How To Succeed         in Affiliate MarketingAffiliate Program Best PracticesPresented by:   Geno Prussakov               ...
It’s All About the Ecosystem
The Result
Focus Basics (definitions, payment models) Affiliate management best practices
The Basics
Affiliate Marketing is…...performance-based marketing,    whereby affiliates promote a    merchants product (or service) a...
Payment ModelsCost Per Sale (CPS) – Affiliates get a  percentage of the sale.  The most widely used payment  model (~80% o...
Payment Models
Payment ModelsCost Per Lead (CPL) – Affiliates  receive compensation for referred  leads (e.g. forms submitted,  subscript...
Payment Models
Payment ModelsCost Per Click (CPC) – Ceasing  model (mainly due to a large  volume of fraud).eBay – the only major merchan...
Payment Models
Payment ModelsPay Per Call (PPCall) – Advertisers   pay affiliates for "hot leads" that   call in.Just as with other model...
Payment ModelsLots of room for Hybrid Models    E.g.:       CPS + CPL       CPS/CPL + PPCall       CPS + CPL + PPCall
Best Practices forRunning Affiliate Programs
1. Don’t Manage Affiliates
1. Don’t Manage Affiliates … in reality: we’re not   affiliate managers        but affiliate program managers
Be a Leader            7 Rs•   Reachable•   Responsive•   Real•   Realistic•   Responsible•   Reflective•   Resonating.
Be a Leader            7 Rs                      3 Is                           Transformational Leadership•   Reachable• ...
2. Leak-Free Website
Leaks - DefinitionLeaks – external links within your website that   lead to sites which do not credit your affiliates   fo...
Leaks - Examples1.   Phone Number2.   Live Chat3.   AdSense Units4.   Affiliate Links5.   Links to Related Stores/Sites6. ...
Leak #1 – Phone Number
Leak #1 – Phone Number
Leak #2 – Live Chat
Leak #2 – Live ChatGood answer:
Leak #3 – AdSense
Leak #4 – Affiliate LinksAmazon widget example:
Leak #5 – Related Stores/Sites
Leak #6 – Other Merchants
Leak #7 – Links to Affiliates
Go Leak-Free!!
3. Dedicated Landing Pages
Dedicated Landing PagesWe’ve analyzed 50 randomly selected merchants (from Internet Retailer Top 500 list) on 3 major affi...
Dedicated Landing Pages4 Points to Cover:1. Reinforce promo/campaigns details2. Provide detailed instructions (if   custom...
4. Testing & Conversion Rate   Optimization
Testing & Optimization    What to Test?•   Headlines•   Calls to action•   Page style & layout•   Images•   Descriptive co...
Testing & Optimization                              Tools to Employ    What to Test?                          •   Google W...
5. Program Agreement Don’t confuse with affiliate network’s agreement!
5. Program Agreement
5. Program Agreement Merchant naïvete -- lossof defensive behaviorsand adaptations neededto deal with “predators”
Program agreement    What to Cover?•   Coupon & discounts policy•   Trademark policy•   Policies on loyalty affiliates•   ...
Program agreement     What to Cover?•    Coupon & discounts policy•    Trademark policy•    Policies on loyalty affiliates...
Program agreement     What to Cover?•    Coupon & discounts policy•    Trademark policy                 “How often do you ...
Program agreementGet your free sample:        www.AMNavigator.com/TOS.html
6. Policing & Enforcement
Monitor Trademark Use    In Paid Search Campaigns:•   iTrademarkBidding – www.itrademarkbidding.com•   Brandverity PoachMa...
7. Approval EmailWhat % of your current affiliates are active?                 …between 5% and 10%
7. Approval Email     Pattern to Follow1.   Remind them of your program details2.   Include an activation promo3.   Enclos...
―What’s the maximum acceptable affiliate program           application response time?‖
8. Sense of Urgency
Create a Sense of Urgency!
9. Hard-to-Reach Goals
Unrealistic/Demotivating Goals              Important details:    AOV ~$650    So, for 0.5% increase - 31 orders/mo    ...
10. Commission Drops
Commission Drops
Commission Drops
11. Competitive Intelligence
5 Ways to Spy on Competition   1. Analyze their performance stats   2. Become their customer &      affiliate   3. Create ...
12. Proactive Management
Proactive ManagementProactive – ―Acting in anticipation of future  problems, needs, or changes‖ (Websters  Dictionary)
13. 2-Way Communication Channel
Chernobyl (illustration)
Global Problem
Global Problem
Communication ChannelBuild a two-way communication channel (via all available means, including social media)
Preferred Communication Methods                                     Email - over 62%                                     W...
Communication Frequency        Source: AffStat Report
14. Dedicated Affiliate Mini-Site
Recruitment Through Their EyesGoogle - 18%Research - 5.7%Blog - 5.7%TOTAL: ~30%                  Source: AffStat Report
Affiliate Program Mini-Site                              Minimum• Program Details (with sign-up link/form)• Program Agreem...
15. Playing Without the BallPerhaps the most important part of offensive    basketball is the part played by each man with...
15. Playing Without the BallPerhaps the most important part of offensive    basketball is the part played by each man with...
In Conclusion…
Mistakes & Areas to Rethink                                          1.     Managing affiliates                           ...
09 partnermarketings   geno prussakov
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09 partnermarketings geno prussakov

  1. 1. How To Succeed in Affiliate MarketingAffiliate Program Best PracticesPresented by: Geno Prussakov CEO & President, AM Navigator LLC www.amnavigator.com Founder & Chair, Affiliate Management Days www.affiliatemanagementdays.comTel.: (+1) 888-588-8866Email: geno@amnavigator.comTwitter: @ePrussakov.
  2. 2. It’s All About the Ecosystem
  3. 3. The Result
  4. 4. Focus Basics (definitions, payment models) Affiliate management best practices
  5. 5. The Basics
  6. 6. Affiliate Marketing is…...performance-based marketing, whereby affiliates promote a merchants product (or service) and get remunerated for every customer sent to the merchant.
  7. 7. Payment ModelsCost Per Sale (CPS) – Affiliates get a percentage of the sale. The most widely used payment model (~80% of affiliate programs)
  8. 8. Payment Models
  9. 9. Payment ModelsCost Per Lead (CPL) – Affiliates receive compensation for referred leads (e.g. forms submitted, subscriptions, free trials, etc)
  10. 10. Payment Models
  11. 11. Payment ModelsCost Per Click (CPC) – Ceasing model (mainly due to a large volume of fraud).eBay – the only major merchant who uses a modified version of it, QCP (Quality Click Pricing), where the per- click rate changes daily based on the value of affiliate-referred traffic.
  12. 12. Payment Models
  13. 13. Payment ModelsPay Per Call (PPCall) – Advertisers pay affiliates for "hot leads" that call in.Just as with other models, these have to be "qualified" actions. Payments for phone leads bridges the gap between online and offline.
  14. 14. Payment ModelsLots of room for Hybrid Models E.g.: CPS + CPL CPS/CPL + PPCall CPS + CPL + PPCall
  15. 15. Best Practices forRunning Affiliate Programs
  16. 16. 1. Don’t Manage Affiliates
  17. 17. 1. Don’t Manage Affiliates … in reality: we’re not affiliate managers but affiliate program managers
  18. 18. Be a Leader 7 Rs• Reachable• Responsive• Real• Realistic• Responsible• Reflective• Resonating.
  19. 19. Be a Leader 7 Rs 3 Is Transformational Leadership• Reachable• Responsive • inspirational motivation• Real • intellectual stimulation• Realistic • individualized consideration• Responsible .• Reflective• Resonating
  20. 20. 2. Leak-Free Website
  21. 21. Leaks - DefinitionLeaks – external links within your website that lead to sites which do not credit your affiliates for the work they perform.
  22. 22. Leaks - Examples1. Phone Number2. Live Chat3. AdSense Units4. Affiliate Links5. Links to Related Stores/Sites6. Links to Other Merchants7. Links to Other Affiliates
  23. 23. Leak #1 – Phone Number
  24. 24. Leak #1 – Phone Number
  25. 25. Leak #2 – Live Chat
  26. 26. Leak #2 – Live ChatGood answer:
  27. 27. Leak #3 – AdSense
  28. 28. Leak #4 – Affiliate LinksAmazon widget example:
  29. 29. Leak #5 – Related Stores/Sites
  30. 30. Leak #6 – Other Merchants
  31. 31. Leak #7 – Links to Affiliates
  32. 32. Go Leak-Free!!
  33. 33. 3. Dedicated Landing Pages
  34. 34. Dedicated Landing PagesWe’ve analyzed 50 randomly selected merchants (from Internet Retailer Top 500 list) on 3 major affiliate networks (CJ, LinkShare, GAN)…
  35. 35. Dedicated Landing Pages4 Points to Cover:1. Reinforce promo/campaigns details2. Provide detailed instructions (if customer needs to do something)3. Spell out any restrictions4. Have clear calls to action.
  36. 36. 4. Testing & Conversion Rate Optimization
  37. 37. Testing & Optimization What to Test?• Headlines• Calls to action• Page style & layout• Images• Descriptive copy• Pricing & promos.
  38. 38. Testing & Optimization Tools to Employ What to Test? • Google Website Optimizer• Headlines • Visual Website Optimizer • LiveBall• Calls to action • A/Bingo• Page style & layout • PickFu• Images • Vertster • Unbounce• Descriptive copy • Sitespects A/B Testing• Pricing & promos • Five Second Test • Vanity
  39. 39. 5. Program Agreement Don’t confuse with affiliate network’s agreement!
  40. 40. 5. Program Agreement
  41. 41. 5. Program Agreement Merchant naïvete -- lossof defensive behaviorsand adaptations neededto deal with “predators”
  42. 42. Program agreement What to Cover?• Coupon & discounts policy• Trademark policy• Policies on loyalty affiliates• Policies on toolbars, adware & parasitic behavior
  43. 43. Program agreement What to Cover?• Coupon & discounts policy• Trademark policy• Policies on loyalty affiliates• Policies on toolbars, adware & parasitic behavior How to Word It?1. Foreword2. Summary3. Agreement itself
  44. 44. Program agreement What to Cover?• Coupon & discounts policy• Trademark policy “How often do you read TOS?”• Policies on loyalty affiliates• Toolbars, adware, parasites How to Word It?1. Foreword2. Summary3. Agreement itself
  45. 45. Program agreementGet your free sample: www.AMNavigator.com/TOS.html
  46. 46. 6. Policing & Enforcement
  47. 47. Monitor Trademark Use In Paid Search Campaigns:• iTrademarkBidding – www.itrademarkbidding.com• Brandverity PoachMark – brandverity.com/poachmark• SearchMonitor – thesearchmonitor.com/affiliate_monitor• AdGooroo Trademark Insight – www.adgooroo.com In Domain Names:• CitizenHawk – www.citizenhawk.com.
  48. 48. 7. Approval EmailWhat % of your current affiliates are active? …between 5% and 10%
  49. 49. 7. Approval Email Pattern to Follow1. Remind them of your program details2. Include an activation promo3. Enclose performance-based incentive4. Pre-coded affiliate links (incl. coupons, feed, etc)5. Detailed contact information
  50. 50. ―What’s the maximum acceptable affiliate program application response time?‖
  51. 51. 8. Sense of Urgency
  52. 52. Create a Sense of Urgency!
  53. 53. 9. Hard-to-Reach Goals
  54. 54. Unrealistic/Demotivating Goals Important details:  AOV ~$650  So, for 0.5% increase - 31 orders/mo  …and for 1% bump - 91 such orders
  55. 55. 10. Commission Drops
  56. 56. Commission Drops
  57. 57. Commission Drops
  58. 58. 11. Competitive Intelligence
  59. 59. 5 Ways to Spy on Competition 1. Analyze their performance stats 2. Become their customer & affiliate 3. Create automatic monitoring campaigns 4. Do friend and follow them 5. Employ traffic measuring tools
  60. 60. 12. Proactive Management
  61. 61. Proactive ManagementProactive – ―Acting in anticipation of future problems, needs, or changes‖ (Websters Dictionary)
  62. 62. 13. 2-Way Communication Channel
  63. 63. Chernobyl (illustration)
  64. 64. Global Problem
  65. 65. Global Problem
  66. 66. Communication ChannelBuild a two-way communication channel (via all available means, including social media)
  67. 67. Preferred Communication Methods Email - over 62% Website - 14% Social media - 12% Source: AffStat Report
  68. 68. Communication Frequency Source: AffStat Report
  69. 69. 14. Dedicated Affiliate Mini-Site
  70. 70. Recruitment Through Their EyesGoogle - 18%Research - 5.7%Blog - 5.7%TOTAL: ~30% Source: AffStat Report
  71. 71. Affiliate Program Mini-Site Minimum• Program Details (with sign-up link/form)• Program Agreement• Blog Ideally1. Program Details2. Program Agreement3. FAQ Section4. Tips & Ideas5. Creatives6. Blog7. Contact Us.
  72. 72. 15. Playing Without the BallPerhaps the most important part of offensive basketball is the part played by each man without the ball. ~ John Woden, Naismith Hall of Fame CoachOne of the most difficult coaching tasks is to teach players to carry out actions that don’t involve the basketball — the magnet of the game. ~ Krause, Meyer & Meyer, Basketball Skills & DrillsMoving without the ball requires you to be adept at starting, stopping, faking, and changing directions. You must have excellent court awareness and vision… ~ Ralph Pim, Winning Basketball
  73. 73. 15. Playing Without the BallPerhaps the most important part of offensive basketball is the part played by each man without the ball. ~ John Woden, Naismith Hall of Fame CoachOne of the most difficult coaching tasks is to teach players to carry out actions that don’t involve the basketball — the magnet of the game. ~ Krause, Meyer & Meyer, Basketball Skills & DrillsMoving without the ball requires you to be adept at starting, stopping, faking, and changing directions. You must have excellent court awareness and vision… ~ Ralph Pim, Winning Basketball
  74. 74. In Conclusion…
  75. 75. Mistakes & Areas to Rethink 1. Managing affiliates 2. Leaks 3. Dedicated landing pages 4. Testing & optimizationThank you!! 5. 6. Program agreement Policing & enforcement 7. Approval email 8. Sense of urgency 9. Hard-to-reach goals 10. Commission drops 11. Competitive intelligence 12. Proactive management 13. Communication channel 14. Dedicated affiliate mini-site 15. Playing without the ball www.amnavigator.com/blog | 1-888-588-8866 | geno@amnavigator.com

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