Affiliate Marketing 101


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Learning the Hands-On Basics of Affiliate Marketing from the Ground Up

Affiliate Marketing is one of the hottest ways to make money online. For a few dollars, anyone can buy a URL and start a blog or website. By placing the right links on those websites, it’s possible to make anywhere from a few dollars a month to six-figure incomes or more.

Before you start, however, it’s important to learn the basics of the business. By understanding some of the fundamentals, such as terminology and functions, you’ll have the foundation to make the decisions to build the type of affiliate marketing business that suits your interests and skills.

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Affiliate Marketing 101

  1. 1. Affiliate Marketing 101<br />Davinci Institute<br />Jeannine Crooks<br />February 20, 2010<br />
  2. 2. Learn basic terms<br />Review the requirements for an acceptable site<br />How to find merchants<br />Choosing the right merchants<br />How to use PopShops<br />Working with Affiliate Networks<br />Broad Networks<br />Specialty Networks<br />Today’s Goals<br />
  3. 3. Working with Affiliate Managers<br />Learning More<br />Q&A<br />Today’s Goals <br />
  4. 4. Definitions<br />
  5. 5. A website owner who sends traffic from their website to another website in order to generate a desired action. Upon completion of this desired action, the website owner will receive compensation.<br />AKA – Publisher, Media Partner<br />Affiliate <br />
  6. 6. Affiliates do:<br />Attract traffic originating around the globe<br />Actively promote their websites<br />Encourage site visitors to take action – buy something, fill out a form, etc.<br />Affiliates do not:<br />Know the person who has come to their site<br />Know what product the person buys<br />Process any financial transaction for the customer<br />Assist in the delivery process of the product<br />Affiliate<br />
  7. 7. A website owner who facilitates a specific action on their website such as:<br />Purchase a product<br />Completing a lead form<br />If the site visitor originated via a link from an Affiliate site, the merchant is obligated to pay a fee or commission to the affiliate for successful completion of the action.<br />Merchant<br />
  8. 8. Acts as liaison between merchants & affiliates<br />Investigates both merchants and affiliates before allowing them into the network.<br />No cost to join.<br />Hidden Affiliate Information<br />All traffic flows through the affiliate network<br />Affiliate &gt; Affiliate Network &gt; Merchant<br />Merchant &gt; Affiliate Network &gt; Affiliate<br />Responsible for ensuring Affiliates are paid for successful actions.<br />Affiliate Network<br />
  9. 9. Usually has 100’s of merchants and 1000’s of affiliates<br />Source of merchant banners and links<br />Best known:<br />Commission Junction<br />LinkShare<br />Google Affiliate Network<br />ShareASale<br /><br />Affiliate Network<br />
  10. 10. Usually works for Merchant<br />Works with Affiliate Networks and/or managing In-House Affiliate Program<br />Recruits affiliates<br />Affiliate Retention, such as day-to-day affiliate activities<br />Affiliate Manager<br />
  11. 11. OPM for short<br />Manages affiliate program for merchant who has chosen to outsource this function.<br />Usually manages multiple programs<br />Charges a monthly fee and a portion of commissions.<br />Recruits affiliates and handles day-to-day affiliate activities.<br />Outsourced Program Manager<br />
  12. 12. Cost Per Action, CPA for short<br />Broad term, could mean:<br />Sale<br />Registration<br />Inquiry<br />Commission can be percentage of sale or flat amount<br />Cost Per Lead, CPL for short<br />Completes lead form<br />Usually fixed payout<br />Cost Per Click, CPC for short<br />Clicks on ad<br />Google AdSense<br />Usually fixed payout<br />Actions<br />
  13. 13. Site Requirements<br />
  14. 14. SEO (Search Engine Optimization) Sites<br /><br />PPC (Pay Per Click) Sites<br />Coupon Sites<br /><br />Lead Generation Sites<br /><br />Incentive Sites<br />Hard Incentive –<br />Soft Incentive –<br />Types of Sites<br />
  15. 15. Network/Affiliate Manager Review<br />Requirements<br />Active URL<br />Site Description<br />Category<br />Children, Home & Garden, Gifts<br />Unique Visitors/month<br /><br />Business Tax ID number or SSN<br />Site Requirements<br />
  16. 16. Site topic<br />Promotion method<br /> is a one-stop online candle store, offering a wide selection of products including scented candles, decorative candles, soy candles, and candle holders. Site promotion is primarily SEO though PPC may be used in the future.<br />Site Description<br />
  17. 17. About Us<br />Contact Us<br />Privacy Policy<br />Footer<br />Overall design<br />No typo’s<br />Site Requirements<br />
  18. 18. Finding Merchants<br />
  19. 19. Niche Merchant – only offers one product line or category of products.<br />Broad merchant – Amazon, eBay, Wal-mart, Target – can find various types of products<br />Trial & Error – part of the process.<br />What Type of Merchant Is Right For Your Site?<br />
  20. 20. Search by Keyword<br />Use PPC results<br />Google search “___ affiliate programs” <br />Check footer of favorite merchants for affiliate program link<br />Study competitor’s sites<br />Search affiliate networks<br />Use<br />Ways to Find Merchants<br />
  21. 21. Easy way to find merchants with your desired products.<br />Fast way to build a datafeed for your site, without technical knowledge.<br />Free to join – 4 free “shops”<br />Find the design that best fits your site.<br />Review the copy<br />Not “set it and forget it”<br /><br />
  22. 22. Guaranteed payment<br />Merchants have been vetted<br />Merchants know affiliates have been vetted<br />Apply to Merchant’s program through network; Merchant has right to accept or reject your application.<br />Standard banner selection process<br />Affiliate Network Merchants<br />
  23. 23. Run by Affiliate Manager or OPM<br />Payment direct from Merchant<br />Affiliate Forums may have info about programs<br />Ease of application process<br />Interface<br />Creative selection<br />In-House Program<br />
  24. 24. Products<br />Site design – would you shop there?<br /> – evaluate traffic<br />Shopping process – easy or hard<br />Creative available<br />Evaluating Merchants<br />
  25. 25. Affiliate Networks<br />
  26. 26.<br />Known as CJ for short<br />Largest network<br />Merchant list hidden<br />Commission minimum requirement<br />No affiliate support<br />Keyword search tool<br />Charges for datafeed<br />Uses EPC ranking<br />Commission Junction<br />
  27. 27.<br />2nd of Big 3 Affiliate Networks<br />Requires Merchant exclusivity<br />Hidden merchant list<br />Low acceptance rates<br />No affiliate support<br />LinkShare<br />
  28. 28.<br />Formerly Performics<br />3rd of Big 3 Affiliate Networks<br />Merchants hidden<br />No affiliate support<br />High acceptance rate<br />Only shows merchant one URL<br />Hard to search for merchants<br />Google Affiliate Network<br />
  29. 29.<br />Largest of smaller networks<br />Some affiliate support<br />Smaller, specialized merchants<br />Decent interface<br />Keyword search tools<br />ShareASale<br />
  30. 30.<br />Newer Network, growing fast<br />Some good exclusives; Ticketmaster, Discount Tire<br />Quirky interface – requires practice<br />Good affiliate support<br /><br />
  31. 31. Digital Downloads<br />Digital River<br />Name Brand Software products – Norton, Hallmark Cards<br />Clickbank<br />Lesser known software products, ebooks<br />Primarily promoted through PPC<br />Specialty Networks<br />
  32. 32. Primarily promote health & beauty products, insurance leads, Dish Network, etc.<br />Smaller, newer networks<br />Dozens of them!<br />CPA Networks<br />
  33. 33. Good for blogs with many entries on variety of topics.<br />Searches site copy to turn into links to merchants.<br />Matches can be questionable.<br /><br />Text Link Networks<br />
  34. 34. Joining Affiliate Networks<br />
  35. 35. Identify the merchant programs appropriate for your site.<br />Use PopShops OR <br />Visit merchant sites and determine the network they use.<br />Visit the network’s website and go through the application process.<br />Joining Affiliate Networks<br />
  36. 36. Related site, well designed<br />Promotion description<br />Reputation within network<br />Good EPC<br />Traffic sources<br />Incentive vs. non-incentive<br />No Typo’s<br />What Merchants Look For<br />
  37. 37. Consider them a resource<br />Recommend keywords<br />Restricted keyword list <br />Best selling items, seasonal sellers<br />Special links<br />Customized banner ads<br />Okay to call, but don’t be a pain<br />Super Affiliate – when ready, special deals.<br />Working With Affiliate Managers<br />
  38. 38. Websites & Blogs<br /><br /><br /><br />Forums<br /><br /><br />Learning More<br />
  39. 39. Events<br />Affiliate Summit<br />Affiliate<br />Twice each year, 4000 attendees<br />Follow @AffiliateTip, can win free Gold pass <br />Commission Junction University<br />CJU<br />Open Attendance<br />Learning More <br />
  40. 40. LinkShare Symposium<br />Open to all LS affiliates<br />ShareASale Think Tank<br />By invitation only<br />Affiliate Convention<br /><br />In Denver<br />Learning More<br />
  41. 41. Jeannine Crooks<br /><br />AIM: jeanninecrooks<br />Yahoo: JeannineCrooks<br />Twitter: @Jeannine_Crooks<br />303-841-0987<br />Thank You<br />