The Truth About Affiliate Marketing


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Learn what Affiliate Marketing is all about.

Do you have what it takes to be a successful marketer?

Should you launch an affiliate program to promote your products or services?

Answer your questions with this presentation.

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  • Affiliate Platform keeps track of your sales, traffic, commissions and they pay affiliate
  • Channel MarketingNormal Brick and Mortar store who purchases cases of inventory. Must sell it. But this way they don’t hold inventory and don’t process sales.Same as an 100% commission only outside sales rep who can’t expense anything to the merchant
  • Affiliate Platform keeps track of your sales, traffic, commissions and they pay affiliate
  • Make sure your payout covers your costs
  • ** make sure website is the site that public goes to – no 3rd party sites
  • And under recently revised Federal Trade Commission regulations, any online writer who fails to mention the receipt of freebies that might have swayed his or her coverage of a product is liable for fines of up to $11,000.
  • The Truth About Affiliate Marketing

    1. 1. The Truth About Affiliate Marketing<br />Do you have what it takes to be a successful Affiliate Marketer? <br />Is your company ready to Launch an Affiliate Program? <br />What are the key elements to be successful?<br />Copyright 2011 - Betty R. Hakes -<br />
    2. 2. Affiliate<br />Affiliate Program <br />Copyright 2011 - Betty R. Hakes -<br />A person or company who markets Merchants products<br />Publisher<br />Content Provider<br />A Merchant (service or product provider) who offers compensation to affiliate marketers to promote their products<br />Definitions<br />
    3. 3. What is Affiliate Marketing<br />Affiliate marketing is when an affiliate aka: publisher/content provider (i.e. is paid when a lead or sale happens at the advertisers, aka: merchant, website (i.e. when the end user comes to the merchant’s site through an affiliate link (URL or image).<br />Copyright 2011 - Betty R. Hakes -<br />
    4. 4. Affiliate Myth’s BUSTED<br />Affiliate marketing is NOT Multi-level marketing<br />Commission tiers are only on a some programs and not the same as MLM<br />Affiliate marketing isn’t going to make your rich overnight<br />You don’t have to invest thousands of dollars to be successful – in fact, you may burn through thousands IF you decide to invest heavily from the start<br />Don’t worry about not having niche interest<br />It is FREE to join an Affiliate program<br />Copyright 2011 - Betty R. Hakes -<br />
    5. 5. How do you become an Affiliate Marketer?Publisher/Content Provider/Affiliate<br />Content Provider who owns/manages a website<br />Find products to promote <br />Promote the product on your site to the best of your ability <br />create landing pages, write about it, etc<br />Use Social Media to support, not as a sole medium to sell products<br />Email Marketer<br />Same process as above but you would insert text links into your emails.<br />Must have a large niche market you are emailing<br />Pay Per Call Affiliate (Ringrevenue)<br />Driving audience to call merchant<br />Mobile Affiliate<br />Need to know technology and industry<br />Couponers & Datafeed driven sites<br />Copyright 2011 - Betty R. Hakes -<br />
    6. 6. Easy Process to Promote Products<br />Sign up &<br /> Grab Link<br />Insert onto<br />your website<br />Copyright 2011 - Betty R. Hakes -<br />
    7. 7. Key to being successful at Affiliate Marketing<br />Ability to reach a large audience <br />Focus on products that will convert to your niche audience<br />Ability to launch innovative ideas that add value for the end-user<br />Explore other ways to market products (pay per call, search, etc.)<br />Leverage your personal brand<br />Create Landing Pages that are optimized in SEO for each product you promote<br />Use Paid Search & make sure that you are not paying over your profits AND make sure to learn the advertisers paid search restrictions <br />Copyright 2011 - Betty R. Hakes -<br />
    8. 8. Key to being successful at Affiliate Marketing(continued)<br />Create a relationship with Affiliate Program Managers<br />Negotiate higher payouts when you start showing results<br />Analyze products <br />merchants’ landing pages<br />EPC* (average earnings per one hundred clicks)<br />Conversion Ratio*<br />Reversal Rate*<br />Average Order*<br />Average Commission*<br />*<br />Copyright 2011 - Betty R. Hakes -<br />
    9. 9. I want to become and Affiliate Marketer! Now What?<br />What is my niche?<br />Determine how you are you going to reach the target market<br />Find Products to promote<br />Determine how you are going to promote the product<br />Dedicate time to this and be patient. <br />Monitor results and TEST, TEST, TEST<br />Copyright 2011 - Betty R. Hakes -<br />
    10. 10. How Does Affiliate Marketing Workbetween the affiliate and advertiser?<br />Affiliate/Publisher<br />Merchant/Advertiser<br />Affiliate Platform<br />Affiliate Networks:<br /><ul><li>Keep track of all transactions
    11. 11. Pay Affiliates
    12. 12. Warehouse all creatives & Provides tracking links</li></ul>Copyright 2011 - Betty R. Hakes -<br />
    13. 13. How do I launch an Affiliate Programto sell my products or services?<br />Competitive research<br />Find out what your competitors are doing and how much they are offering affiliates<br />Also take a look at how successful your competitors are - EPC<br />Consider hiring an OPM<br />(Outsourced Program Manager)<br />Copyright 2011 - Betty R. Hakes -<br />
    14. 14. Launching an Affiliate ProgramNext Steps<br />After you decide the Affiliate Payout & Affiliate Network<br />Decide if you are going to hire an OPM or assign someone internally to launch program<br />Sign up with affiliate platform and apply to launch program<br />Make sure your website & landing pages are up and running **<br />Have someone that knows how to set up the technical implementation (fairly easy)<br />Create Banners<br />Create TOS (Terms of Service) and Program Terms<br />Deposit funds<br />Copyright 2011 - Betty R. Hakes -<br />
    16. 16. Launching an Affiliate ProgramNext Steps<br />Set up your Affiliate Recruiting Strategies<br />How are you going to attract the right affiliates?<br />Affiliate networks may help<br />Program Manager needs to manage all those details<br />What to look for in an OPM<br />Someone who has experience in running programs, ask for references<br />A STRONG Sales person<br />Technical know-how to find high performing websites and their owners<br />Copyright 2011 - Betty R. Hakes -<br />
    17. 17. Launching an Affiliate ProgramCosts<br />Program Manager: <br />OPM may vary, approx $2 – 5K/mo + commissions on payout<br />For example: affiliates payout was $2,000, and the OPM % is 3.5% you pay OPM: $70 <br />Internal employee: $??<br />Affiliate Network<br />ShareASale: $550 start up fee <br />25% of affiliate payout monthly (low monthly minimum)<br />Commission Junctions: $3000+ start up fee <br />30% affiliate payout monthly. (Monthly minimum)<br />Make sure you have deposits ready (to pay affiliates) and available<br />ShareASale is about $100, CJ is about $1500<br />Copyright 2011 - Betty R. Hakes -<br />
    18. 18. Launching an Affiliate ProgramCosts<br />Marketing Fees<br />Creatives<br />Copy Writer<br />Web developers (if needed)<br />Copyright 2011 - Betty R. Hakes -<br />
    19. 19. Ongoing Management of Affiliate Program<br />Make sure your program terms clearly spells out what the affiliates can’t do and should do. <br />Don’t be negative with affiliates. They are not your employees but you want them to work FOR you.<br />Make sure you have the governance in place to manage affiliates’ activities<br />Deters fraud<br />FTC coming down on merchants when affiliates don’t clearly disclose they are being compensated for promoting products<br />Ann Taylor LOFT offered bloggers who attend fashion show & blogged about it gift card <br />Legacy Learning Systems, Inc., agreed to pay $250K for deceptively representing that endorsements of its instructional DVDs that were posted on blogs or other websites created by Legacy's affiliates reflected the views of ordinary consumers or “independent” reviewers. <br />Copyright 2011 - Betty R. Hakes -<br />
    20. 20. Ongoing Management of Affiliate Program<br />Manually approve/deny affiliates<br />Don’t judge book by its cover (or country of origin)<br />Metrics<br />Clicks (Traffic to site)<br />Number of Sales<br />Sales Volume<br />Conversion Ratio<br />Commissions (paid to affiliates)<br />ACTIVE affiliates (80/20 Rule)<br />Recruited affiliates (include highlights, such as a top tier publisher/affiliate)<br />Copyright 2011 - Betty R. Hakes -<br />
    21. 21. Resources<br /> (website/forum for affiliate marketing)<br />Affiliate Marketing Blog by Geno Prussakov <br /><br />9 Internet Marketing Magazines to Subscribe To<br /><br />Affiliate Summit (2x year, strong conference for affiliates)<br /><br />“Sugar Rae” - Rae Hoffman-Dolan<br /><br />Copyright 2011 - Betty R. Hakes -<br />
    22. 22. Resources<br />To sign up for an affiliate network or purchase these products: <br /> (affiliate network)<br />Commission Junction (affiliate network)<br /> (affiliate network)<br />Infusionsoft (all-in-one software product)<br />1ShoppingCart (all-in-one software product)<br />* note: these are my affiliate links and I will be compensated if you purchase product using these links.<br />Copyright 2011 - Betty R. Hakes -<br />
    23. 23. Decisions, DecisionsNow it’s up to you<br />Do I have what it takes to be a successful Affiliate Marketer?<br />Is my company ready to launch an Affiliate Program? <br />Copyright 2011 - Betty R. Hakes -<br />
    24. 24. Facebook Page:<br /><br /><br /><br />Food and online marketing blog:<br /><br />New venture (Still Under development) to help small business owners<br /><br />Connect with MeBetty Rodriguez-Hakes<br />Copyright 2011 - Betty R. Hakes -<br />