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iLive 2011 - Pjotr Tsvetkov: How to start an affiliate program?
The document provides an overview of affiliate marketing opportunities in the Baltic states. It discusses what affiliate marketing is, how it works, key facts about the industry, its size and growth. It also covers return on investment, strengths/weaknesses/opportunities/threats for affiliate marketing programs, and steps to take to start an affiliate program, such as knowing your own numbers and testing conversions.
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iLive 2011 - Pjotr Tsvetkov: How to start an affiliate program?
- 1. Affiliate marketing opportunitiesin Baltic states Pjotr Tsvetkov altex marketing
- 2. About me • Havebeen affiliate from 2004 • I been focused on US market mostly • Have been dealing with Internet marketing as professional last 6 years • I’m head of affiliate network pay4results.eu
- 3. I will tellyou • What is affiliate marketing? • How affiliate marketing works • Some facts about affiliate marketing • How big is affiliate marketing • Return on Investment • Strengths, Weaknesses, Opportunities & Threats (SWOT) • Where to start if a company wishes to open affiliate program?
- 4. What is affiliatemarketing ?
- 5. What is affiliatemarketing ? Affiliate marketing is SOPS
- 6. What is affiliatemarketing ? Affiliate marketing is Selling Other People’s Stuff
- 7. How Affiliate Marketingworks Some company Submit
- 8. How Affiliate Marketingworks Some Affiliate company Website Submit
- 9. How Affiliate Marketingworks Some Affiliate company Website banner Submit
- 10. How Affiliate Marketingworks Some Affiliate company Website Visitors banner Submit
- 11. How Affiliate Marketingworks Some Affiliate company Website Visitors banner Submit €€€
- 12.
- 13. Facts about AffiliateMarketing: • Reward affiliates when sales are made
- 14. Facts about AffiliateMarketing: • Reward affiliates when sales are made • Display your banner
- 15. Facts about AffiliateMarketing: • Reward affiliates when sales are made • Display your banner • Outsourced marketing team
- 16. Facts about AffiliateMarketing: • Reward affiliates when sales are made • Display your banner • Outsourced marketing team • Easy access to technology and affiliates using networks
- 17. Facts about AffiliateMarketing: • Reward affiliates when sales are made • Display your banner • Outsourced marketing team • Easy access to technology and affiliates using networks • Affiliate marketing is technique
- 18. Facts about AffiliateMarketing: • Reward affiliates when sales are made • Display your banner • Outsourced marketing team • Easy access to technology and affiliates using networks • Affiliate marketing is technique • The majority of merchants involved
- 19. Facts about AffiliateMarketing: • Reward affiliates when sales are made • Display your banner • Outsourced marketing team • Easy access to technology and affiliates using networks • Affiliate marketing is technique • The majority of merchants involved • Affiliate market is growing
- 20. Facts about AffiliateMarketing: • Reward affiliates when sales are made • Display your banner • Outsourced marketing team • Easy access to technology and affiliates using networks • Affiliate marketing is technique • The majority of merchants involved • Affiliate market is growing • Not slowing down
- 21. Facts about AffiliateMarketing: • Reward affiliates when sales are made • Display your banner • Outsourced marketing team • Easy access to technology and affiliates using networks • Affiliate marketing is technique • The majority of merchants involved • Affiliate market is growing • Not slowing down • The three sectors expected to experience the greatest growth – Travel, finance and mobile phones
- 22. HOW BIG ISAFFILIATE MARKETING?
- 23. 2004-2010 Growth ofUK Affiliate Marketing Value of UK affiliate industry, based on value of sales driven by sector(£) 5 4,62 4,5 4,13 4 3,82 3,5 3,13 3 Billions 2,5 2,216 2 1,5 1,35 1 0,6 0,5 0 2004 2005 2006 2007 2008 2009 2010 Econsultancy 2010
- 24. Market Value andGrowth • Affiliate marketing is driving 8% of all online retail sales in the UK • For many “blue chip” merchants, particularly in retail and travel, this figure is much higher • 36% of responding companies were planning to increase their affiliate marketing budgets
- 25. Is your companyplanning to spend more or less budget in 2010? Descrease Keep the same Increase 100% 90% 21 25 80% 46 70% 67 60% 50% 65 40% 64 30% 50 20% 29 10% 15 11 0% 4 4 Retail Financial Travel Other Source: Econsultancy and ExactTarget. Marketing budgets 2010
- 26. Commission to networksand affiliates Commission level examples: • Travel (flights) – 1% • Retail – 5% • Subscriptions – 20% • Digital goods – up to 50%
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- 28. Return on Investment Driverevenue • Generate sales/actions • Drive acquisitions • Generate leads • Increase conversion rates
- 29. Return on Investment Reducecosts • Only pay for the sales/acquisitions • Marketing activity can be less hit-and-miss
- 30. Return on Investment Improvebranding • Exposure on quality affiliate websites Improve marketing activities • Learn from affiliates Open new markets • Export opportunities
- 31. STRENGTHS, WEEKNESSES, OPPORTUNITIES &THREATS (SWOT)
- 32. Strengths • Merchants likethe performance marketing channel due to the reliance on the CPA model
- 33. Strengths • Merchants likethe performance marketing channel due to the reliance on the CPA model • Despite the recession, the affiliate marketing channel continues to grow at a strong rate
- 34. Strengths • Merchants likethe performance marketing channel due to the reliance on the CPA model • Despite the recession, the affiliate marketing channel continues to grow at a strong rate • Affiliate marketing is often described as a “win-win” marketing channel
- 35. Strengths • Merchants likethe performance marketing channel due to the reliance on the CPA model • Despite the recession, the affiliate marketing channel continues to grow at a strong rate • Affiliate marketing is often described as a “win-win” marketing channel • The affiliate marketing channel works well for both small and large-sized organizations
- 36. Strengths • Merchants likethe performance marketing channel due to the reliance on the CPA model • Despite the recession, the affiliate marketing channel continues to grow at a strong rate • Affiliate marketing is often described as a “win-win” marketing channel • The affiliate marketing channel works well for both small and large-sized organizations • The company has control over who they work with
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- 39. Weaknesses • Terms violation •“Dark arts” affiliates
- 40. Weaknesses • Terms violation •“Dark arts” affiliates • Fear of brand damage
- 41. Weaknesses • Terms violation • “Dark arts” affiliates • Fear of brand damage • Tracking is an issue
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- 43. Opportunities • Affiliate marketingis a highly flexible business model
- 44. Opportunities • Affiliate marketingis a highly flexible business model • The quality-based CPC model
- 45. Opportunities • Affiliate marketingis a highly flexible business model • The quality-based CPC model • New channels opportunities
- 46. Opportunities • Affiliate marketingis a highly flexible business model • New channels opportunities • New technologies
- 47. Threats • Voucher-code VS“true content” affiliates. • Bid on brand name terms • Google represents a significant threat to SEO affiliates
- 48. WHERE TO STARTIF A COMPANY WISHES TO OPEN AFFILIATE PROGRAM?
- 49. Know your ownnumbers
- 50. Know your ownnumbers • How much money can you share?
- 51. Know your ownnumbers • How much money can you share? • How much money do you currently spend for getting your customers?
- 52. Know your ownnumbers • How much money can you share? • How much money do you currently spend for getting your customers? • Do you know something about average lifetime value of your customers?
- 53. Know your ownnumbers • How much money can you share? • How much money do you currently spend for getting your customers? • Do you know something about average lifetime value of your customers? With these numbers, you can calculate How much you can pay out commissions on sales.
- 54. Know your ownnumbers • How much money can you share? • How much money do you currently spend for getting your customers? • Do you know something about average lifetime value of your customers? With these numbers, you can calculate How much you can pay out commissions on sales.
- 55. Test your conversions • Website design • Shopping process • Pricing • Marketing materials.
- 56. Test your conversions • Website design • Shopping process • Pricing • Marketing materials. • Get the consultancy from affiliate marketing expert. Ask him if they will review your and offer a report of suggestions that need to be addressed before you launch
- 57. Test your conversions • Website design • Shopping process • Pricing • Marketing materials. • Get the consultancy from affiliate marketing expert. Ask him if they will review your and offer a report of suggestions that need to be addressed before you launch
- 58. Test your conversions •Website design • Shopping process • Pricing • Marketing materials. • Get the consultancy from affiliate marketing expert. Ask him if they will review your and offer a report of suggestions that need to be addressed before you launch • Contact affiliate network
- 59.