The Top 5
Affiliate Management
Myths Debunked
Karen McMahon, The Affiliate Whisperer
Kim Rowley, Key Internet Marketing
Ki...
Agenda
•
•
•
•
•
•
•

Introduction
Myth #1: Launching = Instant Revenue
Myth #2: Affiliate Marketing is Risk Free
Myth #3:...
Myth #1: Launching =
Instant Revenue
Overview
• Manage your expectations
o A look at affiliate program launch statistics

...
Myth #1: Launching =
Instant Revenue
Key Influencer
**If your site is not already primed to convert
consumers to buyers, t...
Myth #1: Launching =
Instant Revenue
Your Product/Offer is Your Responsibility
• Quality product/offer, non-gimmicky
• Sit...
Myth #1: Launching =
Instant Revenue
You Must Attract & Recruit Affiliates
• Supply creative that converts + deep links
• ...
Myth #2: Affiliate
Marketing is Risk Free
Gaming The System
• Some affiliates look for easy money
o Forced clicks, pop ups...
Myth #2: Affiliate
Marketing is Risk Free
Protect Your Program
• Manually approve affiliates
• Use monitoring tools and ru...
Myth #3: It Doesn’t Work
For Small Businesses
A Big Brand Name Isn’t Required For Success
• Look at your affiliate program...
Myth #3: It Doesn’t Work
For Small Businesses
Questions To Ask Yourself
• Who are your current affiliates? Who else can yo...
Myth #4: Affiliates Don’t
Add Value
Proven Results
• Affiliate marketing is a powerful source of new
customer business
o S...
Myth #4: Affiliates Don’t
Add Value
Measuring Holistically - Attribution
Affiliate marketing affects other channels/affili...
Myth #4: Affiliates Don’t
Add Value
Affiliate (Just Like Every Other) Has Its Own Silo
• Search, display, affiliate, video...
Myth #4: Affiliates Don’t
Add Value
Understanding How Affiliates Impact Each Other….
(Data courtesy C3 Metrics)

• Prior t...
Myth #4: Affiliates Don’t
Add Value
• Top 25 affs indexed on attributed value vs. last click
• Affiliates driving highest ...
Myth #4: Affiliates Don’t
Add Value
Results
• Affiliates further down the chain will do well
• Affiliates at very top will...
Myth #5: I Need Paid
Placements Year Round
Key Questions
• What are your success metrics? Revenue? Return
on Ad Spend (ROA...
Myth #5: I Need Paid
Placements Year Round
Case Study: December 2013
• Bookings drop due to seasonality during this period...
Myth #5: I Need Paid
Placements Year Round
Mitigate Risk by Allocating Spend For Both Content &
Coupon Sites
Spend by Plac...
Myth #5: I Need Paid
Placements Year Round
Content Sites Have Significantly Higher Return Than
Coupon Sites
Return on Ad S...
We Welcome Your
Questions!

Questions?
Contact Us
Find Us On Twitter
Karen McMahon @Aff_Whisperer
Kim Rowley @kimarketing
Kim Salvino @kim_salvino
Vanessa Branco...
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The Top 5 Affiliate Management Myths Debunked

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This presentation is from Affiliate Summit West 2014 (January 12-14, 2014 in Las Vegas, NV). Session description: Four top producing affiliate managers dispel the myths and mysteries of program management and show a clear, grounded path to doing it right.

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  • The Top 5 Affiliate Management Myths Debunked

    1. 1. The Top 5 Affiliate Management Myths Debunked Karen McMahon, The Affiliate Whisperer Kim Rowley, Key Internet Marketing Kim Salvino, Chateau 20 Vanessa Branco, Versa9 Amy Ely, Under Armour
    2. 2. Agenda • • • • • • • Introduction Myth #1: Launching = Instant Revenue Myth #2: Affiliate Marketing is Risk Free Myth #3: It Doesn’t Work For Small Businesses Myth #4: Affiliates Don’t Add Value Myth #5: I Need Paid Placements Year Round Questions?
    3. 3. Myth #1: Launching = Instant Revenue Overview • Manage your expectations o A look at affiliate program launch statistics • Look at it from the affiliate perspective o It takes time for affiliates to get started o Auto-approvals help • Have a solid affiliate strategy • Keep calm and carry on! • Take time to educate your affiliates Myth #1: Launching = Instant Revenue
    4. 4. Myth #1: Launching = Instant Revenue Key Influencer **If your site is not already primed to convert consumers to buyers, then affiliate traffic will NOT increase your revenue.** Set Yourself Up For Success • Your product/offer is your responsibility • You must attract & recruit affiliates Myth #1: Launching = Instant Revenue
    5. 5. Myth #1: Launching = Instant Revenue Your Product/Offer is Your Responsibility • Quality product/offer, non-gimmicky • Site must instill consumer confidence o o o o Clear, easy navigation Crisp product images Functional in all browsers No interference (no ads, no pop-ups, no flash heavy ads) • Ongoing site optimization Myth #1: Launching = Instant Revenue
    6. 6. Myth #1: Launching = Instant Revenue You Must Attract & Recruit Affiliates • Supply creative that converts + deep links • Assess your competition • Ensure products appeal to their site audience • Provide accessible and responsive support • Share marketing materials o Demographics, seasonality information, top sellers, new products Myth #1: Launching = Instant Revenue
    7. 7. Myth #2: Affiliate Marketing is Risk Free Gaming The System • Some affiliates look for easy money o Forced clicks, pop ups, etc. • Loyalty & incentive sites can entice customer fraud Legal Compliance & Managing Multiple Relationships • Evolving FTC regulations • Managing hundreds of relationships is a challenge Myth #2: Affiliate Marketing is Risk Free
    8. 8. Myth #2: Affiliate Marketing is Risk Free Protect Your Program • Manually approve affiliates • Use monitoring tools and run your own tests • Review changes in performance • Stay informed on FTC updates • Leverage all available support o Call center, network reps, etc. Myth #2: Affiliate Marketing is Risk Free
    9. 9. Myth #3: It Doesn’t Work For Small Businesses A Big Brand Name Isn’t Required For Success • Look at your affiliate program as part of your total brand marketing strategy • Address poor converting links and banners • Focus your attention • Keep your links fresh • Manage your affiliate program costs Myth #3: It Doesn’t Work For Small Businesses
    10. 10. Myth #3: It Doesn’t Work For Small Businesses Questions To Ask Yourself • Who are your current affiliates? Who else can you contact? • Does your offer match the affiliate type & their marketing activities? • Are you providing the proper tools for affiliate success? • When was the last time you contacted your affiliates? o Do you know who is performing well and who isn’t? o What can you do to help low performers? • What kind of payouts and incentives are you using to attract & motivate your affiliates? Myth #3: It Doesn’t Work For Small Businesses
    11. 11. Myth #4: Affiliates Don’t Add Value Proven Results • Affiliate marketing is a powerful source of new customer business o Some merchants in the 50%-70% range for new-to-file • Attribution studies reinforce that this channel drives incremental value Myth #4: Affiliates Don’t Add Value
    12. 12. Myth #4: Affiliates Don’t Add Value Measuring Holistically - Attribution Affiliate marketing affects other channels/affiliates. Some affiliates (not all) are under-rewarded since lastclick doesn’t show full funnel…some affiliates are overrewarded if only focusing on last-click. Myth #4: Affiliates Don’t Add Value
    13. 13. Myth #4: Affiliates Don’t Add Value Affiliate (Just Like Every Other) Has Its Own Silo • Search, display, affiliate, video and social are all ignorant of other contributing channels o Some affiliates introduce (originate) the entire transaction!!! Myth #4: Affiliates Don’t Add Value
    14. 14. Myth #4: Affiliates Don’t Add Value Understanding How Affiliates Impact Each Other…. (Data courtesy C3 Metrics) • Prior to using C3 Metrics measurements, 52% of last click revenue (and cost) came from top 3 affiliates ZERO 52% (excludes google remarketing) Myth #4: Affiliates Don’t Add Value
    15. 15. Myth #4: Affiliates Don’t Add Value • Top 25 affs indexed on attributed value vs. last click • Affiliates driving highest value are in Top 25, not Top 3 • Aff #16 delivering more value than #1 paid affiliate Attribution Index 120 100 80 60 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Myth #4: Affiliates Don’t Add Value 19 20 21 22 23 24 25
    16. 16. Myth #4: Affiliates Don’t Add Value Results • Affiliates further down the chain will do well • Affiliates at very top will have comp adjusted • Cash-back affiliates continue to do well b/c they originate customers • Advertisers will focus on origination + demand generation…less on last second “jump ins” (focus more on starting rather than finishing) • In five years, 50% of digital ad dollars will use attribution vs. last click/last view (Gartner) Myth #4: Affiliates Don’t Add Value
    17. 17. Myth #5: I Need Paid Placements Year Round Key Questions • What are your success metrics? Revenue? Return on Ad Spend (ROAS)? Impressions/Visits? Branding? Explore Your Options • Placements are not a requirement to grow revenue o Test performance with & without placements • Be selective: choose top performing placements at times when extra visibility is needed Myth #5: I Need Paid Placements Year Round
    18. 18. Myth #5: I Need Paid Placements Year Round Case Study: December 2013 • Bookings drop due to seasonality during this period • Schedule placements to coincide with best sale of the year Campaign Statistics • Budget: $37,350 • Revenue Driven by Placements: $144,813.72 • Return on Ad Spend: 288% Myth #5: I Need Paid Placements Year Round
    19. 19. Myth #5: I Need Paid Placements Year Round Mitigate Risk by Allocating Spend For Both Content & Coupon Sites Spend by Placement Type Myth #5: I Need Paid Placements Year Round
    20. 20. Myth #5: I Need Paid Placements Year Round Content Sites Have Significantly Higher Return Than Coupon Sites Return on Ad Spend Myth #5: I Need Paid Placements Year Round
    21. 21. We Welcome Your Questions! Questions?
    22. 22. Contact Us Find Us On Twitter Karen McMahon @Aff_Whisperer Kim Rowley @kimarketing Kim Salvino @kim_salvino Vanessa Branco @VanBranc Amy Ely @aely

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