In-House VS Network Affiliate Programs by Peter Hamilton of HasOffers for ADTECH NY 2011


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This presentation was given at Ad:tech, New York on November 19th. I was joined by Javier Barragan of Flycell and Bucksense, who gave his first hand experience of working with many large affiliate networks as well as bringing his affiliate program in-house.

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In-House VS Network Affiliate Programs by Peter Hamilton of HasOffers for ADTECH NY 2011

  1. 1. Affiliate Programs: In-House vs. Network Peter Hamilton Partner / CMO at [email_address] Twitter:  @PeterHamilton #adtechny
  2. 2. What ’s the point? @peterhamilton
  3. 3. To Get New Customers. What ’s the point? That meet your desired level of quality. That you're actually willing to pay for. That you would not reach otherwise. @peterhamilton
  4. 4. What ’s the point? What's it worth to you? @peterhamilton
  5. 5. Choose your path <ul><li>Affiliate Network   </li></ul><ul><li>Allow one or more affiliate networks </li></ul><ul><li>to manage your affiliates. </li></ul><ul><li>    Steps: </li></ul><ul><ul><li>Signup for affiliate networks </li></ul></ul><ul><ul><li>Provide your offer URL </li></ul></ul><ul><ul><li>Install their tracking code </li></ul></ul><ul><ul><li>Negotiate the Payout & Fees </li></ul></ul><ul><ul><li>They give affiliates your offer </li></ul></ul><ul><ul><li>Review conversions blindly </li></ul></ul><ul><ul><li>Make single payment </li></ul></ul>@peterhamilton <ul><li>In-House Program </li></ul><ul><li>Directly manage your own affiliates </li></ul><ul><li>and publishers. </li></ul><ul><li>    Steps: </li></ul><ul><ul><li>Tracking/management system </li></ul></ul><ul><ul><li>Setup your offer </li></ul></ul><ul><ul><li>Install your own tracking code </li></ul></ul><ul><ul><li>Choose your payouts </li></ul></ul><ul><ul><li>Work directly with affiliates </li></ul></ul><ul><ul><li>Review conversions transparently </li></ul></ul><ul><ul><li>Pay each of your affiliates </li></ul></ul>
  6. 6. What ’s the difference? @peterhamilton
  7. 7. Time <ul><li>Affiliate Networks     </li></ul><ul><ul><li>Corresponding with one affiliate manager </li></ul></ul><ul><ul><li>Providing Creatives </li></ul></ul><ul><ul><li>Verifying Leads/Conversions </li></ul></ul><ul><ul><li>Paying affiliate network </li></ul></ul><ul><li>In-House Program </li></ul><ul><ul><li>Recruiting new affiliates </li></ul></ul><ul><ul><li>Promoting your program </li></ul></ul><ul><ul><li>Corresponding with individual affiliates </li></ul></ul><ul><ul><li>Managing Creatives </li></ul></ul><ul><ul><li>Verifying leads and detecting fraud </li></ul></ul><ul><ul><li>Accounting: Making payments to affiliates, etc. </li></ul></ul>@peterhamilton
  8. 8. Cost: Affiliate networks Courtesy of Geno Persekov - @peterhamilton
  9. 9. Cost: In-house program @peterhamilton Tracking  Software Affiliate  Payouts + = Total  Costs
  10. 10. In-house control Internal Tracking @peterhamilton The Data is Yours Pay What You Want You Control Your Offer No negotiation on payout amounts or structures (flat rate, % of sale, recurring, etc.). Affiliate information, user data, all other records. Real-time reporting and reconciliation. Change anything, any time you need to.
  11. 11. Affiliate networks <ul><ul><li>Network recruits affiliates </li></ul></ul><ul><ul><li>Network pays and manages affiliates </li></ul></ul><ul><ul><li>Network helps you perfect your offer </li></ul></ul><ul><ul><li>Network is responsible for fraudulent conversions </li></ul></ul><ul><ul><li>Don ’t worry about tracking or reporting </li></ul></ul><ul><ul><li>More Expensive </li></ul></ul><ul><ul><ul><li>Networks take a % of payout </li></ul></ul></ul><ul><ul><li>Little transparency </li></ul></ul><ul><ul><ul><li>Do not contact affiliates directly </li></ul></ul></ul><ul><ul><li>Changes to your campaign must go through network </li></ul></ul><ul><ul><li>Network hosts creatives </li></ul></ul><ul><ul><li>Need brand protection </li></ul></ul><ul><ul><li>Trust network ’s tracking </li></ul></ul>@peterhamilton PROS CONS
  12. 12. In-house program <ul><ul><li>Direct connection to your affiliates/publishers </li></ul></ul><ul><ul><li>Less Expensive </li></ul></ul><ul><ul><li>Comprehensive reporting </li></ul></ul><ul><ul><li>Direct connections to your affiliates/publishers </li></ul></ul><ul><ul><li>Secure Data </li></ul></ul><ul><ul><li>Find unique publishers </li></ul></ul><ul><ul><li>Complete branded experience </li></ul></ul><ul><ul><li>Complete flexibility </li></ul></ul><ul><ul><li>Find your own affiliates </li></ul></ul><ul><ul><li>More time required to manage </li></ul></ul><ul><ul><li>You have to pay affiliates </li></ul></ul><ul><ul><li>Detect your own fraud </li></ul></ul><ul><li>      You are responsible! </li></ul>@peterhamilton PROS CONS
  13. 13. Who ’s doing what? Currently Using CJ, Linkshare, or GAN Manage an In-House Affiliate Program @peterhamilton
  14. 14. Can I do both? @peterhamilton
  15. 15. Can I do both? <ul><li>Tracking Affiliate Networks In-House </li></ul><ul><ul><li>Setup up affiliate networks as affiliates </li></ul></ul><ul><ul><li>Piggy back their tracking code as a third-party pixel in your tracking software </li></ul></ul><ul><ul><li>Provide networks with a unique affiliate link </li></ul></ul><ul><ul><li>Make sure networks pass in affiliate sub IDs </li></ul></ul><ul><li>Now you can track affiliate networks along side your affiliates to view relative performance . </li></ul>@peterhamilton
  16. 16. Do what ’s right for you Every Organization is Different! @peterhamilton
  17. 17. Do what ’s right for you @peterhamilton <ul><li>In-House Tips: </li></ul><ul><ul><li>Choose a flexible and reliable tracking software </li></ul></ul><ul><ul><li>Improve your conversion process </li></ul></ul><ul><ul><li>Start with customers and partners (you trust) </li></ul></ul><ul><ul><li>Use a payment processor like Payoneer </li></ul></ul>
  18. 18. Case Study An In-House Affiliate Program Story Javier Barragan General Manager at Bucksense, Inc. Previously: VP of Acquisition, Flycell Twitter: @BuckSense @peterhamilton
  19. 19. Affiliate Programs: In-House vs. Network Peter Hamilton Partner / CMO at [email_address] Twitter:  @PeterHamilton #adtechny