5 Ways to Reactivate Latent Affiliates

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Walk through 5 tested ideas that merchants employ to get the most of their affiliate channel, motivate idle affiliates to start selling again, and accelerate sales.

Experience level: Beginner, Intermediate
Target audience: Affiliates/Publishers, Merchants/Advertisers
Niche/vertical: Affiliate management

Michael Ni, CMO, Avangate (Twitter @mikeni)

Published in: Business
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5 Ways to Reactivate Latent Affiliates

  1. 1. 5 Ways to (Re)activate LatentAffiliatesPresentation for Affiliate Summit East 2012Michael NiSVP Marketing & Products
  2. 2. What We Will Go Through TodayAdd To Your Quiver – Ways to (Re)activate Latent Affiliates Facts / Figures on Affiliate Market Affiliate Motivations Typical Reasons Why Affiliates Become Latent Focus. Segment Who You Should Activate 5 Approaches to (Re)activate Affiliates Getting Startedwww.avangate.com 2 2
  3. 3. Who are you? 1. Merchants not using affiliates for now 2. Merchants looking to grow their current active affiliates number 3. Affiliates looking to see what to ask for from merchants to become more active www.avangate.com 3 3
  4. 4. Easier to Feel Behind In Your Use of Affiliates Affiliate programs are the 3rd largest marketing budget behind PPC and email …www.avangate.com 4 4
  5. 5. Easier to Feel Behind In Your Use of Affiliates Consumers that shop via affiliate links spend $7 more than the average consumer … And online shopping through affiliate referrals are 43% more likely to convert than average Affiliate programs were the 3rd largest US affiliate marketing spending will reach $4.5 marketing budget billion by 2016 and will increase PPCcompound behind at a and annual growth rate of 17% from 2011 through email 2016www.avangate.com 5 5
  6. 6. Some Even Plan Many companies still keep their affiliateWhere programs on the slow trackwww.avangate.com 6 6
  7. 7. www.avangate.com 7 7
  8. 8. www.avangate.com 8 8
  9. 9. Assuming You Have ThemKeeping Them Active Is Key Saves time: you already know who to focus upon … More profitable: lower costs, ability to restart profitable revenue quickly  Acquisition, education, systems setup, and pure attention done  Already existing customized promotion materials for them It’s easier: you already have both the relationship and the data on the affiliate you can use to keep them happy  Already existing relationship – at least via a welcome email from your part  Known selling patterns, audience, the products they promote and are successful withwww.avangate.com 9 9
  10. 10. Taking Vs Holding Affiliates (Reservations)…www.avangate.com 10 10
  11. 11. Back to BasicsRemembering what affiliates look at when choosing productsto promote Payout to affiliates – vs. competitors Products / Brand – marketing pull Conversion rate stats – EPC, conversion rate, network ranking Retribution model – per sale, per lead Recurring revenue opportunities – Affiliate Benchmark Survey, 2011 including loyalty programs Relationship – subjective, but therewww.avangate.com 11 11
  12. 12. (Re)activating Starts With KnowingUnderstanding Why Some Affiliates Become LatentWhy become inactive DriversThey’ve shifted to a different • Better T&C’s, conversion, brand • Product price / position / qualityproduct or service • Less competition for that productSlow ramp-up • Lack of education / understanding • Lack of time / capacityTakes a while until starting to promote productsGoogle Panda Penguin • Poor content on affiliate website • Affiliates who relied too heavily on SEOSearch engine updates impact their traffic / SEO “tricks” – keyword stuffing, hidden text,efforts – Google is known for doing this questionable backlinksOut of the business • Personal choice • Entrepreneurs by natureThey simply don’t do this anymore – it’s only • Attractiveness of your segment vs othersnatural that this might happenMissing the tools to promote • Lack of conversion • Match to the tools they typically useBanners, discounts for coupon affiliates, widgets, • Lack of understanding on how to useproduct feeds, videoswww.avangate.com 12 existing tools / current platform 12
  13. 13. (Re)activating Starts With KnowingMonitoring For Latent Affiliates Sales / Leads drops Drops in tier status for those using tiers, falling back Clicks drops along with sales / leads also dropping Conversion rate drops with no changes in purchase flow Relative sales drops compared to peers Number of days without any sales / clicks Does not adopt additional productswww.avangate.com 13 13
  14. 14. Re-Activating Starts With KnowingFocusing Your Attention – Whether Activation / Re-Activation Easy Price Coupon Comparison Websites Niche Ease of Activation Affiliates Content Websites Local Affiliates Hard Low Revenue Impact Highwww.avangate.com 14 14
  15. 15. Shooting Them Is Not an Option … “You have to come out sometime …”www.avangate.com 15 15
  16. 16. … but you can try this instead! COMMUNICATE WITH YOUR AFFILIATESwww.avangate.com 16 16
  17. 17. 5 Approaches to (Re)activating Incentivize Actions to get them to promote your products Motivate big fish with performance incentives Provide exclusive conditions Give them the right customized tools to drive sales Engage and Educate Affiliateswww.avangate.com 17 17
  18. 18. Incentivize ActionsIncrease Engagement With Incremental Incentives Payout a % for every • Tactics: (i) list your product(s) on their website, (ii) feature you, (iii) use your optimized landing step they make to page to direct their traffic resulting in increased promote your products conversions / services • Benefit: Get attention from affiliates • Tactics: increase commission / cash bonus with feedback on your products Incentivize Feedback • Benefit: (i) Valuable insight leading to shifts in your strategy to maximize your revenue, (ii) Affiliate investment in you and your products • Tactics: share direct contact details, medium Reward those willing term strategies based on est. affiliate committed to commit to promote cash flow of rev from your products • Benefits: Increased engagement, objective your products driven affiliateswww.avangate.com 18 18
  19. 19. 1. IncentivizeActions - Increase EngagementIncentivize ActionsWith Incremental IncentivesVSO Software VSO Software started out in 2002 specializing in burning applications, the company has now established itself as a multimedia software editor recognized worldwide. VSO Software is dedicated to producing high quality software with easy to use programs for users of all levels.www.avangate.com 19 19
  20. 20. 30% default commission plus additional (up to 50%): • Share a direct email contact with VSO: +5 % • Provide your IM contact info: +5% • Use our custom links for tracking: +5% • Promote a VSO product on your homepage +5%www.avangate.com 20 20
  21. 21. Use Performance IncentivesPromotions, Reward Tiers, and Cash Bonuses • Tactics: the basics - cash bonuses, inc Reward your top commissions, better payment terms affiliates • Benefit: Affiliates who can reach top tiers shift effort to you • Tactics: reminders for the contest, cash Run sales contests prizes, choice of prizes up front as a goal across your network, • Benefit: Motivate low / medium volumes to but set tangible goals! inc efforts. Top affiliates too. • Tactics: Set goals as “overall monthly Run campaigns growth” to appeal to idle affiliates  targeted at inactive attainable lower tiers, newsletter send affiliates • Benefits: Get affiliates to at least generate quality exposure for your productswww.avangate.com 21 21
  22. 22. 2. Use Performance IncentivesUse Performance Incentives to drive peakAncestry.comperformance from key affiliates With 7 billion genealogical records from across the globe and millions of family trees, we are the world’s largest online family history resource.www.avangate.com 22 22
  23. 23. Affiliate Tiers for Memberships • 25.00% for up to $3,000 per month net • 35.00% for $3,001 to $9,000 • 45.00% for $9,001 to $18,000 • 50.00% for $18,001 to $25,000 • 55.00% for $25,001 to $30,000 • 60.00% for $30,001 and above Plus tiered gift membershipswww.avangate.com 23 23
  24. 24. Affiliate contests with enticing prizes and cashalternatives … although cash is always KINGwww.avangate.com 24 24
  25. 25. Use Exclusive ConditionsProvide Unique Value to Key Affiliates • Example Tactics: (0) unique products, cross- vendor add-on’s, limited qty, (i) special on their Exclusive products website /newsletters, (ii) content & PPC affiliates / bundles • Benefit: be preferred merchant with better converting original, exclusive offerings • Example Tactics: (0) limited qty, rarely discounted/rare subscriptions, (i) vanity Exclusive discounts codes, (ii) perf incentives / tiers, (iii) coupon affiliates • Benefit: be preferred merchant with better converting original, exclusive offerings … but, get a • Example Tactics: (i) prev selling top affiliates, (ii) high potential latent affiliates, (iii) pitch special commitment promos for commits against prev proof points • Benefits: Motivate targeted affiliates to be top before offering … affiliateswww.avangate.com 25 25
  26. 26. Use Exclusive Conditions to drive sales, deepenkey affiliate relationships, build commitment Top PC Performance and Security Player IObit provides award-winning, comprehensive system utilities and security software for superior PC performance and security with millions of active users worldwide.www.avangate.com 26 26
  27. 27. Example / Offers • Custom-Builds • Exclusive Campaigns • CNET – customized, exclusive product • MajorGeeks – partnership for downloading products to engage MajorGeek’s community • Exclusive Couponswww.avangate.com 27 27
  28. 28. Moved up from 3rd to 2nd hit since last year …they were a better example back in 2011www.avangate.com 28 28
  29. 29. • Retailer downstream traffic from couponing sites grew 69% in the last 3 years - Experian Hitwise • 9 of the top 10 websites that received traffic from search queries that included the name of a brand and either the word “coupon” or “code” in it were affiliate deal sites. • Online coupon usage up 23% in the months leading up to the holiday season - Retailmenot.comwww.avangate.com 29 29
  30. 30. Give them the right CUSTOMIZED toolsEngage their customers and make it easier for them Provide Flashy • Tactics: (i) have standard sized online banners available to them, (ii) video Objects to attract tutorials for products, (iii) landing pages customers • Benefit: Grow traffic • Tactics: (i) website widgets, (ii) product Give them the tools feeds, (iii) marketing tools (cart tools, cross- sells, etc.), (iv) landing pages to sell • Benefit: Shorter time-to-market, convert Make it easier for • Tactics: (i) strong real-time platform reporting, (ii) special notifications them to learn to • Benefits: Grow conversion rate by adjusting sell better strategy depending on campaign resultswww.avangate.com 30 30
  31. 31. The Right Tools right tools Give them theArgos provides acustomers and make affiliates,for them Engage their dedicated portal for it easier with a plethora ofresources: how to guides, creative resources (banners), PPC word lists, well as top 10 reasons to be an Argos affiliate webinars, asUK multi-channel retailer Argos.co.uk - www.argos-affiliates.co.uk Present in the affiliate landscape since 2001. Offers a dedicated portal for affiliates, with lots of resources: how to guides, creative resources (banners), PPC word lists, webinars, etc. www.avangate.com 31 31
  32. 32. Engage and EducateDo They Know What They Can Be Selling • Tactics: (i) content affiliates to know/review your Provide FREE product, (ii) support decision on what to support, (iii) verify / targeted affiliates only products to review • Benefit: Drives rev w/ stronger affiliates, original content/SEO, commitment, customer trust • Tactics: re-introduce or expand on existing Provide library of materials: (i) differentiators, (ii) comparisons, content & unique (iii) tests, (iv) case study, (v) PPC that work • Benefit: Support richer buying experience when selling points needed, support better SEO efforts • Tactics: (i) provide a giveaway w/ viral support, … as well as give (ii) provide free samples, (iii) platform them some • Benefits: drive traffic / grow affiliate, can build brand & trust, drive customer uptake & trial “giveaways”www.avangate.com 32 32
  33. 33. Engage and EducateEngage and EducateReviewsDrive ReviewsDigital goods companies can do this withoutany effort whatsoeverExclusiveSamples – running campaigns withmerchants giving away free samples –for example: J.R. WatkinsQuit Tea – merchant giving away freesamples of quit smoking aid teawww.avangate.com 33 33
  34. 34. Engage and EducateReviewswww.avangate.com 34 34
  35. 35. www.avangate.com 35 35
  36. 36. Engage and EducateGiveaways, Samples, Freemium … age old consumer approachwww.avangate.com 36 36
  37. 37. (Re)activating Starts With CommunicationFocusing Your Attention – Specific to Each Affiliate Low Perf Incentives: Re-engage Communicate: affiliate Pick Up The Level of Effort Phone Engage & Educate: Incentivize Reviews / Actions: engage Giveaways long tail Exclusive Conditions Tools: Issue High Guns and Ammo Low Revenue Impact Highwww.avangate.com 37 37
  38. 38. Takeaways Be proactive – don’t let your affiliates “cool” down once you get them! Monitor (Create Automatic Alerts) and focus on the affiliates that matter to you Over Communicate – don’t stop at email – build relationships with your key affiliates when they let you Incentivize – reward them for every step they make to promote your products, including performance rewards. Use exclusivity / vanity codes and customized banners as a performance differentiator Give them the right “tools” to promote your products / services – understanding each affiliate’s specific needs helps you cater to them .. .this is education, as much as customized tools Ask for help from networks / OPMs – they can facilitate your actions and make sure they get effectively usedwww.avangate.com 38 38
  39. 39. Q&Awww.avangate.com 39 39
  40. 40. Want to LearnMore?Come to Booth#115 and win aniPad www.avangate.com 40 40
  41. 41. Thank You!Michael Ni, SVP Marketing & ProductsAvangate Inc.Redwood Shores CA., USATel: (650) 249 - 5280Avangate B.V.Amsterdam, The NetherlandsTel: +31 20 890 8080info@avangate.comwww.avangate.com

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