The document outlines the scope and goals of coupon and deals sites in India, including establishing an affiliate marketing site and app in Phase 1, creating an e-commerce marketplace in Phase 2, and launching an employee benefits program in Phase 3. It discusses the growth of the Indian e-commerce industry and affiliate marketing sector. The business projections estimate that the company will become profitable by year 2 and earn over 50 crore rupees in annual revenue by year 10.
2. Business Goals of a Coupon
site
Phase 1:
Deals and Coupon site + app
Affiliate site with reselling options from direct as well and indirect
clients
Cash Back, bitcoins and reward points system for user retention
Phase 2:
A global e-commerce marketplace to connect subscribers with local
merchants by offering activities, travel, goods and servicesa cash
back and rewards site like Group on (www.groupon.com)
Phase 3 :
Employee Benefits and discount club (Web + app), reference
(www.workadvantage.in)
3. Why Affiliate only when….
First question that comes in mind when we are
taking about digital industry is, why been a liaison or
an affiliate rather than a direct services provider
specially when the digital industry is growing at rate
of 35% every year. Answer is simple!!!
Go back in any time or ages, liasoning has been
one of the most safest model of business with
minimum risk and maximum returns specially when
we have a limited funds to invest. Stats and facts to
follow in coming pages with give you a better idea
and understanding.
So here we go:
4. What is Affiliate Marketing
Affiliate marketing is a type of performance-based
marketing in which a business rewards one or
more affiliates for each visitor or customer brought by the
affiliate's own marketing efforts. The industry has four core
players:
1. The merchant (also known as 'retailer' or 'brand')
2. The network (that contains offers for the affiliate to choose
from and also takes care of the payments)
3. The publisher (also known as 'the affiliate') and
4. The customer
The market has grown in complexity, resulting in the emergence
of a secondary tier of players, including affiliate management
agencies, super-affiliates and specialized third party vendors.
7. Scope of Affiliate industry in India
Experts have made an estimate that the e-commerce
industry in India has rose to $12.6 billion in the year
2013 which is a great improvement from the 2009’s
$3.8 billion. The consumer base of the Indian market
is expected to touch 100 million people next year
which is a whopping figure when compared to the 35
million recorded in 2014.
Above stats are based on the reports offered by the
Annual online Shopping Growth Trends Report of
Google along with the collaboration of Forrester
Research. Considering the ripples created by Indian
market in affiliate marketing, it is well evident that
affiliate marketing would be a game changer for all
online brands and businesses.
10. Scope of Affiliate industry in
India
Based on the report of CMO Council India, the expenses of
digital advertisements are expected to rise by 45%, which is
more than 507.41 million in US$ that was spent in the year
2014.
This indicates that the spending in digital ads have been a
proportionate rise from 28% during the year 2013 to 30% of
2014 to a 35% last year.
Apart from the e-commerce websites like Snapdeal, Amazon
and Flipkart and others that have affiliate programs spending
a huge sum on their digital ads each year, other sites have
also followed suit to make it big in online sector.
In a nutshell, the info graphic in previous slide shows that a
major portion of the traffic enjoyed by online shopping sites
attributes directly to the rise in affiliate marketing. Hence it is
now important to decipher the future of Indian affiliate market.
11. Role of Coupon/Deals sites in Affiliate
industry
The fact that E-Commerce is burgeoning in India is no
longer something that people aren’t already aware
about. The entire category is growing at a compound
annual growth rate of around 35%, and was valued at
USD 26 Billion in 2015. Given the rise in popularity and
angel investor backing, the category never fails to see
someone new and unique starting up, and is pegged to
be valued at USD 100 Billion by 2020. Retail is currently
one of the most popular.
An E-Commerce knowledge platform, e-Tailing India,
has mentioned that Coupon Sites are contributing about
30 % to 35 % of the E-Commerce traffic in India. In
some time this number is also slated to see growth and
should rise to about 40-50 %
12. How Are Coupon Websites Helping
Businesses?
India is a price sensitive market. A survey conducted
by “Coupons.In” revealed that apart from comfort, Indians prefer
shopping online because of the ease to locate a really good deal,
and use it to receive a great discount.
For Startup businesses the initial objective is to drive brand
awareness and build targeted traffic. Some of the available paid
advertising options can prove to be expensive, and yet the returns
on that marketing investment could depend on how the campaign is
being operated and optimized. With Coupon websites, a business
gets access to targeted traffic and the Customer Acquisition Cost is
technically lower than a consumer acquired by Google Adwords.
Some of the popular Coupon Websites are collectively generating
more than 7 Million page views a month for their partners, and
recently a report carried out in YourStory.In mentioned that
CashKaro (a popular Cashback website) had driven sales worth
25+ Crores for its partners
16. Top Deals and Coupons sites in
India
Group On/ Near By
Cash Karo
Coupon Dunia
Deals and Price
Free Kaa Maal
Desidime
Mydala
17. Sources of Business
Direct clients – All ecommerce and digital clients
looking for branding and sales with their
respective affiliate programs
Digital Agencies – dedicated media account
handlers for clients response for digital marketing
Affiliate/Ad networks – Main source of business
which have links to all the other 3 sources and
multiple campaigns in their kitty available to
promote anytime
Search and Social Media - Global Search and
Social media engines offering media and
marketing platforms to clients
18. Revenue Models
CPC/ CPV (Cost per click/Cost per visit) – Payment is
done on the basis of clicks/visits that we generate for the
client through our traffic
CPL/CPA/CPI (Cost per lead/Cost per acquisition/Cost
per install)- Payment is done on the basis of completion
of a desired goal which could be filling a lead or
acquisition post lead generation. Incase of mobile
campaigns, payment is done on the basis of per new
install which is basically CPI
CPS (Cost per sale) – Most common among deals and
coupon sites, this model enables a win-win situation for
client, publisher as well as user where is payments is
done on every successful transaction or sale