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Affiliate Marketing 101
DAN MARQUES
@dmarques1
agenda
Get	
  to	
  Know	
  Each	
  Other
What	
  is	
  Affiliate	
  Marke/ng?
Pre-­‐Launch	
  –	
  How	
  big	
  can	
  it	
  be?	
  Where	
  do	
  I	
  start?	
  
Launch	
  –	
  Process,	
  Best	
  Prac?ces
Grow	
  –	
  	
  90/10,	
  Recrui?ng,	
  PiEalls	
  to	
  Avoid
Beyond	
  the	
  Network
Free	
  GiM!
Next	
  Steps
about	
  me
about	
  me
tell	
  me	
  about	
  you!
Who	
  are	
  you?	
  (Name)
Where	
  are	
  you	
  from?	
  (Company	
  &	
  Role)
Why	
  are	
  you	
  here?	
  
What	
  are	
  you	
  hoping	
  to	
  learn?
Live	
  Case	
  Study!
Lets	
  use	
  one	
  of	
  your	
  businesses
Use	
  throughout	
  this	
  presenta/on
Develop	
  your	
  “Go	
  to	
  Market”	
  Affiliate	
  Plan
Any	
  volunteers?
Affiliate	
  Marke8ng
$ $ $ $ $ $ $
SEO
PPC
Social
Content
Email
Display
Inbound
Feeds
Affiliate	
  Marke8ng
$ $ $ $ $ $ $
Content
$ $ $
PPC
Feeds CouponSEO Loyalty
Affiliate	
  Marke8ng
$ $ $ $ $ $ $
Content
$ $ $
PPC
Feeds CouponSEO Loyalty
Pay	
  for	
  Performance
Industry
$2-­‐4	
  Billion	
  industry
5-­‐15%	
  of	
  eCommerce	
  site	
  sales
200,000+	
  affiliate	
  “publishers”
5,000+	
  merchants
Pros	
  &	
  Cons
Pros:
-­‐ Pay	
  for	
  Performance
-­‐ Quick	
  &	
  Easy	
  to	
  Launch
-­‐ Build	
  your	
  online	
  
exposure
-­‐ Easy	
  to	
  Measure	
  ROI
Cons:
-­‐ Time	
  to	
  maintain	
  &	
  manage
-­‐ Fraud	
  Risks
-­‐ Nega8ve	
  Brand	
  Risk
-­‐ Unsure	
  as	
  to	
  how	
  being	
  
promoted
Which	
  Network?
Low	
  Cost	
  of	
  Entry
High	
  Cost	
  of	
  Entry
Large	
  &	
  Diverse	
  
Publisher	
  Base
Smaller	
  &	
  Niche	
  
Publisher	
  Base
In-­‐House:
Info	
  Products:
Key	
  Pre-­‐Launch	
  Decisions
Management?	
  (Self,	
  Network,	
  OPM)
Payout	
  &	
  Amount	
  
	
   (CPA,	
  CPC,	
  CPL,	
  %	
  Sales)
	
  
Affiliate	
  Agreement	
  /	
  Policies
-­‐ Acceptance	
  Policy	
  (Auto	
  v.	
  Manual?	
  Types	
  of	
  Publishers?)
-­‐ Search	
  &	
  TM	
  Policy
-­‐ Adware	
  /	
  Spyware/	
  CAN-­‐SPAM	
  Compliance
-­‐ Loyalty	
  /	
  Incen8vized	
  Policy
-­‐ Plain	
  English,	
  Easy	
  to	
  Understand
-­‐ Cookie	
  Length	
  /	
  Acribu8on	
  Methodology
Sign	
  up	
  for	
  an	
  affiliate	
  account	
  to	
  “gain	
  inspira8on”
Protect	
  Your	
  Brand	
  in	
  Search
Protect	
  Your	
  Brand	
  in	
  Search
Launch	
  Checklist
Order	
  Confirma8on	
  Pixel	
  (Net	
  vs.	
  Gross	
  for	
  %	
  Sale)
New	
  Merchant	
  Promo8ons	
  w/	
  Network	
  (Nego8ate	
  Upfront)
Categoriza8on	
  &	
  Descrip8on
Commission	
  Structure	
  (Benchmark	
  to	
  peers,	
  easier	
  to	
  go	
  up	
  later)
	
  
Welcome	
  Email	
  
Easy	
  to	
  Grab	
  Crea8ve,	
  Feed,	
  Links,	
  and	
  Offers	
  (Tagged	
  for	
  your	
  analy8cs!)
Contact	
  info	
  for	
  program	
  manager	
  (Email,	
  Twicer,	
  Phone)
“Affiliate	
  Program”	
  link	
  on	
  your	
  site	
  with	
  page
Process	
  &	
  Policy	
  for	
  Returns	
  /	
  Cancelled	
  /	
  Fraud	
  orders
Sign	
  up	
  for	
  an	
  affiliate	
  account	
  to	
  “gain	
  inspira8on”
Recrui8ng	
  Publishers
Pay	
  for	
  featured	
  placement,	
  dedicated	
  email	
  (pre-­‐nego8ate	
  upfront)
Direct	
  Outreach	
  (Forums,	
  Blogs,	
  Compe8tor	
  Men8ons,	
  Network	
  Search,	
  SEO	
  
Rankings)
Categorize	
  Publishers:
-­‐ Coupon	
  &	
  Deal	
  
-­‐ Loyalty
-­‐ Content
-­‐ Comparison	
  Shopping
-­‐ Email
-­‐ Industry	
  /	
  Niche
Recrui8ng	
  Publishers
Example	
  Email:
“Hi	
  There,
My	
  name	
  is	
  Dan	
  and	
  I	
  am	
  the	
  affiliate	
  manager	
  for	
  AwesomeCo	
  (www.awesomeco.com)
I	
  visited	
  your	
  site	
  and	
  no8ced	
  that	
  at	
  (URL)	
  you	
  link	
  to	
  LessAwesomeCo.com	
  –	
  who	
  sells	
  similar	
  products	
  to	
  ours.	
  (or	
  category,	
  content,	
  
offers,	
  etc.)
We	
  would	
  like	
  to	
  work	
  with	
  you	
  and	
  your	
  website.	
  	
  We	
  would	
  like	
  to	
  invite	
  you	
  to	
  join	
  our	
  affiliate	
  program	
  –	
  Here	
  is	
  the	
  link	
  to	
  the	
  
descrip8on	
  of	
  our	
  program	
  (hcp://www.Awesomeco.com/Affiliate)
Why	
  partner	
  with	
  AwesomeCo….	
  
Special	
  Offer	
  –	
  If	
  you	
  join	
  and	
  place	
  a	
  link	
  by	
  2/28	
  you	
  will	
  get	
  increase	
  commission	
  of	
  $XX	
  and	
  bonus	
  of	
  $XX)
Let	
  me	
  know	
  if	
  you	
  are	
  interested	
  or	
  have	
  any	
  ques8ons.”
	
  
Incen8vizing	
  Publishers
1.	
  Incen8ve	
  to	
  take	
  first	
  ac8on	
  (ex.	
  adding	
  links	
  to	
  their	
  site)
2.	
  Incen8ve	
  for	
  first	
  order
3.	
  Special	
  incen8ves	
  to	
  improve	
  performance:
-­‐ Exclusive	
  content/crea8ve/offers
-­‐ Tiered	
  payment	
  structure
-­‐ Bonuses	
  for	
  reaching	
  certain	
  levels
-­‐ Increased	
  payout	
  for	
  increased	
  exposure
-­‐ Special	
  landing	
  page	
  /	
  co-­‐branded
-­‐ Free	
  Product
-­‐ Widgets/Tools
-­‐ Time-­‐Sensi8ve	
  Private	
  Offers
-­‐ Payment	
  Frequency
90/10	
  Principle
90%	
  of	
  your	
  affiliate	
  channel	
  revenue	
  will	
  be	
  generated	
  by	
  10%	
  of	
  
your	
  publishers
Vast	
  majority	
  will	
  generate	
  0	
  traffic
Priori8ze	
  your	
  efforts	
  (Recrui8ng	
  the	
  top	
  10%	
  and	
  nurturing	
  exis8ng	
  
10%)	
  
Communicate	
  -­‐	
  Newslecers,	
  Direct	
  Outreach,	
  Updates	
  (Crea8ve,	
  
Offers,	
  Product)
Always	
  Excep8ons	
  to	
  the	
  rule	
  (ex.	
  ShopCrossFitReebok.com)
Coupon	
  Sites
Coupon	
  and	
  deal	
  sites	
  are	
  typically	
  the	
  
biggest	
  affiliates
…but	
  is	
  their	
  business	
  incremental?
Coupon	
  Sites
Coupon	
  Sites
A	
  Different	
  Strategy	
  for	
  Coupon	
  Sites
Reward	
  based	
  on	
  incrementality:
-­‐ Do	
  not	
  allow	
  them	
  to	
  bid	
  in	
  paid	
  search	
  in	
  
“yourname	
  +	
  coupons”	
  space
-­‐ No	
  “exclusive”	
  compe8ng	
  offers
-­‐ Launch	
  your	
  own	
  coupon	
  site	
  (SEO	
  &	
  PPC)
-­‐ Reduce	
  commissions	
  for	
  those	
  who	
  rank	
  organic	
  
(take	
  what	
  they	
  can	
  get)
-­‐ Reward	
  coupon	
  sites	
  for	
  incremental	
  campaigns
Coupon	
  Sites
Coupon	
  Sites
Coupon	
  Sites
5	
  Piralls	
  to	
  Avoid
Coupon	
  &	
  Deal	
  Driven	
  Program
Lack	
  of	
  Acribu8on
Paying	
  for	
  Fraud/Refund/Cancel	
  Orders	
  (Low	
  Quality	
  Leads)
Beware	
  the	
  “Mysterious”	
  Affiliate	
  (No	
  Sig.	
  Site,	
  High	
  CR)
Search	
  Shenanigans
Bonus	
  Pirall:	
  Paying	
  upfront	
  for	
  “Placements”
Beyond	
  the	
  Network
BizDev	
  is	
  the	
  *new*	
  Affiliate	
  
Remember…Pay	
  for	
  Performance
Beyond	
  the	
  Network
Customer	
  Driven	
  Approach
What/Where	
  does	
  your	
  audience:
-­‐ Read	
  Online	
  (Blogs,	
  Magazines,	
  etc.)
-­‐ Par/cipate	
  in	
  Communi/es	
  /	
  Forums
-­‐ Purchase	
  complementary	
  products/services	
  
-­‐ Search	
  for	
  in	
  Google
-­‐ Follow	
  on	
  TwiVer/Pinterest/Facebook
Beyond	
  the	
  Network
NegoUate	
  Custom	
  Deals
Generic	
  outreach
“Hi	
  There,
My	
  name	
  is	
  Dan	
  and	
  I	
  work	
  for	
  AwesomeCo	
  (www.awesomeco.com)
I	
  visited	
  your	
  site	
  (twicer/pinterest/etc.)	
  thought	
  it	
  was	
  great	
  and	
  believe	
  
your	
  audience	
  may	
  also	
  be	
  interested	
  in	
  Awesomeco.
AwesomeCo	
  is….	
  (brief	
  1-­‐3	
  sentence	
  about	
  with	
  differen8ator)
I	
  would	
  love	
  to	
  explore	
  poten8al	
  ways	
  we	
  could	
  work	
  together”
Beyond	
  the	
  Network
Example
Beyond	
  the	
  Network
Beyond	
  the	
  Network
Beyond	
  the	
  Network
Daily	
  Deals	
  /	
  Flash	
  Sales
Everything	
  is	
  NegoUable
Strive	
  for	
  Profitable	
  Deals	
  
Try	
  Non-­‐Tradi8onal	
  Offers
Remember	
  the	
  levers:
-­‐ Offer
-­‐ Rev	
  Share
-­‐ Exclusivity
-­‐ Your	
  Margin	
  /	
  Economics
Press	
  /	
  Media
Approach	
  with	
  open	
  mind
Focus	
  on	
  your	
  benefits	
  to	
  their	
  audience
Many	
  op8ons	
  to	
  work	
  together:
-­‐ Press	
  /	
  Men8ons
-­‐ Performance	
  Display	
  
-­‐ Co-­‐Branded	
  Contest
Be	
  CreaUve!
FREE	
  GIFT
Sent	
  via	
  email
If	
  you	
  like	
  it,	
  show	
  some	
  
Amazon	
  love
Next	
  Steps
Sign	
  up	
  as	
  an	
  affiliate,	
  join	
  some	
  related	
  programs
Select	
  a	
  Network,	
  Review	
  &	
  Fill	
  out	
  the	
  Pre-­‐Launch	
  and	
  
Launch	
  Checklists
Launch	
  your	
  program!
Brainstorm	
  some	
  custom	
  affiliate	
  deals	
  and	
  reach	
  out!
AddiUonal	
  Resources	
  in	
  sheet	
  
Course Title
Course Title
INSTRUCTOR NAME

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Affiliate Marketing 101

  • 1. Affiliate Marketing 101 DAN MARQUES @dmarques1
  • 2. agenda Get  to  Know  Each  Other What  is  Affiliate  Marke/ng? Pre-­‐Launch  –  How  big  can  it  be?  Where  do  I  start?   Launch  –  Process,  Best  Prac?ces Grow  –    90/10,  Recrui?ng,  PiEalls  to  Avoid Beyond  the  Network Free  GiM! Next  Steps
  • 5. tell  me  about  you! Who  are  you?  (Name) Where  are  you  from?  (Company  &  Role) Why  are  you  here?   What  are  you  hoping  to  learn?
  • 6. Live  Case  Study! Lets  use  one  of  your  businesses Use  throughout  this  presenta/on Develop  your  “Go  to  Market”  Affiliate  Plan Any  volunteers?
  • 7. Affiliate  Marke8ng $ $ $ $ $ $ $ SEO PPC Social Content Email Display Inbound Feeds
  • 8. Affiliate  Marke8ng $ $ $ $ $ $ $ Content $ $ $ PPC Feeds CouponSEO Loyalty
  • 9. Affiliate  Marke8ng $ $ $ $ $ $ $ Content $ $ $ PPC Feeds CouponSEO Loyalty Pay  for  Performance
  • 10. Industry $2-­‐4  Billion  industry 5-­‐15%  of  eCommerce  site  sales 200,000+  affiliate  “publishers” 5,000+  merchants
  • 11. Pros  &  Cons Pros: -­‐ Pay  for  Performance -­‐ Quick  &  Easy  to  Launch -­‐ Build  your  online   exposure -­‐ Easy  to  Measure  ROI Cons: -­‐ Time  to  maintain  &  manage -­‐ Fraud  Risks -­‐ Nega8ve  Brand  Risk -­‐ Unsure  as  to  how  being   promoted
  • 12. Which  Network? Low  Cost  of  Entry High  Cost  of  Entry Large  &  Diverse   Publisher  Base Smaller  &  Niche   Publisher  Base In-­‐House: Info  Products:
  • 13. Key  Pre-­‐Launch  Decisions Management?  (Self,  Network,  OPM) Payout  &  Amount     (CPA,  CPC,  CPL,  %  Sales)   Affiliate  Agreement  /  Policies -­‐ Acceptance  Policy  (Auto  v.  Manual?  Types  of  Publishers?) -­‐ Search  &  TM  Policy -­‐ Adware  /  Spyware/  CAN-­‐SPAM  Compliance -­‐ Loyalty  /  Incen8vized  Policy -­‐ Plain  English,  Easy  to  Understand -­‐ Cookie  Length  /  Acribu8on  Methodology Sign  up  for  an  affiliate  account  to  “gain  inspira8on”
  • 14. Protect  Your  Brand  in  Search
  • 15. Protect  Your  Brand  in  Search
  • 16. Launch  Checklist Order  Confirma8on  Pixel  (Net  vs.  Gross  for  %  Sale) New  Merchant  Promo8ons  w/  Network  (Nego8ate  Upfront) Categoriza8on  &  Descrip8on Commission  Structure  (Benchmark  to  peers,  easier  to  go  up  later)   Welcome  Email   Easy  to  Grab  Crea8ve,  Feed,  Links,  and  Offers  (Tagged  for  your  analy8cs!) Contact  info  for  program  manager  (Email,  Twicer,  Phone) “Affiliate  Program”  link  on  your  site  with  page Process  &  Policy  for  Returns  /  Cancelled  /  Fraud  orders Sign  up  for  an  affiliate  account  to  “gain  inspira8on”
  • 17. Recrui8ng  Publishers Pay  for  featured  placement,  dedicated  email  (pre-­‐nego8ate  upfront) Direct  Outreach  (Forums,  Blogs,  Compe8tor  Men8ons,  Network  Search,  SEO   Rankings) Categorize  Publishers: -­‐ Coupon  &  Deal   -­‐ Loyalty -­‐ Content -­‐ Comparison  Shopping -­‐ Email -­‐ Industry  /  Niche
  • 18. Recrui8ng  Publishers Example  Email: “Hi  There, My  name  is  Dan  and  I  am  the  affiliate  manager  for  AwesomeCo  (www.awesomeco.com) I  visited  your  site  and  no8ced  that  at  (URL)  you  link  to  LessAwesomeCo.com  –  who  sells  similar  products  to  ours.  (or  category,  content,   offers,  etc.) We  would  like  to  work  with  you  and  your  website.    We  would  like  to  invite  you  to  join  our  affiliate  program  –  Here  is  the  link  to  the   descrip8on  of  our  program  (hcp://www.Awesomeco.com/Affiliate) Why  partner  with  AwesomeCo….   Special  Offer  –  If  you  join  and  place  a  link  by  2/28  you  will  get  increase  commission  of  $XX  and  bonus  of  $XX) Let  me  know  if  you  are  interested  or  have  any  ques8ons.”  
  • 19. Incen8vizing  Publishers 1.  Incen8ve  to  take  first  ac8on  (ex.  adding  links  to  their  site) 2.  Incen8ve  for  first  order 3.  Special  incen8ves  to  improve  performance: -­‐ Exclusive  content/crea8ve/offers -­‐ Tiered  payment  structure -­‐ Bonuses  for  reaching  certain  levels -­‐ Increased  payout  for  increased  exposure -­‐ Special  landing  page  /  co-­‐branded -­‐ Free  Product -­‐ Widgets/Tools -­‐ Time-­‐Sensi8ve  Private  Offers -­‐ Payment  Frequency
  • 20. 90/10  Principle 90%  of  your  affiliate  channel  revenue  will  be  generated  by  10%  of   your  publishers Vast  majority  will  generate  0  traffic Priori8ze  your  efforts  (Recrui8ng  the  top  10%  and  nurturing  exis8ng   10%)   Communicate  -­‐  Newslecers,  Direct  Outreach,  Updates  (Crea8ve,   Offers,  Product) Always  Excep8ons  to  the  rule  (ex.  ShopCrossFitReebok.com)
  • 21. Coupon  Sites Coupon  and  deal  sites  are  typically  the   biggest  affiliates …but  is  their  business  incremental?
  • 23. Coupon  Sites A  Different  Strategy  for  Coupon  Sites Reward  based  on  incrementality: -­‐ Do  not  allow  them  to  bid  in  paid  search  in   “yourname  +  coupons”  space -­‐ No  “exclusive”  compe8ng  offers -­‐ Launch  your  own  coupon  site  (SEO  &  PPC) -­‐ Reduce  commissions  for  those  who  rank  organic   (take  what  they  can  get) -­‐ Reward  coupon  sites  for  incremental  campaigns
  • 27. 5  Piralls  to  Avoid Coupon  &  Deal  Driven  Program Lack  of  Acribu8on Paying  for  Fraud/Refund/Cancel  Orders  (Low  Quality  Leads) Beware  the  “Mysterious”  Affiliate  (No  Sig.  Site,  High  CR) Search  Shenanigans Bonus  Pirall:  Paying  upfront  for  “Placements”
  • 28. Beyond  the  Network BizDev  is  the  *new*  Affiliate   Remember…Pay  for  Performance
  • 29. Beyond  the  Network Customer  Driven  Approach What/Where  does  your  audience: -­‐ Read  Online  (Blogs,  Magazines,  etc.) -­‐ Par/cipate  in  Communi/es  /  Forums -­‐ Purchase  complementary  products/services   -­‐ Search  for  in  Google -­‐ Follow  on  TwiVer/Pinterest/Facebook
  • 30. Beyond  the  Network NegoUate  Custom  Deals Generic  outreach “Hi  There, My  name  is  Dan  and  I  work  for  AwesomeCo  (www.awesomeco.com) I  visited  your  site  (twicer/pinterest/etc.)  thought  it  was  great  and  believe   your  audience  may  also  be  interested  in  Awesomeco. AwesomeCo  is….  (brief  1-­‐3  sentence  about  with  differen8ator) I  would  love  to  explore  poten8al  ways  we  could  work  together”
  • 35. Daily  Deals  /  Flash  Sales Everything  is  NegoUable Strive  for  Profitable  Deals   Try  Non-­‐Tradi8onal  Offers Remember  the  levers: -­‐ Offer -­‐ Rev  Share -­‐ Exclusivity -­‐ Your  Margin  /  Economics
  • 36. Press  /  Media Approach  with  open  mind Focus  on  your  benefits  to  their  audience Many  op8ons  to  work  together: -­‐ Press  /  Men8ons -­‐ Performance  Display   -­‐ Co-­‐Branded  Contest Be  CreaUve!
  • 37. FREE  GIFT Sent  via  email If  you  like  it,  show  some   Amazon  love
  • 38. Next  Steps Sign  up  as  an  affiliate,  join  some  related  programs Select  a  Network,  Review  &  Fill  out  the  Pre-­‐Launch  and   Launch  Checklists Launch  your  program! Brainstorm  some  custom  affiliate  deals  and  reach  out! AddiUonal  Resources  in  sheet