates ● Use networks with attribution and commission splitting technology ● Set up rules to ensure influencers are rewarded ● Longer cookie durations are an inexpensive way to differentiate your program. ● The higher their earnings (EPM), the more they will promote you.
  19. 19. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Questions? Leave your card and receive our Influencer Checklist!
  20. 20. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Appendix
  21. 21. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Funnel for Dollars ● Generate traffic (Keyword Tool Ewen Finser talked about earlier) ● Capture Audience ● Funnel towards revenue ZacJohnson.com (example)
  22. 22. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com
  23. 23. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com
  24. 24. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com
  25. 25. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Sample Calculations (100,000 uniques) Affiliate Offer: 20% of sale, 3% Conversion Rate, 2% CTR, $100 AOV 100,000 impressions * 2% CTR * 20% Commission * 3% CR * $100 AOV = $1,200 in revenue $1,200 / 100,000 impressions = $0.012 per impression $0.012 per impression * 1,000 impressions = $12 EPM
  26. 26. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Get More: Traffic, AOV, CTR, CR, and Commission ● Ask for exclusive coupons for higher than the AOV. ● Work with Advertiser to increase CR ○ See where they drop off in the conversion process ○ Ask for Retargeting Pixel ● Negotiate Higher Commissions ○ Leverage Normalized Monetization Metrics ○ Ask for a guaranteed amount (½ sponsored post) ● Optimize page for higher CTR, generate more clicks by capturing Audience. ● Traffic - Use affiliate subid’s to identify paid traffic sources that lead to sales.
  27. 27. AffiliateManager.com • (321) 300-5355 • Mike@AffiliateManager.com Action Items: ● Normalize Monetization Methods ● Identify top performing content (affiliate subid’s) ● Capture Audience (Email, Facebook, Instagram, etc.) ● Funnel traffic towards top performing content ● Create new content that drives highest volume of relevant new visitors, funnel them towards top performing content. ● Improve AOV, CTR, Conversion Rate, or Commissions

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