Use Affiliate Marketing to Build Your Online Business David Polivy Tahoe Mountain Sports
Use Affiliate Marketing to Build Your Online Business AGENDA: • Who am I and why am I here?• What is Cost Per Acquisition (CPA) advertising and why do it? • What is an affiliate and what do they do?• Tips and tricks to setting up and running an affiliate program • Long term results, tweaks and performance goals
Tahoe Mountain Sports• In business since 2006, started as online only• ~20% growth YOY, 7 FT/YR employees• Now, 2500s.f. store in KB, 70% sales online/30% in store• Cross Channel traffic and conversions growing rapidly
CPC, CPM and CPA – Oh My! CPC – Cost Per Click • Good lead, maybe a sale CPM – Cost Per Impression • Brand awareness, messaging CPA – Cost Per Acquisition • Sale!!!!!
What is an Affiliate and what do they do?Affiliate Marketing is an Internet-based marketing practice in which a web retailer rewards Affiliates for the sales and/or customers they refer.Affiliates drive targeted shopping traffic to web retailers using different promotional methods including: Online Brand Development – They help you build your brand Search Engine Optimization – They work hard to get you a sale Web Community Building – They build web communities Paid Search Engine Marketing (PPC) – They spend money to get you a sale
Affiliate Marketing Overview & EffectivenessAffiliate compensation is “performance-based” on a “cost per sale” model, meaning retailers only pay the contracted commission after the sale/transaction takes place. This is why I Love It!Qualified Affiliates work to promote your brand free of charge with the understanding that youll convert their referral to a sale, which results in a commission earned.
Affiliate Marketing Overview & EffectivenessConsider a few of the benefits if youre a web retailer: Only Pay for Results - Youre only charged for the marketing efforts after the sale is complete. Free Branding - Your pre-configured banner ad campaigns circulate and distribute your brand for free. New Customer Acquisition - Affiliates are a real time sales force in addition to a tool for acquiring new, long-term customers.
Examples of Affiliates• Magnifeye• Trailspace• Teton Gravity Research• Retail Me Not• The Find• Millions and millions more………..
Tips and tricks to setting up and running an affiliate program Choosing an Affiliate Platform • Share Similar Goals? • Right Kind of Space for your business? • Support Structure? • Cost?
Tips and tricks to setting up and running an affiliate program
Tips and tricks to setting up and running an affiliate programBefore Affiliate program launch a store/ecommerce system should be working properly and efficiently from usability to order fulfillment.Once that has been accomplished choose a reputable Affiliate platform and produce program collateral including: Quality Product Datafeed Array of Banners & Other Ad Units Program Terms & Description
Examples – Data Feeds Product/Price Comparisons Size/Color/Style/Type Options Accurate, In Stock, Updated Daily
Tips and tricks to setting up and running an affiliate program Don’t Set it and Forget It Find an Affiliate Manager! Or, do it internally, but dedicate the necessary resources
Tips and tricks to setting up and running an affiliate programAffiliate Manager DutiesCommunication and responsiveness are crucial components of the Affiliate Managers role. Other duties include: Regularly updating ad campaigns & promotional offers Effectively communicating new promotional offers Engaging Affiliates to optimize efforts & increase sales Manage ongoing initiatives to effectively brand the program
Tips and tricks to setting up and running an affiliate programTo build a successful Affiliate program you should: View Affiliates as partners and individuals Build relationships based on trust Give Affiliates plenty of notice on promotions Be responsive and predictable Remain engaged with regular communication Establish clear program terms and enforce them (includes trademark or brand PPC bidding)
Long term results, tweaks and performance goals• Develop your long term conversion rate and click through goals - Adjust and monitor regularly• Vary your regular vs. seasonal/promotional activity• Continually recruit new affiliates and build out existing affiliates
Long term results, tweaks and performance goals Develop your long term conversion rate and click through goals - Adjust and monitor regularlyIt is not uncommon for established Affiliate programs to generate 10%-25% of a web retailers entire sales volume in a year.***TMS – 1.2% Conversion Rate, 12% of sales, Over 2 million ad impressions
Long term results, tweaks and performance goals Vary your regular vs. seasonal/promotional activity
Long term results, tweaks and performance goals Continually recruit new affiliates and build out existing affiliates• Email introductions, check-ins, anything needed?• Commission bumps, Incentive levels• Encourage adoption of all your tools• Share/Trade content
The End!David Polivy 1) 2) What does CPA stand for? Name 1 kind of affiliate marketing 3) Name 1 affiliate networkTahoe Mountain Sports 4) What is 1 thing you can do to continually update and improve firstname.lastname@example.org affiliate marketing?Preferred Affiliate Network – Avantlink.com Questions?