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Online Marketing Summit - Minneapolis - Affiliate marketing

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The 4 P’s of Affiliate Marketing. How to Build and Optimize an Affiliate / Pay-for-Performance Program. Prepared by Mike McAnally, Managing Partner at NordicClick Interactive @NordicClick @mmcanally. Feel free to contact me at 952-460-3330

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Online Marketing Summit - Minneapolis - Affiliate marketing

  1. 1. The 4 P’s of Affiliate Marketing<br />How to Build and Optimize an Affiliate / Pay-for-Performance Program<br />Mike McAnally <br />Managing Partner, NordicClick Interactive<br />@NordicClick @mmcanally<br />6/07/2011<br />
  2. 2. About me<br /><ul><li>Active in the Interactive Marketing community for over 14 years
  3. 3. Managing Partner at NordicClick Interactive
  4. 4. Affiliate portfolio includes managing programs for companies such as Jostens, NHL, US Bank Credit Cards, Allen Edmonds and Code42 Software.
  5. 5. An active Affiliate</li></li></ul><li>What we will cover in this Session<br /><ul><li>What is Affiliate/Pay-for-Performance Marketing and how does it work
  6. 6. Launching, Managing & Optimizing Affiliate Programs (The 4 P’s)
  7. 7. Plan, Prepare, Promote & Protect
  8. 8. Affiliate Marketing as a legitimate traffic medium that can drive incremental traffic and sales</li></li></ul><li>What we will NOT cover in this Session<br /><ul><li>An infomercial on how to make $1,000 a week
  9. 9. Monetizing your Blog
  10. 10. The 3 P’s– The acronym that Affiliate Marketing has a bad reputation for
  11. 11. Porn, Pills, Poker</li></li></ul><li>What is Affiliate Marketing?<br />Affiliate Marketing Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts. <br />
  12. 12. From a Merchant standpoint?<br />Merchants favor Affiliate marketing because it uses a "pay for performance" model, meaning that the merchant does not incur a marketing expense unless results are accrued (excluding any initial setup cost).<br />
  13. 13. Affiliate Terminology<br />
  14. 14. How does it Work?<br />
  15. 15. Who uses Affiliate Marketing?<br />
  16. 16. Affiliate Marketing Statistics<br />Affiliate Marketing Spending is on pace to double by 2014<br /><ul><li>Growth drivers: Content and Dialogue
  17. 17. Social media will provide some growth
  18. 18. Paid and organic search will the remain top drivers
  19. 19. Top 3 Affiliate financial services, retailers, & online education</li></ul>Forrester Research, Inc. “US Affiliate Marketing Forecast, 2009 To 2014″<br />
  20. 20. Affiliate Marketing Statistics<br />Online Marketing Tactics Used<br /><ul><li>Affiliate marketing was used by 28% of all marketers
  21. 21. 46% felt the channel was very cost-effective
  22. 22. 48% felt it was quite cost-effective
  23. 23. Only 6% thought it was not cost-effective (lowest of all)</li></li></ul><li>Affiliate Marketing - Process<br />Affiliate Program Management & Optimization<br />
  24. 24. Affiliate Marketing - Plan<br />Cost & Commitment<br /><ul><li>Fees (setup, transaction and processing fees )
  25. 25. Monthly Minimums & Maintenance
  26. 26. Contract Commitments
  27. 27. Creative Development (banners, landing pages, etc.)</li></li></ul><li>Affiliate Marketing – Plan<br />Ongoing Resources<br /><ul><li>Management & Strategic Resources (Personnel, Support, Agency)
  28. 28. IT Resources
  29. 29. Creative Development
  30. 30. Accounting
  31. 31. Affiliate Application Review
  32. 32. Day-to-day Communication with Affiliate’s</li></li></ul><li>Affiliate Marketing - Plan<br />
  33. 33. Affiliate Marketing - Process<br />Affiliate Program Management & Optimization<br />
  34. 34. Affiliate Marketing - Prepare<br />Sell Yourself<br /><ul><li>Write your Bio
  35. 35. Identify your Target Market
  36. 36. Best selling products
  37. 37. Keywords
  38. 38. Conversion rate
  39. 39. Average order size
  40. 40. Promotional Plan</li></li></ul><li>Affiliate Marketing – Prepare<br />Base Creative Assets<br /><ul><li>Text & Copy Links
  41. 41. Keywords Lists
  42. 42. Images (Banners)
  43. 43. Promotions</li></li></ul><li>Affiliate Marketing – Prepare<br />Advanced Creative Assets<br /><ul><li>Product Feeds
  44. 44. Flash Links
  45. 45. Advanced Links, Search Boxes, Widgets, etc.</li></li></ul><li>Affiliate Marketing - Prepare<br />Affiliate Mgmt.<br /><ul><li>Commission Structure
  46. 46. Base Commission
  47. 47. Multi-tier
  48. 48. Bonuses and goals
  49. 49. Approval Method
  50. 50. Auto-Approve and Decline
  51. 51. Manual Review
  52. 52. Communication
  53. 53. E-mails, Social</li></li></ul><li>Affiliate Marketing - Prepare<br />Technical Integration<br /><ul><li>IT Resources
  54. 54. Code Implementation
  55. 55. Javascript code
  56. 56. Tracking Pixel
  57. 57. Confirmation
  58. 58. Test order before launch</li></li></ul><li>Affiliate Marketing - Process<br />Affiliate Program Management & Optimization<br />
  59. 59. Affiliate Marketing - Promote<br />Promote On-Site<br /><ul><li>Create an Affiliate specific area (.com/Affiliate)
  60. 60. Recruit partners & customers in your network
  61. 61. Write a press release / blog article
  62. 62. Post testimonials to the success of your program</li></li></ul><li>Affiliate Marketing - Promote<br />Promote Off-site<br /><ul><li>List your program in Affiliate program directories
  63. 63. Find niche forums and talk about your program
  64. 64. Utilize Social Media networks, Twitter & e-mail to reach out to your brand evangelists</li></li></ul><li>Affiliate Marketing - Promote<br />If you Build it…<br />Recruit Affiliates<br /><ul><li>Identify Super-Affiliates on the SE’s
  65. 65. Create a multi-tier Commission Structure
  66. 66. Offer Bonuses & Special promotions
  67. 67. Attend Affiliate Conferences
  68. 68. Pay a “Lead Bounty”</li></ul>My Site<br />they will come?<br />
  69. 69. Affiliate Marketing - Promote<br />Share your Promotion & Sales Calendar<br /><ul><li>COMMUNICATE with your Affiliates
  70. 70. Ensure that they are aware of your sales & discounts
  71. 71. Offer special incentives at peak sales windows</li></li></ul><li>Affiliate Marketing - Process<br />Affiliate Program Management & Optimization<br />
  72. 72. Affiliate Marketing - Protect<br />Affiliate Approval<br /><ul><li>Automated
  73. 73. Anyone can sell
  74. 74. Manual
  75. 75. Review Sites Carefully
  76. 76. More Control of Brand Placement
  77. 77. Manual Affiliate Approval</li></li></ul><li>Affiliate Marketing - Protect<br />Monitor your Brand<br /><ul><li>Common Affiliate Tricks
  78. 78. URL/Ad Text Hijacking
  79. 79. Day-parting
  80. 80. Reverse Geo-Targeting
  81. 81. Utilize monitoring tools to Create Affiliate watch list
  82. 82. Social Media
  83. 83. Paid Search </li></li></ul><li>Affiliate Marketing - Protect<br />Reporting & Analytics<br /><ul><li>Fraudulent and Cancelled orders
  84. 84. Analytics Reports
  85. 85. Sales, Visits, AOV, Conversion rate, etc.
  86. 86. Referral Traffic & Sales
  87. 87. Trends / History
  88. 88. Category Performance
  89. 89. Publisher Performance</li></li></ul><li>Affiliate Marketing – Case Study<br />Launch with Google Affiliate Network <br />Promotional Strategy<br />2<br />3<br />Leverage new publishers opportunities<br />1<br />Case Study Background<br /><ul><li>Background: Specialty retailer turned to NordicClick to identify new sales channels
  90. 90. Objectives: Accelerate online sales growth and attract affiliate publisher partners</li></li></ul><li>Affiliate Marketing – Case Study<br />Case Study Results<br /><ul><li>10% of overall online sales driven through Google Affiliate Network (in initial 4 months)
  91. 91. Majority of growth evaluated as incremental
  92. 92. Conversion rate twice as high as other channels
  93. 93. Google Affiliate Network projected to drive 15-20% of overall sales volume in 2011
  94. 94. C-Level confidence</li></li></ul><li>Affiliate Marketing - Tools<br />Conventions to Attend<br /><ul><li>OMI, Affiliate Summit, AffCon, PubCon, Adtech</li></ul>Blogs & Forums<br /><ul><li>Affiliate Tip, ClickBank Blog, ShareASale, ABestWeb, Sugarrae, Affiliates4U</li></li></ul><li>Affiliate Marketing - Summary <br />Summary<br /><ul><li>Understand the cost and commitment to resources.
  95. 95. Affiliate Marketing needs attention.
  96. 96. Be aggressive, spend money to make money.
  97. 97. Protect your brand via monitoring and analytics.
  98. 98. Affiliate Marketing can be a low-cost incremental source of revenue via a “Virtual Sales Force.</li></li></ul><li>Thank You<br />Mike McAnally<br />Managing Partner, NordicClick Interactive<br />Mike@NordicClick.com<br />952.460.3330<br />@NordicClick @mmcanally<br />www.linkedin.com/in/MikeMcAnally<br />www.facebook.com/NordicClick<br />The 4 P’s of Affiliate Marketing<br />

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